Craig's Boston Housing Market Forecast 2023 | We Have An Affordability Problem
Вставка
- Опубліковано 7 лют 2025
- Craig's Boston housing market forecast for 2023. Talking about buying vs. renting & the reality of being a first-time buyer in today's market. No matter how you look at it, we have an ongoing housing shortage and therefore an affordability problem. Hopefully one of these tips or strategies will help you overcome our cutthroat local market.
⬇️⬇️⬇️⬇️⬇️⬇️
Are you buying or selling property in Massachusetts? Please don't hesitate to contact me anytime. I love to connect with our UA-cam viewers -- many of whom have become great friends & customers.
Contact Craig:
Call/text: 617-750-1205
Email: Craig@PowerRealtyBoston.com
Power Realty Advisors
Serving Greater Boston & The South Shore
Located in Marshfield, MA
You can learn more about our business at the links below:
Website: www.powerrealt...
Facebook: / powerrealtyadvisors
Instagram: www.instagram....
Other links you may be interested in:
The 15-Minute First Time Buyer For Massachusetts:
• Massachusetts First Ti...
Adjustable Rate Mortgages & Why They're Becoming Popular Again:
• Adjustable Rate Mortga...
First
Last
Hi Craig , good advice with buying, holding and renting, I start to feel that the sooner you do it the better , I'm growing tired of paying rent
Thanks Dariusz! Yeah I think more people are developing this mentality. It makes sense. There seems to be no end in sight to this overwhelming demand for housing.
My rents almost 3k a month..that forced me to buy even in this sellers market
It will prove to be the right move. These days it's usually a tough payment to swallow, but in due time almost everyone is thankful they made the decision to buy!
I own 4 condos in Boston that I rent out (in the South End and South Boston) and I actually rent the unit that I live in. I live in a luxury full service building with 24 hour doorman and tons of amenities for $3,200/month. If I was to buy the same unit it would cost around $1.1 million. With the HOA fees in these type of buildings being around $1,000/month, taxes around $800/month, the lost opportunity cost of the investing the 20% or $220,000 down payment (treasuries and CDs are yielding 5.5% right now) and the ~7.5% mortgage interest rate on the 880k loan = $5,600/month mortgage. So in total it would be $7,400/month to own the unit vs $3,200/month to rent the same unit. You do the math. Buying makes no sense right now in most circumstances in Boston.
I think the opportunity cost thing is really the strongest argument, and I agree with it. I think if people were to step back and say, well I have this flexible rental and I can allocate this money to x fund or financial device, that’s a strategy that runs parallel to property ownership. For a lot of people it would make sense.
The argument for buying is still a) are you going to actually going to take action on the alternative and b) we are fixing an asset in time. Don’t forget in your math, the mortgage ends.
I totally agree with what you’re saying in general. The math of course checks out. But I feel like the market conditions aren’t going to improve for buyers anytime soon. If they want to own property, yesterday was the best time to buy. What do you think?
@@powerrealtyadvisors I think it’s best to buy solid rental properties in non-luxury buildings where the math makes sense (rare to find nowadays with interest rates where they are) and rent your primary. Ramit Sethi is 100% right on that point. In the “A” cities (ie NYC, Boston, SF) you can get much more in terms of being able to live in a luxury full service building than buying in terms of monthly cost. I have about 600k right now in various CDs and treasuries paying a nice 5.5% annual rate in cash. I also have over 200k sitting in an AMEX high yield savings account paying 4.3% on cash monthly. You can pour cash into these types of investments and the monthly cash flow fully pay for you to rent in a luxury building. PS: I did a tour of 100 Shawmut recently - that building is still only 80% sold out in over 2 years and the people who bought early are f*cked. The condo docs only allow 25% of the units to be rented and they hit that cap and there is a waiting list to rent out. The early buyers who now want to sell can’t rent and can’t sell because even the brand new units haven’t sold in almost 3 years. Not a good situation. I’d never buy in the luxury buildings.
@@Pat7629I totally agree with your investment thesis and I’m a big fan of Ramit Sethi as well! Guy is awesome. I see what you’re saying specifically in the luxury market. It totally tracks with what I’ve seen the last couple years. Values in the luxury/higher end market have been far more affected by the rate hikes than the larger housing market. I agree navigating that market would require caution & due diligence. Boston in particular is seeing so much residential luxury development right now (still not what the market actually needs).