What history has shown us it that buyers determine the prices of Boston condos
They decide how much education and investigation they need to complete before making what is now the biggest decision of their life, and then they proceed when ready – or when they see an attractive downtown Boston condo, hopefully in that order! So Boston condo buyers just trust their gut and start educating themselves by searching on the internet.
HGTV makes it look easy (see three, and buy one), and the disrupters keep promoting that their agent-lite program is all you need. Unfortunately when the Boston real estate market is on fire, the investigation/education phase usually gets obliterated.
You’d think it would cause people to Get Good Help, to compensate – and many do (thanks!).
But once on the playing field, the buyers are split into two categories:
- Those who own a home now, and are trying to move up or downsize.
- Those who don’t own a home, and want/need to buy a home.
They see every properly priced Boston condo for sale get snatched up by those who were desperate sooner. It becomes a race for those newcomers to act fast enough so they can compete with those ahead of them.
Even if their home doesn’t suit their current needs, there sitting in a good position. The property taxes are lower, the neighborhood is a known quantity, and they are comfortable. Are they going to rise to the same desperation level as those who don’t own a home here yet? It’s doubtful.
It’s what is causing the inventory to be so thin, and why I’m convinced it’s only going to get worse.
- Baby boomers are older now – if they haven’t moved yet, it’s probably too late. They will make do with their current residence, and make it last for the duration. Kids will inherit, and one of them will occupy as their primary residence – and the cycle of low inventory for sale will continue for another generation.
- There aren’t many new–Boston high rise building tracts of land left to build in downtown Boston
- There will be massive pressure on the Fed to keep rates low for years to come.
- The business is being dumbed-down for easier consumption, not smarter.
These factors will keep the inventory low, and competition high for a long time. It also means that the deliberate, informed buyers will keep getting run over by those who are just in a hurry to buy a Boston condo for sale.
The old adage of buyers determining the market is being snuffed out.
Sellers can name their price now, and there is probably someone who will at least consider paying it especially in the low end stater home market. Until unsold listings are stacking up to the rafters, sellers will ensure that prices keep creeping upward especially once we find a cure for COVID-19