Number of Homes for Sale in Boston and Surrounding Areas of Massachusetts Hits a Serious Low
Boston and the surrounding areas are experiencing a drought, but not of water – of homes. The dip in the number of homes for sale is continuing to drive up prices, making it difficult for the average person to purchase an affordable home. Bidding wars now dominate the home-buying process, and the median price of a home in the state has increased to an average $374,000 for the first time on record.
Number of Available Homes Fell, and Continues to Plummet
In June of 2016, the number of available homes for sale in Massachusetts fell by an astounding 28 percent – the largest year-over-year drop since 2004. And availability continues to plummet; according to the Massachusetts Association of Realtors, the month of November (2016) marked the 58th month of continuous, year-over-year declines. In fact, the number of homes for sale in Massachusetts fell 24.6 percent from 2015 to 2016. The number of condos for sale has experienced an even greater drop: 30 percent in a one-year period.
What Explains the Limited Number of Homes for Sale?
Buyers in Boston and surrounding areas are having a hard go of it, and are surely curious about why the number of homes available for sale has dropped so dramatically. The answer is multifaceted, and likely has something to do with the decline in new home construction in the Boston area, the growing elderly population (who don’t want to sell their current homes because they can’t find a smaller, more manageable home to move into to), the lack of moderately priced homes, and the fact that current homeowners may be just now understanding the value of keeping onto their homes in a hot market, especially following the 2008 crisis.
It’s Competitive Out There
One thing is for sure: the lack of housing in Boston and the state as a whole has driven sales like mad, and it’s more competitive than ever before. Sales of single-family homes in Massachusetts rose almost 20 percent over the past year, and the average price of a home rose six percent. While it may be a terrible time for buyers, those who want to sell are in a great position to do so, and may be able to get more than their asking price.
Talk to a Closing Lawyer Before You Seal the Deal
Whether you’re thinking about buying or selling in Boston, be sure to meet with an experienced closing lawyer before you seal the deal. A closing lawyer will review all documents and contracts related to your purchase/sale, and ensure that everything is both legally sound and within your best interests, as well as explain to you any complexities about the process.