Posted date: April 6th, 2015
Generation “Y” or also known as millennial generation holds members that age from 18-34, which have been referred to as individuals who have been slowly entering the real estate buying market. Due to increasing number of tight credit, student loan debts and high unemployment rate, Millennial encompasses various outlooks with regards to long term investment and home ownership compared to previous generations.
Millennial Generations have taken greater role in terms of housing market. The young people’s preferences are beginning to mold the way real estate business was done. The Zillow real estate has predicted that the said generation will overtake the baby boomers since they have purchasing the widest number of properties, which makes their preferences more essential.
The Massachusetts housing market experienced fewer overall single-family home transactions in 2014, down 3.0% to 42,745 closed by the end of November, but pricing rose 3.8%, creating more than $692 million more in volume for the year. According to MLSPIN, condominium transactions held steady, declining just 0.6% in 2014, while prices increased 3.7% in this segment. The average median price of single-family home was $332,000, while condos were $310,000.
Check out the Five Boston Real Estate trends below:
Low Inventory: David Bates is the number guru for this; he is also the first party of this trend which stayed ever since. Fundamentally, there are ways were in some single family homes and condos to fill the claim in Boston. In addition, there are relatively minimal number with the for sale horizon development wise. In fact, the poor planning of the city last several years has not helped nor possesses legendary aversions to density and height in its downtown areas.
Tons of new and unique Apartments: There’s a silver lining from the storm cloud were in Boston dearth new for sale development and this comes from the expense of luxury apartments available in the market. To make the story short, there are countless of luxury apartment shout to pop up in the Boston city. Before, this takes new complexes and tenants are sweating and having a hard time filling up their units. There are also luxurious rental towers back then that pivoted to become a condo which opens up for sale inventory.
The Bidding Wars: Even there are countless of developing condo units in Boston these days, still this can t able to support the demand. This situation also serves to be true in some rental developments too. Due to this, those individuals who are in condo market commonly show up during open houses along with garbage bag full of ready financing or cash prepared to exceed beyond what the seller want. Bidding war is one of the most common features of several condo sales in the city. The said bidding war lead to super fast sale.
Over As: The ever redoubtable Mr. Bates focuses to this too. There are several Boston buyers which are offering properties over what single families and condos are asking. However the issue is not just focus in their over ask trend which drives up the prices a lot better. It’s actually the exposure of such over asks that dries up hysteria and j=hype in the surrounding Boston-housing market. The effervescence of the Boston real estate is real thing.
Offers Tougher Lending’s: Even if the mortgage rate remains low, the lending term had remained tougher than it ever could be. The last burst of bubble in 2007-2009 simply put the hard to get home loan and tem that will permit victory in Boston bidding wars. Due to this, Bostonians are actively part of the market which dries-up Boston real estate, inventory sector.