Boston Real Estate for Sale

Boston Real Estate for Sale

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The state of the Boston condo market

If it weren’t for the lack of Boston condo for sale inventory this year would look all positive. It should mellow out over the rest of the year, and even if it flatlines, the market will be fine entering 2024. It would actually be more exciting if it dropped a bit!

How can it be explained?

The demand is solid and Boston condo for sale buyers have been willing to endure the double whammy of higher rates and prices.

Here is a graphic to help demonstrate the demand nationally (thanks JB!):

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Updated: Boston Real Estate Blog 2023

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The state of the Boston condo for sale market can be summed up this way, its shifting towards a Boston condo buyers market. In this blog post, I’ll explore why I see a change in the dynamics of the Boston condo for sale market

Far Fewer Bidding Wars For Boston Condos For Sale

The last few years have been incredible for sellers. Most homes would have bidding wars with multiple bidders. It was not uncommon to have 10 or more bidders for a Boston condo for sale

When the market changes one of the first signs will be fewer bidding wars. Also when a bidding war does take place there will be fewer bidders.

There will also be fewer highest and best offers or escalation clauses in contracts.

There are More Price Reductions for Boston Condos for Sale

When it is a strong Beacon Hill condo seller’s market, seeing many price reductions is highly unusual. Sellers are driving the market and often get more than the asking price. In fact, multiple offers and bidding wars are the norm not the exception.

Falling sales prices are a clear indicator that the seller’s market is losing steam. Buyers are no longer willing to stretch to get into a home. The comparable sales will often be based on a different market.

Some sellers lower their prices when they do not receive any offers at the initial listing price. A significant percentage of seller’s will price their homes based on a seller’s market mindset. Unfortunately, listing at a previous markets home prices leads to failure.

Sellers who come to realization that the market has changed will be quick to adjust and drop their price when no offer comes after a couple weeks.

The Number of Boston Condos For Sale Rises

One of the defining factors of a seller’s market is low inventory of Boston condos for sale. When the inventory levels start to rise substantially it is a good indicator the real estate market is shifting.

Supply and demand for housing is always a clear indicator of how the market is headed. Low inventory equals a seller’s market, and high inventory equals a buyers market. When inventory levels stay consistent with demand it could be classified as a balanced market.

You will often see a significant increase of for sale signs when moving from a seller’s market to a buyer’s market. Buyers will notice they have more to choose from when looking on popular real estate sites.

Boston Condos Take Longer to Sell

In a hot seller’s market homes sell in an instant. It is not unusual for a Boston condo for sale to be on the market less than a week. When a market transitions from a seller’s to buyer’s market, the days on market will go up significantly.

Even when real estate markets go from favoring sellers to being more balanced, the time on market will go up by quite a bit. Real Estate agents need to be proactive and set proper expectations with the seller clients.

Not doing so can lead to severe disappointment. A real estate agent should always be cognizant about over promising and under delivering.

It becomes especially important when markets are in flux. Buyers and sellers can have expectations based on what’s been going on in the past and not the present.

The Original Boston Condo List Price to Sale Price Ratio Will Drop

One of the statistics real estate agents often talk about is the list price to sale price ratio. In extreme seller’s markets it is not unusual for the list price to sale price ratio to be over one hundred percent.

With so many bidding wars taking place, Boston condos for sale,  sell over the asking price quite frequently. When bidding wars are removed from the equation there is nothing in place to motivate a buyer to pay for more than the list price.

As homes stay on the market, the list price to sale price ratio can drop even further. When sales prices start to drop, the ratios become more crucial.

Consumers will want their real estate agent to be giving them accurate listing prices, not something based on an old market that no longer exists.

Boston High-Rise Condo for Sale Contracts Will Contain More Contingencies

One of the defining factors associated with a robust Boston condo for sale seller’s market is a lack of contingencies in a buyer’s offer. When the market is strong, buyers will do everything possible to make their offer stand out from the competition.

One way of doing that will be eliminating common contingencies. Over the last few years it was not uncommon for a buyer to waive their home inspection contingency or even their financing!

In fact, many potential buyers would offer to pay cash to make their offer attractive to sellers. Most properties in an extreme seller’s market were sold as-is.

With a shift out of a seller’s market, many of the common contingencies will return to real estate contracts.

Fewer Boston Condo For Sale Cash Buyers

When the real estate market favors buyers or is more balanced, it is much more rare to see cash offers. The vast majority of buyers will go back to getting a mortgage and having a contingency for it.

There is no need to offer cash when there are few other buyers doing so. Beating a cash buyer no longer becomes a concern.

More Boston Condos Placed Back on Market 

In a hot seller’s market there are many buyers who will waive a home inspection. That is not the case in a buyer’s market or one that is more balanced. Home inspections will be conducted and buyers will be more apt to negotiate repairs, price reductions, or seller’s concessions.

There will also be more properties that come back on the market because a meeting of the minds could not be made.

More Offers With Boston Sale Contingencies

When real estate markets favor sellers, buyers don’t even attempt to get a Boston condo sale contingency clause. When shifting out of a sellers market, some buyers will attempt to get a home sale contingency.

Even in balanced or buyer’s markets, they are looked at unfavorably with most sellers but buyers will try.

More Boston Condo Open Houses

One thing you will notice when the market favors sellers is that there are fewer open houses. Real Estate agents don’t need to participate in activities that are unnecessary.

The best kept secret in real estate is than open houses benefit real estate agents far more than home sellers. Real buyers always schedule showings with an agent.

When the market shifts, real estate agents will do open houses to show their clients they are “working at selling the home”. Even though A bunch of neighbors and the unqualified will show up.

Professional agents always explain the pros and cons of an open house. Agents who don’t are there for one thing – prospecting for business elsewhere.

Boston condos for Sale and the Bottom Line

It is vital for Boston condo buyers and sellers to stay on top of the local real estate market.

Accomplishing that is very hard to do when bad or outdated advice is given. Nobody has a crystal ball but there will usually be some clear trends that are taking place.

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There’s been plenty of chatter as we soon enter the 2021 Boston real estate Spring season and the shifting Boston condo market. Fewer offers on properties, longer days on market, lackluster—and—Boston condo prices are rising. You heard me right, prices are rising.

However, a look at February 2021 sales numbers points to some very healthy indicators, if you look for them

DOWN 0.4% vs Feb 2020
 

Median Boston Condo Sales Price

Median Boston Condo Sales Price: $690,000
UP 3.4% vs Feb 2020
 

Boston Condo Sales Inventory

Number of Boston condos for sale 1,268
UP 25.2% vs Feb 2020
 

Boston Condos for Sale Days on Market

Boston condos days-on-market: 78
UP 11.4% vs Feb 2020
 
 
Months of supply for Boston condos for sale: 3.64
UP 34.8% vs Feb 2020
 

Boston Condos Median Sale Price/SF

Median Price per sq ft: $693
UP 4.4% vs Feb 2020
 

Boston Condos: Sales Misc

64% – Sold Within 90 Days of Listing
 

82% – Sold For Over 95% of List Price

 

Boston Real Estate for Sale

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Boston high rise condos to rent:

Back Bay area condos for rent
Beacon Hill area condos for rent
Charlestown area condos for rent
Navy Yard Charlestown area condos for rent
Dorchester area condos for rent
Fenway area condos for rent
Jamaica Plain area condos for rent
Leather District area condos for rent
Midtown area condos for rent
Seaport District area condos for rent
South Boston area condos for rent
South End area condos for rent
Waterfront area condos for rent
North End area condos for rent
West End area condos for rent
East Boston area condos for rent

Boston Beacon Hill condos for sale

Boston condos for sale near Downtown/Midtown Boston

Back Bay Boston condos 
Beacon Hill  Boston condos
Charlestown Boston condos
Navy Yard Charlestown  Boston condos
Dorchester Boston condos
Fenway  Boston condos
Jamaica Plain Boston condos
Leather District Boston condos
Midtown  Boston condos
Seaport District Boston condos
South Boston new condos
South End new condos 
Waterfront new condos 
North End  new condos 
West End new condos
East Boston condos

Condos around the Midtown area to rent:

Back Bay area condos for rent
Beacon Hill area condos for rent
Charlestown area condos for rent
Navy Yard Charlestown area condos for rent
Dorchester area condos for rent
Fenway area condos for rent
Jamaica Plain area condos for rent
Leather District area condos for rent
Midtown area condos for rent
Seaport District area condos for rent
South Boston area condos for rent
South End area condos for rent
Waterfront area condos for rent
North End area condos for rent
West End area condos for rent
East Boston area condos for rent

Click here: Boston Midtown Condos For Sale.

Updated: Boston Real Estate 2022

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