Boston Real Estate Is Booming. These Four Stats Tell Where, Why, and How to Take Advantage of the Market
Boston real estate isn’t always easy to understand. But if you look closely at the data, you start to get a clearer picture.
The data right now is telling us that a boom is happening, with houses getting snapped up at a moment’s notice. Below, check out four stats that explain where, when, and how homes are being bought—along with some expert tips on navigating the market.
In the suburbs, single-family homes saw median days on market drop to 17 days from 41 in January.
What does this mean? Homes are selling fast! They’re selling so fast that Dylan Krebsbach, a client advisor from Flyhomes, points out that homes that go on the market midweek are getting offers at the start of the next week. As a result, he sets clear expectations with his clients to ensure they understand the home buying timeline and, more importantly, provides them with the tools to win in this competitive seller’s market.
“You do get in the mindset of, when you tour a home, you better be ready to offer Monday or Tuesday or you’re not going to have a shot at it,” Dylan says.
When preparing an offer, homebuyers should expect theirs to be compared to multiple others. The less contingent the offer, the more certain it will be to the seller. One option to strengthen your offer is to get pre-underwritten. Getting pre-approved is the first step in the lending process where a loan officer takes a quick look at your finances and provides an estimate of what a buyer would be approved for. The next step is to get pre-underwritten, where an underwriter takes a deeper dive into your finances, providing additional certainty that your loan will be approved. This step may allow the buyer to feel comfortable enough to waive the mortgage contingency and will show the seller that the buyer’s loan is more likely to be approved than someone who only has a pre-approval letter.
“It’s the more certain form of being pre-approved,” Amanda Edwards, a client advisor from Flyhomes, says.
Condos in the metro area continue to have relatively flat sale-to-list price ratio, staying at 95%. The single-family home ratio is up 3% year over year to 99%.
This means that homebuyers should go in expecting to pay about the list price, at minimum. In fact, Amanda instructs her clients to look for listings a little below their ideal price, since chances are high that it’ll rise during the bidding process.
That said, there are still positive signs of value to look for in a home that can differentiate a good investment. Schools in Massachusetts are reopening, so a good school district matters as much as it ever did. Public transportation is only going to get more important as people look to escape the Boston commute.
“Think about, ‘Where’s the next area that’s going to develop more public transportation?’” Dylan says.
The suburbs saw a 21% month-over-month jump for single-family home median list price.
Everyone is heading to the suburbs, and prices are particularly up in the spring. To secure a deal and potentially save on cost, you should make your offer as attractive as possible, and that means purchasing with cash.
Amanda recommends two different program options to her clients. Flyhomes has a cash offer program, where they use their cash to make an all-cash offer on behalf of their clients—making the offer basically irresistible to sellers. The program works especially well for first time homebuyers.
Another option for current homeowners is their trade up program, which will take your home value into account as equity, and use it to buy your next property. Not only does this solidify your purchasing power, but it makes it so that you can sell your current home and buy a new one at the same time, without having to stay at your relatives or in a hotel in between.
“It’s really to help homebuyers level the playing field—to help people have a chance,” Amanda says.
Learn more about buying, selling, or trading up your home through Flyhomes.This is a paid partnership between Flyhomes and Boston Magazine's City/Studio