Boston condos for sale: Investors versus first-time home buyers
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 In 2019.
In 2018 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.
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.