Spring has finally arrived and many are wondering what it will bring for the Boston housing market. Despite the pandemic continuing on, it’s certain to be very different from the spring we experienced at this time last year. Here’s what some top industry experts predict for the Boston housing market this spring.
1. New Inventory Growth
Many experts are predicting a rise in available industry. Danielle Hale, chief economist from Realtor.com has stated: “Despite early weakness, we expect to see new listings grow in March and April as they traditionally do heading into spring, and last year’s extraordinarily low new listings comparison point will mean year over year gains. One other potential bright spot for would-be homebuyers, new construction, which has risen at a year over year pace of 20% or more for the last few months, will provide additional for-sale inventory relief.”
Also, chief economist of Zonda, Ari Wolf, stated: “Some people will feel comfortable listing their home during the first half of 2021. Others will want to wait until the vaccines are widely distributed. This suggests more inventory will be for sale in late 2021 and into the spring selling season in 2022.”
2. Price Increase
Median listing prices grew at 12.9 percent over last year, notching the 27th consecutive week of double-digit price growth, easily double the rate we would see in a more normal housing environment. With home shoppers active and sellers still lacking, this upward pressure on prices is likely to remain. Still low mortgage rates in 2021 have helped offset the pain of higher prices, but mortgage rates are expected to rise later in the year, thus affordability is likely to become a top consideration for buyers.
3. Overall Strong Sales Season
Overall, the experts are predicting a strong sales season. Mark Fleming, chief economist of First American, stated ““As the housing market heads into the spring home buying season, the ongoing supply and demand imbalance all but assures more house price growth...Many find it hard to believe, but housing is actually undervalued in most markets and the gap between house-buying power and sale prices indicates there’s room for further house price growth in the months to come.”
