Boston Real Estate Market Review
The summer is ending and we are on the verge of entering fall, and we’re left reflecting on how the Boston real estate market is stacking up to our expectations. The question we’re asking is simple: What’s leading Boston’s rental and housing sales? The quick and easy answer is supply is low and demand is high, but there’s more to it. Now that we’re entering the final quarter of the year we’ve started recognizing a few real estate trends in the Greater Boston Metro.
There are low numbers across the metro.The inventory of single-family homes and condos are down and that’s increasing demand throughout Boston.Plus, there isn’t a lot of new homes or condos in development, and those in development aren’t keeping up with demand. On top of all of that the city hasn’t had a decent city planner in decades leaving many areas ripe for development empty. Recent data from Zillow backs up the low numbers people are seeing across Boston, and has the market leaning heavily towards the sellers.
More Luxury Apartments
Not all the numbers are bad though, the number of luxury apartments in development are up. There are more options now than ever before for folks wanting to move into an extravagant home without signing a mortgage. The different complexes are going out of their way to attract tenants, so you’re bound to get an amazing home out of the deal. Plus, some of the luxury apartments have turned into luxury condos meaning you might be able to “reserve” a home by renting it out first.
Though you might find yourself with a condo by renting it out first, you might still have to beat back a few different potential buyers. Since there is such low inventory and condos are in high demand those who do get a whiff of a potential property on sale show up loads of money, and they’re ready to spend. Plus, many of these folks are tired of hunting for homes and are willing to spend more than the asking price. So if you’ve found a home you like, get ready for a bidding war between you and 2-3 more buyers.
Over Asking Price
As mentioned above people are tired of hunting down homes and are willing to pay over the original asking price to secure a home. This trend is artificially boosting prices across the Greater Boston Metro, and buyers and literally paying the price. Boston’s real estate market of course has its ups and downs but you have to wonder how much of it is man-made. As long as people are willing to pay over the asking price, the more pressure buyer’s wallets will feel.
Tough Lending Terms
Mortgage rates are still ridiculously low but lending terms are tougher than ever thanks to the last housing bubble. Getting a home loan is much harder these days and that makes it tough to negotiate a term that allows the flexibility buyers are comfortable with. These tough terms are keeping people in their rentals and the amount of apartments on the market is low. This in turn is leading many consumers out of the rental market, since they can’t find a home, and in turn they start looking at purchasing a home. What folks are finding is that both the real estate sales market, and the rental market are a tough game to maneuver through.