Boston Beacon Hill condo seller wants to Know: Should I list now or wait?
Many Boston Beacon Hill condo owners who plan to sell in 2022 may think the wise thing to do is to wait for the 2022 spring Boston condo buying market since historically about 40 percent of home sales occur between April and July. However, this year’s expected to be much different than the norm. Here are five reasons to list your Boston condo for sale now rather than waiting until the spring.
The ShowingTime Showing Index reports data from more than six million property showings scheduled across the country each month. In other words, it’s a gauge of how many buyers are out looking at homes at the current time.
The latest index, which covers November showings, reveals that buyers are still very active in the market. Comparing this November’s numbers to previous years, this graph shows that the index is higher than last year and much higher than the three years prior to the pandemic. Clearly, there’s an influx of buyers searching for your home.
Also, at this time of year, only those Boston condo buyers who are serious about buying a home will be in the market. You and your loved ones won’t be inconvenienced by casual searchers. Freddie Mac addresses this in a recent blog:
“The buyers who are willing to house-hunt in a winter market, when there are fewer options, are typically more serious. Plus, year-end bonuses and overtime payouts give people more purchasing power.”
And that theory is proving to be true right now based on the number of buyers who have put a home under contract to purchase. The National Association of Realtors (NAR) publishes a monthly Pending Home Sales Index which measures housing contract activity. It’s based on signed real estate contracts for existing single-family homes, condos, and co-ops. The latest index shows:
“…housing demand continues to be high. . . . Homes placed on the market for sale go from ‘listed status’ to ‘under contract’ in approximately 18 days.”
Comparing the index to previous Novembers, while it’s slightly below November 2020 (when sales were pushed to later in the year because of the pandemic), it’s well above the previous three years.
The takeaway for you: There are purchasers in the market, and they’re ready and willing to buy
The law of supply and demand tells us that if you want the best price possible and to negotiate your ideal contract terms, put your Beacon Hill condominium on the market when there’s strong demand and less competition.
A recent study by realtor.com reveals that, unlike in previous years, sellers plan to list their homes this winter instead of waiting until spring or summer. The study shows that 65% of sellers who plan to sell in 2022 have either already listed their home (19%) or are planning to put it on the market this winter.
Again, if you’re looking for the best price and the ability to best negotiate the other terms of the sale of your house, listing before this competition hits the market makes sense.
In 2020, there were over 979,000 new single-family housing units authorized by building permits. Many of those homes have yet to be built because of labor shortages and supply chain bottlenecks brought on by the pandemic. They will, however, be completed in 2022. That will create additional competition when you sell your house. Beating these newly constructed homes to the market is something you should consider to ensure your house gets as much attention from interested buyers as possible
If you’re moving into a larger, more expensive Boston condo for sale, consider doing it now. Prices are projected to appreciate by approximately 5% over the next 12 months. That means it will cost you more (both in down payment and mortgage payment) if you wait. You can also lock-in your 30-year housing expense with a mortgage rate in the low 3’s right now. If you’re thinking of selling in 2022, you may want to do it now instead of waiting, as mortgage rates are forecast to rise throughout the year
Consider why you’re thinking of selling your Boston condo in the first place and determine whether it’s worth waiting. Is waiting more important than being closer to your loved ones now? Is waiting more important than your health? Is waiting more important than having the space you truly need?
Only you know the answers to those questions. Take time to think about your goals and priorities as we move into 2022 and consider what’s most important to act on now.
If you’ve been debating whether or not to sell your house and are curious about market conditions in your area, let’s connect so you have expert advice on the best time to put your house on the market.
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Yesterday I spoke with a Boston Beacon Hill condo seller who was wondering whether to sell now, or wait until 2021 for the spring downtown real estate market to catch the more traditional selling season.
- The velocity of rising prices should increase with the vaccine, so let’s consider next year’s value to be +5% of what it is today, but if everything else is even, you might as well wait to sell.
- On the other hand, other potential Boston condo sellers are thinking the same thing, which could crowd the field – which is a vote for selling now, when everyone else isn’t.
- Boston real estate mortgage rates are low and I think they will remain so for now, but mostly likely will rise by the Spring 2021.
- Certainty vs. uncertainty is a call to wait till after the vaccine, so hold off.
- Distressed sales have been a non-factor, so lets call that even,
- If there are more than two high comps nearby to support your price, then you should sell now. You need recent solid sales to sell for top dollar.
- If there are three or more active listing nearby, then wait ’til next year, and hope they hold out for top dollar. You don’t want to crowd the field.
If the move to the next home is flexible, then timing the sale of your existing home should really be determined by the recent sales activity nearby. In the Boston condo for sale tight-inventory era, we have seen how sales can dry up and leave the next seller gasping for evidence to support their optimistic price. It makes it harder to sell, and even tougher to get top dollar.
Downtown Boston Real Estate and the Bottom Line
Are you confused? I get it, there’s no easy answer, but the bottom line is this. How quickly do you need to sell? If you can wait, do it. This time of year is a lousy time to sell downtown Boston real estate
Consider all the factors, and do what is best for you – and get good help!