If you’ve been toying with the idea of selling your home, listing it sooner than later is better. Currently, the market is ripe for sellers, however, Boston’s real estate market could be a very different scenario come this fall and winter and continue as we move into 2022.
1. Strong seller’s market
Boston is currently a hot market for sellers. Local housing is in short supply, the median price of houses is up, and the rental market is on the rebound. As many other cities saw throughout the pandemic, the city suburb real estate market exploded as people actively sought to spread out. This means sellers not only get their asking price but there’s also a good possibility buyers will start a bidding war for their properties. Considering the Boston-Cambridge-Newton and N.H. median price for single-family homes exceeds $675,000, sellers can do well this spring and summer because they can easily leverage low inventory conditions.
2. Now is prime time ‘season’
Spring and summer have traditionally been the best time to sell. This year is no exception – and possibly even better than usual. Currently, the real estate Boston market favors sellers, but this could start to change by fall. Sellers are becoming less reluctant to sell which means six months from now, the current shortage of inventory might possibly start to balance out which could swing the pendulum towards buyers’ favor with more listings to choose from. Sellers have a better chance now of selling faster and for more money than they would if they choose to wait.
3. Rising mortgage rates could reduce demand
Home sales were strong throughout 2020 as people sought to move to suburban areas and add space to accommodate remote work and school situations. Low mortgage rates helped solidify buyers’ desire to purchase real estate in Boston-area suburbs. As we entered 2021, mortgage rates continued to drop, reaching a record low of 2.65% in January. Rates are, however, creeping back up. Currently, rates are above 3% and industry experts predict rates will rise come year’s end and throughout 2022. When rates rise, buyers may decide to wait or will not be willing to pay higher asking prices.
The pendulum will swing towards buyers at some point
Bottom line, the real estate market can cool by year’s end and continue into 2022. Trends indicate mortgage rates are rising, home prices are increasing, and more sellers are adding inventory to the market. This trifecta can quickly shrink the pool of buyers. If a buyer’s market emerges, buyers won’t be willing to enter bidding wars over properties because they’ll simply look at other homes or wait for additional inventory.
Now is the best time to sell a Boston home before the market conditions favoring sellers begin to shift. Currently, supply remains low and demand continues to be high. How long that lasts is uncertain. Homeowners who have been considering selling their homes within the next year or two should keep in mind, listing their homes sooner than later is a smart decision.