Boston's New Real Estate Bubble!
For those of you who have been shopping for a home in the Boston area you have most likely run into a multiple offer situation where the property sold in just a few days for well above asking. Now, if your a seller this is great news. Heck the prices are up more than 33% yoy. But if your a buyer who did not have patience and let the emotions of winning a bidding war get the best of you then there is a good chance you way over paid! Here is why....
- Although the prices are up 33% the number of total homes for sale and sold are down almost 50%. In other words it's not a improving economy that's driving the prices higher it's the lack of inventory!
- This lack of inventory won't last much longer...Do to the media, agents(many offices such as Keller Williams, Coldwell Banker, C21, Hammond Residential have implemented heavy marketing campaigns targeted at getting homeowners to realize that now is the time to sell) and word of mouth many homeowners how have been holding off on selling are getting their homes ready for the spring and summer markets and a wave of inventory will be comming on and normalize this market.
Just take a look at these charts for the Back Bay!
As you can see average sold price for the BB is way up.Now compare this to total number of homes sold....>
As you can see the effect of supply and demand is pushing the prices way up! So, if you are thinking about buying a property right now you might be better off if you can wait a few months and not get suckered into these crazy bidding wars and be part of Boston's new housing bubble which is sure to go POP soon!