Posted on January 31, 2022
LOWELL --- Merrimack Valley Housing Partnership Executive Director Cathy Mercado and her predecessor, Jim Wilde agree that purchasing an affordable first home these days is not only challenging, but harder than ever.
Wilde says Mercado the one to lead MVHP into future
“Even with the interest rates being as low as they are, it’s harder now,” Mercado says. “The inventory here in Massachusetts, there’s none. It’s a seller’s market.”
As the inventory remains tight, the desire to own a home has intensified,” she says. One reason? The Covid-19 pandemic. “We’ve seen an increase in the want to purchase a home versus renting because people want their own spaces. Everyone wants that sense of security.”
“There are a lot of old laws that just don’t make any sense and they really need to be addressed by our local governments. Things have to change. You can’t feel comfortable living in your suburban single-family houses without opportunities to grow.”
Cathy Mercado, Executive Director, MVHP
Wilde says it’s not uncommon for people to sacrifice location for price in order to become homeowners. “Here in the Lowell area in the past several years a lot of buyers are coming from within [Route] 128,” he said. “The prices are a lot less here than in Boston. At the same time, we’ve seen a lot of the people from this area priced out and they’re moving further away to be able to afford properties. People are priced out of their hometowns and that’s too bad.”
Mercado says enacting changes to zoning laws is one tool that can spur development and lead to increased inventory. “There are a lot of old laws that just don’t make any sense and they really need to be addressed by our local governments. Things have to change. You can’t feel comfortable living in your suburban single-family houses without opportunities to grow.”
Meanwhile, residents seriously considering purchasing their first home have a couple of key concerns that Wilde says he hears all the time in MVHP homebuyer training classes: “Is this a good time to buy or should I wait until the prices come down?”
The best time to buy is when you are ready, he says, regardless of what’s happening in the market. If prices drop, the interest rates will go up and payments will be the same as if the home was purchased when prices were high and interest rates were low.
“Of course buying a house is an investment, but it’s also your home. It’s where you live. It’s your life, it’s your family. It’s your stability. It’s not just a money question.”