Will the Boston Housing Market Continue Booming This Spring?

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.”

Massachusetts Real Estate Sales in January Boom, Breaking Records

The growing real estate market that bloomed late last spring has shown no sign of weakness, and continued thriving with strength throughout the cold winter. 

According to real estate metrics firm The Warren Group, there were 3,824 single-family home sales across Massachusetts in January. This reflected an 8.7 increase over a year ago, and the most January sales in over 20 years. The median price of a Massachusetts single-family, increased 12.7 percent over a year ago, from $398,700 to $445,000, a new all-time high for January.

 

Furthermore, this marked the sixth straight month where Massachusetts boasted double-digit increases in median prices. Despite high unemployment rates and the raging pandemic, the real estate market continues to thrive and grow with remarkable and powerful strength. 

 

Also, lower interest rates provide homebuyers with more buying power, further fueling the market. 

 

Meanwhile, the 1,686 condo sales statewide marked a 10.3 percent jump over January 2020. And while median condo prices inched up just 0.3 percent year over year, from $399,000 to $400,000, that still marked an all-time high for January.

 

In Suffolk County, which includes Boston, the median price of a condo dropped 5.9 percent, from $679,000 to $638,750. Also, the average price of a downtown Boston condo fell noticeably, 30.9 percent year over year, from $1,286,625 to $889,100. 

 

Condo sales soared 28 percent in Middlesex County in January, however the median condo price slipped 5.6 percent compared to a year prior. Furthermore, condo prices in Cambridge and Somerville plunged 9.3 percent and 16.9 percent, contrasted with January 2020.

 

The increased sales volume is coming during a time where inventory is tight; single-family inventory hit record lows in January.  

Where in Boston Should You Live? Main Factors To Consider

1.    Your Commute 

 

The first factor to take into consideration when choosing which neighborhood to live in Boston is your commute to work or school. Wasting time with a long commute isn’t ideal, so often your commute time will be a defining factor in choosing the right neighborhood. When evaluating your commute time, it is important to factor in fuel and/or possibly toll expenses. Some Boston neighborhoods only require a resident sticker which is fairly easy to obtain, while other Boston neighborhoods do not offer any parking. This means you may need to rent a parking space, which can be extremely expensive. If you plan to use public transportation in order to commute then you need to factor in the monthly cost of that as well. You also need to consider how close the apartment is to the T station or bus stop

 

 

2.    Amenities and Features 

 

Another defining factor will be the amenities and features you are searching for. Make sure you figure which amenities are dealbreakers and which are simply luxuries you would prefer. This is highly important, because you don’t want to end up regretting the apartment you chose because it doesn’t have your highest regarded features. Therefore, knowing your priorities and what you value most is key. That being said, working with a professional real estate agent who specializes in the Boston rental market will significantly increase your chances of finding the right apartment which fully satisfies you. 

 

3.    Budget

 

Figuring out your budget is extremely important when deciding which neighborhood would be a best fit. Also if you are working with a tight budget it is extremely important that you deicide which priorities are valued more. For example, is it more important you are in the exact location you want, or that you have a brand new and modern apartment? If you have a tight budget and living in Back Bay is your ultimate goal, then you may have to live in an older unit to fit your price point.

 

Overall, moving to Boston can be a stressful but incredibly rewarding experience. The city has so much to offer in terms of entertainment, historic beauty, and rich experiences. When you work with Premier Property Solutions, our team of agents will provide exclusive apartment listings and are exceptionally familiar with the properties throughout Boston. Contact us today if you are ready to find your dream apartment in Boston and make it a reality!

 

 

As The Pandemic's End Approaches, Experts Offer Predictions for Mass. Housing Markets in 2021

Although 2020 was full of dark and unprecedented times, the real estate market continued to thrive and boom. The flourishing housing market was one glimmer of hope in an otherwise struggling economy. Now with emerging COVID-19 vaccines, a path out of this painful pandemic is approaching. Many are wondering, what will a return to normalcy mean for the housing market in 2021?
 
Housing economists are predicting another big year for real estate. The chief economist at Redfin, Daryl Fairweather, predicts 2021’s real estate market will be ever stronger than 2020. “As the economy recovers, as the vaccines get the virus under control, people will be back at work, and people who have delayed selling this year will be ready to sell,’’ Fairweather stated. Fairweather also believes the interest rates may slightly tick up but stay historically low, which makes buying a home more affordable. 

Low mortgage rates are one of two reasons experts anticipate continued price growth in 2021; most economists expect rates on a 30-year fixed-rate mortgage to average just over 3 percent. The other reason is: supply and demand. There still simply aren’t enough houses available for everybody who wants one. 
 
Homes are selling incredibly quickly, nearly 2 weeks faster than last year, because the market is so starved for inventory. Daniele Hale, the chief economist from Realtor.com, expects the housing market to ride its current momentum through next year, with home prices climbing 5.7 percent in 2021, both nationally and in the Boston area. Hale forecasts sales volume to increase 7 percent overall and 5.4 percent in Boston. She also predicts a return to “seasonality,’’ with strong spring and summer buying seasons and a wind down in the fall and winter. Boston, specifically, continues to experience a vast shortage of inventory. 
 

The lack of new listings put a lid on home sales this year, Fairweather states, and continued to drastically push up prices. However, as the pandemic comes to an end, and buyers and sellers start feeling more confident about their future, and thus more comfortable with listing their home for sale or making a purchase, Fairweather predicts home sales will jump 10 percent in 2021, and price growth will slow somewhat, to a little less than 5 percent. 
 
As more inventory hits the market in the second half of 2021 however, it still won’t be enough to satisfy buyer demand. There will definitely be an unrelenting demand for homes and another seller’s market next year. 
 
As it did this year, that buyer demand will likely continue to center on larger homes with offices and outdoor space. 
 
Furthermore, once people feel confident that life will return to normal, Fairweather expects buyers to return to cities like Boston — if not for the jobs, then for the lifestyle.  “Boston isn’t just about office buildings; it’s also a place where people go on vacation. It’s a college town. There’s a lot to offer besides office buildings, so if office workers don’t come back, I don’t think that’s the end of Boston,’’ she said. “Young professionals and college students are going to want to live in a place that has nightlife and bars and restaurants.’’
 
Boston ranked among the 10 hottest markets in Urban Land Institute’s 2021 Emerging Trends in Real Estate report. “The industry is pretty bullish about Boston as sort of staying a top-tier city.’’
 
With a competitive market expected in 2021, agents said it’s essential for buyers to prepare. That means researching home values, canvassing what’s available, connecting with a local agent, and getting preapproved by a lender so you can act quickly. When you have something that works for you, you have to be ready and well-prepared to place a strong offer. 

Greater Boston Home Prices and Sales Broke Records in October

According to a report by the Greater Boston Association of Realtors released last Tuesday, The Greater Boston single-family and condo home markets saw record sales in October. 

The 1,433 single-family homes sold last month reflected a 36.9 percent year-over-year increase in sales, while the median sales price rose to a new record for the month: $700,000. It was $593,000 last October.

Meanwhile, the condo market boasted a 9.3 percent year-over-year increase, at 949 units sold. The median sales price, $575,000, also broke records for the month. The median sales price in October 2019 was $549,700.

The multifamily home market saw a 6.4 percent increase in sales, with 198 properties sold.

The COVID-19 pandemic pushed the spring sales rush off to the fall. The prices reflect high buyer demand amid low interest rates and low inventory.

Long-term Mortgage Rate Falls to Record Low For 13th Time in 2020

US long-term mortgage rates fell this week, reaching record lows for the 13th time this year, amid fresh signs of weakness in the pandemic-ravaged economy. 

Mortgage buyer Freddie Mac reported Thursday that the average rate on the 30-year benchmark loan declined to 2.72 percent from 2.84 last week. For contrast, the rate averaged 3.66 a year ago. 

Meanwhile, the average rate on the 15-year-fixed-rate mortgage slightly declined to 2.28 percent from 2.34 percent. 

Home loan rates have trended downwards throughout most of the year, stimulating buying interest from potential home-owners. 

However, fresh signs emerged this week, revealing that the Coronavirus is likely continuing to slow the economy and force businesses to cut jobs. The government reported Tuesday that retail sales in the United States (which represent a third of overall consumer spending), grew a sluggish 0.3 percent in October, despite retailers offering early holiday discounts online and in stores. 

Furthermore, a recent report from the Labor Department showed that the number of Americans seeking unemployment aid rose last week to 742,000, the first increase in five weeks. The worsening pandemic and arrival of cold weather could encourage layoffs in the weeks ahead. Of the roughly 20 million Americans receiving some form of jobless benefits, about half will lose that aid when two federal programs expire at year's end. 

4 Powerful Ways To Freshen Your Space

1. Embrace natural light

Throw open the curtains, let the breeze in and brighten your home decor. Open those blinds and bask in the natural light. Instead of flipping on your lights in the morning, pull back the curtains and let sunshine light the way. The simple act of opening your windows can help lift your mood, and you’ll save a little on your electric bill too. Don’t have big windows? By using large mirrors you can reflect light and brighten up your room.

2. Freshen up your furniture

A white, beige, or light gray couch is a perfect and cozy nesting spot. Light neutral chairs set the tone, reflect light and set a peaceful atmosphere. If you don’t want to commit to white furniture, invest in slipcovers that you can use seasonally and remove whenever you desire. 

3. Incorporate natural tones 

Incorporate lightweight natural materials into your decor — think wicker, woven baskets, light wood grain and cotton curtains. Keep it airy and light, leaning on nature to inspire you.

Switch out heavy blankets for light throws, and pack away heavy, dark decor items in favor of woven baskets paired with colorful or nature-inspired accessories. By adding earthy materials to your home, you invoke nature inside and out for a fresh and renewed feel.

4. Go green and breath fresher air

Adding potted plants, bouquets of flowers and herb gardens to your home is a great way to bring the outdoors in. Not only do they provide beautiful focal points and improve your mood, they also give off little hits of oxygen — so breathe deep.

Visit your local farm for pretty blooms, or grow herbs in windowsill pots. Also, faux plants can still give off a fresh green look, but without all the hassle and maintenance. Give yourself a new outlook and a fresh perspective by taking the time to revitalize your space and refresh your mindset. From mixing up colors to looking to nature for inspiration, you can powerfully transform your home into a sunny, bright and airy space.

Single Family Home Prices Jumped 18% in Massachusetts This September

Two reports released Wednesday affirmed the autumn housing market is thriving and healthy in Boston. The cost of a single-family home in Massachusetts in September averaged $472,000, which reflects an 18 percent year-over-year increase. Furthermore, sales were up more than 27 percent, according to a report by The Warren Group, a real estate analytics firm.

 

Historically in September the real estate market sees a significant slowdown in single-family home sales, but this proved not to be the case in 2020. As expected, Suffolk and Middlesex counties were the primary drivers behind the significant uptick in condo sales in September. 

 

In Greater Boston, sales of condos and single-family homes rallied, according to a report the Greater Boston Association of Realtors released Wednesday. The condo market experienced a 19.1 percent year-over-year increase in sales and a median price jump of 7.7 percent to $592,500. The median price for a single-family home rose 12.4 percent year over year to $680,000, and sales skyrocketed 32.2 percent.

 

Even throughout the pandemic and impending presidential election, the Boston real estate market still holds a lack of housing inventory, which is driving prices up.

4 Ways to Make Your Home Office Work

Working from home is the new normal for many Americans, which emphasizes major importance upon your home workspace functioning well, and looking great. Here's 4 tips on how to design and revitalize your home office space for maximum capability. 

1. Declutter

Now is the time to be honest for yourself and completely declutter your desk and draws. The importance of having a clean workspace with only the necessary items is astronomical, and will help keep your brain running smoothly and lower stress levels. Toss away any unnecessary items that need to be thrown out, pair similar items, contain stray pens into one decorative cup, and make sure you have all your workday essentials close at hand and non-essential items moved away. 

2.  Commit to Your Space 

Designating an area strictly for work in your home is highly important and will help you enter a driven and focused mental space. Whatever spot you choose, make sure it feels like a designated and functional work area. This means adequate lighting, a comfortable office chair, and a seamless tech set-up with plenty of space. 

3. Create an Inspiration Board

Now that you've set the stage, it's time to look forward. The wall behind your laptop (or desktop) should inspire you. This a great time to curate an inspiration board full of quotes, pictures, and your favorite images to inspire you and motivate you each day. You can also include your to do list and important reminders on the board. 

4.  Set the Mood

This is your time to create an inspiring space. Scented candles usually aren't allowed in your crowded office space, but those rules don't apply at home. Aromatherapy options are also available if you are concerned about kids or pets. Also now, your playlist can softly play out loud rather than through ear buds. Similarly, you can set out healthy snacks and any of your favorite drinks to overall create a cozy and comfortable atmosphere. 

4 Surprising Features That May Increase How Much Your Home Is Worth

Thousands of data points correlate with home values and sale prices, many which are obvious (like the condition of the home) and some features that aren’t obvious. 

Here are several surprising features which have the power to affect ethe existing value of your home or the price someone is willing to pay for it, based on factual data.

1.    Proximity to Starbucks

A surprising feature which may raise the value of your home is your proximity to the nearest Starbucks. A 2015 Zillow report found that, between 1997 and 2014, homes within a quarter-mile of a Starbucks increased in value by 96%, compared to 65% of all U.S homes. This information was based on a comparison of Zillow Home Value Index Data with a database of Starbucks locations. 

To evaluate if this effect is isolated to Starbucks, the Zillow research team looked into another coffee hot spot (one with particular pull on the East Coast): Dunkin’ Donuts.

The data showed that homes near Dunkin’ Donuts locations appreciated 80 percent, on average, during the same 17-year period — not quite as high as homes near a Starbucks, but still significantly above the 65 percent increase in value for all U.S. homes.

2.    Blue kitchens and blue bathrooms

Curb appeal is definitely important to prospective home buyers, and what’s inside counts too, especially the colors you choose to paint the rooms. 

According to Zillow’s 2017 Paint Color Analysis, which examined more than 32,000 photos from sold homes around the country, homes with blue kitchens sold for a $1,809 premium, compared to similar homes with white kitchens.

Blue is also a well-liked bathroom shade. The same analysis found that homes with pale blue to soft periwinkle-blue bathrooms sold for $5,440 more.

Walls painted in cool neutrals, like blue or gray, can signal that the home is well cared for or has other desirable features.

3.    Trendy/Modern Features

Zillow listings mentioning trendy features, such as barn doors and farmhouse sinks, tend to sell faster and for a higher premium. This information is according to a 2016 Zillow analysis of descriptions of more than 2 million homes sold across the country. 

Listings with “barn door” in the description sold for 13.4 percent more than expected — and 57 days faster than comparable homes without the keyword. Meanwhile, listings touting “farmhouse sink” led to a nearly 8 percent sales premium.

4.    City Proximity 

 If you are lucky enough to own a home in a major metropolitan area, you’re most likely sitting on a significant (and rapidly appreciating) financial asset. For example, home values in the New York, NY, metro area are worth $2.6 trillion. The average urban home is now worth 35 percent more than the average suburban home. Since 2012, the median home value in urban areas has increased by 54 percent, while the median home value in suburban areas is up just 38 percent.

5 Safety Tips for Moving During COVID-19

Moving during COVID? No problem. By using these safety tips and precautions you can make your move go safely and smoothly. Amid worldwide travel bans, widespread stay-at-home orders and social-distancing mandates, millions of Americans have adapted to the drastic changes brought about by COVID-19. Countless events have been rescheduled or cancelled, but for those who made necessary plans to move, staying put is simply not feasible.

If you are in the process of moving or planning to move, you can still get the job done successfully and safely. Luckily, we have some tips and precautions to make your move as safe, smooth and stress-free as possible. 

1. Get Hands-On

Despite most states designating moving services as “essential”, many smaller moving companies have reduced hours or have paused business altogether. If you can, try to manage the move on your own. If you do need assistance, research the companies in your area and call to ask about procedures. Make sure the movers utilize necessary supplies like gloves, masks, and sanitizing kits. 

2. Minimize Contact

If you’re working with a moving company, ask for a virtual quote and see if the company offers fully contactless service. Forgo handshakes, for obvious reasons. A smile and a generous tip (sent through Venmo, PayPal or another contactless digital platform) are a welcome substitute. Furthermore, disinfect frequently touched objects and surfaces, paying particular attention to door knobs and handles.

3.  Take Extra Sanitary Precautions 

While moving make sure to follow the following sanitary precautions:

• Wear masks, gloves and booties. If you’re hiring a moving company, they’ll likely bring similar supplies for their workers, but consider having additional hygiene products available.

• Disinfect frequently touched objects and surfaces, paying particular attention to door knobs and handles.

• Place soap and paper towels next to sinks and hand sanitizer by doors.

• Buy new boxes: The coronavirus has been found to live on cardboard for up to 24 hours, so this is not the ideal time to pick up used moving supplies from stores that are recycling them. You can also use boxes that you already have in your home. 

4. Be Transparent and Flexible

In advance of your move, reach out to your neighbors — especially if you live in an apartment building — and share the date and time you plan to move. This gives everyone in your direct vicinity an opportunity to avoid unnecessary contact and let you know if your timing is a problem.

If you or any family members are experiencing coronavirus symptoms, postpone your moving plans. Though rescheduling is a pain, the health and safety of your community comes first. 

5 Ways to Enjoy the Outdoors at Home

In this current climate with many of us staying at home, one of the best remedies to deal with stress is to spend time outside and get fresh air. If you are lucky enough to possess an outdoor space such as a sprawling backyard or deck and patio area, now is the ideal time to renovate and make the most of your space. Here are 5 tips to enjoy and improve your outdoor area. 

1. Curate an Outdoor Lounge Space

Set up a beautiful outdoor lounge space on your patio or in the yard to give your space a relaxing feel. Spice up your space with new lounge chairs, chaise lounges, hammocks, and outdoor sectionals. To complete your lounge area add in some side tables, some candles, and enjoy the atmosphere. 

2. Fire Pit

You can always create a fire pit for your backyard, or purchase an electric fire pit that fits your area and your taste perfectly. A fire pit will create a cozy, campfire glow and be perfect for lounging at night, even when it gets colder outside. 

3. Create an Alfesco Dining Destination

Sitting in your kitchen every night can get boring, try mixing it up by creating an alfresco dining area. By creating an alfresco dining area in your backyard or patio area, you can enjoy fresh air while having your dinner. In addition to an outdoor dining table and chairs, you can even add a rug, a string of lights, or craft an outdoor chandelier to transform your evening meals. 

4. Create an Outdoor Bar

While traditonal bars are closed, why not create your own private outdoor bar? You can buy a bar online, or repurpose an old table or desk. Gather your bluetooth speaker, your favorite cocktail ingredients, and a few glasses to bring the ambiance of your favorite bar right at home. 

5. Beautifully Transform a Barn or Shed 

Although a bar or shed is a utilitarian structure, it doesn't have to be an eyesore. Spruce it up by painting it a bold color, attaching some shutters, adding some succulent flower boxes, installing a stone path, or even stringing up some bright lights. 

Despite Ongoing Pandemic, US Sales of Existing Homes Jumped 20 Percent

Home purchase sales strongly rose in June by 20.7 percent, even after the pandemic caused home sales to slightly decrease in the past three months. However, Coronavirus cases continue to surge, which could prevent the housing market from rebounding further. Real estate prices continue to rise due to a shrinking supply of homes for sale and high demand. 

The National Association of Realtors reported sales of existing homes rose this month to a seasonally adjusted annual rate of 4.72 million. Despite the sharp gain, purchases are still down 11.3 percent from a year ago, when homes had sold at an annual pace of 5.32 million per month. 

However, housing has managed to avoid a deeper slump from the serious recession brought on by Coronavirus. Demand has remained steady and strong among buyers who have been thriving within the downturn of the economy. Furthermore, record-low mortgage rates have helped support affordability and encourage buyers to make a move. Buyers have remained stable, however new listings have declined. Although buyers are in abundance, more sellers need to step up before the real estate market will see an overall year over year increase in home sales. 

The number of property listings has significantly dropped from a year ago to 1.57 million, representing a 18.2 percent drop. June marks the 13th straight month of shrinking supply on an annual basis. It is unlikely the housing industry can advance the overall economy until more sellers enter the market, to balance a high demand of enthusiastic buyers. 

Home buyers would considerably boost the economy, as home buyers usually spend money on new furniture and fix older properties with numerous home repairs. However, their ability to supply a spending boost to the economy is restricted if they cannot find an available house on the market. The limited supply is also increasing prices, despite much of the population struggling with economic uncertainty due to the recession. 

Overall, the combination of stable and constant demand, paired with dramatically lowered mortgage rates has helped birth a 3.5 percent rise in the median price of an existing home over the past year to $295,300.

Home sales rose in the Northeast, Midwest, South, and West last month, however the increases were most concentrated in the West, with a 32 percent gain, along with the South, with a 26 percent gain.