In 2020 and 2021, the global real estate market experienced a rapid surge as homeowners rushed to buy and sell their homes amidst the ongoing pandemic after spending months cooped up living and working inside. It was the US city of Boston in Massachusetts, however, that experienced the most upheaval as the capital raced to build more homes in an attempt to cater to growing demand from both current residents and brand-new visitors. If you are interested in what triggered Boston’s real estate boom that is ongoing today, continue reading to find out everything you need to know.
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A trend years in the making
In November, Boston’s real estate market experienced record-breaking highs as a growing number of buyers swooped in to close deals ahead of the predicted interest rate rise that is set to occur in March next year. It comes as the Federal Reserve moves to gradually slow the economy and, in doing so, also slow inflation. In the time since, condominium sales, which are a firm favorite amongst both experienced and first-time buyers and sellers in the city, have climbed a staggering 10% compared to just a year ago in November 2021 and single-family home sales have also risen albeit a little slower at an annual rate of 1.4%. In addition, median prices also experienced an increase for the first time in months, having recently hit $750,000 for single-family homes and up to $626,000 for condominiums.
The condominium comeback
In the past couple of years, sales of single-family homes appear to have trumped that of condominiums as homeowners seek more rooms, outdoor space, and a suburban lifestyle. In Boston, however, condominiums appear to have made a comeback in recent years as competition for cityscape views thickens and, as a result, prices soar to cater to growing demand. If you are interested in owning a condominium in the city of Boston, you must do your research ahead of making any rash decisions to ensure you are as prepared as you possibly can be to navigate the busy real estate landscape and find your forever home. To do so, it may be worth browsing desirable neighborhoods, contacting real estate agents or agencies directly, and obtaining a homeowners insurance quote.
The upcoming holiday season
It is a general belief that as the upcoming holiday season approaches, the real estate market tends to slow as buyers and sellers report less interest and consumers have less money to spare during the most expensive time of the year. If the past couple of months are anything to go by, however, Boston’s real estate market may continue on an upwards trajectory not only into the holiday season but also as we approach the end of the year and get ready to welcome a new year as buyers strive to get a headstart on the competition.
It may, on the other hand, somewhat naturally taper off as fewer homes are put on the market and inventory remains relatively low as a result. It can, as always, change in a matter of days, however, and only time will tell how Boston will fare into the new year as the world continues to navigate the ongoing pandemic and the shift towards flexible working practices becomes commonplace for workforces around the globe. If consumers continue their desperate search for a new home in 2022 and, in doing so, continue to exacerbate prices, it may become more difficult for existing homeowners to sell and find their forever home.
In what has been a turbulent couple of years for homeowners around the world, the global real estate market appears to have experienced record-breaking highs as more people than ever before scramble to buy and sell. In Boston, for example, the demand for housing has outweighed the existing supply as the city continues to strive to build more homes to cater to an ever-increasing need for high-quality single-family homes and condominiums for both experienced and first-time homeowners. It is, however, a trend that has been years in the making, has welcomed the return of the condominium, and has led a growing number of people to wonder how it will fare as we enter the upcoming holiday season.