Boston Real Estate Market Trends
For many people who are looking to buy Boston real estate, they start by taking into account whether they are financially and personally ready to purchase a home. While these are essential factors to consider, prospective homebuyers should also examine the market conditions in the Boston area in order to gain a better sense of what to expect during the home buying process.
The city’s real estate market trends will not only influence Boston home prices, but they will also affect how quickly and aggressively buyers should bid once they find a home they love. Before you set out to buy a home, take a look at these current trends in Boston real estate.
Outlook for Boston Home Prices
The current home sale prices in Boston have declined over the past year. During the fourth quarter of 2012, the median sale price for Boston homes was in low $400,000 price range compared with a median sales price in the mid $500, 000 range in the fourth quarter of 2011. There has been a significant decrease in home sales prices between the end of 2011 and the end of 2012.
Interestingly, even though the price that homes are actually being sold for decreased this past year, home sellers are still listing their homes at prices that are higher than previous years. Boston listing prices have been seeing an increase. A few weeks ago, we posted that the average listing price was at $965, 489. However, the average listing price is currently at over a $1 million.
Boston is still experiencing a seller's market. By seller's market, we mean a market where there are more people who are willing and able to buy a home than there are people trying to sell one. Basically, in a seller's market, the demand for homes is higher than the supply. Movoto reports that the total for-sale home inventory in Boston is down by 46% since last year.
This decrease in inventory has creating some healthy competition among home buyers, which may help explain some of Boston's recent increase in average listing price. There seems to be a high demand for real estate in Boston, and Boston condos (more so than other property types) seem to be the hot commodity. It was reported by The Boston Globe that "Buyers closed deals on 3,324 condos in the city's core neighborhoods last year, 28.9 percent more than in 2011...the median sale price, or midpoint price, rose to $501,250 - the highest ever - a 5.69 percent increase over the 2011 figure."
While it’s important to consider these overarching trends in Boston home prices and market conditions, you should keep in mind that individual neighborhoods may have their own unique patterns and circumstances. Savvy buyers should narrow down their choices to a few top neighborhoods and take a look at each area’s available inventory, listing prices and sales prices before getting started. Staying informed about trends in target neighborhoods and in the city as a whole will give you an excellent idea of how to set out on your home buying process