Boston condos are evaporating from the market faster than they can come on. Strange times indeed.
We previously wrote about the Boston condo inventory problem, and now it’s looking like a problem that is only deepening. In the Boston real estate market, trends are continuing to show declining inventory.
Boston condo inventory available on the market for sale in February was 50% below 2006 level and 25% below last year’s level.
Now in April, inventory is down 29% over last year. Given that 571 Boston condos went under agreement in the past month, we’re looking at a paltry 2.5 months worth of inventory in Boston right now. That’s absurdly low.
For historical perspective, have a look at these graphs of condo inventory on the market in Boston (citywide) and in Downtown Boston (encompassing Back Bay, Bay Village, Beacon Hill, Charlestown, Kenmore/Fenway, Leather District, Midtown, North End, Seaport, South Boston, South End, Theatre District, Waterfront, and West End, click the links to see current listings available and market stats for each individual neighborhood).
No wonder we’ve been seeing swarming buyers at open houses, and situation after situation of multiple offers for condos just on market. There simply is not enough inventory for sale. Buyers looking to take advantage of the lowest mortgage rates all time and avoid steep rent increases in the Boston rental market are extremely active in the market. The key for buyers is to be educated about the market to know what they’re jumping into and how to avoid getting burned and keep a close eye on new listings.
Our free first time buyer class next week is a great place to start.
Boston condo sales are way up. If you’re thinking about selling, get an accurate local home valuation now to see where your home fits in this dynamic now. You may be able to take advantage of exceptionally low inventory and increasing buyer activity in the short term to achieve a higher price than expected. Recent valuations and sales have pleasantly surprised a lot of sellers recently.
