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Feb 26 2026

When Rates Dip Below 6%, Sellers Gain Leverage: A Western MA & NW CT View

Mortgage rates have recently dipped below 6%, and most of the conversation is focused on buyers.

Lower rates improve affordability. Buyers qualify more easily. Monthly payments soften slightly.

But there is another side to this story — and it matters if you are a homeowner thinking about listing.

When rates ease, even modestly, more buyers enter the market. Buyers who were previously on the sidelines may re-engage. Buyers who were stretching before may now qualify more comfortably. And in Western Massachusetts and Northwest Connecticut, where inventory remains limited in many price ranges, that shift can strengthen a seller’s position.

More buyers means more activity.

More activity can mean stronger offers.

Stronger offers often mean cleaner terms.

And cleaner terms create leverage.

Why This Matters If You’re Considering Listing

If you have been quietly asking yourself whether this is the right time to sell, rate movement is one of the signals worth paying attention to.

It does not mean you must rush.

It does mean the dynamic can change faster than people expect.

Many long-term homeowners hesitate not because the market is bad, but because they are waiting for clarity. They want to understand whether they are stepping into strength or uncertainty.

When buyer affordability improves, sellers often step into strength.

That does not guarantee bidding wars.

But it can increase negotiating power, reduce risk, and create momentum.

The Western MA & Northwest CT Factor

Our local markets do not move exactly like national headlines suggest. Towns like Westfield, Southwick, Granby CT, and Simsbury CT each have their own inventory patterns and buyer behavior.

In a supply-constrained micro-market, a modest rate drop can have an outsized impact.

That is why looking at national news alone is not enough. Local leverage is built on local conditions.

If you have owned your home for many years and are beginning to wonder whether this is your window, now may be a smart time to evaluate your position.

Not from a place of urgency.

From a place of clarity.

If you would like to talk through what this shift means for your specific property and neighborhood, I am always happy to have that conversation.

Lesley Lambert, REALTOR for Park Square Realty serving Western MA and Northwest CT. 413-575-3611

Mar 10 2022

Hedge Against Inflation With These 3 Real Estate Investment Types

Hedge Against Inflation With These 3 Real Estate Investment Types

The annual inflation rate in the United States is currently around 7.5%—the highest it has been since 1982.¹ It doesn’t matter if you’re a cashier, lawyer, plumber, or retiree; if you spend U.S. dollars, inflation impacts you.

Economists expect the effects of inflation, like a higher cost of goods, to continue.² Luckily, an investment in real estate can ease some of the financial strain.

Here’s what you need to know about inflation, how it impacts you, and how an investment in real estate can help.

WHAT IS INFLATION AND HOW DOES IT IMPACT ME?

Inflation is a decline in the value of money. When the rate of inflation rises, prices for goods and services go up. Therefore, a dollar buys you a little bit less with every passing day.

The consumer price index, or CPI, is a standard measure of inflation. Based on the latest CPI data, prices increased 7.5% from January 2021 to January 2022.¹ A little bit of inflation is considered healthy for the economy, but 7.5% in a single year is high.

How does inflation affect your life? Here are a few of the negative impacts:

Decreased Purchasing Power

We touched on this already, but as prices rise, your dollar won’t stretch as far as it used to. That means you’ll be able to purchase fewer goods and services with a limited budget.

Increased Borrowing Costs

In an effort to curb inflation, the Federal Reserve is expected to raise the federal funds rate. Therefore, consumers are likely to pay a higher interest rate on new mortgages, car loans, and variable-rate credit cards.³

Lower Standard of Living

Wage growth tends to lag behind price increases. According to Moody Analytics, when adjusted for inflation, average weekly earnings in January were down 3.1% from a year earlier.⁴ As such, life is becoming less affordable for everyone. Inflation can force those on a fixed income, like retirees, to make lifestyle changes and prioritize essentials.

Eroded Savings

If you store all your savings in a bank account, inflation is even more damaging. As of February 2022, the national average interest rate for a savings account is 0.06%, not nearly enough to keep up with inflation. And economists don’t expect that rate to go much higher.³

One of the best ways to mitigate these effects is to find a place to invest your money other than the bank. Even though interest rates are expected to rise, they’re unlikely to get high enough to beat inflation. If you hoard cash, the value of your money will decrease every year and more rapidly in years with elevated inflation.

REAL ESTATE: A PROVEN HEDGE AGAINST INFLATION

So where is a good place to invest your money to protect (hedge) against the impacts of inflation? There are several investment vehicles that financial advisors traditionally recommend, including:

Stocks

Some people invest in stocks as their primary inflation hedge. However, the stock market can become volatile during inflationary times, as we’ve seen in recent months.⁵

Commodities

Commodities are tangible assets, like oil, livestock, and minerals. The theory is that the price of commodities should climb alongside inflation. But the classic choice–gold–hasn’t risen consistently during periods of inflation since the 1970s, according to data from Morningstar Direct.⁶

Inflation-Indexed Bonds

Treasury inflation-protected securities, or TIPS, are U.S. government-issued bonds that are indexed to the inflation rate. Bonds are considered low risk, but the returns they offer are generally low, as well.⁷

Real Estate
Real estate prices across the board tend to rise along with inflation and often rise faster than inflation.⁸That’s one of the reasons demand for real estate is soaring right now.⁹

We believe real estate is the best hedge against inflation. Owning real estate does more than protect your wealth—it can actually make you money. For example, home prices rose nearly 17% from 2020 to 2021, 10% ahead of the 7% inflation that occurred in the same timeframe.¹⁰

Plus, certain types of real estate investments can help you generate a stream of passive income. In the past year, property owners didn’t just avoid the erosion of purchasing power caused by inflation; they got ahead.

TYPES OF REAL ESTATE INVESTMENTS

Though there are myriad ways to invest in real estate, there are three basic investment types that we recommend for beginner and intermediate investors. Remember that we can help you determine which options are best for your financial goals and budget.

Primary Residence

If you own your home, you’re already ahead. The advantages of homeownership become even more apparent in inflationary times. As inflation raises prices throughout the economy, the value of your home is likely to go up concurrently. At the same time, you’ve locked in a set mortgage payment for the next 30 years, so you’ll be immune to rising rental costs.

If you don’t already own your primary residence, homeownership is a worthwhile goal to pursue.

Though the task of saving enough for a down payment may seem daunting, there are several strategies that can make homeownership easier to achieve. If you’re not sure how to get started with the home buying process, contact us. Our team can help you find the strategy and property that fits your needs and budget.

Whether you already own a primary residence or are still renting, now is a good time to also start thinking about an investment property. The types of investment properties you’ll buy as a solo investor generally fall into two categories: long-term rentals and short-term rentals.

Long-Term (Traditional) Rentals

A long-term or traditional rental is a dwelling that’s leased out for an extended period. An example of this is a single-family home where a tenant signs a one-year lease and brings all their own furniture.

Long-term rentals are a form of housing. For most tenants, the rental serves as their primary residence, which means it’s a necessary expense. This unique quality of long-term rentals can help to provide stable returns in uncertain times, especially when we have high inflation.

To invest in a long-term rental, you’ll need to budget for maintenance, repairs, property taxes, and insurance. You’ll also need to have a plan for managing the property. But a well-chosen investment property should pay for itself through rental income, and you’ll benefit from appreciation as the property rises in value.

We can help you find an ideal long-term rental property to suit your budget and investment goals. Reach out to talk about your needs and our local market opportunities.

Short-Term (Vacation) Rentals

Short-term or vacation rentals function more like hotels in that they offer temporary accommodations. A short-term rental is defined as a residential dwelling that is rented for 30 days or less. The furniture and other amenities are provided by the property owner, and today many short-term rentals are listed on websites like Airbnb and Vrbo.

A short-term rental can potentially earn you a higher return than a long-term rental, but this comes at the cost of daily, hands-on management. With a short-term rental, you’re not just entering the real estate business; you’re entering the hospitality business, too.

Done right, short-term rentals can be both a hedge against inflation and a profitable source of income. As a bonus, when the home isn’t being rented you have an affordable vacation spot for yourself and your family!

Contact us today if you’re interested in exploring options in either the long-term or short-term rental market. Mortgage rates are expected to rise, so you’ll want to act fast to maximize your investment return.

I AM INVESTED IN HELPING YOU

Inflation is a fact of life in the U.S. economy. Luckily, you can prepare for inflation with a carefully managed investment portfolio that includes real estate. Owning a primary residence or investing in a short-term or long-term rental will help you both mitigate the effects of inflation and grow your net worth, which makes it a strategic move in our current financial environment.

If you’re ready to invest in real estate to build wealth and protect yourself from rising inflation, contact me. Our team can help you find a primary residence or investment property that meets your financial goals.

Lesley Lambert, Western MA REALTOR with Park Square Realty. 413-575-3611

Hedge Against Inflation With These 3 Real Estate Investment Types from Lesley Lambert

The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

Jan 06 2022

A Return to ‘Normal’? The State of Real Estate in 2022 | Western Massachusetts

A Return to ‘Normal’? The State of Real Estate in 2022 | Western Massachusetts

Last year was one for the real estate history books. The pandemic helped usher in a buying frenzy that caused home prices to soar nationwide by a record 19.9% between August 2020 and August 2021.¹

However, there were signs in the fourth quarter that the red-hot housing market was beginning to simmer down. In the month of October, only 60.3% of sales involved a bidding war—down from a high of 74.5% in April.² While this trend could be attributed to seasonality, it could also be a signal that the real estate run-up may have passed its peak.

So what’s ahead for the U.S. housing market in 2022? Here’s where industry experts predict the market is headed in the coming year.

MORTGAGE RATES WILL CREEP UP

Most economists expect to see mortgage rates gradually rise this year after hitting record lows in late 2020 and early 2021.³

Freddie Mac forecasts the 30-year fixed-rate mortgage will average 3.5% in 2022, up from around 3% in 2021.⁴

The Mortgage Bankers Association predicts that rates will tick up to 4% by the end of the year. “Mortgage lenders and borrowers should expect rising mortgage rates over the next year, as stronger economic growth pushes Treasury yields higher,” said Mike Fratantoni, chief economist for the Mortgage Bankers Association at their 2001 Annual Convention & Expo in October.⁵

However, it’s important to keep in mind that even a 4% mortgage rate is low when compared to historical standards. According to industry trade blog The Mortgage Reports, “Between 1971 and December 2020, 30-year mortgage rates averaged 7.89%.”⁶

What does it mean for you? Low mortgage rates can reduce your monthly payment and make homeownership more affordable. Fortunately, there’s still time to lock in a historically-low rate. Whether you’re hoping to purchase a new home or refinance an existing mortgage, act soon before rates go up any further. We’d be happy to connect you with a trusted lending professional in our network.

THE MARKET WILL BECOME MORE BALANCED

In 2021, we experienced one of the most competitive real estate markets ever. Fears about the virus and a shift to remote work triggered a huge uptick in demand. At the same time, many existing homeowners delayed their plans to sell, and supply and labor shortages hindered new construction.

This led to an extreme market imbalance that benefitted sellers and frustrated buyers. According to George Ratiu, director of economic research at Realtor.com, “Prices and sellers reached for the moon [last] year. It looks like we are now about to move back to earth.”⁷

Data from Realtor.com released in November showed that listing price reductions had more than doubled since February 2021. And the average days on market (an indicator of how long it takes a home to sell) has been slowly creeping up since June.⁷

What’s causing this change in market dynamics? The real estate market typically slows down in the fall and winter. But economists also suspect a fundamental shift in supply and demand.

At the National Association of Realtors’ annual conference last November, the group’s chief economist, Lawrence Yun, told attendees that he expects increased supply to come from an uptick in new construction—which is already underway—and an end to the mortgage forbearance program. “With more housing inventory to hit the market, the intense multiple offers will start to ease,” he said.⁸

Demand is also predicted to wane slightly in the coming year. Rising mortgage rates and record-high prices have made homeownership unaffordable for a growing number of Americans. And in a recent Reuters poll, nearly 80% of property analysts said they expect housing affordability to worsen over the next several years.⁹

What does it mean for you? If you struggled to buy a home last year, there may be some relief on the horizon. Increased supply and softening demand could make it easier to finally secure the home of your dreams. If you’re a seller, it’s still a great time to cash out your big equity gains! And with more inventory on the market, you’ll have an easier time finding your next home. Reach out for a free consultation so we can discuss your specific needs and goals.

HOME PRICES LIKELY TO KEEP CLIMBING, BUT AT A SLOWER PACE

Nationally, home prices rose an estimated 16.8% in 2021.⁸ But the average rate of appreciation is expected to slow down in 2022.

Danielle Hale, chief economist at Realtor.com, told Yahoo! News, “Home asking prices have decelerated in the second half of 2021, with median listing price growth slipping from a peak of 17.2% in April to just 8.6% in October.”¹⁰

But experts disagree about how much more property values can continue to climb this year. Goldman Sachs predicts that home prices will rise by 13.5%, while Fannie Mae and Freddie Mac are forecasting a 7.9% and 7% rate of appreciation, respectively.²

However, not all analysts are as bullish. The National Association of Realtors predicts a 2.8% rate of appreciation for existing homes and 4.4% for new homes, while the Mortgage Bankers Association expects the average home price to decrease by 2.5% by the end of the year.^10,2

According to Hale, “With prices near all-time highs and mortgage rates expected to rise, we expect this slowdown in prices to continue.”¹⁰

What does it mean for you? If you’re a buyer who has been waiting on the sidelines for home prices to drop, you may be out of luck. Even if home prices dip slightly (and most economists expect them to rise) any savings are likely to be offset by higher mortgage rates. The good news is that decreased competition means more choice and less likelihood of a bidding war. We can help you get the most for your money in today’s market.

RENTS WILL CONTINUE TO RISE

Along with home, gasoline, and used vehicle prices, rent prices rose dramatically last year. According to CoreLogic, in September, rents for single-family homes were up 10.2% nationally year over year.¹¹ And economists at Realtor.com expect them to climb another 7.1% in 2022.¹²

“Homes are expensive now…but for most people, the comparison that is most important is how that cost of homeownership is going to compare to the cost of renting,” Zillow Senior Economist Jeff Tucker told CNBC in November.¹³

Tucker also pointed out that rent is less predictable than a mortgage—and more likely to go up along with inflation.¹³

Real assets, like real estate, are often used as a hedge against inflation. That’s because property values typically rise with inflation.¹⁴ And when a homeowner takes out a mortgage, they lock in a set housing payment for the next 30 years.

In contrast, renters are at the mercy of the market—and they don’t gain any of the benefits of homeownership, like tax deductions, equity, or appreciation.

George Ratiu of Realtor.com told CNBC that he advises buyers to consider their budget and time frame. If they plan to stay in the home for at least three to five years, he believes it often makes sense to buy.¹³

Fortunately, it’s shaping up to be a better year for buyers. “I think 2022 has the promise of providing less competition, a lot more homes to choose from, and, as a result, a lot more approachable prices,” Ratiu said.¹³

What does it mean for you? Both property and rent prices are expected to continue rising. But when you purchase a home with a fixed-rate mortgage, you can rest assured knowing that your monthly mortgage payment will never go up. Whether you’re a first-time homebuyer or a real estate investor, we can help you make the most of today’s real estate market.

HERE TO GUIDE YOU

While national real estate numbers and predictions can provide a “big picture” outlook for the year, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the local issues that are likely to drive home values in your particular neighborhood.

If you’re considering buying or selling a home in 2022, contact me now to schedule a free consultation. I’ll work with you to develop an action plan to meet your real estate goals this year.

Lesley Lambert, Western MA REALTOR with Park Square Realty 413-575-3611

Sources:

Fortune –
https://fortune.com/2021/11/04/us-home-prices-real-estate-forecast-2022-outlook/
Fortune –
https://fortune.com/2021/11/29/housing-market-real-estate-predictions-2022-forecast/
Freddie Mac –
http://www.freddiemac.com/pmms/pmms30.html
Freddie Mac – https://freddiemac.gcs-web.com/news-releases/news-release-details/freddie-mac-strong-housing-market-will-continue-even-rates-and
Mortgage Bankers Association –
https://www.mba.org/2021-press-releases/october/mba-annual-forecast-purchase-originations-to-increase-9-percent-to-record-173-trillion-in-2022
The Mortgage Reports –
https://themortgagereports.com/61853/30-year-mortgage-rates-chart
Realtor.com –
https://www.realtor.com/news/trends/has-housing-market-peaked/
National Association of Realtors –
https://www.nar.realtor/newsroom/nars-yun-says-housing-market-doing-well-may-normalize-in-2022
Reuters –
https://www.reuters.com/world/us/rise-us-house-prices-halve-next-year-affordability-worsen-2021-12-07/
Yahoo! News –
https://www.yahoo.com/now/where-home-prices-headed-2022-130012748.html
CNBC –
https://www.cnbc.com/2021/11/16/inflation-rent-for-single-family-homes-surged-10percent-in-september.html
Realtor.com –
https://www.realtor.com/news/trends/what-to-expect-in-2022-housing-market/
CNBC –
https://www.cnbc.com/2021/11/23/rising-inflation-hot-housing-market-what-you-need-to-know-about-buying-a-home.html
Money –
https://money.com/inflation-2021-stocks-bitcoin-gold-reits-commodities/

May 20 2014

Lots of Space, Great Backyard, Oversized Garage in this Colonial home for sale in Westfield, MA – 78 South Maple, Westfield, MA 01085

JUST LISTED

78 South Maple Street, Westfield, MA

Loads of Space, Great Back Yard!

Bedrooms: 3
Bathrooms: 2 full

Living Area Approx: 1428
List Price: $Get Current Price

Schedule a Showing

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413-575-3611

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This home has all the room your family needs! Huge kitchen, 2 full baths, 1st floor bdrm and a rec rm in basement. To really appreciate everything it offers you have to go outback – oversized 2 car garage, great private backyard & deck!

Have questions? Ask me.

Courtesy:
Lesley Lambert
Park Square Realty
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413-575-3611

Equal Housing Opportunity

Apr 05 2012

Selling Your Home is Emotional – Tips For Working Through the Home Selling Process

Buying or selling real estate is an emotional business no matter what, but when you are selling a home that you wish you could keep it is much more emotionally taxing.

I have worked with many clients who are selling their beloved home for a number of reasons: job relocation, need to downsize, moving to a retirement community or divorce. Even when they are excited about the next phase in their life, it can be so difficult to let go of the home that they have loved so much.

I can empathize and understand this intimately as I had to sell my home five years ago. I thought I would live there until I grew old. I had built the home with my own hands and every part of the home was there because I chose it. It was so difficult to walk away from that home, but I did discover some tips and tricks that worked for me and have worked for other clients experiencing an emotionally difficult move.

#1- Redecorate and stage the home specifically for sale. You usually need to do this anyway, but in my case I made this process the opportunity to begin detaching emotionally. As I removed personal items and took down decorations I began moving both physically and emotionally. I painted the interior and moved furniture around. With my items gone, a different color wall and the furniture in a new arrangement it didn’t feel like my home anymore. Now it was a house for sale, a commodity…not a home. It was time to find that new home.

#2- I said goodbye. This may sound goofy because clearly a house can’t hear and doesn’t care who lives within it, but I thanked my house and wished it well with it’s new owners. I said goodbye over and over again.

#3- Small steps. Once the decision has been made to make the move you need to take one thing at a time so that you won’t get overwhelmed. Putting too much on your plate or thinking too far out in the process will cause you anxiety and emotional strain. You do, of course, need to plan and have a strategy in place, but you don’t need to extrapolate on a daily basis.

I met with two clients this week that were experiencing this and after leaving one of them I recorded the following:

house

Why This Matters If You’re Considering Listing

The Western MA & Northwest CT Factor

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