Boston Area Beginning to Sizzle After a Slow Year

Following a year of slow sales and seemingly overpriced inventory, there has finally been a turn around in the real estate market. As sellers and real estate agents alike soon came to find, declining prices have suddenly changed the direction of the market. The declining prices of homes and condos have increased not only the buyer pool but brought the declining market back to life as well. Sales are now increasing, and therefore decreasing inventory; making condos of the Greater Boston area (as well as downtown) a hot commodity once again.

After more than a year of a plummeting sales and vacant homes and condominiums, sellers are finally willing to lower their prices. As a result, more buyers are investing into these properties and more homes are selling. While many sellers focus on pricing, they have come to realize that the realty market is unforgiving of overpricing. Buyers will not make a purchase if they do not feel that they are getting their moneys worth. The real estate market is about flexibility and sellers are now learning to become more flexible with the realization that sellers will not stick around. Homes and condos, that were once idle, have experienced a reduction in price, and are now flying off the market (with a handful receiving anywhere from three to five bids a day).

While many thought that the market would continue on a steady decline, analysts soon found that a way to turn around the once booming market would be to lower prices. Lower prices would attract more buyers, offer better investment opportunities and turn the market around, which is exactly what is starting to happen. According to Multiple Listing Service Property Information Network, pending home sales have risen and selling prices are about ten percent lower than they were last year. Some analysts have predicted that as a way of remedying itself, market prices will hit record lows within the next year. This would leave room for more sales and once inventory levels have been minimized, prices will then begin to rise with the economy. While it has been noted that sales outside of Boston are still struggling, Boston’s sales are continuing to heat up. According to MLSPIN, there are twenty one percent fewer condominiums available for sale than a year ago. This is understandable, considering the Boston community is not only one of the most cultural but pleasant cities to live in within the country.

Our recent personal experience has witnessed this first hand. For example, over the past few months, while preparing a list of potential condos (on a Monday or Tuesday) to view over the upcoming weekend, a client may have 6 to 8 top choices. By the weekends conclusion, 4 or 5 of those properties may be under agreement, or have received a considerable amount of offers. The bottom line is… the properties that are priced right, are attracting a lot of consumers, and are the ones that are selling. It is still a buyers market out there. Now go take advantage of it!