I hope you've been able to enjoy the holiday season!
Things are always quiet this time of year, especially in the limbo week that falls between Christmas and New Year's. I'll let you in on my hunch, though, and it's that things are going to heat up again soon. Based on the conversations I'm having, the rate at which first time buyers are connecting, and the calls seeking advice on when to sell...it's not going to stay quiet for long.
Right now inventory is still very low overall - so while it's the quiet season, buyer demand is still outpacing listings, and that means prices stay high. I'm seeing an opportunity in urban condos currently, as owners weigh rising vacancy rates with lower rents and are starting to choose to sell instead of waiting out the market. If you're targeting Boston condos, your timing is excellent!
Regardless of where you are in your journey, I wanted to share a few resources that might be helpful as you're looking toward 2021 - some very first steps, especially to evaluate whether buying might be the right move for you right now.
As 2020 draws to a close, early steps for buyers include:
Getting your paperwork in order: take time pull copies of pay stubs and tax returns so you have them ready for a pre-approval. If you need to spend time digging for these or unearthing old passwords, better to do before you're on a deadline.
Revisiting recurring expenses and subscriptions: is it time to pause your lease favorite streaming service or your plant-of-the-month club? Freeing up a bit of extra monthly cash might feel empowering heading into a home buying season.
Introspecting a bit on your current home: what works, and what doesn't? If you can translate your current likes and pain points into searchable parameters, that will help your web search and your agent down the line.
If you're moving from a rental, re-read your lease: are there explicit terms on a lease break? When is your lease up, and when do you need to give notice? If I can help talk through strategy from a landlord's perspective, or if you'd like to work together to back into a buying timeline (attached) based on your lease parameters, please reach out.
Also, a few of my favorite tools for approaching the numbers:
Mortgage payment calculations: this tool allows you to adjust variables to see the impact on preliminary monthly payments: https://www.consumersadvocate.org/mortgage-rates/lp/mortgage-rate-calculator
This version from NerdWallet is also useful, and gets at the (very subjective) concept of "affordability" by asking about your other obligations and income, compared to the market by zip code: https://www.nerdwallet.com/mortgages/how-much-house-can-i-afford
I also love the NYT rent-or-buy calculator: the visualization can be helpful in trying to process data, though let's discuss in more depth if you have questions, because the rental market in Boston has shifted dramatically post-COVID so there will be discrepancies here: https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html
I'll be honest: I prefer speaking with buyers as early as you're comfortable. I don't mind taking the time, and I've found it's helpful to buyers to talk through the process early so you know what to expect, what to spend when, and so that I can provide some help in guiding early steps. If you find have bandwidth for a call with me in January, you can schedule something online here.
And, one last thing: I'm rolling out a (free) email version of the home buying masterclass I've offered through Instagram DMs in the past - if that would be helpful to you, I'm happy to get that started. Just reply to this email to let me know, or sign up here.
Happy New Year,
Kate