Is it time to sell your Airbnb Boston real estate investment?

The travel industry is one of the major sectors that’s been hit extremely hard by the COVID-19 pandemic. Today, it’s hard to know how long it will take for business or vacation travelers to be back in action and for the industry to fully recover. Boston real estate owners who rent their investment properties on their own or through programs like Airbnb, which as of this posting, has over 660,000 listings in the U.S. alone. If you’re on of them, are you considering selling your Beacon Hill condo or Midtown high rise condo? If so, it’s understandable.

A recent CNN article indicated:

“With global travel screeching to a halt during the pandemic, a number of Airbnb hosts are planning to sell their properties…These desperate moves come as hosts face the possibility of losing thousands of dollars a month in canceled bookings while bills, maintenance costs, and mortgage payments pile up.”

If you’re one of the Boston real estate owners in this position, you too may be feeling the pain of decreased travel. A recent survey notes that 48% of Americans have already canceled summer travel plans due to the current health crisis and social woos. In addition, 36% indicated they don’t have vacation plans, and only 16% said they did not cancel their summer travel.

The same survey also asked, “How long will you wait before traveling again?” Not surprisingly, only 29% of respondents are planning to travel within the next 6 months. That means 71% are putting their plans on hold for at least 6 months, or are still unsure about future travel. That can continue to add to the significant income loss that many Boston condo owners are feeling. If you’re considering selling your Beacon Hill rental property, know that there are two key factors indicating that selling your Airbnb real estate investment now may be your best move as a Boston condo owner.

Boston Real Estate Inventory Shortage

Boston real estate

Boston real estate

The inventory of overall homes for sale is well below the demand from potential buyers, but Beacon Hill apartments for rent is at a record high according to the local MLS.

According to the National Association of Realtors (NAR), total housing inventory, meaning homes available to purchase, is down 19.7% from one year ago (see graph below): Inventory across the country continues to be a challenge, with only a 4.1-month supply of listings available at the current sales pace. For a balanced market, where there are enough homes available for interested buyers to purchase, that number would need to bump up to a 6-month supply. This means we don’t have enough inventory for the number of buyers looking for homes, so selling in this scenario is ideal. Buyers are looking now, and some vacation homes make a great primary residence or second home for those eager to escape from more populated urban areas.

Boston Real Estate Prices

The lack of inventory is also keeping homes from depreciating in value. Today, prices are holding strong and experts forecast home price appreciation to continue throughout this year. Selling your home while prices are holding steady is a sound business move. You’ll likely have equity you’ve earned working for you as well. If your home has been vacant for the past few months, the forced savings you have built in your equity may help balance out possible rental income loss due to the slowdown in the travel industry.

Boston Real Estate and the Bottom Line

We don’t know exactly when heightened travel will return to downtown Boston or what it will look like when it does. If you’re considering selling your Boston home, let’s connect today to determine your options in the current market.

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