| For the past five years, the Boston real estate market has been on fire. Sellers held the upper hand and were experiencing times of fast sales, multiple bids, and strong bidders. During this period of time, some investors made a significant amount of money. Now, sellers are now feeling the heat, as the real estate landscape is changing, and many fear that the homes they have listed on the market might not sell. It seems that the real estate bubble so many analysts spoke of in Boston has burst. The average home price dropped by 1.5% during the first quarter of this year and is expected to continue to drop little by little over the next few years. The market is no longer in favor of the seller. This does not mean that it will impossible for current investors to sell their properties, however. It does mean that current property holders might not make the profits that they first anticipated. In fact, some Boston real estate investors could experience losses as the market continues to cool. Current investors would do best to sell their current holdings as quickly as possible. At this point, investors should not be concerned with the amount of profit they receive. Rather, the main focus should be on minimizing losses that may come with the slowing market conditions. Sellers should make sure that homes are competitively priced. Do not judge this by the prices of properties that are currently on the market. Instead, use the sale prices of similar homes that have recently been sold. If the price of the home is too high, buyers will look elsewhere for a similar house that is more competitively priced. If the home is left on the market for too long, buyers will think that something is wrong with the home and again, look elsewhere. In essence, investors must play the pricing game the right way in order to come out as a winner. As a last resort, investors can consider using a realtor to help sell the home. Obviously, this would cut into the already minimized return on investment. Prospective investors of Boston real estate are advised to stay way from this slowing market. The odds of receiving any financial gain through investment are slim to none. While the market does currently favor buyers, when it is time to "flip" the house, investors might not be able to sell the house, much less make a profit from it. Hence, this market is better suited for the real estate investor who is looking to add houses to a portfolio. The main objective with this is that the houses can be leased out, and earn gradual appreciation over time. The Boston housing bubble was good while it lasted. Now that sales are becoming sluggish, current investors are recommended to get out as quickly as possible and new investors should set their sights elsewhere. |
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