Advice for home buyers facing the inventory shortage in the Boston real estate market
If you’re planning on moving to the city of Boston or the metro areas surrounding towns, you might be faced with a very difficult task in locating a property that is not being pursued by other buyers on the market. The inventory shortage in the most desirable areas of Boston from Back Bay to Jamaica Plain is driven by hungry buyers who are trying to locate a home within a reasonable price, so even putting in an offer can prove to be a challenge. For that reason, taking the time to discuss all your available options with a real estate professional at NextGen Realty should be your top priority before you begin.
The inventory shortage in the Boston housing market has driven up the prices on available homes and this factor has even hindered sellers from listing. Many home owners are now staying in their homes, and thus causing more of the median sale prices for single family homes to actually rise by 12.6 percent when listed for sale. The hyper-competitive environment is caused by the supply-driven market where new development and construction of new homes lagged as the city’s population has grown.
Taking the time to consult with a real estate agent at NextGen Realty could help target the right properties for your needs and put in the right offer for a successful closing. Our agents look at a variety of factors like days on market, analysis of an areas recent agreements and closings, and property condition to negotiate on the best offer to get a listing off the market. Boston’s inventory shortage of homes has also be caused by an influx in international investment capital, low interest rates, restrictive zoning regulation and a strong core in the business sectors that have expanded high-end development while constraining amount of growth of median-price housing markets. The increased costs of construction and new development to keep up with the need for more housing are passed onto the consumers in way of higher asking price for such properties.
While this might all appear to be discouraging to those wanting to actually move into the Boston area, with a bit of advanced planning it could still be very doable. NextGen Realty has experienced agents who can assist first-time homebuyers with determining a competitive offer in the Boston or surrounding neighborhoods. In this market, buyers may not be aware of real estate options in comparable areas, and could be at risk of putting in daring offers that cause higher long term debt.
Having the expert knowledge about what areas Boston have the best deals, could also determine how much home you could actually be able to acquire. Furthermore, the long-term investment strategy for emerging neighborhoods should be considered in the rapid transformation Boston market with futures public and private development plans underway in the next decade.
According to data from Zillow, the high cost of real estate reflects that middle class consumers may struggle more with affording to buy properties within Massachusetts. The rising home prices and cost of living in many Massachusetts cities and towns is already at a 61% increase above the national average. Buyers are better armed with accurate information to make buying decisions by consulting a NextGen Realty real estate agent who will guide them with an investment range based on their personal financial situation, pre-approved loan or assets and long-term goals.
Those seeking to find a home immediately within the metro Boston may face disappointment if they start the process on their own. The demand for real estate by people looking to live in the city has already proven to greatly exceed the supply available in 2014. Furthermore, those wanting to make a bid on a new property have no choice but to move quickly with their offer. Recent trends have shown that newly listed properties that are optimally priced only spend short time, with an average span of 10 days, on the market. These listings are also confronted with multiple offers, with some even over-bidding to get the deal.
Anyone searching for a new home in Boston or surrounding area will surely face several challenges with finding the right home to make an offer. Nonetheless, this does not mean that it isn’t possible find that perfect affordable home when you’re working with a full service real estate company like NextGen Realty. Contact an experienced agent that will help you to navigate the market effectively and overcome these current challenges effortlessly.
