2021 Real Estate Observations (Boston, Westfield, Marlborough: jobs, town, bedroom)

[GeraldTheGnome]

I think the WFH environment would draw additional scrutiny in a downturn, unrelated to real estate per se. If you are fretting your job, the idea of moving to the exurbs and asking to work remotely may lose its appeal. I'd feel comfortable owning a house with a sustainable daily commute, less so if depending on Covid-era work arrangements.

[msRB311]

Originally Posted by GeraldTheGnome

I think the WFH environment would draw additional scrutiny in a downturn, unrelated to real estate per se. If you are fretting your job, the idea of moving to the exurbs and asking to work remotely may lose its appeal. I'd feel comfortable owning a house with a sustainable daily commute, less so if depending on Covid-era work arrangements.

if it means spending 300k less on a house I think people will continue to ask about WFH arrangements.

[Shizim]

Originally Posted by WestieWhitie

Those who don’t need to sell will be fine - they might have paid an insane price but assuming they locked in at a low rate their mortgage will be manageable. It’s those who need to sell who will be in a whole lot of pain - current prices are simply not sustainable in the long run with rates at 6% instead of 2% and will be quite a shock realizing you can only get $750K while owing $1,000,000.

Do people really think prices are going to drop? or flatten? Last "crash", better towns had prices flatten out more so than have substantial drops. Besides desire from those on the sidelines, why isn't that the consensus view. Demand remains strong.

I have no dog in the fight. bought my house >5y ago and no plan to leave for 10+ years. Although i wouldn't be heartbroken to see a retraction in the vacation home market.

[yesmaybe]

Originally Posted by Shizim

Do people really think prices are going to drop? or flatten?

Highest risk is:

1. The stupidly expensive stuff, if rates get high enough to a point where people literally can't get mortgages
2. Anything with a bad commute to Boston or Kendall

[yesmaybe]

https://www.redfin.com/MA/Westboroug.../home/16631058

Oh no, low end condo flipper all the way out in Westborough. Bought in December for 162, now BOM at 270. Only a week on the market so far so it's early. But this is the kind of place that should get crushed.

[WestieWhitie]

Originally Posted by Shizim

Do people really think prices are going to drop? or flatten? Last "crash", better towns had prices flatten out more so than have substantial drops. Besides desire from those on the sidelines, why isn't that the consensus view. Demand remains strong.

I have no dog in the fight. bought my house >5y ago and no plan to leave for 10+ years. Although i wouldn't be heartbroken to see a retraction in the vacation home market.

It’ll probably crash in less desirable suburbs with mediocre schools once the reality of much higher rates sinks in. $700,000 1800sqft cape in Weymouth made sense when rates were under 2%, it’ll make a whole lot less snense when the rates re closer to 6%. Might also be the case in shootier, stabbier parts of Boston that haven’t quite up and came.

[yesmaybe]

https://www.redfin.com/MA/Acton/62-L.../home/11371807

Another example of why I'm not a fan of additions. Comes out looking weird.

[GeoffD]

Originally Posted by yesmaybe

https://www.redfin.com/MA/Westboroug.../home/16631058

Oh no, low end condo flipper all the way out in Westborough. Bought in December for 162, now BOM at 270. Only a week on the market so far so it's early. But this is the kind of place that should get crushed.

Not crushed. With 20% down, it’s cash flow neutral as a rental.

[yesmaybe]

Originally Posted by GeoffD

Not crushed. With 20% down, it’s cash flow neutral as a rental.

Not for a 1 all the way out in Westborough. Maybe they will get lucky.

[GeoffD]

Originally Posted by yesmaybe

Not for a 1 all the way out in Westborough. Maybe they will get lucky.

What do you think a modern 1 bedroom apartment rental costs in Westborough?