We are headed into the colder part of the year, the kids are back in school, and the holidays will soon be upon us.  If you watch the news they will tell you that housing inventory is back up and the market is turning to be more buyer friendly.  That’s always followed up with, “are we do for another crash?”

The main indicator of where things are headed is labor and the overall economy.  Right now we have a strong labor market and steady economic growth so this lowers the probability of a crash.  However, we have had significant up ticks in mortgage rates in the last three weeks.  This is squeezing housing affordability down for the lower end of the housing market so these geographic areas will see a bit more stagnation than others.  Overall, real estate is still anticipated to appreciate around 3% on average next year.

Areas to watch are those surrounding Worcester.  There have been major investments into the city itself which should bring the housing prices in the city and immediate suburbs up at a faster rate.

Advice for the month:  If you are serious about buying and want to get a better deal, now is the time.  Spring will likely have the same houses you see now selling at a higher price and rates will make these same homes more expensive when we get there.

Reminder:  One of the things we keep running into are clients getting gifts from family without the proper documentation.  If you know you are going to be needing a gift, please let us know before you even get the first penny.  That will make everything much easier to document and get through underwriting.