Boston metrowest here. As I see it, the reasons inventories are so low in the most in-demand towns are liberal policies and zoning/regulation. The state already practices redistribution of wealth every chance it can, then on top of that, the toniest towns are charging sellers an additional 4% transaction fee for properties whose values are in excess of even below the median value. It’s a cash cow for other programs. New construction is eschewed by existing residents, so much so, the state is extorting communities with even peripheral access to public transportation (the MBTA) to rezone entire areas for high-density housing in order to receive other state funding. As if those weren’t bad enough, liberal townsfolk approve every outrageous school budget (my town just built 4 NEW schools and is building ANOTHER, plus has the highest-paid teachers in the state), sending RE taxes into the stratosphere. Fewer and fewer (especially first-time) homebuyers can afford a massive down, a massive mortgage, a massive interest rate, and the massive local taxes. Older folks whom once might have considered downsizing to a condo are deciding to stay put, rather than see their equity swallowed in the transaction and then, go from the frying pan into the fire by paying un-cappable $1++k/month in condo fees to live in the same town. What does the future hold? Well, the Boston area market is extremely unlikely to improve for buyers. We’re not a one-trick pony when it comes to why people want to live here. We’ve got the finest public and private schools in the nation. The most robust technological industry. The most incredible medical institutions. A vibrant sports culture. Plus fresh off-the-docks lobster.
I get what you're saying. The extra 4% fee on high-value properties is tough, and existing residents rejecting new construction doesn't help. The state's push for high-density housing near the MBTA to get funding feels like pressure. Sky-high school budgets driving up property taxes just add to the problem. With all these costs-down payments, mortgages, interest rates, and taxes-it's no wonder first-time buyers and downsizers are struggling. It's a lot to handle. We need local and state governments to find a way to support growth without overburdening everyone. Maybe more community involvement and balanced policies could help.
Sounds much like California and their taxes, fees, zoning laws. The up side is growth in other cities who need young citizens and their money. The most perverse aspect of these costs is that they go to pay for policies which demonise the people who generate the cash. Where this is heading is a West European social welfare state , this is the endgame. Unfortunately The EU's welfare state model has been proven to be unaffordable.
We also need to figure in inflation and energy costs which are brought to you by the same people who leech off the fees. I live in Berlin, Germany and regressive left wing building policies have also led to a severe housing shortage here. I assume in Boston the left has made a deal and no openly taps the wealth they supposedly despise.
I must have the real estate fairy sitting on my shoulder. For the second time, I have sold my house at the high prices and purchased my new home before prices got ridiculous(for cash). I appreciate your emotion in this video. My whole family lives in Boston or the surrounding area. I'm moving to Plymouth next month. I grew up in Hingham and went to school in Boston. I just looked up the house I grew up in--millions-- wow! I really feel for your clients, trying to buy a house in this market!
Great insights, Mike. I love how the article attributes part of this problem to “homebodies unwilling to budge.” This is laughable. Where are we supposed to go when housing costs are so high? We’re supposed to give up a paid off house? A low mortgage rate? But I am sick of high real estate prices & a state that’s too woke. So I’m moving to North Carolina, where I can get a brand-new build for less than $500k. Good luck Bay Staters.
Thanks for sharing your thoughts! and I completely get your frustration with the housing market. North Carolina sounds like a great choice, especially with the opportunity to get a new build within your budget. I have a few amazing referral partners down there, depending on which spot you're looking. Best of luck with your move, and if you need anything during the transition, feel free to reach out! 617-686-9299
If we were to get new inventory, where would it come from? Every new construction is a high rise condo or luxury apartment. Homes are not being built and the population is only increasing!
That's the issue. The construction costs are so high right now that everything seems like 'luxury' when 3/4 of the time it's pretty run of the mill quality of construction.
how much of this drop in inventory is people sitting on their 3% mortgages? Once the rates drop (6%? 5%?) and people realize they are not going further down anytime soon, maybe the inventory will increase.
The issue is that for every 1% Drop In Rates Brings 5 MILLION Buyers Into the Market. There isn't enough 'new' inventory coming on. And every seller, also has to buy a home, so it's still a net 0 of new inventory
Looking for a Realtor in Massachusetts? Text/Call Me - 617-686-9299
great channel!
I appreciate you ! Thank you! 🙏
Boston metrowest here. As I see it, the reasons inventories are so low in the most in-demand towns are liberal policies and zoning/regulation. The state already practices redistribution of wealth every chance it can, then on top of that, the toniest towns are charging sellers an additional 4% transaction fee for properties whose values are in excess of even below the median value. It’s a cash cow for other programs. New construction is eschewed by existing residents, so much so, the state is extorting communities with even peripheral access to public transportation (the MBTA) to rezone entire areas for high-density housing in order to receive other state funding. As if those weren’t bad enough, liberal townsfolk approve every outrageous school budget (my town just built 4 NEW schools and is building ANOTHER, plus has the highest-paid teachers in the state), sending RE taxes into the stratosphere. Fewer and fewer (especially first-time) homebuyers can afford a massive down, a massive mortgage, a massive interest rate, and the massive local taxes. Older folks whom once might have considered downsizing to a condo are deciding to stay put, rather than see their equity swallowed in the transaction and then, go from the frying pan into the fire by paying un-cappable $1++k/month in condo fees to live in the same town.
What does the future hold? Well, the Boston area market is extremely unlikely to improve for buyers. We’re not a one-trick pony when it comes to why people want to live here. We’ve got the finest public and private schools in the nation. The most robust technological industry. The most incredible medical institutions. A vibrant sports culture. Plus fresh off-the-docks lobster.
I get what you're saying. The extra 4% fee on high-value properties is tough, and existing residents rejecting new construction doesn't help. The state's push for high-density housing near the MBTA to get funding feels like pressure.
Sky-high school budgets driving up property taxes just add to the problem. With all these costs-down payments, mortgages, interest rates, and taxes-it's no wonder first-time buyers and downsizers are struggling. It's a lot to handle.
We need local and state governments to find a way to support growth without overburdening everyone. Maybe more community involvement and balanced policies could help.
Sounds much like California and their taxes, fees, zoning laws. The up side is growth in other cities who need young citizens and their money.
The most perverse aspect of these costs is that they go to pay for policies which demonise the people who generate the cash. Where this is heading is a West European social welfare state , this is the endgame. Unfortunately The EU's welfare state model has been proven to be unaffordable.
We also need to figure in inflation and energy costs which are brought to you by the same people who leech off the fees.
I live in Berlin, Germany and regressive left wing building policies have also led to a severe housing shortage here.
I assume in Boston the left has made a deal and no openly taps the wealth they supposedly despise.
I must have the real estate fairy sitting on my shoulder. For the second time, I have sold my house at the high prices and purchased my new home before prices got ridiculous(for cash). I appreciate your emotion in this video. My whole family lives in Boston or the surrounding area. I'm moving to Plymouth next month. I grew up in Hingham and went to school in Boston. I just looked up the house I grew up in--millions-- wow! I really feel for your clients, trying to buy a house in this market!
Great insights, Mike. I love how the article attributes part of this problem to “homebodies unwilling to budge.” This is laughable. Where are we supposed to go when housing costs are so high? We’re supposed to give up a paid off house? A low mortgage rate? But I am sick of high real estate prices & a state that’s too woke. So I’m moving to North Carolina, where I can get a brand-new build for less than $500k. Good luck Bay Staters.
Thanks for sharing your thoughts! and I completely get your frustration with the housing market. North Carolina sounds like a great choice, especially with the opportunity to get a new build within your budget. I have a few amazing referral partners down there, depending on which spot you're looking. Best of luck with your move, and if you need anything during the transition, feel free to reach out! 617-686-9299
If we were to get new inventory, where would it come from? Every new construction is a high rise condo or luxury apartment. Homes are not being built and the population is only increasing!
That's the issue. The construction costs are so high right now that everything seems like 'luxury' when 3/4 of the time it's pretty run of the mill quality of construction.
how much of this drop in inventory is people sitting on their 3% mortgages? Once the rates drop (6%? 5%?) and people realize they are not going further down anytime soon, maybe the inventory will increase.
The issue is that for every 1% Drop In Rates Brings 5 MILLION Buyers Into the Market. There isn't enough 'new' inventory coming on. And every seller, also has to buy a home, so it's still a net 0 of new inventory