Is Boston Slowly Shifting Towards a Buyer’s Market?

As we get closer to 2020, real estate experts have noticed a number of markets across the country experiencing a gradual shift. For the longest time, the US housing market has been a strong seller’s market. However, property investors are now seeing slower home-price growth and more inventory in many cities, meaning things are starting to even out. This holds true even in the downtown Boston real estate market

After six years of tilting toward a seller’s market, the Back Bay and Beacon Hill real estate market is now moving closer to “neutral” territory. So, while it’s definitely not a buyer’s market yet, major market trends show that Boston Midtown and Seaport condo buyers have a chance of making better deals.

Inventory in Beacon Hill condos started picking up throughout 2019. This is not a perfect balance (healthy markets have six months of inventory), but it’s on the upswing. However, demand for Boston condos for sale for entry level buyers, on the other hand, has not been keeping pace as a result of changing and increasing demographics

Due to the supply and demand in the Boston condo market, home prices are still rising but at a slower rate, despite that we might be heading into a recession . 

Population Growth Brings More Renters

Among the nation’s fastest-growing metros, downtown Boston is attracting newcomers from all around the country. This city is attractive to people mainly due to its strong job market and labor participation.

Employment growth in downtown Boston has been exceptional over the last 10 years. In addition, the projected 2020 employment growth rate in downtown Boston is expected to be well above the national growth rate. The Back Bay, Beacon Hill and Boston Midtown condo owners who rent are certainly benefiting from these fundamental demographic and economic shifts.

The ability to attract qualified workers is driving the population growth which, in turn, is increasing the demand for Beacon Hill apartments. Looking at the breakdown of the population, it seems that Beacon Hill has a higher percentage of its population under the age of 40. This points to the attractiveness of the Beacon Hill real estate market to younger residents who are increasing the demand for rental properties of all types.

Downtown Boston Real Estate Home Prices

Recent market trends in the downtown Boston real estate market suggest that home prices could rise more slowly in 2020 than they did last year. While downtown Boston economy has been strong and the population has been growing, the demand for more affordable Beacon Hill condos for sale has not kept pace. As we said, this is the result of the city’s changing demographics – many of Boston’s new residents are millennials who either can’t afford to buy a Back Bay condo for sale or simply prefer to rent one.

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