2021 Real Estate Observations (Boston, Dedham, Nantucket: jumbo loan, required, down payment)

[massnative71]

Originally Posted by maclel

You are wrong on that. First, my post is relevant to a big swath of the Greater Boston area. There are a lot of affluent towns. Second, while there are fewer cash buyers in the less affluent towns, there are still a lot more than there used to be, and more importantly, reason 1) still holds. Supply is going to remain constrained because many folks are going to be dissuaded from moving if they cannot get a comparable mortgage rate.

Many will also walk away from their mortgages, realizing how much they effed up buying in this market. Others will have no choice. Cash buyers will shift back over to the high end towns, leaving the "ordinary" towns to the mortgage buyers. Also have you been watching the stock market the past few days? The cash on supply is evaporating, and we are likely headed towards a recession. The time to sell is NOW.

[BostonMike7]

Not seeing much inventory on the market in my area, which is strange.

[msRB311]

I guess I don't see it as that strange. The economy/real estate market is questionable and has been for a while.

It does seem like now is the time to sell but the problem is people don't have anywhere else to go unless they are moving to FL or something.

[maclel]

Originally Posted by massnative71

Many will also walk away from their mortgages, realizing how much they effed up buying in this market. Others will have no choice. Cash buyers will shift back over to the high end towns, leaving the "ordinary" towns to the mortgage buyers. Also have you been watching the stock market the past few days? The cash on supply is evaporating, and we are likely headed towards a recession. The time to sell is NOW.

I very much doubt we are going to see market declines that would warrant widespread foreclosures. The overwhelming majority of buyers put at least 20% down. The reality is that there are not enough SFHs to go around in the Greater Boston area.

[msRB311]

someone paid 812k for this cape house in Harwich that isn't even near the beach:

https://www.zillow.com/homedetails/7...6986630_zpid/?

2 years ago it would have been 512k.

[msRB311]

Originally Posted by maclel

I very much doubt we are going to see market declines that would warrant widespread foreclosures. The overwhelming majority of buyers put at least 20% down. The reality is that there are not enough SFHs to go around in the Greater Boston area.

then people will have to move somewhere else I guess.

[WestieWhitie]

Originally Posted by maclel

I very much doubt we are going to see market declines that would warrant widespread foreclosures. The overwhelming majority of buyers put at least 20% down. The reality is that there are not enough SFHs to go around in the Greater Boston area.

That’s the problem though, many first time buyers put down the bare minimum and are paying PMI because let’s face it, coming up with $150-200K down payment isn’t that easy. You’d be in a very difficult situation as a buyer who has overextended yourself if you suddenly drop to a single income and can no longer afford the mortgage while that FOMO $799K $100K over asking Weymouth cape is now only worth $550K.

[msRB311]

coming up with 150-200k seems like something everyone does these days and sometimes I wonder how some people do it. However, i hear so many situations of people paying 2 million cash for a house. It truly makes me wonder about the value of the dollar these days. As expensive as things seem to be there are plenty of people who come up with the cash. We have friends who just paid 1.6 million for a home then added on a pool and an outdoor kitchen which was another 180k. They take plenty of vacations. Wifey doesn't work, takes care of the 3 kids...hubby's linkedin account just says 'equity sales' and i guess that's a field I should have gone into, lol.

[GeoffD]

Originally Posted by maclel

I very much doubt we are going to see market declines that would warrant widespread foreclosures. The overwhelming majority of buyers put at least 20% down. The reality is that there are not enough SFHs to go around in the Greater Boston area.

It's ~ 30% cash buyers. With mortgages, half are at least 20% down. Down here in the economic wasteland, I'm sure there are lots of 3%-down and 5%-down first time buyers in places like New Bedford and Fall River. There's a lot more risk of short sales and foreclosures since the local economy is far more susceptible to high unemployment rates.

[maclel]

Originally Posted by WestieWhitie

That’s the problem though, many first time buyers put down the bare minimum and are paying PMI because let’s face it, coming up with $150-200K down payment isn’t that easy. You’d be in a very difficult situation as a buyer who has overextended yourself if you suddenly drop to a single income and can no longer afford the mortgage while that FOMO $799K $100K over asking Weymouth cape is now only worth $550K.

That is just not representative of this housing market. As another poster mentioned, there are 30% cash buyers and very very few put less than 20%. Most banks weren’t even giving out mortgages
that required PMI.