What can buyers and sellers expect from our 2020 spring real estate market? We’ll answer that question today by looking back at how 2019 ended.
There’s been some talk about a recession lately, but the truth is that our market is strong. We’re on a solid foundation, and interest rates are projected to stay low throughout the next two years. As of the recording of this video, they’re still under 4%. This is good news for buyers because it increases their purchasing power (which is good news for sellers too).
In 2019, inventory was predicted to slowly increase as prices rose, but the number of listings coming onto the market actually decreased last year, as did the number of sales. Across the entire city, the only area that bucked this trend was Back Bay, which saw sales increase by 8%. The average price per square foot also rose 17% ($1,489) in Back Bay. Back Bay has been seeing a lot of new development lately, which explains why they’re the outlier.
The number of sales dropped in Charlestown (-5%), South Boston (-15%), and South End (-16%), as did the level of inventory, but the average price per square foot in these areas is rising modestly and is a little more affordable:
- Charlestown: $740
- South Boston: $736
- South End: $1,058
After about January 6 of this year, online traffic went through the roof in our market, and we’re now seeing a lot of open house foot traffic, which means we’re expecting a strong spring market. We’re not seeing a lot of properties being listed, but the homes that are coming onto the market are getting offers quickly. If you’re a buyer, you need to be ready for this—get pre-approved and hit the ground running.
If you have questions about our Boston market or are thinking of buying or selling soon, don’t hesitate to reach out to us. We’d love to help you.