It isn’t surprising that Boston Midtown real estate is highly desirable. Over the past few months, condominium sales have been rising, and condos along the Boston Common have continued to sell for top dollar.
You have probably heard the rumblings about the Boston Downtown and Boston Midtown condo market and its future. Will the Boston downtown real estate bubble pop? Will the Boston real estate market crash? These are excellent questions and I perform extensive research each year to help answer them.
A huge part of the reason Boston Downtown condo prices got so high is out of state buyers coming in who could afford inflated Downtown real estate prices (and continued to push them higher). The local Boston residents population struggled to buy Boston Beacon Hill condos because while the local economy recovered from the 2008 recession, local wages have only recently started to increase. For years as the economy improved, from 2013 to 2016, Boston was one of the fastest-growing cities in the country.
Okay, I said above that, You cannot have both a strong local economy and increasing wages and a housing bubble crash at the same time, but I suppose it might still be possible to have a real estate market crash if we had an overabundance of housing inventory for sale. Now, while inventory is rising significantly in the Boston Downtown area metro prices should begin to stabilize in 2020.
Once again, home prices have simply been driven too high too fast. It has also been due to a strange phenomenon the National Association of Realtors research discovered after the 2008 recession. For whatever reason, your average home buyer lived in a property for about 5 years prior to the recession. Now the average homeowner is living in their property for an average of 10 years. This is a huge change in a very short time frame. Also, new construction never picked up in Boston Beacon Hill. So for a long time, we had homes not coming up for sale because people did not want to move anymore, we had a massive population boom, and we had relatively few new homes for sale on the market. You can see why real estate prices went wild in Boston. So with the population boom over and slightly increased mortgage rates, there is nothing left to keep driving prices up and up.
It will be a buyer’s market in Boston by 2020 or 21 (latest).
The best time to buy a Boston condo is when the market is down. This should be obvious but historically buyers purchase when the market is up and do not purchase when the real estate market is down. This is the opposite of what buyers should be doing or preparing for. If you are not a homeowner right now, start saving up, the perfect opportunity is coming your way shortly. If you are a homeowner, guess when would be the perfect time to buy that investment property or vacation home? Because the local economy is strong and because Boston wages are rising and because new home construction is slow – this cooling of the Boston Midtown real estate market will not likely last more than a few years! Get ready to buy and then when the market bounces back up – you will be in a fantastic position.
Whenever the real estate market drops in Beacon Hill, condos, townhomes, and luxury homes are the first to drop their prices and end up being the hardest hit segments. All of these types of properties recover just fine along with the rest of the real estate market, so you could see the greatest investment opportunity (and the biggest price drops) in these areas. Of course, if you own one of these types of properties, you may want to hold onto them until the Boston Downtown housing market recovers or sell them fast.
The seasonal real estate market impact in Boston is as strong a factor as the overall real estate market impact in Boston What I mean is this, there is always the best month of the year to buy and the best month of the year to sell, regardless of whether or not it is an overall up or down year.
Since there is no Boston condo bubble popping, no Downtown Boston real estate market crash coming, the financial advantages of homeownership vastly outweigh the positives of renting. You have to buy and sell the market, but an experienced local real estate agent can help you do just that. If I can be of service, just ask.
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