Boston housing inventory challenge in 2022
- There are so few condo listings that sellers (and listing agents) are pushing the list prices….but buyers have had enough, and the inferior properties aren’t selling like they used to.
- Sellers and agents are skipping the spruce up/staging extras, and buyers are being picky.
- The wait-and-see strategy is addictive, and once buyers adopt it, it’s hard to get off the fence.
It is rare that a seller decides to sell and then lists their home for sale the same day. Usually, it’s a plan that has been in the works for months, and any last-minute adjustments – especially on price – are also rare. Don’t be surprised if the pricing over the next two months reflects the pricing of the last two months.
The biggest challenge in Boston’s real estate today is the lack of available Boston condominiums for sale. The low housing supply has caused homes throughout the country to appreciate at a much faster rate than what we’ve experienced historically.
There are many reasons for the limited number of homes on the market, but as you can see in the graph below, we’re well below where we’ve been for most of the past 10 years. Today, across the country, there is only a 2.4-month supply of homes available for sale.
This lack of homes for sale is creating a challenge for many buyers who are growing frustrated in their search. On the other hand, this is a huge opportunity for sellers as low supply is driving up home values. According to CoreLogic, the average home has appreciated by more than $50,000 over the past year. And for many homeowners, that’s opening new doors as they re-think their needs and use their equity to move up or downsize.
According to Dr. Frank Nothaft, Chief Economist at CoreLogic:
“The average homeowner with a mortgage has more than $200,000 in home equity as of mid-2021.”
Today, many sellers are taking advantage of low interest rates and the equity they have in their homes to make a move.
The biggest challenge in Boston real estate is the lack of homes for sale, but this challenge is also an opportunity for sellers. If you’re thinking about selling your house, let’s connect to start the process.
SEARCH BOSTON CONDOS FOR SALE AND RENT
- Back Bay
- Beacon Hill
- Charlestown Navy Yard
- Dorchester Heights
- Jamaica Plain
- Leather District
- Seaport District
- South Boston
- South End
For more information please contact one of our on-call agents at 617-595-3712.
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