New Year, New Housing MarketJanuary 7, 2012
The real estate market is definitely showing signs of recovery in many parts of the country. And this is certainly the case for Boston luxury real estate, although the local market has remained fairly stable compared to the rest of the country. There is evidence of even healthier activity in the Boston luxury real estate market, especially in the last couple of months. There’s much more optimism – from buyers, sellers and real estate agents. Buyers are beginning to look more seriously and aren’t timid about making offers. Many have been on the sidelines for over a year, unsure about the future of Boston homes, and are now more encouraged by the uptick in local sales and growing prices of Boston homes. In some cases and in certain price ranges, I’ve been seeing multiple offers on a single property. The holidays have not kept buyers away!
This positive shift in market strength can be attributed to:
- Buyers’ confidence has been raised by signs of a slow economic recovery.
- Financial institutions are easing off lending restrictions and being more reasonable.
- The possibility of higher interest rates and market recovery are pushing buyers to make the decision to buy now instead of waiting.
- Properties on the market are more reasonably priced due to the current market condition. Once the full recovery is in effect, prices of Boston homes will rise dramatically, as we have seen in past economic cycles.
These factors have led to a recent flood of buyers in the local market. I’ve seen buyers who have been watching a single property for over a year, and are now writing up offers. It is a wise decision, because the same Boston luxury real estate property is going to be a lot more expensive in the near future.
In some cases, a property has been on the market with several interested parties, but no one has been motivated enough to buy. However, they end up all making an offer at the same time, which pushes the prices higher. The bidding war could have been avoided if someone had made a move sooner.
So, there is still time to get a good deal and watch your investment appreciate. And more good news - the market is currently very active. Contact me to discuss your next move!