The third quarter was a tale of two markets in Greater Boston. Single family homes saw value appreciation and low days on market across the region, with the single family market becoming stronger as it moved away from Boston proper. The condo market, on the other hand, has softened, with high inventory and longer days on market in both the city and surrounding areas signaling new opportunity for buyers.
As consumers have adjusted to new routines, lifestyle changes have fueled Q3 market trends. Still homebound, many have taken a hard look at where and how they live and decided to invest in a home that meets their newfound need for outdoor space and extra square footage for bedrooms, home offices, or onsite gyms. Desire to live and work more comfortably combines with historically-low interest rates and pent-up demand from months of quarantine have created a brisk single family market that has become increasingly competitive, with the average number of offers increasing two-or three-fold YoY in some cases.
Unsurprisingly, the reverse has been true for the condo market as consumers have gain become comfortable executing real estate transactions after months of sheltering in place. With inventory so high as multitudes have left densely-populated areas, price drops are common and sellers are more willing to strike deals than in recent years.
Generally, markets tend to slow during election years, and this year is expected to be no different. Activity levels in both single family and condo markets will likely decline in the lead up to November 3rd. Looking ahead to Q4 and early 2021, persistent low inventory in single family markets is anticipated given heightened buyer demand and seller inertia related to political and economic uncertainty. Condos will continue to experience a buyer’s market, with price adjustments and low interest rates creating opportunities for first-time buyers previously priced out of the market. The condo market is expected to settle by spring, even if at a slightly lower price point than in recent years.
As markets continue to shift, the desirability of Greater Boston remains steadfast - and I continue to guide my clients toward opportunity and success in an ever-changing world.
For the full report filled with data, view it here.