Historically low-interest rates, tight inventory, and strong demand are continuing to favor sellers in the Greater Boston housing market. That doesn't mean much once you know that 02199 was already the most expensive zip code in the Greater Boston Area. Many real estate investors have asked themselves if buying a property in Boston is a good investment? Not all deals are solid investments. This in turn is leading to home builders to cut prices on new properties. But 2018 ended on a surprising note, with price growth slowing and the market switching towards being in favor of buyers again. It also appears that mortgage lenders’ appetite for risk has recently increased. Real estate news: Village Plaza retail center in Surf City sells for $17 million 4 steps to change the equation on affordable housing It takes teamwork to prep a house for market Even with the pause in the market this spring, home values have not been severely impacted in a negative way, which is good news for home sellers. What are the Boston real estate market predictions for 2020? Note that the area is connected to mainland Boston through the Sumner Tunnel. Note that the same trends are driving up rents and property values in Jamaica Plain and Dorchester, though we predict the greatest gains near the Nubian Square developments. https://boston.curbed.com/boston-development/2018/2/22/17037854/boston-building-height-limit, The Best Neighborhoods for Boston Real Estate Investment The other piece of the equation is that by the time the COVID-19 situation became state-of-emergency-level serious in Massachusetts, the housing market was already off to a strong start. These properties would be right off the Blue Line. Fort Point is a Seaport neighborhood. The historical change in home prices for Boston MSA is shown below for the three-time periods. Houses for sale fell a whopping 32% while new listings grew 12% compared to February 2019. But it’s hard to predict how heavily the virus will impact real estate in 2020. This is a common trend across the nation. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. This is due to Boston's diversified economic base. Airbnb rentals are the best option for real estate investing in Boston. Washington State homeowners realized larger average equity gains in the past twelve months – a per-household increase of just under $36,000 – than those in any other state, though homeowners in California, Massachusetts, Idaho and Arizona also realized big gains. In June, it was the lowest in nearly 25 years, though the volume is up nearly 30 percent from the previous month when 894 homes sold in May. Compared to the previous month, there was a decline of -18.9%. There are several reasons to consider investing in Boston real estate. As our economy’s record-breaking expansion continues into its 126th month, talk of an impending recession is to be expected. This figure puts Boise in the top 10% nationally for real estate appreciation. It's time to start worrying about the housing market again because it is completely overheated, with YoY median U.S. home price growth around 12% in 2020. Sales of single-family homes rose on an annual basis by 32.3 percent last month, climbing from 1,064 homes sold in September 2019 to 1,408 this September to set a new record for sales volume during the month of September. But it is attracting people who snap up 800 square foot condos that may yet cost less than half a million dollars. The best neighborhoods in the Greater Boston area for real estate investment are relatively affordable. But what about housing prices in the Boston area? According to current data of median home prices: Boston's real estate prices and its market … Investor demand in Boston is expected to be strong, the 2 nd nationwide after the Austin real estate market. Absent a monumental shift in the economic outlook – for instance, if a much larger-than-expected fiscal relief package is passed – mortgage rates are unlikely to head meaningfully higher anytime soon. The median selling price for single-family homes rose to a new record high of $670,000 last month, an increase of 5.5 percent from $635,000 in May 2019, and a 1.1 percent gain over the previous monthly record high median price of $662,500 set one month earlier in April. In addition, the median selling price for condominiums rose 7.7 percent over the previous September, climbing from $550,000 last year to $592,500 this September. Mattapan, where the average rent goes for $1,937/month. Jersey City is notable for the major redevelopment on the waterfront, known as the Shore, while properties there enjoy a great view of Manhattan. Boston is landlord friendly compared to markets like NYC. The total inventory of single-family homes has dropped to critically low levels (1.5 months) despite an increase of 15.2% MTM in new listings. "In our latest forecast, national home price growth will slow to … Fannie Mae’s housing sentiment data suggests that while recently rising COVID-19 case volumes may be dampening the outlook, people are still eager to buy and sell homes. Realtor.com 2020 housing market predictions: The U.S. housing market will continue to slow in 2020 as inventory reaches historic lows and economic uncertainty prompts consumers to … They'll offer strong and rising rents in 2021 and beyond. Ironically, the Boston shadow law that limits the height of buildings in the Boston housing market has the greatest impact on the downtown areas where people most want to see a tall apartment and condo towers built. Let’s discuss a bit about Boston and the metro area before discussing why you’d want to invest in its real estate market. More than 95% of the apartments fall in the range of $2,000 or more, which shows how high are the rents in Boston. As we write this, Back Bay has a median listing price of $1.4M, making it the most expensive neighborhood. When it comes to Greater Boston’s housing market, that means forecasting which communities will … The broader Boston Metropolitan Area or Greater Boston is home to more than four million people. Realtor.com's updated 2020 Housing Market Predictions in response to COVID-19. Then there’s the fact it can take a long time to get approval to build up. Active listings fell by more than one third from a year ago, declining 35 percent from 3,355 homes for sale in May 2019 to 2,177 this May, which marks the lowest total of listings for May in over a decade. Corelogic’s forecast predicts home prices nationally will have fallen 6.6 percent year-over-year by May 2021. The depleted inventory levels slowed down the housing market in the spring season. Latest Rental Market Statistics: According to RENTCafe, 51% of the households in Boston are renter-occupied, which is a significant population. Realtor.com's Sep 2020 report shows that the median list price of homes in Boston, MA was $779K, trending up 4% year-over-year. The decade retrospectives are over, and now it’s time for the predictions. By researching and structuring complete Boston turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability. The average apartment rent over the prior 6 months in Boston has decreased by $266 (-8.7%). Compared to August, the new listings of single-family homes saw a jump of 20.6%. While mortgage rates are pushed lower by the recession caused by the economic shutdown, banks are managing their risk by requiring you to have near-perfect credit. The accuracy of the Boston housing market trend prediction is 78%. All those grad students, young single professionals, and highly paid power couples are bidding up the limited housing stock available. The biggest challenge holding back sales is the lack of enough inventory to sell with months of supply dropping to 1.5 months. According to July’s Barnstable County report of real estate activity, the volume of real estate sales in July 2020 was up 42.6% from July 2019, pushing the median price of … See the Boston (Massachusetts State, Suffolk County) property price forecasts, and buy/sell analysis based on the Housing Market and Property Investment report below. However, after a massive 44% month-over-month rebound in U.S. pending home sales in May and another strong 9.6% rebound in September, the U.S. housing market is stronger than ever! Therefore, you’ll clear more here than some of the other large Northeast markets. Millennials are a market real estate agents want to cater to since they’re buying homes in mass. During the latest twelve months, the Boston appreciation rate was nearly 5%, and in the latest quarter, the appreciation rate was nearly 1%, which annualizes to a rate of 4%. Expect property values to skyrocket once there is regular public transit in the area. In terms of months of supply, Boston can become a buyer’s real estate market if the supply increases to more than five months of inventory. Apart from the Boston real estate market, you can also invest in Jersey, City. In fact, mortgage rates fell this week and now sit just above their all-time lowest levels — an unorthodox trend that can be partially attributed to the enduring demand for housing and home loans. Closed sales of SFR homes surged by 56.9% YTY and 12.1% MTM. https://www.bostonmagazine.com/property/2020/03/16/boston-home-prices-doubled/ Furthermore, this makes the next twelve months a great time to buy in the Boston housing market, if you have the cash to do so. 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This adjustment should make it easier to secure a loan for those seeking unconventional financing or hoping to make smaller down payments. The biggest ones are near Ruggles and Roxbury Crossing. Based on the latest available data, we forecast key market trends for … The housing market has been one of the economy’s true silver linings in 2020, and its enduring strength has padded homeowner balance sheets to the tune of trillions of dollars in equity. Whether this is converting warehouses into lofts or single-family homes into multi-family housing, if you don’t face major roadblocks, you’ll see a great return on the investment. For the upcoming updates, you can visit LittleBigHomes.com. If you are looking to make a profit, you don’t want to buy the most expensive property on the Boston real estate market and expect to make a good profit on rents. Editor’s Note, June 4 2020: Since initial publication, this forecast has been revised as new data has come in, and will continue to be periodically revised as the data warrant. Although many states across the country are easing social distancing restrictions, COVID-19 continues to threaten lives as well as America's economic outlook.Along with causing massive unemployment and taking a huge mental health toll on many Americans, the coronavirus pandemic will also affect the housing market.According to data from software company Veros Real Estate … And that’s not going to happen. These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? The average size for a Boston, MA apartment is 812 square feet with studio apartments are the smallest and most affordable. There are also a wide variety of economic and political factors that can and do impact real estate markets. East Boston was once a cheap neighborhood because it was so close to the airport and factories. And it means fewer buyers are chasing that limited inventory, so it isn't driving housing prices up. If you wish to report an issue or seek an accommodation, please, Zillow, Inc. has a real estate brokerage license in multiple states. Any investment property is likely to get rented out fast. Throughout the Greater area of Boston, numerous investment properties are waiting to be revitalized by a wise investor. Boston’s mayor is facing flak for wanting to waive the building height rule just once. Ideally, a buyer would prefer a sale to list price ratio that’s closer to 90% whereas a seller would always prefer scenarios that can yield a ratio of 100% or higher. This is because of how many people aren't making their rent payments, while it is almost impossible to evict someone for non-payment. 8. Construction could turn the mostly vacated General Electric headquarters building into a life sciences campus. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US. The worst performance over three years in the Boston Market was -14% in the three years ended with the 3rd Quarter of 2009. Market Data, Reports & Forecasts This is an innovative development in the Jersey City housing market. Ironically, the high price of real estate in NYC explains why many financial firms are expanding in the relatively cheaper city of Boston, home of the mutual fund. https://www.bostonmagazine.com/property/2020/03/16/boston-home-prices-doubled/ People are looking for more space and accelerating long-planned moves to the suburbs. Passive Income Ideas 2021: 26 Ways To Boost Your Income, Atlanta Real Estate Market: Prices | Trends | Forecast 2021. When Blue Hill Avenue is upgraded, the area will have better bus service connecting it to the rest of Boston. (WWLP) – 2019 was a great year for the western Massachusetts housing market and that trend is continuing into 2020. And there are areas we can expect to see significant appreciation due to the sheer demand for affordable housing with easy access to major arteries or public transit. Recent discussions among Massachusetts lawmakers failed to result in an agreement on taxes to be charged on short-term rentals. South Dorchester, where renters pay $2,147/mo on average. This means that those who invest in the Boston real estate market will see decent cash flow from nearly any property and guaranteed appreciation. There are 59 neighborhoods in Boston. The housing market in various parts of the country did start to soften in … Any future real estate investor in Boston should also have in mind that the expected rental income for both traditional rentals and Airbnb rentals is high. Zillow's Assessor and Real Estate Database (ZTRAX), A Dozen Mid-Sized Markets to Watch in 2020, Financial Anxiety, Ongoing Uncertainty Keeping Sellers on the Sideline, Homeowners Could Save Thousands by Refinancing at Today's Ultra-Low Mortgage Rates, College-Area Rents Are Falling Behind as Schools Move Online, Mortgage Rates Continue to Fall as Signs Say They Probably Should Rise, Zillow Weekly Market Report, Data Through Nov. 28, Bought Before They’re Built: Why a Surge in Advance New Home Purchases Bodes Well for the Market, Mortgage Rates Tick Down Ahead of Thanksgiving. They’re choosing to rent over buying a single-family home or an apartment. Is Boston a Good Place For Real Estate Investment? Allston is an excellent neighborhood to buy an investment property in Boston as the median property price is well below the city level. They said the Northeast is the area most likely to be hard hit. Let’s find out more about it. Boston's real estate market is vibrant, and plenty of buyers are offering more than the asking price when they love a property. The net share of respondents who said they believe home prices will rise in the next year – the share who think they will rise minus the share that think they will fall or stay the same – jumped 8 percentage points in November from October. The highest growth in home values in the Boston Real Estate Market over three years was 91% in the three years ended with the 1st Quarter of 1987. It will be well into 2021 before you will see a spike in single-family and condo foreclosures. Prices are going to appreciate in 2021 by 6-8%. The housing market, meanwhile, remains a bright spot in the broader economy. Perhaps you are looking for a slightly different hold-over, an investment property in Boston that you might move into or sell at retirement in the future. The Boston housing market sees steady population growth, faces limited supply, and can’t go vertical. This May’s sales total is the lowest for the month since 777 single-family homes were sold in May 2009, and it’s the largest year-over-year percentage decline in home sales since October 2019 when sales fell 38.7 percent from the prior October. Is It The Right Time To Invest In Real Estate? For example, Benjamin Franklin Institute of Technology is considering moving to an available site here. In the Boston area, January and February were successful months for sales, thanks to the mild weather, a high demand for housing, and a shortage of … Falling mortgage interest rates have prompted a surge in borrower demand and lenders are, in many cases, keeping rates elevated in order to stem the tide. The housing market is also hot in walkable urban neighborhoods, with prices up 11%, as homebuyers display renewed interest in city life. A lot of people who want to move can't do so, because they've either been furloughed or are afraid of losing their jobs. The Boston Home Price Index has increased for the last 25 consecutive quarters (data up to 3rd Quarter, 2018). This is because Roxbury remains a relatively affordable area attracting people who are being priced out of rapidly gentrifying Boston. I'm updating this article as we enter 2021 and beyond. https://www.gbreb.com/ They'll have several new parks, as well. This is only a continuation of the steady property increases seen since the 2008 property crash. Boston Property Market Information Recommendations by the previous and the upcoming 36 months: buy or sell a home in Boston? Let’s take a look at the number of positive things going on in the Boston real estate market which can help investors who are keen to buy an investment property in this city. Furthermore, Roxbury is slated for rapid development. However, the market has started to bounce back. A similar share of respondents (59%) said it was a good time to sell a home. WBZ-TV's Juli McDonald reports. Boston Real Estate Investment: Should You Invest? Others snap up the new luxury apartments at Jeffries Point, because of its views of downtown Boston. After all, it is hard to finish a house when you can't get sinks or new appliances. Expect rents in the area to rise along with the increasing average income in the area. You don’t have to provide notice before entering the apartment. Boston isn’t just attracting young people from across the country – it is also attracting immigrations from around the world. Strong demand plus limited inventory and limited space to grow will guarantee appreciation of any property you buy in the Boston real estate market. Earlier, ATTOM did a study intended to identify the housing markets in the United States at the greatest risk of a real estate market collapse. There were record sales in September. The forecast for the trend in the Massachusetts housing market for the 12 months ending with the 4th Quarter of 2019 is UP. Real estate market forecasts given in this article are just an educated guess and should not be considered financial advice. While building maintenance and construction are essential activities, the disruptions in the supply chain are causing delays. While this means that mortgage rates aren’t as low as financial markets indicate they should be, it also means that they are less likely to rise when bond yields begin to ascend as they have done recently. In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. In June, the pending sales of single-family homes jumped 43.6 percent from 1,187 homes put under agreement in May, and condo pending sales climbed and even more impressive 51.7 percent from 782 units placed under agreement in May, according to GBAR. According to the Washington Post, Boston home builders are cutting the price of properties on the market by 6%. GREENFIELD, Mass. From September 2019 through September 2020, homeowners with mortgages collectively gained $1 trillion in home equity, according to CoreLogic. Price appreciation has also pulled 370,000 borrowers out of negative equity since the third quarter of 2019 and contributed to a steadily rising confidence amongst would-be home sellers. The city of Boston is a hot seller's market. The Boston area was ranked as being at high risk but not as high of a risk as cities dependent on international trade or a local airport. It is a thriving city, which makes it the best location to buy an investment property at any point in time including the present. Either way, knowing your profit potential and purpose is the first thing to consider. By March 2020, housing prices had doubled in just five years. GE has moved its headquarters into one of the remaining buildings. You could buy properties across the Boston real estate market and cater to students, and your market is so diverse that you’ll always see demand. We’ve already mentioned the height law and the challenges faced by getting anything approved even with the mayor behind it. However, these figures are still lagging behind last year. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. East Boston is in the middle of a building boom, as the old industrial waterfront gains office buildings and codon towers. He’s also the host of the top-rated podcast – Passive Real Estate Investing. Before the coronavirus crisis and the government-mandated shutdown, the average home price was roughly 700,000 dollars. People want to live in the city, yet the number of new homes being built is relatively low. Boston has been one of the hottest real estate markets in the country for many years. You can start evictions two weeks after the non-payment of rent. Let us look at the price trends recorded by Zillow (a real estate database company) over the past few years. https://www.bostonmagazine.com/property/2019/01/31/expensive-housing-market/ Marco Santarelli is an investor, author, Inc. 5000 entrepreneur, and the founder of Norada Real Estate Investments – a nationwide provider of turnkey cash-flow investment property. The taxes here are high compared to the U.S. average but lower than several other states in the area. Areas like Roxbury, Mission Hill, and Dorchester had more than 110 percent appreciation.