The Brookline MA condominium market has been tight and getting tighter for a couple of years now. Buyers compete for properties in any price range, and inventory remains low. The number of buyers increase as the inventory has steadily decreased.
The graph below shows peak inventory in 2013 is lower than off-season inventory in the previous two years.
As interest rates remain low, more buyers enter the market and look for homes. Second time buyers can finally sell or rent their first home easily. First time home buyers are finding rents skyrocketing and lending more plentiful.
But why aren’t homeowners jumping at the market opportunity to sell their homes? In a rising market, homeowners believe they will fetch more money for their home if they wait. If recent history is an indicator of things to come, this is true. Prices have been rising quickly.
Average price of sold condos:
October 2012: $580,753
March 2013: $630,326
October 2013: $671,088
But, alas, recent history is not an indicator of things to come. It’s the longer history to consider with a fairly repetitive and predictable nature of the real estate market. The tight conditions can’t last forever.
Potential home sellers will hold on to their Brookline condominium until they perceive the market has topped off. By the time they put their home up for sale, buyers will regain power, the Brookline real estate market will be more even-handed. Days on market will start to climb and bidding wars will be over. I predict this will be by the middle or end of 2014.
Those considering selling your home who do not have to buy another property in Brookline, this is a perfect opportunity. You can take advantage of the last two seasons of a unique sellers’ market.