With constant demand from current residents and those who would like to relocate here alike, Massachusetts generally has a strong real estate market. However, the last few years have seen some interesting changes in the real estate market.
Currently, markets are hot and competitive. Understanding what the current levels of demand and inventory meaning for you as someone looking to make a purchase can help you decide if now is really the time to buy or sell.
People keep calling the residential real estate market crazy
When you make real estate purchase, you commit yourself to years of payments in what may be the biggest transaction of your life. Although people typically spend their time considering their options, the modern market often gives people very little time to make these decisions.
Buyers will need to make offers soon after a seller list the property and likely for a noteworthy amount above the asking price. People need to factor in that additional expense when looking at properties. They also need to consider the difficulty of buying a home when listing their current house for sale.
There simply aren’t enough properties for sale in Massachusetts, especially in the suburbs around Boston, for the level of demand for housing. Prices have soared, with many properties going back off the market in only a few days. It could be months or longer before the current residential market cools off and becomes less competitive.
The commercial market isn’t quite as strong but still lacks inventory
While the number of commercial real estate sales occurring is overall lower than the residential sales and commercial properties don’t sell for as big of a markup over the asking price, that doesn’t mean commercial properties aren’t also in high demand.
Particularly when it comes to upscale retail storefronts in desirable locations and industrial facilities, buyers may find themselves struggling to find the right property. Those renting may also be affected because even though sales are down, the price for commercial real estate per square foot continues to rise even in rental agreements.
Understanding the current real estate market will make it a lot easier for you to make good decisions as a potential buyer or seller.