Boston Condos for Sale and Apartments for Rent

Boston housing inventory challenge in 2023

Despite the surge in sales, continuing inflation of prices and supply issues are subduing expectations for a torrid summer season in Boston’s real estate market, as seen in a report from the Massachusetts Association of REALTORS® (MAR).

The MAR housing data report for June uncovered that, while closed sales showed an elevation for the fourth successive month, housing costs and rising interest rates continued to affect the Massachusetts real estate climate and stopping it from regressing to its pre-pandemic status. Home prices experienced an increase both from the previous month and compared to one year ago, so potential buyers are evaluating if it is best to wait, whereas potential sellers are determining whether or not they should keep their property for the present time.

David McCarthy, the 2023 MAR leader and a Keller Williams Real Estate Agent, declared that despite the regular increases in sales, the overabundance of inventory remains an obstacle to yearly growth. With numerous long-term property owners enjoying attractive interest rates, there is not as much motivation to list their homes as had been seen in past years. It is hoped that the initiation of new construction undertakings in the region will furnish some highly required stock.”

The average cost of single-family residences in Massachusetts grew 4% last month compared to June 2022, pricing the median house at $650,000, although new inventory for single-family homes reduced by 33.2%.

Nevertheless, the cost of condos did not vary in comparison to last year and the availability of condos decreased by 28.7%.

Additionally, according to the investigation results, single-family finalized transactions declined 23.2% from the prior year and closed condo transactions went down 21.2% compared to 2022.

Updated: Boston Real Estate Blog 2023

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There are so few condo listings that sellers (and listing agents) are pushing the list prices….but buyers have had enough, and the inferior properties aren’t selling like they used to.
Sellers and agents are skipping the spruce up/staging extras, and buyers are being picky.
The wait-and-see strategy is addictive, and once buyers adopt it, it’s hard to get off the fence.

Boston Condos for Sale and the Bottom Line

It is rare that a seller decides to sell and then lists their home for sale the same day. Usually, it’s a plan that has been in the works for months, and any last-minute adjustments – especially on price – are also rare. Don’t be surprised if the pricing over the next two months reflects the pricing of the last two months.

Boston Condos for Sale and Rent

Boston housing inventory challenge

The biggest challenge in Boston’s real estate today is the lack of available Boston condominiums for sale. The low housing supply has caused homes throughout the country to appreciate at a much faster rate than what we’ve experienced historically.

There are many reasons for the limited number of homes on the market, but as you can see in the graph below, we’re well below where we’ve been for most of the past 10 years. Today, across the country, there is only a 2.4-month supply of homes available for sale.

The Housing Opportunity

This lack of homes for sale is creating a challenge for many buyers who are growing frustrated in their search. On the other hand, this is a huge opportunity for sellers as low supply is driving up home values. According to CoreLogic, the average home has appreciated by more than $50,000 over the past year. And for many homeowners, that’s opening new doors as they re-think their needs and use their equity to move up or downsize.

According to Dr. Frank Nothaft, Chief Economist at CoreLogic:

“The average homeowner with a mortgage has more than $200,000 in home equity as of mid-2021.”

Today, many sellers are taking advantage of low interest rates and the equity they have in their homes to make a move.

Boston Condos and the Bottom Line

The biggest challenge in Boston real estate is the lack of homes for sale, but this challenge is also an opportunity for sellers. If you’re thinking about selling your house, let’s connect to start the process.