The residential real estate market in the Boston metro area is soaring right now — and it isn’t expected to slow down any time soon. Buyers are snatching up nearly anything they can get their hands on. In fact, a house in Jamaica Plain that was partially burned by a fire in December has even been listed for half a million dollars. While the price tag for such a property might have seemed unreasonable just a few years ago, in today’s market, it can garner considerable interest from the right buyer.
It’s a Seller’s Market
According to Real Estate by Boston.com & Globe.com, Boston home prices have increased by almost 15% over the past year, the fourth-highest jump nationwide. As restrictions are lifted, and people are getting vaccinated, more sellers are becoming comfortable putting their homes on the market and opening them up to prospective buyers.
However, there isn’t enough supply to meet the demand. The result? A seller’s market.
The competition is not only fierce, but houses are sometimes going for more than 100% of the asking price. In just 17 days, one home in Haverhill sold for 105.3% above the listed price. Similar trends have been reported in Worcester and Brockton.
Median Home Prices Are More than $500,000
Currently, the median price of a home in Massachusetts is $508,000, representing an 18.1% increase from last year. It’s also 32.6% more than the median price in 2019 at $383,000. In April of this year alone, 4,517 single-family homes were sold — an all-time sales record as reported by the Warren Group.
Condo sales prices statewide have also hit a new high at a median of $475,000. The average price represents a 12.3% increase from last year and a 28.4% jump from April 2019. Overall, the 2,530 condo sales were up 55.9% from April 2020 and increased by 27.3% from 2019.
Specifically, in the Boston metro area, condo prices have increased 2.9% overall on average, with Dorchester and East Boston being among the highest jumps. In Dorchester, condo prices were up 11.9% from last year to $545,000, and the price of each unit was up 24.2% in East Boston to $655,000.
What Can Buyers Do to Get Ahead in this Market?
With the competition as stiff as it is, buyers have to be more prepared than ever before. Although it’s never a good idea to skip an inspection, buyers should have their pre-approval in hand. Keep in mind, properties can go in a matter of days in this market.
You might also consider waiving contingencies to keep your offer as simple as possible and starting with a strong price. With numerous bids made on each property and houses being sold in just a few days, you might only have one chance to make an offer.
Learn More About CLG’s Residential Real Estate Practice
In a market like this one, it’s vital to have the knowledge and guidance of an experienced real estate attorney. Continental Law Group represents buyers and sellers for residential real estate matters throughout Massachusetts and in New Hampshire. CLG has offices located in Boston, Salem, MA, and Portsmouth, NH. Call (617) 616-8210 to learn more about CLG’s residential real estate practice and other legal services.