2020 Summary
80 clients trusted me to represent them this year. Wow, I am so thankful. COVID has been tough for everyone. Once the shutdown ended in June, my job got extremely busy in the real estate world. Many came out of quarantine wanting to move. Values and perspectives connected to “HOME” were re-evaluated. Real Estate transactions in Boston still remain consistent due to a strong stock market and a widely distributed vaccine on the way.
What might the future hold for Boston Real Estate in 2021?
We have observed new trends across all price points. The market has seen sale discounts for homes priced above $2.5M. Since COVID began in March 2020, $5M-$10M homes have sold for 7-13% discounts. Smaller condos priced under $1,000,000 have been impacted the most by a lack of demand for studios and 1 bedrooms.
Q1 2021 will remain a buyers market. Boston has historically been on cycles where Weather impacts action. Spring market (Starts Mid-March) means new active buyers. Competition! Prices unlikely to rise much but there will be lower list/sale negotiations. Properties will start to sell faster.
Summer in the city will be ON FIRE! Mark my words. The market is not only impacted by low interest rates and supply/demand. It is confidence and emotion too. If you walk down Newbury Street and it’s QUIET, that is tough for business. Residents need to feel a vibrant city.
The City Developer market will strengthen. 99% of buyers do not want a project. Renovations take skill and time. Homeowners only want to bring their toothbrush and luggage.
DOM – Average Days on market is up. Back Bay for example is now above 90 days. This was the norm when I started in real estate 15 years ago. I project a downtick to 75 DOM, not enough to make a major difference.
Top 10 Most Expensive Sales of 2020
Collin’s Current Market Analysis
1.Decentralization – Happening in Boston
Moving into the suburbs and beyond. Speeding up what is already inevitable for some families. Babies and Puppies!
2. Work from home shift
Commute time is less of a factor now. Have you driven anywhere lately? No traffic!
3. Upsizing
More time at home means more space. The major trend is in Luxury condos, with 1 bedroom owners now wanting a den, 2 bedroom or even a shift to a single family home.
4.Opportunity
First time buyers/Investors, this market is wide open. Don’t wait! Owner occupant buyers that seek larger condos in full service buildings can also find value. If you bought with me in the last 12 months, you did well. Sellers will do better in 2021, they just need to “Wait” and hang in there.
Back Bay 2020
Beacon Hill 2020
South End 2020
