The price of real estate is through the roof, hitting another milestone in Massachusetts.
The median price of a single family tops $600-thousand dollars.
“But for people who can only afford a $200-$300-thousand dollar house, Mass. is no longer a friendly place,” said Doug Melcher, broker at Melcher Real Estate Group.
The median price for homes is up each of the last three years.
- In 2020 it was 440k
- In 2021 it was 550k
- In 2022 it’s up to 610k
Melcher says Boston and surrounding suburbs continue to sell at and above asking price.
“We may see a mild correction but I don’t think it’s going to be a big correction. People are getting paid more at their places of employment right now and there are a lot of cash buyers wandering around,” said Melcher.
However, higher mortgage interest rates currently at 5.8% does limit some buyers.
“If definitely limits the buyers that can fish in that pond. That’s probably [sic] the biggest differential,” said Jon Libman of Fairway Independent Mortgage Corporation
But rates have also dropped slightly so should a buyer wait?
“You date your rate but you marry your house. These all come in cycles we’re back to this cycle where there’s probably [sic] another opportunity in the next couple of years to re-finance,” said Libman.
Libman says consider an adjustable rate depending on your situation.
Melcher puts this all in perspective saying this year’s high rate was once a low rate.
“Anyone who’s in my age group remembers when they were over 10% so being at 5½% or 4 ½% — what people are getting right now. It’s not as bad as some people think,” said Melcher
One thing pointing to a possible slow down is price adjustments the lowering of prices by sellers.
Both experts we talked to are seeing more of those price drops.
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