Our Q3 2023 market report was recently released, and Nick examines it and explains how it can be a valuable tool in the Boston real estate market. He describes how buyers and sellers can best use it to navigate the current trends. He also identifies some key components of the report that are market indicators.
What are some of the best ways for buyers to make use of the recently released market report?
Recognize Trends: Look for areas where property values are rising. This could be a good long-term investment.
- Budgeting: The report will provide you with an idea of the average sales price per square foot by neighborhood, assisting you in determining which neighborhoods are most likely to fit within your budget.
What about the sellers?
- Market trends: Depending on the data, the overall market trends in a specific neighborhood can be used to help accurately price your property. Your real estate agent will use this data when crafting their pricing strategy.
What are some of the key indicators you think are important to consider in the report?
Average Price Per Square Foot: This is an important metric to understand when determining property value. I like this better than the average sales price since the average sales price can be skewed significantly if there are a few ultra high price sales during that quarter.
Average Months Supply: Compare this most recent quarter’s month’s supply to the previous years. If it is trending upwards, that likely means the market is slowing and properties are staying on the market longer.
- Days on Market: If this number is higher than the previous year, it indicates that buyers are not moving as quickly to make offers. If it is declining, the market for that neighborhood is becoming more competitive.
What else should be considered when reviewing the report?
It is worth noting that the data in the report only compares the YoY change for one quarter. In some cases, the sample size is so small that the YoY changes are dramatic and do not reflect the actual market trend. Our report shows you Q3 for the previous five years, so I recommend looking at each year to see the overall trend more clearly.
As always, our real estate agents can obtain more detailed statistics for any of the neighborhoods you are considering. We can also obtain information for all of the towns and suburbs surrounding Boston. If there are any reports in particular that you are interested in, please contact us and let us know!