As we all now know, real estate in Boston and nation generally took off in the first couple of months of 2013. The question was: would it last? The answer for now is yes, with some qualifications.
When rates jumped a full point a few weeks ago, there was some shock among real estate professionals. Was the practically overnight spike in rates going to shut down our nascent revived market? Now that some time has passed, I think the rate jump did effect the market. Buyer buoyancy was deflated a bit when they realized how much their monthly payments would be with higher rates, and we have seen less competition among buyers. But this weakening could be due to seasonal fluctuations in the number of buyers and sellers in the market.
Despite some possibly seasonal slow down, signs are that the market is still very strong for sellers (and landlords — tenants are paying full fees for rentals, although now that we’re so close to the magic Sept 1 move in day, landlords with unrented units are making deals). Sellers are slightly less assured than they were 2-3 months ago, but they are still holding most of the cards in negotiations.
My message to buyers right now: still a good time to buy unless your time horizon is less than 3 years. For sellers, we’re back, baby, it’s a hot market and everyone wants what you’re selling.