Boston Condos for Sale and Apartments for Rent

Loading...

Boston condos for sale: Investors versus first-time home buyers

The Boston condo for sale spring market is well underway, but inflation, along with Boston condo inventory declines and price increases are making homebuying challenging, according to a new Massachusetts Association of Realtors report

Those challenges are being faced by both first-time condo buyers and Boston real estate inventors alike, both are being hopeful that the Boston condo spring market would bring some relief. 

Home sales dropped to a six-month low

Home sales dropped to a six-month low nationally, according to the National Association of Realtors, dropping 7.2% as buyers struggle to find homes as prices continue to rise and inventory remains at historic lows.

Housing starts are up 22.3% from last year

Housing starts are up 22.3% from last year, giving hope for inventory relief, but hampered by high construction costs and increased sale prices. 

Shortage of Boston condos for sale

“While properties might be coming on to the market, they sell too quickly to counteract the lack of housing production we’re experiencing, sustaining strained conditions and frustrations for prospective buyers,” said MAR president Dawn Ruffini. “We still have a shortage of housing – not inventory – but as new listings continue to trickle on, we’re optimistic about the spring and summer markets.”

Median price for a single-family home was up 13.3% year over year

Last month, the median price for a single-family home was up 13.3% year over year to $549,450. Single-family home listings, meanwhile, were down 6.6% compared to the previous year. 

Condominiums prices up 4.6% from 2021

Condominium prices also rose in March, to $480,000, up 4.6% from 2021, while condo listings fell 1.3% from last year. 

Boston condo inventory down 27.5%

Boston condo inventory continues to be an issue, even as the spring market is underway. According to the report, March’s supply of inventory decreased 22.2% for single-family homes and 27.5% for condominiums year over year 

The report also found single-family closed sales fell 12.3% compared to last year, while closed condo sales dropped 18.4%.

Ford Realty Inc downtown Boston

https://www.google.com/maps/embed?pb=!1m28!1m12!1m3!1d11793.761185977048!2d-71.06197216995045!3d42.35445502409486!2m3!1f0!2f0!3f0!3m2!1i1024!2i768!4f13.1!4m13!3e6!4m5!1s0x89e37078b8c14fa9%3A0x5d6309a079968578!2s150%20Seaport%20Blvd%2C%20Boston%2C%20MA!3m2!1d42.3507536!2d-71.042766!4m5!1s0x89e3709d1494eae5%3A0x74822ede31a982ed!2sBoston%20Luxury%20Condominiums%20-Ford%20Realty%2C%20Tremont%20Street%2C%20Boston%2C%20MA!3m2!1d42.3544996!2d-71.0633802!5e0!3m2!1sen!2sus!4v1650795315970!5m2!1sen!2sus

Boston Condos for Sale and Apartment Rentals

Loading...

Boston condos for sale: Investors versus first-time home buyers

Are investors to blame for low housing inventory?

Investors across the country are looking to cash in on skyrocketing house prices and rents, putting them in competition with new buyers trying to work their way to homeownership. Real estate investors bought a record 18% of the homes sold in the third quarter, according to a new Redfin report.

Investors purchased a record $64 billion in homes as growing housing and rental prices boosted prospects for returns. They seem to have their sights set on single-family homes, which made up nearly three-quarters of investor purchases — an all-time high.

“Investors looking to buy homes will confront people who want to live in them,” said Daryl Fairweather, chief economist at Redfin.

Low-priced properties represented 36% of investor purchases, the smallest share on record, according to the report. Investors had the largest market share in Atlanta, Phoenix, Charlotte, Jacksonville and Miami, meaning many homes they bought face high flood and heat risk. 

“Increasing home prices fueled by an intense housing shortage have created opportunities for investors to reap big profits,” said Sheharyar Bokhari, senior economist at Redfin. “Those same factors have pushed more Americans to rent, which also creates opportunities for investors because investors typically turn the homes they purchase into rentals and can now charge higher rents.”

Boston real estate and the Bottom Line

Average monthly rents rose 10.7% year over year in September, the fastest growth in at least two years, while the median home sale price increased 13.9%, according to the report.

Boston Condos for Sale and Apartment Rentals

Loading...

Click Here to view: Google Ford Realty Inc Reviews

________________________________________________________________

Boston Condo for Sale  

Loading...

Boston condos for sale: Investors versus first-time home buyers

About 20 to 21 percent of homes purchased today are by investors,” but mostly smaller investors, Gary Beasley, CEO and co-founder of Roofstock tells Kelly Evans on ‘The Exchange.’ The narrative that there’s too much Wall Street money flowing in into the housing market is not necessarily fact-based, Beasley says.

Beacon Hill Condos for Sale

Ford Realty Inc., Charles Street, Beacon Hill

Click Here to view: Google Ford Realty Inc Reviews

Boston Condo for Sale  

Loading...

______________________________________________________________________________________________________________________

The National Association of REALTORS® has organized a report entitled The Investment  Home Buyers Report. The report, is based on a survey of those who bought residential property including primary and investment homes.

National Trends 

we saw a substantial increase in competition between property investors and first-time home-buyers. According to the report, investors are beginning to search for smaller more affordable properties in urban areas, often outbidding first-time home buyers. How?

Cash & Financing Terms.

Boston condo investors normally have a higher income with more disposable cash flow. This means they are more willing to buy a Boston condo for sale with cash instead of applying for a mortgage.

Additionally, when investors do obtain a mortgage, they are able to put down a higher down payment. This results in their loan more likely to get approved. In general, investors have a lower debt-to-income ratio as well as higher credit scores. Most first-time home-buyers can’t compete with those qualifications.

More Investors = More Competition For Entry Level Boston Condos For Sale.

Most investors buy Boston condos for sale to use as rental properties.This makes it more challenging for first-time home-buyers who may be outbid for lower priced condos.

Continuing Challenges For First-Time Home buyers

As Millennial’s grow older and the desire to settle down, the demand for rental properties is slated to remain high. However, this creates another conundrum – a lack of supply. With more and more investors and first-time buyers alike entering the low-end of the market, which creates more competition. Unfortunately, we’re not seeing the supply of available homes increasing. Looking into 2019, these trends are likely to remain the same.

Boston condos for sale and the bottom line

In 2019, the supply of Boston condos for sale may increase, but the new Boston condos for sale being built are not geared for first-time home-buyers. With cost of land acquisition so high, most have a price tag of $1M and above.

Boston Condo for Sale  

Loading...