Weekend open houses welcome troops of buyers trying to recover from a "will this snow ever end" siege mentality. They jostle for space at open houses as if they were in the middle of the Louvre or to bring it closer to home at an art show opening on Newbury Street or the South End. Murmurs from fellow house hunters create a sense of excitement that went missing over the last few months. A blue jay's chatter and the appearance of a noonday sun make the afternoon golden for buyer and seller alike.
It's during the heady first weeks of the spring market that a buyer needs a realtor's counsel even more to make a sound purchase amidst all the buzz. What is a good offer? What are the true comparables on a home? Anyone who does business in Cambridge and the Greater Boston area know that comparable home values can differ within a neighborhood - sometimes within a block. If a buyer does find herself one among many making an offer on a home, a sense of competition can drive her to sweeten the offer or back out altogether. (Multiple offers are not an anomaly in this area - even now.)
We can provide statistics backwards, forward, and sideways, but comparables only go so far. Did that home speak to them (hey, you, I'm just perfect for you) when they first stepped across the threshhold? Did the information we provide confirm that they were about to make the right decision?
What a ride - even in a down market. To be a part of a decision that brings a gleam to the eye and a bounce to the step.
This year the spring market started late (it's usually good weather that jump-starts the market in January or early February) and from all indications will continue into the usual summer downtime between June 15 and Labor Day.
The market in Cambridge and pockets of Boston and surrounding towns is good this year despite the national news. Low inventory in certain price bands is driving many sales.
An interesting turn of events has occurred in the 5% first-time home buyer category. Usually, the home of choice in this location for the single, first-time home buyer is a one-bedroom/one-bath condominium in desirable locations like Harvard Sq., Davis Sq. in Somerville, and the Back Bay, South End, North End, Beacon Hill and Waterfront in Boston. If a buyer secures a home in those locations, it's hard to let it go when they move up because of its attractiveness as a rental investment. The resulting low inventory causes intense competition.
Since the first of the year, however, tight credit restrictions have priced the 5% down home-buyer with excellent credit scores out of those locations and caused somewhat of a small condo glut. The FHA has stepped in to service some of those buyers; yet that market still remains soft. Maybe the glut will disappear when come the 1st of July Fannie Mae and Freddie Mac make some changes. In the meantime, the home-seller if he or she truly wants to sell needs to adjust their price expectations or offer creative financing.
All for now. Tomorrow, I will offer my take on how burgeoning gas prices are causing people to reassess their living situation and ask themselves if they should pull up stakes to move closer to the job or public transportation.
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