03/23/2022
Hi everyone, this is not financial advice.
There is a nice 420 sq. ft .cottage in P-Town discounted for sale at $559,000 if anyone is looking, which seems ridiculous, but that is the real estate monster right now. Inflation is high, we all know that, but there will not be a 2008 bubble burst because the layout is so different. In 2008, too many homes were bought with way too much outstanding debt and the market had millions and millions of homes for sale with subprime mortgages being handed out.
With that being said, rent is sadly going up 😞 which makes life harder as well. Boston’s average rent is $3,500/month–yikes, Fall River is $1,600/month and the Cape data says the average 2 bedroom rental is $1,642, but we all know it's a bit higher.
Boston level rent is equivalent to a mortgage for a $750,000 house.
Buying the tiny P-town cottage puts your mortgage around $2,700 a month–wild, right?
As economics shows us, this is a supply and demand war. Cape Cod has always been sought after as a high demand area where the inventory is low and there is buyer interest from across the country. Some people will continue to rent and some people are ready for one of the biggest and potentially scariest financial decisions of their life.
Those that bought in 2008 and held were likely mortified, but they had a home (and an asset as many call it). In 2017-2019 prices only went up and buyers felt buyer's remorse all the time. Then the pandemic hit and the fear was real. The stock markets crashed, but the housing market stayed strong and still continues to fight inflation.
My 2 cents now, I know a $750k home is scary, but it is your home; mortgages are scary, but jobs, side gigs, friends, family, Airbnb and renters will be around. Look at different scenarios, maybe the rent game is killing you. A 30-year loan is a pretty solid debt on your life. Do your own research and ask for help. Most if not all agents should be willing to help you from the 1st step to the last step. Owning your home and not having that fear of your rent going from $2500 to $3000 knowing you just spent a couple years renting throwing $30,000 for a temporary roof over your head.
My email, messaging, or phone are always on. Feel free to reach out. I'm taking new clients. I have a great team at New Cape Real Estate ready and able to assist if needed.
