Bubble-Burst? Correction? Slump? The media is bombarding us with negative comments on the state of real estate as an investment in Massachusetts. Truth is houses are still appreciating, people are still buying and selling and real estate is still a good investment.

Is there a change from the last few years? Absolutely! In Metro-West, homes were appreciation in excess of 12% or more each year for the past few years. Buyers were being pushed out of the market not being able to afford nor being able to catch up in savings to the appreciation increases year after year. Mass Association of Realtors researches appreciation rates and recently published some statistics for Metro-West for 2005. They noted that housing appreciation in this area has certainly slowed to a more realistic rate of 3-5 % for 2005. MAR expects that we will see a similar appreciation in 2006. Buyers realize that this is a good time to buy, and they are spured on by the low interest loans that are available.

Let's lose the Chicken Little attitude - The Sky is NOT falling! It is a different market - a more sane market than in the years past.

For buyers, the advantages of owning haven't gone away. Tax Write offs, paying yourself instead of paying your landlord, and yes, building appreciatiion while enjoying the pride of home ownership are all still available.
For sellers, you need to be realistic. Set your housing price at a competitive price and it will be sold. You need to understand that days on market has increased and the inventory (number of homes for sale) has increased. Set reasonable expectations. Remember if you're selling, you're also probably buying so you will benefit from a slower market on that end.
If you're considering the Metro-West area or eastern Worcester County, either selling or buying, give me a call to discuss your specific needs!