A L ET T ER FROM OUR ChiefExecutiveOfficer

The national news has continued to beat the "market crash" drum. This is no surprise when you realize that scary headlines garner the most "clicks" While there may be parts of the country that are seeing some struggles,that is not what we are generally seeing in Massachusetts.

Here is what is actually happening: the overall market has split into micro-markets That means that, while there are some general trends, there are also divergent trends based on the price point, the kind of home,the neighborhood,and other subset criteria

Let's look at price point,for example: In Massachusetts,generally speaking,the number of transactions is lower than last year, while prices have remained flat or have risen moderately But, if you look at the market under $900,000 or the market above it,you will see a "tale of two markets".

In the graphic to the right, you can see that the luxury market (in this case $900,000 and above) has not seen fewer sales In some luxury subsegments it has even grown So, why is that, you might ask? The answer is interest rates In the lower segments buyer affordability is heavily influenced by the cost of borrowing money in conforming loans.At the higher price points buyers are paying cash or using less expensive portfolio loans

But what about homes under $900,000? The lead indicators point to buyers coming back. Some buyers stepped away from the market, clearly spooked by mortgage rate volatility However, they are coming back with a renewed search criteria and alternative financing tools. Overwhelmingly our agents are telling me that buyers are calling and wanting to get back into the search Some are taking advantage of seller-paid rate buy-downs. Others are using state or federal programs that offer cash assistance or lower borrowing rates

In shifting markets, it is important to work with a company and agent who has the experience to guide you A recent company poll revealed that our agents have thousands of years of collective experience That led to Gibson Sotheby?s International Realty helping nearly 3,000 clients buy or sell homes last year for a total of over $3 6 billion in sales If you have considered a move, our agents can ensure that you make your next move with expert guidance Contact us for more information

Colleen Barry, CEO Gibson Sotheby's International Realty

Nicole Rideout Hartwick Chief Strategy Officer

Gibson Sotheby?s International Realty

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