The Boston real estate market has stood strong in recent history. A survey states that investor demands remain from average to strong for Boston. Moreover, the city enjoys a 3.44 rating out of 5 for development or redevelopment opportunities. The survey also reveals that it is the only city to rank in the 10 highest for investor demand, multifamily buy and sell, and as a recognized established market for 2020.
Real Estate Trends to Watch Out For in 2021
Here are the latest trends that seem to change the Boston Real Estate market in 2021.
Higher Demand in Suburban Areas
Homes in suburban areas have experienced higher demand post-COVID lockdown. In quest of more space, buyers moved from cities to suburbs. Moreover, Boston suburbs saw an increase in home sales in 2020. However, with the availability of Covid vaccines, the trend will now move back to its old routine. People from the suburbs will now find places to stay in the city areas.
High Priced Homes due to high Competition
Last year, it was predicted that the cost of Boston’s properties would go up by 5.7%. In the Boston real estate market, high demand, including tight inventory and limited space to new construction, will ensure appreciation of most properties.
Additionally, the rise in mortgage interest rates will influence the buyers negatively, restricting what they can finance. As per the Washington Post, adding to this pressure on home buyers, Boston real estate developers may price properties conservatively in the short term.
Booming Rental Markets
Over the previous year, Boston home prices went up 4.8 percent, and Zillow estimates that they will increase 9.6% in 2021. Rents for a 1 bed, 2 bth touch around $2800 a month in the Inner Boston Hub. As per RENTCafe, 51% of people in Boston are tenants, which is a large population to consider. Buying a property in the Boston area to use it as a rental property is a sound strategy, compared to other regions of the U.S.
Easy and Speedy Online Transactions
With the current need for social distancing, buyers have changed their mode of communication to deal with home-buying services. In 2021 and beyond, purchasing homes online will become far more popular.
When purchasing a home, every penny counts. Replenishing on the costs by watching out for trends will be a wise decision.
As new real estate emerges in the spring and Covid precautions are properly administrated, the market will see a return to normal trends with those in the suburbs looking for properties located in the city. The pressure is on for home buyers with these properties selling above average due to high demand and tight inventory, although developers are expected to price conservatively.