At the current time, the number of active listings nationwide is 20% lower than at the end of 2020 and is at its lowest levels since the same quarter in 2018. We expect demand for Boston condos for sale to increase moving forward because of low interest rates and a very high level of available capital. Once travel restrictions and short-term health concerns resolve we can expect even higher levels of interest. In the next few months Boston real estate market trends favoring sellers are expected through the summer.
As things continue, there are a few things that may have a negative impact on our Boston real estate marketplace. The low levels of opportunity and current price for existing properties (in all categories) may cause purchasers to refocus in other areas outside of downtown Boston or simply decide to stop looking. Further, trends in construction costs and slow approval process mean the supply of new developments or spec builds will trail demand significantly and increase the focus on already existing properties. Additionally, any upward move in interest rates or inflation could impact buyer psychology.
I expect that any further growth in sales and values for Boston’s high-rise condos will be moderate for the foreseeable future.
On the Boston apartment market, I foresee prices on a downward trend for the next 8 months as inventory and vacant apartments are at a record high. Lower-end apartments (under 2k month) will see an uptick between now and September, while the luxury apartment market will linger as low-interest rates will convince some to buy as opposed to spending thousands of dollars on rent.
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