Misconception of High End Boston MarketNovember 6, 2015
There is a shortage of inventory in the Boston luxury real estate market and it’s currently such a strong seller’s market. Buyers with a set budget are having difficulty finding anything in their price range or set criteria, so they have been opting to rent for a year or so in the hope of finding their dream Boston luxury home. This is turning out to be a big mistake.
I recently dealt with several buyers who were looking to buy, but given their budget and strong housing market, came to the conclusion to wait another year or so. They were hoping for Boston luxury real estate prices to come down so properties would fall within their budget. What they didn't/and/or don't realize is that similar Boston luxury homes in the same building are now coming on the market and selling for much higher prices than when they were looking.
Their purchasing power has shrunk with the soaring market. If, for example, they were looking at 2000 square feet and the unit was too small for them, they will be shocked to find out that they now can only buy 1600-1700 square feet. Sad to say that the reality is that buyers have to either spend more or settle for buying a smaller home.
Renting for a year in the hope of waiting it out, is not only a bad idea, but the buyers are missing out on owning a home in their favorite area. Buyers also may end up renting for much longer than anticipated. Just by watching the Boston luxury real estate market and having a good grasp of it, buyers should learn to compromise and settle for something TODAY, rather than waiting it out.