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RealEstateCafe · Joined: 11 Dec 2007 Posts: 235 Location: Cambridge, MA

In recent years, the Boston Globe has written a front page (or near front page story) on bidding wars during the first week of March. Has anyone seen one there or elsewhere in the media?

What are you experiencing in the field, or Monday or Tuesday nights if you're being told there's a bid deadline?

Last Fall Curbed Boston predicted a "Universal Truce in Bidding Wars," ignoring @CambMA and other investor driven irrational markets, is that trend spreading across Greater Boston?

http://bit.ly/REFallTrending

Maybe even the country? Veteran buyer agents know that housing market slump before an election... are we in for more serious changes as 2016 unfolds? Invite BostonBubble forum to read the pundits in this article, then share their own perspectives. If anyone wants to chat offline, glad to host a Bubble Hour.

Are We Headed for a Housing Slump in 2016?

http://bit.ly/REslump16
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bsg61 · Guest

I have to move within the next year, so will be forced to either buy or continue renting. Will admit I am kicking myself for not buying before… read somewhere that low inventory will continue through 2016 which is the reason prices are so high.

Optimus1 · Guest

Prices are going to remain high as long as inventory remains anemic.

Richthofen · Joined: 02 Apr 2014 Posts: 69

Right on time, here's the globe's article on bidding wars:

http://www.boston.com/real-estate/news/2016/03/07/tales-from-greater-boston-brutally-competitive-home-buying-market/X8tgGYceU6ItX3fi0JYNKO/story.html

Optimus1 · Guest

bsg61 · Guest

I've been reading similar articles for at least a year or two.

And then there is this latest issue of Boston Magazine:

http://www.bostonmagazine.com/boston-magazine/march/2016/

http://www.bostonmagazine.com/property/article/2016/02/21/boston-best-places-to-live-2016/[/img]

RealEstateCafe · Joined: 11 Dec 2007 Posts: 235 Location: Cambridge, MA

RennyD · Guest

Why is inventory so low? I've heard the theory that no one wants to give up their low interest rate mortgage. But interest rates are still at practically all time lows, so I'm not sure I believe it.
Any thoughts?

Guest · Posted: Mon Mar 14, 2016 4:50 pm GMT Post subject:

Because people who bought in past years can't afford to move into houses of comparable or better quality, let alone upgrade. You think the schmucks that bought Newton ranches for $250K in 1990 could possibly afford to buy their own homes in today's market? I doubt it.

RennyD · Guest

But wouldn't they have a million dollars of eqity to apply to their next home?

Guest · Posted: Mon Mar 14, 2016 6:38 pm GMT Post subject:

That million bucks would buy an equivalent shitbox. What's the point? That's why no one is selling. The only way it makes sense is if the seller's lot is big enough for some developer to put up a multi-family or a monstrosity of some other kind.

Guest · Posted: Mon Mar 14, 2016 7:19 pm GMT Post subject:

RennyD · Guest

You don't pay capital gains if you buy another house. And realtor fees aren't new.

Guest · Posted: Wed Mar 16, 2016 3:59 pm GMT Post subject:

mpr · Joined: 06 Jun 2009 Posts: 344

@RennyD. I think a big factor is that we are in a low growth economy, so people's economic circumstances aren't changing much, due to raises, new jobs etc. Nor do they expect them to change much - its the 'new normal'. This makes them unable and unwilling to trade up.

Yes, realtor fees aren't new, but they and closing costs represent a hurdle to trading up which is now more difficult to clear.