2017 was another year of hot market. So what’s new about the 2018 Boston real estate market? Here is my take on the current market after 3 months of multiple transactions early this year:
1.Pent-up high buyer demand after an extremely low inventory of winter market: Every year around this time is the time that real estate professionals re-evaluate the market. My experience early this year with buyers and sellers in the metro area and popular surrounding suburbs involved multiple offers, some of them 10-20+ offers. I am seeing the same fierce competition as before.
2. Despite the higher interest rates this year, price growth has continued throughout 2017. On a greater economic scale, higher interest rates have several benefits, including higher returns for savers, tamed inflations, stronger dollar to boost purchasing power. The banks have more incentives to work with buyers. Higher rates also reflect good economic growth. Buyers should feel confident about entering the Boston market because many areas have historically been recession proof.
3. Emerging markets such as East Boston, Chelsea and Revere are attracting many first-time home buyers. East Boston is red hot this year since it offers close proximity to downtown Boston and easy access to the T in many areas. Some of the new constructions are away from the flight paths so residents won’t be hearing plane sounds. Some of local developers even work with the airport to reach agreements making sure this is the case. Such new construction types offering affordable price points and spacious urban lifestyle are selling out very quickly.
4. This year is clearly still seller’s market, but sellers whose homes are priced too high are still staying on the market longer even when similar property types in the area are selling faster and receiving multiple offers. My tips for sellers are to price your property on the conservative side first and then leverage multiple offers to negotiate for higher price. If you aren’t confident about such a pricing strategy, experienced brokers can test out your pricing in their pre-market network for buyer feedback before your property hits the public domain.
5. How to stand out among multiple offers? Check out my articles last year about bidding war strategies. These strategies have also helped my clients stand out among 10-20 offers early this year.