Kevin Garnet is moving on. On to New York that is. On to the Brooklyn Nets and a new home. Garnett’s contemporary estate sits on a secluded 12-acre parcel overlooking a pond in Concord MA, but it’s the sleek elegance of the 11,000-square-foot house that will catch the eye of anyone capable of shelling out $4.85 million, which is what the 37-year-old Garnett and wife is asking.
As we enter Fall, let’s look back at some August statistics for where the housing market will be in the next few months. When looking at the August market data collected by the Greater Boston Association of Realtors, it seems like we’ll be in for a much tighter market this Winter than we’ve seen in the past.
One of the more interesting statistics noted is the 14% growth in condominium sales between July and August of this year, especially after the 19.5% decline in condo sales seen in July. The market also saw a 13% growth in condo sales between August 2010 and August 2011. All of this can be attributed to better affordability, a steady increase of rental rates in the Metropolitan Boston area, as well as the recent boost in consumer confidence.
What does this mean? At this rate there is just less than 4 months of supply on the market in Greater Boston leading to a shortage of condo units for sale to meet the current buyer demand. There fore as economic conditions and consumer confidence improve in the coming months, we’ll most likely start to see an increase in condo prices reflective of pressure put on the market.
I know this will hurt but just listen: Leverage your house, leverage your assets, leverage everything and buy all you can. “NOOOO,” you say, “don’t do it; that’s what they said last time!!” with vehemence. And we respond, “No, last time you waited until the end and got stuck with the check.” Not your fault, of course, but this is not the same as 2007-2008.
Markets are cyclical and this market has the potential to be and will be the Real Estate Bull Market of the 80s and of the dotcom boom/bubble. 3.5% cash down on a home at a interest rate of 3.5%. That is the reality. It will never be better. If you rent, you need to buy. You will pay less for more house and home-ownership is a strategic step towards ensuring a secure retirement package. And if you own, buy more.
It has never been this low. It is only this low because the Fed keeps overcompensating. Markets correct themselves over time, not over night. The one simple truth, and I keep chanting this to everyone who will listen, of this era is that real estate is awesome right now. Buy everything. You know that guy who lives down the street from you who bought everything in 2004 and can’t figure out how to count all of what he now has? You can be him.
– Maxwell Burke
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