Boston, Massachusetts is a city where the past, present, and future come together in a rich tapestry of opportunities and traditions. As one of the oldest cities in the country, its historical attractions have been silent witnesses to the early growth of our nation. It is also home to some of the most highly revered educational institutions in the world. Its thriving economy, for its part, promises great earning potential for investors and entrepreneurs. These are just some of the many reasons why many people are drawn toward Boston as their new place to call home.
Those looking to buy property in Boston should first have a good understanding of the local real estate market climate to prepare themselves for the task ahead. Below are several aspects to take into consideration.
SUPPLY AND DEMAND
A 2023 report by PwC and the Urban Land Institute places Boston among the top ten cities in the US with the best real estate prospects this year, taking the eighth place. Cities in the Sun Belt region dominated the list, with Boston being the only northern city to take its place among the top ten. The optimism toward real estate in Boston indicates the continued presence of a huge demand for homes here.
Adding to the optimism is the improvement in inventories for single-family homes and condos. The condos, in fact, have overtaken single-family homes in terms of available stock. This has resulted in a narrower gap between supply and demand.
However, the pressure continues to build in the stock of single-family homes. Many Boston homeowners paying 30-year mortgage rates that are so much lower than present-day rates are hesitant to let go of their investment and would rather renovate or place additional living spaces to their existing home than sell. Given this challenge, the help provided by a good local real estate agent in the home search is highly recommended.
STORY BEHIND THE STATS
Boston, MA’s real estate market is still dominated largely by sellers, with March home sellers getting almost the same price they listed for their property, as reflected in the 99.35% sale-to-list price ratio.
The median price of sold homes in Boston, MA has been on the rise since the start of the year, with March figures from Realtor.com registering at $722,000 from the previous month’s $690,000 but lower than the previous year’s $735,000. This modest monthly increase is fueled by the return of buyers and the slight decrease in mortgage rates after phenomenal highs during the fall season.
Luxury real estate in the Greater Boston area, for their part, continue to maintain high appeal and values, primarily due to their high-end interior designs, stylish exteriors, and strategic locations. Not only are luxury homes in the cities of Boston, Cambridge, and Weston, MA packed with special amenities like floor-to-ceiling windows, pools, and furnished patios but they could fetch prices as high as $38,000,000.
RENTAL MARKET
The influx of people to Boston, especially among white-collar workers and students, is not expected to decrease anytime soon. That said, this presents a great opportunity to purchase real estate in Boston and turn it into a rental.
According to Zumper, most rent prices in Boston range between $2,000 and $7,800. In April, a two-bedroom residence in Boston could be rented at a median price of $3,250.
For a real estate journey in Boston and the rest of the Greater Boston area that’s smooth and stress-free, let me, top Massachusetts Realtor Seydyss Barreto and my team, be your partner and guide. Call me at 978.590.8918 or send me an email for a consultation.