Today’s Boston real estate blog post is about April 2020 downtown Boston condo sales data.
We now have our first month of sold COVID-19 Boston condo sales data for the downtown area. This data will give us a sense of how Covid-19 has impacted the Boston real estate for sale market.
So here’s what’s happening, Boston condo sales volume is down by 24.51%, according to MLS sales data, compared to the same time last year. However, sale values are steady, in some Boston neighborhoods have actually gone up.
As for Boston condo buyers, it’s not your typical feeding frenzy of past Boston real estate Spring markets.
The coronavirus has slowed down sales, one for obvious reasons the reluctancy of Boston condo sellers having strangers walking thought their homes. Buyers uncertainty of the economy and in what direction the Boston real estate market is heading.
Another reason for the slowdown on the number of Boston condo sales in government interference is making it harder to market Boston condos for sale. Mayor Walsh, rightly or wrongly, has discouraged Boston real estate brokers from conducting Boston real estate open houses. As a result, it’s a little more challenging to have buyers view Beacon Hill condos for sale or Seaport and Midtown high rise condos.
Secondly, lenders are competing with a wave of Boston real estate re-financing because of the low historic interest rates. In addition, lenders have tightened their guidelines, so if you were pre-approved earlier in the year, you may not be able to eligible at the same price range from a few months back.
Let me end this Boston real estate blog post on a positive note: You can still obtain a 30 year fixed for 3 – 3.3% on a conforming loan.
It was a year of mixed results for our local real estate market in 2018. On the one hand, Boston condo for sale values was solid and most properties didn’t sit on the market for very long. But on the other hand, there were notable signs of a downward shift.
Yes, the average price of a Boston Midtown condo was just under $1,700,000. But there were fewer offers on properties, which translated into fewer rabid overbidding situations. We seemed to peak in the Spring, and sellers who listed their homes thereafter didn’t necessarily snag the outlier buyer(s) compelled to pay way over asking to get the property.
Here are my thoughts on what I think we’ll see in 2019:
- Continued buyer uncertainty propelled by stock market gyrations, the political climate, and rising interest rates
- Fewer extreme multiple offer situations
- Fewer buyers are willing to pay hundreds of thousands of dollars over the list price.
- New construction of Boston high rise condos will slow down.
As always, I’m on the lookout for new clients to assist in the new year. Give me a shout if you’re planning to buy or sell a home in 2019, you can reach me at 617-595-3712 | firstname.lastname@example.org