This is the time of year when everyone gets out their “crystal ball” and tries to predict what will happen in the Boston condo market. Let’s look at the forecast for a more detailed picture of what’s ahead.
Some good news for first-time buyers is single-family housing starts are expected to rise 9% in 2021. Typically, a large portion of single-family housing starts are in affordable Boston suburban real estate markets and beyond, not so much for the downtown Boston real estate market.
More than likely, rising mortgage rates will occur, adding more pressure for Boston condo buyers to qualify for homes in downtown Boston real estate markets. Sellers in the first half of the year will need to be more negotiable, but as the year progresses it will be a Boston condo seller’s market in 2021. Priced right move-in ready downtown condo will still command a premium selling quickly. If you’re a seller planning on buying another home expect to move fast from accepting an offer to purchasing your next property in 2021.
As long as work from home remains or even a hybrid expect the Boston suburbs to continue to be in-demand. According to the forecast, “if companies commit long-term to remote work, demand for these homes could see an additional boost in 2021.”
Boston condo buyers can consider waiting until later in the year for more inventory to go on the market. Though they most likely will pay a higher interest rate. Here’s some advice from Hale.
“If you are a buyer in the first quarter you still need to be persistent. If you are struggling don’t lose hope because you will likely see more options later in the year.”
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