As people have been taking their departure from larger cities on the east coast, New England’s residential real estate market has been booming during the COVID-19 pandemic.
With volume increasing steadily, it’s fair to say that CLG has been noticing these upward trends.
While buyers have been flocking to New England’s smaller cities and suburbs, New Hampshire, Melrose, MA, and Worcester, MA are among the “hot spots” for COVID-19 migratory and residential real estate patterns. But, we’ve also been observing an increase in volume on the North Shore, and in other places in Massachusetts, too.
Suburban Massachusetts Sellers’ Market Remains Strong
The effects of the pandemic have created a strong seller’s market in suburban Massachusetts.
Since remote work is the “new normal,” and commutes are minimal or non-existent, smaller cities and towns in Massachusetts and New Hampshire are performing very well in the housing market. The average median price of a single-family home in Massachusetts increased 14.3% this past August, from last year.
Competition in the suburban market has been fierce as prospective buyers are often bidding against multiple offers. With historically low-interest rates hovering at just below 3% for a 30-year fixed mortgage, buyers are spending more, while homes are being sold at much higher rates than the original asking prices.
The Massachusetts suburban residential market continues to remain resilient amid the uncertainties of the coronavirus pandemic. CLG’s Senior Counsel, Michael Osborne commented, “With interest rates as low as they are, the market has remained strong in the suburbs and transactions are taking place. The volume is still up there with inventory remaining at historic lows. If you are considering it, now is the time to sell.”
Boston Sees Summer Increase in Single-Family Home Prices and Luxury Sales
Despite the mass exodus that’s been reported from large cities, the Boston residential market remained robust in the early days of the pandemic and throughout the summer. The average price of a single-family home within city limits went up from $697,500 in July 2019 to $716,250 in July 2020, spending only about 34 days on the market.
Luxury homes in Boston and the surrounding area have also done exceptionally well in the market during the pandemic. According to the statistics, sales of homes valued at $1 million and up saw a considerable increase from March through June of this year, throughout the duration of Governor Baker’s stay-at-home order.
With incredibly low-interest rates and people spending more time at home, many buyers are taking advantage of the opportunity to upgrade to larger houses as they see the need for more space. Due to the coronavirus restrictions and social distancing guidelines, homes are functioning not only as places to live, but they’ve become virtual workspaces and remote schools, as well.
Although single-family homes have been in high demand, the total sale of condo sales has decreased — presumably because many buyers are looking for more space. Regardless, the selling prices of condos have still jumped throughout parts of the Greater Boston area.
Learn More About CLG’s Residential Real Estate Practice
Committed to providing clients with superior legal services based on a modern business model, Continental Law Group represents clients throughout Massachusetts and New Hampshire for residential real estate transactions. CLG has offices located in Boston, Salem, MA, and Portsmouth, NH. Call (617) 616-8210 to learn more about CLG’s commercial real estate practice and other legal services.