The Greater Boston Area real estate market has been experiencing
low inventory in the past several months. This shortage of Real
Estate, coupled with significant pent up demand has introduced a
stabilization of prices in the marketplace. Properly priced homes
are selling with an ever decreasing number of days
on the market and attendance at open houses has been
skyrocketing.
As 2012 has come to a close, Real Estate professionals in the
Greater Boston Area are showing increased optimism for 2013. A year
that initially presented itself with caution due to recent years of
poor market conditions, 2012 showed a binding cooperationamongReal
Estate brokerages, banks, construction firms, and the other related
industries. All of those involved in some form with this field of
Real Estate have gone beyond prior expectations by pushing on and
proving that a recovery is here to stay.
Such a breakthrough has been met by a renewed sense of
confidenceamongthe buyers and sellers. Moreover, this growing faith
in the investment in property only had a wonderful domino effect in
the marketplace. It seemed as though month-over-month and
year-over-year statistics were being consistently beaten by the
unfolding of 2012s rising journey.
The mild temperatures last winter generated what became known as
an early spring market. In the Greater Boston Area it is
commonplace for the spring to be the most active time of the year.
The industry reaped the benefits of this early, welcomed warmth.
However, today, things are different than they were last year,
although it must be shared that momentum is now picking up.
Many new listings are coming on the market for the first time in
2013. We are also seeing listings taken off the market for the
holiday season returning with adjusted price tags.
Bostons condominium market is definitely seeing some interesting
activity. If we compare the MLS numbers from January 23rd 2012 to
our present market we see:
- The average days on the market for a property in 2012 was 132,
whereas in 2013 it is just 103 days
- In 2012 by this time saw 1,034 condominiums on the market, and
today there are just 534; just about 52% less compared to where we
stood last year - When studying properties priced over $2 million, there is not a
large differential in the amount of properties available from
year-to-year; however in the lower price points the inventory is
far more reduced in 2013 compared to 2012 - The median price for condominiums by the end of January in 2012
was at $448,250, and today in 2013 is up to $489,000 - The average prices as well are higher in 2013, as in 2012 they
were at $746,035 yet today have had a boost to $884,218 - The total market volume of properties available on the 23rd of
January in 2012 was $771,400,817, and today is far less at just
$471,172,581; just 61% of the figure from 2012
What do these findings mean? One point is that low inventory
with high demand for is causing higher than normal average and
median prices.
Is this good for the Real Estate market? Recent reports from our
blogs have suggested this is not the case. Boston has been defined
as a city of cranes of late, meaning developments are happening
that will benefit our market by providing increased jobs, a far
higher inventory of housing units, office and retail spaces,
restaurant facilities and more. The betterment in the market from
2012 has provided that inherent trust in Boston by developers and
business owners going forward which in due time will see the city
grow and prosper at an accelerating rate.
If we look to the Boston economy as a whole we see that the
construction industry is
booming (jobs are up 12%), construction spending is
soaring, housing permits are at a
4.5 year high, builder confidence
remains steady, housing starts are at the
highest level in 4 years, and according to Moodys Investors
Service, Boston is leading the
Nation towards a commercial real estate recovery.
It is the perfect time to list your home for sale. Our economy
is strengthening and both domestic and international buyers are
making their move to purchase real estate. The number of active
listings on the market is very low leaving buyers with very few
quality options to choose from.