2018; looking ahead

Real Estate

Our 2018 spring Real Estate market is right around the corner, and I thought you'd be interested to hear what's in store for 2018 in our local market.

First off, there is some uncertainty about how the recent “Tax Cuts and Jobs Act” will impact homeowners in Massachusetts, especially since the final bill reduces the limit on deductible mortgage debt to $750,000 for new loans taken out after 12/14/17. Homeowners may refinance mortgage debts existing on 12/14/17 up to $1 million and still deduct the interest, so long as the new loan does not exceed the amount of the mortgage being refinanced. Interest is still deductible on home equity loans (or second mortgages) if the proceeds are used to substantially improve the residence.

Even though these recent changes to the tax code are not great news for many current and future home-owners in Massachusetts, I don’t think it will severely impact our local market. Our active seller's market in Cambridge will continue through the winter and well into the spring of 2018, as critically low inventory levels and ongoing high demand for property will causing dramatic increases in final sale prices. Serious buyers will continue to bid aggressively on properties that are well priced and in good condition, resulting average final selling prices 8-10% over the asking price.

Statewide, more homes were sold in Massachusetts last month than in any previous November on record and the median price of those homes rose for the 20th straight month. This is great news for property owners like yourself, who over the last few years might have considered putting their property on the market but decided to "wait it out" and see where the market was going. 

Even if you are not interested in selling at this time and are just wondering about the value of your property in this market, please feel free to give me a call at 617-529-6335 and we can chat about the market and discuss the next few months and the affect all this will have on the value of your home.

As always, any information I provide you will be free of charge and without obligation. Please don't hesitate to call me at any time with any of your Real Estate needs or questions. Take care and I look forward to keeping you informed about our local Real Estate market.

All the best wishes for a very Happy New Year!