Summer Market Conditions

It has been a ride for the real estate market for the last 2 years. Who knew that the Global pandemic was going to take Real Estate, Streaming channels, and home delivery services to the next level. 2019 was going to be a transition year due to baby-boomers starting to downsize and deciding where they should be living in the next chapter of their lives.. Millennial’s were going to upsize in the city or move to the burbs. Although even before the Covid Real Estate market, there was a shortage in inventory, it was not going to be as significant since some millennial’s were going to stay in the City and some were going to move out.
Covid changed the equilibrium. A lot of baby-boomers decided to stay in the burbs and the millennial’s wanted to leave the City. This went on for about 1.5 years. Due to the halt in international travel and most colleges going virtual, the Boston market slowed down dramatically. This resulted in the inventory deficit in the suburban markets. Add supply issues, low interest rates (increased demand) and the Market was on fire.

As we returned to a more “normal in person” pattern of living. The Boston/ New York markets came back with a vengeance, but the suburbs still were plagued with low inventory and rising prices.

So… what is the picture now? I call it the Tale of Two Markets. The inventory is still lower than normal but increasing as we are entering the summer market. More homes are getting listed. Correct Pricing is essential.
We struggled to price homes in January due to insane demand and not enough inventory, but now the inventory is higher and the demand has slowed. Some buyers have already bought, some have pulled back or dropped down to a different price point due to increased rates.

Condition of the Home is very important. Due to delays with construction and builders booking a year or two years ahead, most people want a move in condition home. The buyers are willing to pay more for a more move-in ready home.

We are still seeing multiple offers, but not on every home. The prices have appreciated 20%-30% in the last 2 years. That appreciation was not sustainable. The market is shifting and normalizing. It is not crashing. We are seeing some price corrections, but some prices might come down 10%-15%… still leaving an appreciation from 2019.

Northeast in particular has always been a strong real estate market. Our demand exceeds the supply. Colleges, hospitals, pharma, tech and other industries keep the demands always consistent. We also do not have as much dirt where new homes can be built. I do not see a crash in sight. We are settling in a more “normalized seasonal market.”