Thoughts on the Boston condo inventory moving forward
Boston Condos for Sale and Apartments for Rent
Thoughts on the Boston condo inventory moving forward
Home, condo inventory increases
Residential inventory rose month over month for the second month in a row in February, which also marked the first time both single-family home and condo listings showed annual improvement in the same month since last March. Active single-family home listings rose 21% from January, while active condo listings grew 17%.
“With spring right around the corner, buyer enthusiasm is high, and it’s only going to get stronger if the anticipated rate cut by the Fed materializes,” Wilk said. “If that happens, we’re hopeful more sellers will be willing to list their home for sale, which in turn could relieve some of the upward pressure on prices and spur more sales activity, allowing the market to rebound faster. We’re poised to have the strongest spring market since 2021 provided we have more listings to meet the buyer demand.”
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Thoughts on the Boston condo inventory moving forward
Median home sale prices continue to rise in the Bay State, and the lack of housing inventory remains a primary concern, according to the Massachusetts Association of REALTORS. And that low inventory continues to influence the market.
MAR’s March housing data report found existing single-family home inventory in March was down to only 4,157 compared to March 2013 when it was 21,696. Single-family home inventory fell 16.37% from last year, while condominium inventory fell 17.7%. One driving factor is that higher interest rates are keeping homeowners from selling, and that’s a problem for today’s homebuyer.
“We recognize the challenges homebuyers are currently facing in this competitive market,” said David McCarthy, 2023 President of MAR and REALTOR® at Keller Williams. “We continue to stress the importance of creating more housing, particularly affordable housing, across the state to combat the inventory and affordability crises facing residents — issues that predated the more recent variables of interest- and mortgage-rate increases.”
Last month, the median price for a single-family home rose 2.7% from last year to $565,000, while new, single-family home listings decreased by 22.7%.
Condominium prices also rose in March, up 7.3% to $515,000, while condo listings fell 24.8%.
The report also found that year over year, single-family closed sales fell 16.2% to 2,552 from 2022’s 3,045, while closed condo sales dropped 19.8% to 1,338 from 1,669.
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At first glance, the increase in Boston condos for sale compared to last year may not sound like good news for prospective Boston condominium sellers, but it actually gives you two key opportunities in today’s housing market going into 2023.
An article from Calculated Risk helps put the inventory gains the market has seen in 2022 into perspective by comparing it to recent years (see graph below). It shows supply has surpassed 2021 levels by 58%. But the further back you look, the more you’ll understand the bigger picture. And if you go all the way back to 2019, the last normal year in real estate for sale market, we’re roughly 35% below the housing supply we had at that time.
Opportunity #1: Take Advantage of More Boston Condo Options for Your Move
If your current Back Bay or Beacon Hill condominium no longer meets your needs or lacks the space and features you want, this real estate inventory growth gives you even more opportunity to sell and move into the home of your dreams. With more Properties for sale on the market, you’ll have more to choose from when you search for your next home.
Partnering with a Ford Realty Boston condo for sale agent can help you make sure you’re up to date on the homes available in your area. And when you do find the one, a professional can advise you on how to write a winning offer.
Opportunity #2: Sell While Inventory Is Still Low Overall
But again, despite the growth, inventory is still low compared to more normal years, and that isn’t going to change overnight. For you, that means your Beacon Hill condo for sale should still be in demand among potential buyers if you price it right.
As an article from realtor.com says:
“Today’s shoppers generally have more homes to consider than last year’s shoppers did, but the market is still not back to pre-pandemic inventory levels.”
Boston Condos and the Bottom Line
If you’re a Back Bay condo owner looking to sell your home, you have more properties to choose from and can still sell your condominium while inventory is low overall. Let’s connect to get started, so you can have the best of both worlds. I can be reached 24/7 at 617-595-3712 or 617-595-3712
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