“The Law of Gravity Doesn’t Apply” What Goes Up Keeps Going Up
July 29, 2021
It’s been an interesting year for real estate in Boston, to say the least. The median price of a single family home is currently $825,000, up nearly 22 percent from this time last year, according to the Boston Housing Market Report, released in May by the Greater Boston Association of REALTORS. In addition, even at those prices, there are 36 percent fewer homes on the market this year than last and closings on single family homes in the Boston area are up nearly 90 percent! It’s a classic seller’s market. That means if you’ve been working on fixing up a home or homes to flip, it’s time to finish up and get those properties on the market.
Why you should be searching for your next flip project now?
However, the rise in real estate prices shouldn’t dissuade you from looking for your next project. In fact, now is the perfect time before prices rise any higher, as they are likely to do. Why do we think so? Because there are still many more buyers looking for homes than there are homes on the market. In addition, mortgage interest rates are low, for qualified buyers, and homes are staying on the market just a few days, on average, rather than weeks.
Since inventory is so low, you’ll probably have to look for a fixer-upper for your flip. However, that’s where the money is usually made in real estate, by looking for those “diamonds in the rough”. To find those gems, we suggest the following…
- Scour the real estate foreclosure and auction listings. The past 18 months have been rough for some homeowners. Many people were unexpectedly out of work during the pandemic and others have had catastrophic medical bills. With the foreclosure and eviction moratorium coming to an end, there are likely to be a glut of homes being sold at sheriffs’ auctions.
- Look for bank-owned properties. Ownership of properties that come up for auction due to unpaid taxes or mortgages often revert to the bank if they don’t sell at auction. Most banks would rather not be in the real estate business and thus are often happy to get rid of these properties at less than their market value. This makes them good candidates for flipping.
- Ramp up your networking. Many of the best deals in the Boston real estate market are sold before they ever hit the MLS. That means you need to know the people who hear about what’s coming to market and are willing to give you a call when they hear of something that matches your parameters.
To learn more about financing for your next flip home in the greater Boston area, contact Norfolk Capital at (insert contact info). We’ve been helping real estate investors like you find fast and flexible financing for more than 20 years.
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