This is only my first forum post. I've learned a lot in the past year. I did 3 flips in MA, and also got my real estate license. Not a bad time to do either!
Anyways, I am always trying to look one step ahead. I know the Fed is promising very low interests rates over the next 3 or so years. I know the government does NOT want any sort of depression.
In MA right now, (I'm aware it is the slow season for the RE market) there is simply not a lot of options for buyers. This is making it a sellers market, especially in the central part of the state where I am located.
So, with low interest rates, buyers can spend more on a home, and have a lower monthly payment, and the Fed wants to continue inflation.
BUT, unemployment is record high, Consumer debt is higher than 2007/2008, (our countries debt is higher now too so it may not be the best statistic, but either way, it's pretty high). Which says to me, what sort of price increases in housing can people really afford?
On one hand, prices are going up, rates are low, things are great. On the other hand, debt is high and many people are collecting unemployment and stimulus. Have we actually felt the effects of Covid?
I guess my exact questions are: 1) How much higher can prices go in MA? 2) What happens when prices come down? Is is a steep drop in prices? Or is it more of a flattening out? 3) What do you think are the longterm effects of the current market situation?
@Samuel Shaw where is my crystal ball? I am not sure where you consider central mass but I don't see prices dropping anytime soon. I sold in shrewsbury in July and the market was hot. The market was still hot in Acton months later for condos because of so little inventory and has been for a bit. What will push the market down will be inventory. So if you see foreclosures that will push prices down. New construction will be hurt by the cost of lumber for a while so prices need to be higher for new construction. Massachusetts also has a 2.8% unemployment rate vs 16% in July so even with underreporting there is still employment, I don't see things dropping until foreclosure can take place, and people feel more normalized then you will know if there will be a flood of inventory.
@Colleen F. Thank you so much. I’ve been following Worcester for a while and I really wish I bought multi family there a few years ago.
@Samuel Shaw Worcester is a good area for rentals, lots of triplexes and there are some people on here who invest in that area with whom you might try to connect. There may be some deals to be found but it takes time and patience. You do have to know the area. My son has a number of friends in Worcester and some of the neighborhoods aren't ones I would care to invest in. I suspect that after the eviction moratorium there will be some turnover.. Also look in foreclosures and auctions for that market.