Boston Real Estate Outlook
Unless you have been under a rock, you are aware that the real estate market has been on a tear for the past year. All across the country you see familiar headlines. Demand to buy a house is through the roof. Available inventory of homes to buy is low. Home values are skyrocketing. These are nationwide phenomena. However, not all markets are created equal. Some markets are outperforming the national averages and some are underperforming. That is why it is necessary to zoom in on particular markets and figure out what is happening in your backyard. After all, if you want to buy a house in Dorchester or Quincy, it does not matter what the housing market is doing in Aurora, Colorado or Pensacola, Florida. With that, the team at Peoples Choice Mortgage is here to give you a snapshot of what is happening with the Boston real estate market.
Home Buyer Demand is Strong in Boston
In nearly every market in the United States, demand to buy a home is through the roof. Much of this is because mortgage rates continue to hover near historic lows. Buying a house when mortgage rates are low can save homeowners tens of thousands of dollars over the life of the home loan. Home buyers are recognizing that value and doing what they can to buy a home of their own.
The Boston housing market is no different. In fact, the entire Massachusetts real estate market has seen strong demand from homebuyers. A survey about popular places to buy a house in Massachusetts revealed a lot of places where home buyers are frantically searching for a home of their own. The top five areas listed in this survey were Hopkinton, Cordaville, Pelham, Longmeadow, and Westford. The reality of today’s market is that nearly every neighborhood in Massachusetts is a popular destination for home buyers.
Inventory is Limited but Growing in Boston
The only problem plaguing the Boston real estate market is the same problem impacting every market; lack of homes to buy. Housing inventory has been at record lows around the country, making today’s environment the very definition of a sellers market. While this has made buying a house difficult for many Bostonians, it has created wonderful opportunities for current homeowners. Strong demand with limited supply has caused housing prices to skyrocket in the Boston area. Home values have been increasing faster than the national average in nearly every neighborhood in and around Boston. Rising home values have been boosting homeowner equity. Many homeowners are choosing to use this equity for a number of different purposes from vacations, to renovations, to debt consolidation. They have been tapping into this equity with cash-out refinances.
While inventory has caused issues for home buyers over the past year, the situation is improving for Boston. Inventory increased by nearly 12% from May’s numbers. This trend should continue as new home building projects reach completion and as home sellers look to take advantage of today’s home prices. The sales numbers demonstrate that the inventory has not gone to waste and that there is enough demand to handle it. The number of home sales that closed in Boston were up over 77% from June of 2020. Together, these numbers indicate that the red hot Boston real estate market is not cooling off anytime soon.
Final Thoughts
The real estate market has been scorching hot for the entire nation; however, the housing market in our backyard has been even hotter. Homes are selling quicker than ever before and home buyers are clammorting to buy the house of their dreams. Recent data regarding the Boston housing market seems to indicate that these trends will continue for the time being. The only difference is that more houses are going to add to the market, which will give more home buyers the opportunity to purchase their own.
So, if you have thought about buying a house of your own, the time is now to contact us. The team at Peoples Choice Mortgage can give you a complimentary mortgage qualifier to see exactly how you stack up with hundreds of lenders. Seeing if you qualify for a mortgage today is a great way to position yourself to buy the home of your dreams tomorrow.
