I’ve been looking for my first deal for too long and now I feel like I’ll never have enough saved the way prices are going especially on multi family houses in Massachusetts. I’m in the south shore so I’m looking at deals in Weymouth Braintree Quincy Rockland Abington and in the city of Boston. I’m aware these areas are pricey but still when will these prices come crashing even in the less desirable places of the city like Mattapan and even closer to Franklin Park Zoo houses are too expensive.
What makes you think they will crash?
@Russell Brazil Im asking to get insight on if it will crash because it has too at some point it can’t just keep going up for 5-10 years at this pace
On a national level, since the great depression prices have only dropped twice, and only one of those was of a significant value. Im not saying they will always continue upward, but its actually a very rare occurrence for a significant dip (on a national level) to happen. Once every couple generations is the average time for that to occur right now.
@Chris Munichiello , we aren't expecting major crash numbers here in the Greater Boston Area. I personally don't invest in the South Shore, but as @Russell Brazil mentioned, 07 and 08 were catastrophic collapses. If you are at a tight price point, Worcester is only about an hour's trip, and in your price range. Deals are still hard to come by there, but fair returns.
@Chris Munichiello The fundamentals that caused the last crash simply aren't in play now. In the run-up to the 2006 peak and the 2009 valley, there were phenomenal (criminal!) abuses in lending. Lenders were pressured by politicians to make loans to people who couldn't possible repay them. That and a lot of other shenanigans lead to that crash.
The eastern Mass market as a whole is still growing. There's still a radical shortage of properties, sky high rents and that's driving very high demand.
Education, medicine, biotech, hi tech, defense, finance - there are so many growing industries here that I don't see demand relenting any time in the foreseeable future.
The post mentions that you are from Weymouth so I assume this is partially a desire to stay close to home. Then comes in the question of what are you looking for, a full blown investment property or also something that you can live in? House hacking is what I’m doing at the moment collecting rent to offset my mortgage While continuing to save and growing equity. I looked for 2 years before I bought my house and had another property under agreement that I had to walk away from. If this is a first purchase you can go with an fha loan at 3.5% down future investment properties banks will require 25% down on the property if you can’t get creative.
@Chris Munichiello , gotta stay persistent, there are a ton of deals out there to be had. The Southshore, specifically Quincy is SO high right now, but, its only going to continue to go up! There is such housing shortage. I know a lot about the south shore, lived down there for a while ( quincy ) and house hacking, as @Frank Benson mentions is the way to go if you are looking to jump in. DM me with more questions, id love to be able to help out any new investor.
As @Seth Williams pointed out, there is such a housing shortage right now. Even if we’re heading for a recession, it doesn’t mean it’s going to take the housing market down with it. Each recession is different and affects the economy differently. I agree with @Jared Smith about looking in central mass, you can still get decent returns.