Boston Real Estate Update
As a whole, the real estate market across the nation is still surging. Demand to buy a home is still sky high because of rock bottom mortgage rates. At the same time, available inventory is still limited, which means that home prices are still rising. This has been a familiar story for home buyers for the past year. While these trends more or less hold true throughout the United States, there are some variations between individual markets. Because of that it is a good idea to check in and see how our local market is doing from time to time. The team at Streamline Realty is here to help you do just that. Here is our update on Boston real estate and what home buyers, as well as home sellers can expect from the market right now.
What Home Buyers Can Expect from Boston Real Estate
Last year’s real estate market was red hot, especially during the summer months. Home buyers rushed to get good delas on the house of their dreams due to low mortgage rates. Few predicted that home buyer demand would stay this high for this long. However, it has. As strong as last summer’s real estate market was, this summer’s is even stronger, especially in Boston. Compared to July of 2020, the number of closed sales for single-family homes and condos in Boston increased 14.4% in July of 2021. That is quite incredible. Many of us were blown away by last year’s numbers, but this year’s home sales are even more eye-popping.
While the raw data concerning the number of home sales in Boston is impressive, what is even more interesting is the context in which it’s happening. There are less homes for sale than ever before. Inventory has decreased. Active listings are down over 23% from July of 2020. In fact, active listings are down 2.7% from June. More home buyers are purchasing homes than even in spite of the fact that there are so few home sellers. As you would expect, when demand far exceeds supply, prices rise and that is exactly what is happening to home values across Boston.
These trends in the Boston real estate market do beg some interesting questions. If home prices are higher than ever before and there are few houses to buy, why is demand from home buyers so high? The answer is simple. Even at today’s high home prices, buying a home right now is still a great value because of rock bottom mortgage rates. Today’s mortgage rates will not last forever and home buyers recognize that they present a tremendous opportunity.
Keys for Boston Home Buyers
Today’s home buyers are more determined than ever, which is good because it will take a fair amount of persistence to buy a house in this market. Home buyers are facing several challenges at this current moment. First, the limited inventory means that they are competing against many other buyers for the same home. Second, they are finding that they are having to pay far more than the listing price in order to get their offer accepted. This can be frustrating, however, buying a home at today’s mortgage rates makes it all worth it in the long run. That is why you see buyer demand so high in spite of all these challenges.
There are a few things that home buyers can do to prepare themselves for this tough Boston real estate market and buy the house of their dreams. First, they need to prepare themselves psychologically. Know that you are not the only ones who are trying to buy a house. Understand that you will be in bidding wars. Embrace this and be ready for the mental strain.
Second, do not fall in love with any single house and instead create a list of characteristics that will help you find a range of homes. Chances are you will not be able to buy the first house you see. Falling in love with a single home will only increase your risk of heartbreak and frustrate the home buying process.
Third, work with an experienced and professional realtor. Boston is a tough real estate market and you need someone who knows the market inside and out. Having an exceptional realtor will help give you an advantage over other home buyers. They can help you identify houses as soon as they are listed or right before. Additionally, they can help you craft the perfect offer, which makes it more likely that you will win a bidding war. Not all realtors are created equal and getting one of the best in your corner can go a long way toward helping you buy a home in this tough market.
Final Thoughts
The Boston real estate market is not slowing anytime soon, but that should not deter you from jumping in with both feet. The Boston real estate market might be tough, but all you need is a Boston realtor who is tougher. Sometimes the best rewards in life are those that you have to fight the hardest for. That is true of buying a home in today’s market.
If you are interested in buying a house and you want a Boston realtor who will help you get ahead in this market, contact us. The team at Streamline Realty will do whatever it takes to help you get the home of your dreams.
