There are two good reasons to analyze the Brighton condo market, even if Brighton MA is the your spot of choice. Both reasons have to do with the type of buyers which dominate the sales in the neighborhood.
First, investors. Investors have flocked to Brighton condos for years. There has been a great return on investment with stable rental income and increasing value. The proximity to the City, Boston College, Boston University and easy access to Cambridge and the Pike make it a super-convenient area. Couple this with the affordability, and you have low vacancy rates even in the worst of times.
The second types of buyers are first-time-home-buyers. Young professionals and young couples are the other major buyers of Brighton MA condos. They properties are smaller yet sufficiently charming with just the right amount of area amenities to attract a young homeowner.
Actions of both these buyers, investor and first-time home buyer, can tell us a lot about what is going on in the market, slightly ahead of the curve. First time home buyers are the first domino in the real estate ecosystem. When they buy, young families in small condos can move bigger homes in other areas, and so forth.
Investors also teach us where the value is located. Investors usually do not have to buy, or at least not necessarily in any particular neighborhood. They have more options on where they can put their money. Follow the savvy investors who are all about the numbers, and you will find the spots where there is still value in the price of homes.
Looking at this week’s chart, we see the seller’s market is still strong. The list-price to sale-price ration tells how how far over asking price are the buyers bidding on the condos. The four month average sale to list price ration (red line) is up to 4-5% in June. Buyers are paying well over asking price, a result of multiple offers.
Last year I predicted this tight market will loosen up with more inventory. But with slightly more inventory, we still see demand outpacing it. Looks like there is no immediate end to this seller’s market. Yet, I don’t believe our investors will hang around Brighton much longer. Why? We’ll talk about that another time.
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