As we approach the end of 2013 and winter’s cold inevitably chills not only our bodies, but also the Boston real estate market, many questions linger as to what expect in 2014. These are my 5 biggest predictions for 2014:
Winter’s frigidity won’t impact the Boston condo market. The Boston market has been plagued by historically low inventory for the past 4 years, with 2013 being especially tight, and I do not see this trend taking any monumental turn next year. Many people will continue to take advantage of low rates, low down payment options, and strong rental returns and keep their existing properties in the city even if they “trade up”, both within Boston or in the suburbs.
Just like with InkBlock’s Sepia, more developers will see the shortage of condo inventory, and concurrent high level of buyer demand, compounded by a surplus of luxury apartment inventory, and elect to change their apartment projects to condominiums.
We are already starting to see this, and in conjunction with prediction #2, the luxury rental market will see a surplus of inventory and this is good news for renters. For the first time in close to a decade we will see (already has begun to happen) landlords offering concessions and rents stabilizing. Free month’s rent, up to even 2 full months, realtor fees paid, and rent stabilization, or even a modest decrease, will be the trend in new high end apartment developments.
We have seen the lowest rates in the history of mankind (literally) over the past few years. 2013 saw an uptick from the 3-3.5% low point to the 4.5%+ range on the 30 year fixed, but this is not a huge deal. Sure, a handful of fence straddlers may opt to rent versus buy, but demand is so high, and many buyers out there (empty nesters especially) have experienced rates as high as 18% in their lifetimes, so even if the 30 year ends up averaging 5% in 2014, this will not cause any substantive adverse market impact in 2014.
My money is on the B’s to bring home another Stanley Cup, but never count out TB12 and the Pats. The sox could also repeat, but one thing is for certain: it won’t be the Celtics….So, in sum: B’s, Pats, Sox in that order are our best bet for another parade…and feel free to come by our office overlooking the parade route on Boylston Street when it happens!
