2016’s Real Estate Trends in Boston
Real Estate Trends
Boston real estate trends – Boston, the capital city of the state of Massachusetts, is one of the leading cities for residing in the US. Like New York and LA, students and employees from all over the world come here to study and look for job opportunities.
Therefore, the need for proper accommodations has escalated over the last few decades, making it one of the most dynamic yet important real estate markets in the region.
Here are the top trends the real estate market in Boston followed this year:
The interest rates on mortgages determine how much your cost of borrowing is and the interest that has to be paid on the principal amount.
In the year 2016, it was observed that this interest rate remained stagnant, that too beneath the benchmark of 4%.
A famous Boston realtor, Tokos, suggested that it is likely the interest rate would remain stable at such a low rate as there have been no events occurring which could cause significant changes to these rates.
Sellers remain dominant
Boston turned out to be a seller’s paradise once again. With a dense population already occupying the city, there are only so many houses to buy.
Due to the low levels of house inventories, the sellers maintained their dominance in the market. According to Tokos, 8 out of 10 house buyers find themselves engaged in bidding wars which occur due to the many buyers and not enough houses to buy.
This is why the prices at which the houses are sold are way above the market rates. If you are a seller, you are in great luck going into the new year!
Overall price increases
Many people who decided to buy a property in Boston didn’t execute this plan due to the extremely high prices. For this reason, they chose to opt for renting apartments instead.
As this trend has been followed for years, the demand for houses also increased, as well as the demand for rented apartments.
This is why 2016 observed an overall increase in the real estate market’s price, whether for rental or for purchasing purposes.
Boston’s foreign currency inflow has significantly increased.
Families living overseas move to Boston to avail the excellent educational facilities as well as the modern lifestyle this city provides. Instead of living in dorm rooms, children of these rich families live in condos and houses.
So when these families purchase these houses, a foreign income is generated and the real estate market flourishes like it has in 2016.
Low Vacancy Rate
The vacancy rate is extremely low, almost under 5%. This is because the city is safe and provides the best recreational, educational and health services when compared to other towns in Massachusetts.
Overall, in the year 2016, Boston’s Real Estate Market remained healthy, becoming a top performer in the Real Estate Universe around the country.