With our new Q3 market report just released, Nick takes a look at what he is seeing right now in the Boston real estate market. And, he gives his thoughts on what buyers and sellers can expect through the rest of the year.
What are some of the interesting trends you see in the recent market report?
The biggest trend I am seeing is that fewer transactions are happening in almost every neighborhood vs. 2021. This is something that we were expecting with rising interest rates and economic uncertainty that we are experiencing.
How do you expect these trends to impact buyers and sellers over the next few months?
Fewer transactions mean that demand is softening which, with rising interest rates, is expected. This means that sellers have to make sure their expectations are in line with what is happening in the market. The pricing strategy has to be based on recent comps and the direction the market is heading. The days of listing a property and having it gone in the first weekend are likely over so they need to prepare to have it on the market for more days until they receive an offer they are willing to take.
What changes, if any, do you think we will see in the Boston real etate market through the end of the year?
I think we will continue to see demand soften, especially with the economy potentially heading into a recession. We need to remember that 2020 and 2021 were outliers and not what should be expected going forward. Once expectations are adjusted and a sense of certainty in the direction of the economy is established, I expect transactions to pick back up again to normal levels.