bostonbubble.com

devlin2 · Guest

"But the reality is, in Massachusetts at least, we have hit bottom. Yes, some cities and neighborhoods will drift a little lower. But overall, prices have been rising, minutely, but rising, since the spring. And it’s unlikely that interest rates will get any lower.

So I’m here to tell you it’s a great time to buy. Let me put that in real estate agent speak: “Oh, absolutely, no doubt about it, it’s a great time to buy!”"

Read more: It really IS a great time to buy. - Boston Business Journal

http://boston.bizjournals.com/boston/blog/bottom_line/2010/10/always_a_great_time_to_buy.html?surround=lfn

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Renting in Mass · Posted: Wed Oct 06, 2010 5:49 pm GMT Post subject:

CL · Guest

I think price is primarily decided by demand and supply. On the supply side, home inventry can increase dramatically by 3 ways 1) if there is a lot of foreclosure/forced selling/short sale hitting the market, but those will be concentrated in towns that you probably don't want to buy anyway. 2) it can increase if there is a lot of new construction, which I don't see it happening. 3) it can increase because people wants to trade up or trade down or flip/invest/speculate, which I don't see it happening too now that investors are scared and homeowner got stucked with low/no/-ve equity. 4) a spike in household creation/marriage/divorce/etc creating supplies (ie empty nesters selling their existing homes). The rate actually drops as college grad coming back home and delaying marriage and even delaying divorce. So on this front, both demand and supply took a hit.

So for the affluent towns at least, I don't see a spike in inventory (or demand actually). Which means for motivated home buyers, it is not a good market to buy at all since the market (sales) is going to be very thin. As with the same as stock market, price becomes rather misleading/irrelevant if there is no volume.