Here’s my thoughts on the Boston condo market
Boston Condos for Sale and Apartments for Rent
Here’s my thoughts on the Boston condo market
There isn’t any reason for Boston condo for sale buyers to think mortgage rates are going to drop significantly this year. If there were one or two Fed cuts, it would only cause mortgage rates to drop back into the 6s which isn’t enough to compensate for the sky-high Boston condominium prices that buyers are seeing today.
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Here’s my thoughts on the Boston condo market
I understand that the Boston condo for sale inventory is tight right now. However, historically speaking, Boston condo for sale inventory tends to build up 60 days before a presidential election
Updated: Boston Real Estate Blog 2024
Byline – John Ford Beacon Hill Condo Broker
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Here’s my thoughts on the Boston condo market
Here are my thoughts on the Boston condo for sale market in 2024. Please note I may revise these predictions as the year goes on as certain events can’t be predicted like the Ukraine and the Israel war.
Here’s what I believe we can expect in 2024:
Interest rates will stabilize—and decline. The Fed raised rates three times in 2023, and isn’t expected to raise them this year. In fact, many mortgage professionals believe rates will steadily decline as the year wears on.
Inventory will increase, probably in the spring. Many homeowners who postponed selling in 2023 will stick their head out the door and find that the climate is a bit more hospitable for a move and will be motivated to take action.
Prices will remain flat, mixed in with some decline .Boston condo for sale values will be stable and may even increase a bit. Condos outside downtown Boston may see values generally flat, with some declines for units with specific challenges when it comes to variables like location, view and high condo fees.
More home buyers will materialize. Lower interest rates will encourage fence sitters to get pre-approved for loans, and buyers will wade into the market knowing that it’s highly likely they can refinance later at lower rates. Additionally, current renters or those who moved out of the city to work from other places will filter back to Boston as companies require employees to work at least part of the week in the office. It’s likely many of these folks will decide to invest in a new home and take a more permanent resident approach to living here.
International conflict and the election will cast a shadow of uncertainty. Okay, so there will be some semblance of anxiety out there. The wars in the Middle East and Ukraine, as well as the presidential election will cause some market volatility throughout 2024. That could easily limit real estate activity as would-be buyers and sellers wait to see how things turn out.
Boston Condos for Sale and the Bottom line:
2024 will be better than 2023, but not dramatically so. We’ve had a year to get comfortable with 2023’s interest rate and insurance antics and the new reality that’s emerged. So I’m expecting activity closer to a normal market.
Updated: Boston Real Estate Blog 2024
Byline – John Ford Beacon Hill Condo Broker
Where is Ford Realty Located?
Ford Realty is located in 137 Charles Street in Beacon Hill
For more information please contact one of our on-call Boston real estate agents at 617-595-3712.
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Here’s my thoughts on the Boston condo market
Within the realm of the Boston condo for sale investment market, there exists a widespread enticement that appeals to both inexperienced and experienced investors: attempting to gauge the perfect timing of the market. This allure entails forecasting opportune instances for purchasing or selling properties, relying on shifts in market patterns in order to optimize gains. Despite the apparent potential of this approach in principle, practical experience often uncovers a contrasting story. The age-old saying that emphasizes the importance of staying invested over attempting to time the market remains steadfast and imparts valuable insight for individuals involved in real estate investments.
Timing the Boston condo market
The idea of timing the Boston condo for sale market centers around the belief that one can anticipate the highs and lows of property values, with the intention of purchasing at a low point and selling at a high point. However, attempting to accurately predict these fluctuations in the market entails a significant gamble, fraught with uncertainty and risk. The real estate market is subject to a multitude of unpredictable elements such as fluctuations in the economy, changes in interest rates, geopolitical occurrences, and local supply and demand conditions. As a result, accurately timing the market proves to be a challenging endeavor.
Back Bay: Ford Realty Inc
Invest in Boston condos for the long term
Below are a few persuasive justifications as to why placing greater importance on time spent in the market rather than attempting to time it is a wiser strategy:
- Over an extended period, real estate has demonstrated a historical pattern of increasing in value. Although there might be temporary fluctuations, focusing on long-term investment prospects enables individuals to capitalize on the potential for property appreciation rather than becoming excessively preoccupied with short-term market instability.
- Timing the Market vs. Time in the Market: Consistently holding onto real estate assets allows investors to harness the potential of compounding returns. Real estate values generally appreciate, and rental earnings can be reinvested to expand the property portfolio even more. As time goes by, these cumulative returns have the potential to significantly enhance overall investment returns.
- Steady Rental Income: Investment properties, specifically those used for rental purposes, have the potential to generate a reliable and consistent cash flow. Despite the volatility of market values, a well-situated property in high demand for rentals can offer a stable income stream that remains unaffected by short-term market fluctuations. By prioritizing long-term income prospects, investors can enjoy the stability that rental income brings.
- Timing the market versus time in the market: When it comes to buying and selling real estate, there are transaction costs that can substantially impact profits. Furthermore, owning properties for a short duration may result in increased capital gains taxes. However, by maintaining ownership of properties for longer durations, investors can reduce these costs and minimize the tax implications.
- Timing the market can often lead to emotional decision-making, influenced by various factors such as fear, greed, or external market noise. This can lead to impulsive actions that may not align with a well-thought-out investment strategy. On the other hand, adopting long-term investment strategies typically provides greater stability and helps in avoiding hasty responses driven by short-term market fluctuations.
Boston condo buying is a long term investment
In the end, achieving success in real estate investment requires adopting a strategic mindset that places greater emphasis on long-term considerations rather than trying to anticipate immediate market changes. By placing emphasis on essential factors such as the property’s fundamentals, its location, potential for generating cash flow, and broader market patterns, investors can construct a strong and durable portfolio.
In summary, although the temptation to time the real estate market can be attractive, it frequently results in greater risks and fewer rewards. Employing a strategy focused on being active in the market, adopting a long-term mindset, and adhering to sound investment principles typically generates more dependable and significant returns. It is important to keep in mind that real estate is more akin to a marathon rather than a sprint, and achieving success often requires combining patience with a well-thought-out, long-term strategy
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With higher interest rates, the Boston condo seller’s market isn’t losing its strength. as many Boston condo buyers were hoping.
Boston condo owners with mortgages that have interest rates in the 3% range are not likely to put their homes for sale, which means fewer Boston condos for sale on the market. At the same time, demand for Boston condos high.
Updated: Boston Real Estate Blog 2023
Updated: Boston Real Estate Blog 2023
Byline – John Ford Boston Condo Broker
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The biggest issue right now is our current lack of Boston condo inventory. We started last year at about 8.4 months of inventory. Today, we are sitting on about a 3.4 months supply. It has become a very good time to sell your Boston condo. With that said, sellers must still price their home correctly. Many sellers still have the mentality that they want to sell their condo at their dream price not going to happen! For buyers, Boston condos that are priced correctly will begin to sell much more quickly. If you see something you like that has been on the market awhile, be patient and watch for price reductions. If your agent is a condo specialist and knows the pricing in the market, be ready to make an offer. Yes, we are starting to see multiple offers again in some parts of town, especially in the low end of the market $500,000 or under.
If you are looking to buy a Boston condo in the near future, your timing couldn’t be better. Prices will begin to rise ( we believe 4-5% a year in Boston, up from the national average of 3.1% that is expected) . Interest rates are still relatively low. Economist believe that by the end of 2019 we will most likely be looking at 5.0 % . What does this mean to you as a buyer. It could be the difference between being able to afford a 2 bedroom unit or a one. It could be the difference in your payment that could have gone to paying you monthly condo fees.
Updated: Boston Real Estate Blog
Byline – John Ford Boston Condo Broker
