Many of our Beacon Hill condo owners have been contacting us recently and exploring the possibility of selling their home. They are increasingly seeing their neighbors sell for full list price, or even above the list price, which are already above market value. So what is the cause of this recent upswing in the market?

Low Prices:

After the downturn in the economy back in 2008-09, we were left with a home sales market full of foreclosures, short-sales, and bank owned properties. These homes were then being resold by the banks to all-cash investors for slimmed down prices, causing a deflation of value in the other homes in the area. It was not uncommon to see home values drop 10% between 2008-2011, due to neighboring homes being let go. In order to shoot life back into the housing market, we saw the government dramatically…

Low Interest Rates: 

The record low interest rates are encouraging a lot of renters to jump into the buying pool, and even encouraging current homeowners to buy second homes as investments. The increase in the available buyers, mixed with the low inventory, causes multiple offer situations for homes that are priced correctly. This competition is one of the leading factors that we are attributing to the “over-list prices” that we have been seeing with Beacon Hill condos recently. Speaking of low inventory…

Low Inventory:

Thanks to the over abundance of first time home buyers in the market over the past few years, and the all-cash investors there to clean up on any of the short sells and bank owned properties, the available inventory has been slimmed down to record lows. Now we have a situation where a large number of buyers are competing with each other over a very slim inventory pool. When a new property hits the market, it is not uncommon to see multiple offers within the first week, all trying to outdo each other. This drives prices up above the “market value” and then becomes the new “comp” for the next home to list at.

Conclusion

This “perfect storm” of events has shifted the Beacon Hill condo market into a full fledged “sellers market.” Not that it is a bad time to buy though! With interest rates still low, and prices beginning to rise dramatically, it is almost an IDEAL time to buy, before the prices get too high and you have to wait another 3-5 years for a return to normalcy.

If you’re interested selling your Downtown Beacon Hill condo, please contact us for a complimentary market review. We would love to provide you with a complimentary home evaluation and list your home for you.

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