Anyone paying the slightest bit of attention to the Boston Back Bay condo for sale market these days knows one thing: It’s hot.
With record-low inventories and rock bottom mortgage rates, every day seems to bring a new piece of data pointing to a market on the move. The fast pace of change is being seen from Back Bay to the Boston Waterfront and beyond.
The rate of change is so fast, in fact, that one crucial piece of the homebuying puzzle is frequently being left behind: the appraisal.
Back Bay condo buyers lucky enough to win a bidding war for a property are increasingly running headlong into appraisals that don’t match — or even come close to — the agreed sales price, leaving them with limited ways to close the sale.
As a result, some Boston Back Bay condos under agreement can fall apartment frustrating all the parties — the buyer, the seller and their real estate agents and lenders— frustrated, to put it mildly.
Moving forward, into 2022 Boston Back Bay appraisers expect the disconnect between appraisals and sale prices to shake out — eventually.
Hopefully, there’s a light at the end of the tunnel, in the next 60 days, when all of this closes, hopefully we’ll have a new comp base and better comps to draw from.