In the Boston real estate market inventory, overall, is tight. This is especially true in the spring and early summer months (but not so much now it is actually a pretty good time to buy). You may find that the best deals are on the market for a few days, moderately priced homes can sit for a month or two, and overpriced homes can sit for extended periods of time. Lower price ranges in town (anything under 300,000) moves a lot faster than any other category.
It’s challenging (especially in the lower price ranges), but not impossible, to buy a home under these real estate market conditions, so of course we’re always looking for a party to blame. Murky stories emerge, and chief among them is the belief that migration to Massachusetts from places like New York and New Jersey and even buyers from China is driving up demand for homes to unreasonable levels.
First off, it’s important to remember that the stories about the Boston real estate market are sometimes exaggerated. Yes, we see multiple-offer situations, so called “bidding wars”. And yes, Boston is a popular place to move to, but that doesn’t mean migrants are the ones causing the overall residential real estate shortage.
What is the real cause?
To figure out whether these new Portland residents are entering the real estate market and buying up homes, the truth that most migrants to the Boston metro area have a lower income than those already living here. That’s mostly because they also tend to be younger – entering college, or just starting careers.
Most individual from who migrate to Boston move into apartments or rent a room in a house, and many will move on to other parts of the country after they’ve spent a year or two doing that. (You may have noticed the Boston rental market is a lot tougher than the Boston real estate market.) Migrants are likely responsible for the tough rental market, and not the tough (at times) Boston condos for sale market.
Boston condo/apartment construction boom
The boom in construction of new apartment buildings around Portland confirms this picture of migration to the city, and 2015 and 2016 were both record-setting years for the number of new apartment building permits issued.
What’s the cause?
So, if migration is not the primary culprit for a tight Boston real estate market, what is? Lack of new home construction (due to lack of available land in the city) as well as overall employment and wage growth are allowing current Bostonian’s to move into better homes (or buy their first one).
If you’re one of those Boston residents ready to buy your first home, or move into a new home.We’ll give you the straight story and get you into the right home – it just takes a little patience and a skilled team on your side.