I have noticed that investors have reemerged in the Boston condo market (condos below $400,000), triggering in some cases bidding wars in some neighborhoods. For example, over the holiday weekend, Vilma in my office, had several offers on a small studio located at 21 Beacon Street, which prompted interest from both first-time homebuyers and cash investors.
With Boston condo prices down from their peaks, all-cash investors appear to be snapping up the cheapest properties and helping clear out the excess supply of low-priced Boston condos on the market. They’re betting that the market has hit bottom or will soon.
But that’s of little consolation to traditional home buyers, who find themselves at a disadvantage because their offers usually hinge on financing contingencies, appraisals and home inspections. I also noticed some sellers will actually accept a lower sales price over a traditional mortgage offer.
Just curious, has anyone else been noticing this trend?