Reacting to a Tight Luxury MarketNovember 18, 2017
As we all know the inventory in the Boston luxury real estate market has been limited for quite some time. This has been frustrating for those who are in the market and ready to buy, but can’t find what the Boston luxury home they’re looking for. This is becoming a major issue, and that’s why their brokers try to get creative and come up with Boston luxury real estate properties that are not on the market. And many times, the sellers have no intention of selling.
Then again, everything has a price…even a Boston luxury home that isn’t on the market. The question is how much it will take for the seller to part with their property and how much it’s worth to a willing buyer. In these situations, there have been sales far beyond any market comps, because some buyers were simply desperate to pay anything just to get the right Boston luxury real estate. These are obviously buyers who are not market-price conscious and don’t care about the comps. They just need to buy the property that fits their need in this tight market.
Of course, there is a glut of new construction projects all over the city which have been selling quite well during their pre-completion dates. This is all due to the shortage of inventory, but buyers for these projects are not under a time constraint and can wait 2-3 years until completion. If buyers need somewhere to move in the near future and can’t find the right property, they may be willing to pay double what the property is worth, and they don’t care.
Needless to say, the broker’s connection to the high end of the real estate market and their ability to connect with sellers is the key, especially in this tight market.