Boston condos for sale: Inventory is on the rise

Boston Condos for Sale and Apartments for Rent

Boston condos for sale: Inventory is on the rise

Housing inventory reaches post-pandemic high as market continues to balance

Housing inventory reached its highest level since the pandemic in July, according to Realtor.com’s July Monthly Housing Markets Trends Report.

The combination of rising inventory and price reductions is delivering a market that’s more buyer friendly for homebuyers.

The number of homes for sale increased by 36.6% in July compared to the same month last year, reaching a post-pandemic high. Buyers also benefited from price reductions, with 18.9% of listings experiencing cuts — the highest share since October.

“The inventory scars of the pandemic-era housing market are continuing to fade,” said Danielle Hale, chief economist of Realtor.com. “Although active listings are still short of the pre-pandemic mark, we saw the gap continue to narrow meaningfully as active listings hit a post-pandemic high.”

Hale noted that as more sellers list their homes and buyers become more selective, the time a home stays on the market is increasing, which is helping shift the housing market in a more buyer-friendly direction.

“In response, sellers are curbing expectations and reducing listing prices more often, which could set the stage for more sales this fall, especially if mortgage rates continue to decline,” she said.

Nationwide inventory grew last month, with the total number of homes for sale increasing by 22.6% year over year. This marks the ninth consecutive month of growth this year, surpassing June’s 22.4% increase.

While inventory remains below pre-pandemic levels, the report found that the gap between current levels and those from 2017 to 2019 is gradually narrowing.

It’s not just more inventory making the market much more favorable to buyers. Sellers are cutting prices on more homes than we saw last year.

“In addition to seeing inventory levels rise to heights not seen since before the pandemic, buyers are also seeing sellers cut prices on a much larger share of homes than last year,” said Realtor.com Senior Economist Ralph McLaughlin. “These are signs that the housing market is healing from an unhealthy state and becoming more balanced.”

With more sellers entering the market due to decreasing mortgage rates, the report found the share of listings with price cuts increased 18.9% in July, the highest since October.

In Boston, 14.7% of listings saw price cuts last month.

It also noted growth in newly listed homes which were up 3.6% from last year but lower than June 2024’s 6.6%, marking the ninth month in a row of increases in new listings – meaning more options for buyers.

Homes are also staying on the market longer. In July, the typical home spent 50 days on the market, the fourth month in a row where time on market was up from the previous year. Realtor.com did note that while it is five days more than what was seen last July, it’s still 8 days less than the time spent on market in July from 2017 to 2019.

The median number of days on the market for a home in Boston is 38, which is two days longer than last year.

Peace be with you

Updated: Boston Real Estate Blog 2024

Boston Beacon Hill Condos for Sale

Ford Realty Beacon Hill – Condo for Sale Office

Ford Realty Inc Beacon Hill Office

Boston Fenway Condos for Sale 2023

Boston Condo for Sale Search

_______________________________________

Boston condos for sale: Inventory is on the rise

In a recent article, National Housing Inventory Crisis Reaches Inflection Point, realtor.com reported that:

New listings jumped 8% year-over-year nationally, the largest increase since 2013
Total listings in the 45 largest markets are now up 6% on average over last year

This increase in housing inventory has sparked two different reactions. Some are saying this is the first sign of a potential collapse while others are saying it is a welcomed reprieve from the lack of inventory that has stalled the market recently. As Zelman & Associates reported in a recent ‘Z Report’:

“With the rate of home price appreciation starting to decelerate alongside the uptick in inventory, we expect significant debate whether this is a bullish or bearish sign.”

Is this a sign the market might crash?

There are those who look at the increase in inventory as a sign that we are returning to the market we saw last decade. However, a closer look shows that we are nowhere near the levels of inventory we reached before the crash in 2008.

A normal market would have about 6-months inventory, but the latest Existing Home Sales Report issued by the National Association of Realtors revealed that:

“Unsold inventory is at a 4.3-month supply at the current sales pace up from 4.1 months a year ago.”

A decade ago, prices began to rapidly depreciate in June 2007. At that time, we had a 9.1-month supply (more than double what it is today) and inventory kept rising until it hit a peak of 11.1 months in April of 2008.

With the current levels of buyer demand, any such increase in months supply is highly unlikely. As Danielle Hale, realtor.com’s Chief Economist explains:

“After years of record-breaking inventory declines, September’s almost flat inventory signals a big change in the real estate market. Would-be buyers who had been waiting for a bigger selection of homes for sale may finally see more listings materialize. But don’t expect the level to jump dramatically.
Plenty of buyers in the market are scooping up homes as soon as they’re listed, which will keep national increases relatively small for the time being.”

What will be the result of the increase in inventory?

The increase in inventory will allow many families who had been unable to find a home to finally become homeowners. Again, we quote from the ‘Z Report’:

“In our view, the short-term narrative will probably be confusing, but more sustainable growth and affordability will likely be the end result.”

Conclusion

If you are either a first-time or second-time Boston condo buyer who has given up, let’s get together discuss the inventory available in our market.