There are many factors that affect the prices of Boston Beacon Hill condos to fluctuate, ranging from property location to interest rates. If you’re interested in purchasing a Boston Beacon HIll condo or high rise condo, these interconnected factors can become even more complex. Here are some of the main reasons Boston condo prices rise and fall.

Inflation Cycles

Over a set period, real estate prices tend to increase. This gradual rise in prices is known as inflation, and it’s a key factor driving the real estate market. When inflation growth reaches a tipping point, the market is due for a downturn, and Boston Beacon Hill condo prices temporarily deflate. Boston condo prices, including the prices of Boston high rise condos and other downtown districts, are buoyed and sunk in accordance with this cycle. When purchasing a Boston condo, you should be cognizant of current inflation trends and aware your home may temporarily depreciate during a downturn.

Local Demand

While inflation trends affect homebuyers across the country, you could also face factors specific to your chosen location. Some towns have a limited supply of condos, such as Beacon Hill real estate market, and the prime locations are in high demand. Others areas have more condos than buyers, and the low demand depresses Boston condo prices. While it may at first seem beneficial to live in a low-demand area, it could come back to haunt you when you try to sell your home in the future. If demand doesn’t increase, you may end up dropping your asking price to sell your Boston condo, especially if comparable local properties, often called “comps,” are sold at a lower-than-expected value. Comps are an important factor in the appraisal process, and they can affect the value of similarly sized homes throughout the area.

Financing Options

Most people use government-sponsored financing to purchase homes. These institutions often have stricter financing policies for condo loans than single-family house loans. The US government’s primary lending entities, Fannie Mae and Freddie Mac, require 5 percent down payments on single-family homes. For condos, homebuyers have to make a down payment of 10 to 20 percent. These guidelines often relax during times of economic expansion and tighten during time of economic recession. When you seek financing for your new condo, be prepared to make a comparatively high down payment.

Location

Location is a key motivating factor for homebuyers, and it’s a major component of “hedonic pricing,” an economic term for when price is determined by the intrinsic and extrinsic value of the product in question. Location is an external factor that has a major impact on lifestyle, ranging from the quality of the public schools to the proximity to the buyer’s workplace, and it also encompasses a property’s proximity to shopping districts and entertainment facilities. If a condo is close to good schools, business districts, and recreational centers, these extrinsic factors will have an impact on its price tag.

Boston Beacon Hill condos for sale

Back Bay Boston condos for sale  Beacon Hill  Boston condos for sale Charlestown Boston condos for sale Navy Yard Charlestown  Boston condos Dorchester Boston condos for sale Fenway  Boston condos for sale Jamaica Plain Boston condos for sale Leather District Boston condos for sale Midtown/Downtown  Boston condos for sale Seaport District Boston condos for sale South Boston condos for sale South End Boston condos for sale  Waterfront condos for sale  North End condos for sale West End  condos for sale East Boston 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. Back to homepage

Author Profile

John Ford
John Ford
EXPERIENCE

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs



In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.



HISTORY

For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.

AREAS COVERED

Back Bay

Beacon Hill

Charles River Park

Downtown/Midtown

North End

South End

Seaport District

South Boston

Waterfront

Brookline

Surrounding Communities of Boston
Contact
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.




John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114

Comments

comments

Call Now