Boston Condos for Sale
In Boston real estate – Perception is Reality
There are many headlines out there that claim we’re reverting to a more normal real estate market. That would indicate the housing market is returning to the pre-pandemic numbers we saw from 2015-2019. But that’s not happening. The market is still extremely vibrant as demand is still strong even while housing supply is slowly returning.
Here’s the definition of normal from the Merriam-Webster Dictionary:
“conforming to a type, standard, or regular pattern: characterized by that which is considered usual, typical, or routine.”
Using this definition, here are five housing industry metrics that prove we’re nowhere near normal.
1. Boston Condo Mortgage Rates
If we look at the 30-year mortgage rate chronicled by Freddie Mac, we can see the average rates by decade:
- 1970s: 8.86%
- 1980s: 12.7%
- 1990s: 8.12%
- 2000s: 6.29%
- 2010s: 4.09%
Today, the average mortgage rate stands at 2.87%, which is very close to the historic low.
Currently, mortgage rates are anything but usual, typical, or routine.
2. Home Price Appreciation
According to Black Knight, a housing data and analytics company, the average annual appreciation on residential real estate prices since 1995 has been 4.14%.
According to the latest forecast from the National Association of Realtors (NAR), home price appreciation will hit 14.1% this year, which will be greater than any year since Black Knight began collecting this data.
Currently, home price appreciation is anything but usual, typical, or routine.
3. Months’ Supply of Inventory (Homes for Sale)
According to NAR:
“Months’ supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace. Historically, six months of supply is associated with moderate price appreciation, and a lower level of months’ supply tends to push prices up more rapidly.”
As of the latest Existing Homes Sales Report from NAR, the current months’ supply of inventory stands at 2.6. That’s less than half of a normal supply.
Currently, the supply of homes for sale is anything but usual, typical, or routine.
4. Days It Takes To Sell a Home
The days-on-market metric gives an indication of how hot a market is and how quickly homes are selling. In 2019, prior to the pandemic, the average days on market stood at 35, according to NAR. Today, that number is cut in half and is now at 17 days.
Currently, the days-on-market metric is anything but usual, typical, or routine.
5. Number of Offers per Listing
According to NAR, the number of offers per listing stood at 2.2 in 2019. Today, that number is double at 4.5.
Currently, the number of offers per listing is anything but usual, typical, or routine.
Boston Condo and the Bottom Line
When…
- Mortgage rates are near historic lows
- Price appreciation is at historic highsIn Boston real estate – Perception is Reality
- Housing inventory is less than half of the normal amount
- The time it takes to sell a home is cut in half, and
- There are twice as many offers on each house
…it’s hard to say we’re in a normal market.
Boston Condos for Sale
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The National Association of Realtors says staging makes it easier for buyers to visualize themselves in the home, buyers are more likely to visit a home that they see is staged online and saw an increase in dollar offers for staged homes.
Okay, we get it.
But staging ….can be incredibly costly.
So now, there’s virtual staging, where a computer generates the furniture and a much more economical price.
Boston real estate and staging during COVID-19
Virtual staging grew in popularity during the COVID-19 outbreak. Boston condo buyers couldn’t physically view Boston condos for sale, and listing agents had to quickly adapt to include virtual marketing pieces like 3D tours and photo galleries showing furniture in rooms that were technically empty. Stagers weren’t able to do their jobs, so virtual became a viable option.
Boston real estate – Back to normal
But now that Boston is opening up and we will be able to physically view Boston condos for sale coupled with stagers are working again, it’s become obvious to me that virtual staging can only so far. Sure, virtual staging is a lot less expensive for sellers than the real thing. Agents generally pay for the virtual staging on a per photo basis, so sellers avoid paying thousands of dollars for actual staging.
In Boston real estate – “You get what you pay for”
But as the old saying goes, you get what you pay for. Virtually staged photos and tours online can motivate buyers to schedule an appointment to see a Beacon Hill condo for sale.
But there’s still a big difference between visiting a staged Midtown high rise condo and an empty one, especially if the virtually staged version looks almost like a completely different property. In other words, perception is reality.
Boston real estate and the Bottom Line
When it comes to listing Boston real estate for sale, staging is worth the cost, in my opinion, because it helps buyers emotionally connect with your Seaport condo. Buyers can visualize themselves living in the space and can aspire to live in a stylish, organized way that might currently elude them.
Regardless of what you might be reading in the media, Boston condo buyers are out there looking at Boston condos for sale and ready to write offers. But remember in Boston real estate – Perception is reality.
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Downtown Boston high rise condos for sale
