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Boston Real Estate Market Update

Real Estate Market Update – July 2018

The market is hot right now in Boston, Brookline and Brighton. Will it stay that way? I’ve been helping clients make great real estate decisions for over 15 years. Here’s my thoughts on the Boston real estate market right now:

 

Hi, everybody. It’s Ruth. I want to give a quick market update. It is the end of July 2018, and we have had really a very robust and unusually busy market this summer. July is quiet, and August, are usually quite slow in Boston in real estate. So what is attributing to this market? I think I’ve spoken to this, about this before.

Some people are saying, “Well, the weather was really terrible through mid-April; therefore, buyers were not out, and sellers were not coming on the market until late April, early May.” More likely culprit was all the market jitters we had in the beginning of the year, plus the interest rate hikes that started, and are going to continue through the rest of the year. Everybody kind of took a pause to see what’s going on with their finances.

We’re also seeing this trend throughout the country. I’ve spoken to agents all around the country, where they do have a seasonal market, like we do here in Boston. And they are saying July is unusually busy after a very slow first quarter 2018. National statistics are out. May home sales have declined nationwide. We are looking at an inventory shortage, a story throughout this country. The people who are suffering the most are the first time home buyers, the young families, the entry-level buyers. For us here in Boston metro, we’re looking in the smaller condo, the two-bedroom condo market, and this is a problem nationwide with smaller homes.

I did some research for a client of mine and we looked at the numbers. In the past four years, four years, the average prices of condominiums in Brighton have gone up 55%, 55%. The past four years, the average price of condominium Brookline have gone up 40%. Wow, what an investment in the past few years to own a condominium in Brookline, Brighton, and really, in most of greater Boston.

But if the average price has gone up by 55%, does that mean your condo is worth 55% more? Well, not necessarily and probably not. That average price is really being pulled up by a lot of the, kind of the luxury, and the new construction, and the larger units being built this past couple of years in Brighton, and now are being sold. They are pulling this number up. Your home is not necessarily worth 55% more than it was just four years ago. But it is worth a lot more. It has been a very dynamic and generous market to home sellers in almost all of Boston’s neighborhoods, Brookline, as well as Newton.

If you have any questions about the real estate market, don’t hesitate to contact me. Text, write me, call me. I love hearing from you. Have a fantastic rest of the summer.

Boston real estate market analysis

The Boston Real Estate Market Is Shifting

There’s been some changes happening in the Boston real estate market. Click the video below to learn what you should do – whether you’re a real estate buyer or seller:

Hi, this is Ruth. I just wanted to give you a quick market update. Real estate is shifting a little bit, and I wanted to share a few thoughts with you. It is becoming a much more even market. We’re seeing this summer, buyers taking back a lot of the power that they haven’t had in the past few years in real estate. Generally speaking, it’s a much more favorable market to buyers, not quite a buyers market, but much more favorable. Rates are low, and sellers are having to wait a little bit longer to find the right buyer, so go get out there if you’re thinking about buying. As for home sellers, look, if you’re thinking about selling your home, you’re talking to an agent who’s saying, “This is going to take one week and one open house. You’re going to have multiple offers. This is going to go way over asking,” that’s not going to happen.

Run from that agent. Don’t count on that anymore. It is no longer the rule. It is still happening here and there for certain types of properties, but please do not depend on that if you are a home seller. In Brookline specifically, between the first half of 2015 and the first half of 2016, we’ve seen roughly a flat market, average prices for the single family homes in Brookline. The single family homes in Brookline, it’s mostly luxury market, and I’ve been saying for a while that this market is softening, and I think we’re going to see further softening in the luxury market. In the meantime, the condo market in Brookline for the same time, the average prices did go up about 9-1/2%.

That is a substantial increase, but I think this is going to taper off. We’re looking at about 3-5% in the coming years probably for the Brookline condo market. JP, Brighton, still hot markets. There’s several hot markets still in Boston, but it’s not as nuts as it used to be. We used to just call the market nuts. It’s no longer that. What does all of this mean if you’re living anywhere in the United States? I think Boston metro, as well as some other areas, metropolitan areas in the United States, are great lending indicators of what is happening in the market. If this softening is not happening in your market yet, expect it to happen soon.

This summer, we’re seeing a lot more price reductions. We’re seeing a lot more where a home buyer and a home seller had an agreement, and the home buyer backed out and the home came back on market. We’re seeing a lot more of that, and I think we’re going to see much more of that as buyers are resisting very high prices. They feel that they’re overpaying for some of these homes, and sellers are expecting to not have to negotiate. Expect some shifts in the way that we are handling these transactions. I think rates are going to stay relatively low for a while longer. I think luxury’s going to continue softening, and I think the entry level and condo market will taper off a bit. Again, this is Ruth. I’m here to help you make great real estate decisions. You need any specific information, call, text, email, you know where to find me.

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boston real estate market questions

What’s Going On In The Boston Real Estate Market?

I’ve been getting a lot of questions recently about what’s going on in the Boston real estate market.

So I put together this video to answer those questions. Click below to watch:

As always, I’m here to help you make great real estate decisions. If you have any questions about anything real estate related, please let me know.