Good afternoon Patch Readers! Spring has certainly sprung in Concord, and the impact the warm weather has made on the housing market has been significant. This spring seems unique as there have been significant opportunities in our local housing market. It seems like the 1 million to 1.5 million range is very active from the first quarter of this year, with 15 homes sold or under agreement. It’s exciting to note that our office sold just under half of those. What’s driving sales in the above mentioned range is the bottom quartiles of the market seem to have heavy volume as well. With 52 homes selling under one million dollars, year to date, allowing people to buy up. I have also seen a relocation uptick as well, a clear sign of an improving economy. With an ever changing financial landscape, diversifying into investment properties may help round out your portfolio.
In addition, investors/developers are swooping in on both the local and national level, looking to buy multiple properties or parcels of land for speculative development opportunities, at attractive prices. Last year investment home sales were up by 64.5%, according to the National Association of Realtors. It seems many investors are jumping in to take advantage of the opportunities in the market.
This trend is really helping to stabilize the market as we transition away from a buyer’s market, into a more seller’s driven market. With investors absorbing foreclosures and other general opportunities, prices are starting to rise in many areas of the country.
So, are investment properties the right move for your portfolio? rental income? new construction development? It seems clear to me that if you have access to capital you can position yourself as an investor and truly capitalize on market opportunities. From the investment side there has never been a better time to diversify your real estate portfolio. The Massachusetts Association of Realtors has just reported a 19.1% increase in home sales from this same time last year. This is the 9th straight month we are seeing year-over-year increases. With prices and rates such as they are now, this inventory/investment opportunity will not last.