By Judy Boyle, Realtor®
It was nice while it lasted, but the rapid rise in home values over the past four years seems to have come to a screeching halt.
According to a recent article on CNBC.com, author Diana Olick states “Southern California home sales hit the brakes in June, falling to the lowest reading for the month in four years.”
Why this is important for homeowners in central Massachusetts and other parts of the country to know is because the real estate market in California has historically served as a predictor for markets throughout the country.
“This could be the very beginning of a turning point,” said Robert Shiller, a Nobel Prize-winning economist who is famed for warning of the dot-com and housing bubbles.
Shiller stressed that he isn’t ready to make that call yet.
In another recent article, Bloomberg Business Week attributes the sudden market halt to rising mortgage rates and the fact that home prices are climbing twice as fast as salaries.
“Affordability is becoming a major headache for homebuyers,” said Lawrence Yun, chief economist of the National Association of Realtors.
Locally, would-be first-time homebuyers are opting to renew lease agreements after losing out on bidding wars and watching mortgage rates creep up.
“I had been looking for a home since February,” said Northborough renter John Sullivan. “I was bidding high…in many cases overbidding…and still losing out. What I could afford then, even if I was successful in winning a bid, is no longer affordable. I just couldn’t take it anymore so I renewed my lease for another year.”
While industry experts are not predicting a housing bubble, they are discouraging homeowners from waiting much longer to cash in on their equity.
“If you don’t sell now, you may have to wait another 10 years to get that money back,” warned Shiller.
Boyle lives in Northborough where she is also the chapter leader of the Neighbor Brigade, a local nonprofit that assists families in times of need. She has been a real estate agent since 2003 and consistently wins awards and accolades for excellence in customer service and sales volume.
Her mission is to empower her clients to make smarter decisions through data-driven insights and local market knowledge. She invites you to follow her on Facebook at www.facebook.com/judyboylerealtor, call or email her for the Fall 2018 Home Buyer and/or Seller Guides, or just to talk real estate.
Judy Boyle, Realtor®
Serving Worcester & Southern Middlesex Counties with
honesty and integrity since 2003