2014 Predictions for the Melrose MA Real Estate Market

2013 was the perfect storm; extremely low inventory, 3-4 years of pent up demand and record low interest rates.  

These factors led to jam-packed open houses, crazy bidding wars and double-digit growth in real estate values.  

Seems like we’re headed for another bubble burst, right?  Economists and the real estate industry says no and here’s why:

Banks now make sure a buyer can afford to pay their mortgage vs. granting loans to anyone who could fog a mirror in the early 2000s.

Buyers aren’t taking variable rate loans - they’re locking into 30-year loans at historically low rates.

Appraisers are making sure buyers aren’t over-paying for homes in bidding wars.

At the same time, with rising interest rates, we expect the market to slow a bit while maintaining marginal growth.