In the Boston real estate market today, there are essentially three different price points in the market: the starter-home market, the middle-home market, and the premium or luxury market. Each one is unique, and depending on the city, the price point in these categories will vary. For example, a starter or lower-end condo in Back Bay, is much more expensive than almost any other part of the country. Let’s explore what you need to know about each of these tiers.
This market varies by price, and these Boston North End condos are typically purchased by first-time home buyers or investors looking to flip them for a profit. in downtown Boston, homes in this space currently have less than 6 months of inventory for sale. That means there aren’t enough homes on the lower end of the market for the number of people who want to buy them. A low supply like this generally increases competition, drives bidding wars, and sets up an environment where Boston condos for sale sell above the listing price. According to data from the National Association of Realtors (NAR) on realtor.com,
“The desire for affordability continues to push down the inventory for homes listed for less than $200,000.00.”
This segment is often thought of as the move-up market. Typically, the buyer in this market is moving up to a larger, more custom Beacon Hill condo for sale with more features, all coming at a higher price. Across the country, this market is looking more balanced than the lower end of the market, meaning it has closer to a 6-month supply of inventory for sale. This market is more neutral, but leaning towards a Boston real estate seller’s market.
This is the top end of the market like Back Bay condos for sale with larger homes that have even more custom features and upgrades. Nationwide, this market is growing in the number of homes for sale. In the same realtor.com article, we can see that year-over-year inventory of homes in this tier has grown by 4.7%. Today, there are more Back Bay luxury condos for sale available in the premium and luxury space, leading to more of a buyer’s market at this end.
Depending on the segment of the Boston real estate market and the price point you’re looking at, you’re going to need the advice of a true local market expert. Let’s get together to help you navigate the Boston condo for sale buying or selling process in your market.