Ordinarily in September New Yorkers rivalry with Boston is heating up. Not this year. With the Red Sox 16 games back on the Yankees and neither the Patriots, Jets or Giants contending it might be time to focus on real estate and snag that second home on Nantucket you’ve been thinking about. Boston seems to be on pace to set new records this year despite fears of a national recession. Why? The biggest reason seems to be lack of real estate inventory in a market with strong job growth and continued strong job prospects. Boston may have experienced many of the same problems as New York City during the pandemic with the loss of live entertainment, restaurant and tourism dollars but like New York is surging past pre-pandemic levels and attracting major new industries such as technology. I think one advantage Boston has always had is the number of universities in the area and the concentration of advanced degrees.
What are the Boston real estate market predictions for 2022 and 2023? With steady job growth, huge gains in home equity, and a large population of millennials now in their peak homebuying years, it is predicted that the demand will stay strong, but sales are likely to be down from historic highs while price appreciation should fall to more modest levels.
Since the last decade (May 2012), the typical home value in Boston-Cambridge-Newton Metro has appreciated by nearly 91.4% (Zillow Home Value Index). Boston has several key advantages: low percentage price growth in 2021 relative to other metros, average loan-to-value rate of only 79 percent, low share of flipped homes and loss of population last year. The Boston housing market is very competitive. Homes in Boston receive 3 offers on average and sell in around 21 days. The average sale price of a home in Boston was $760K last month, up 7.0% since last year. The average sale price per square foot in Boston is $612, down 5.6% since last year.
What does $5 million buy in and near Boston? We’ll ask. Craig Brody’s is under contract.
Question 2: Are second homes in Nantucket, the Cape and the Vineyard still the biggest driver for these record prices? or are we seeing new records set in Boston as well?
Question 3: Who is moving out of Boston and where are they going? Are Florida tax laws having the same impact on Boston as its had on the UHNW finance industry in New York?
Question 4: What are some of the exciting emerging markets or neighborhoods, and why?
Question 5: Why is the new Knight Frank partnership important? Are we getting foreign buyers? Are US buyers taking advantage of a strong dollar overseas?
John Engel – John Engel can be found at http://www.JohnEngel.com. He is a consistently top-producing agent in Fairfield County, Connecticut. John recently won the Realtor of the Year Award in New Canaan where he is has been Chairman of the Town Council and is currently a member of the Planning & Zoning Commission. John also brings an insight into internet-based marketing that is unsurpassed. Before going into real estate he was the founder of two successful internet businesses, Paper.com and e-Media for which he won the prestigious Entrepreneur of the Year Award. John spent his earliest years in Stuyvesant Town in lower Manhattan and went to New Canaan High School before attending Davidson College in North Carolina. After graduating, he served as an officer in the U.S. Army and spent some time leading a military intelligence platoon on the front lines of the first Gulf War. He currently lives in New Canaan with his wife Melissa and four children. In addition to hosting this podcast on the market each week, John Engel produces an easy-to-understand and in-depth monthly market analysis called the Market Report for the 16 towns of lower Fairfield County.
Roberto Cabrera – Roberto can be found at http://www.RobertoCabrera.com. With 20 years of experience, I have been recognized throughout the industry for achieving outstanding results: Ranked nationally by REAL Trends as one of “America’s Best Real Estate Agents” for avg. sales price of $4.350M. Sold a single family Townhouse faster than any other on the Upper West Side over $10M. I live with my wife and daughter on the Upper West Side, the neighborhood I have called home for the past 23 years. I was originally born in Richmond, Virginia and grew up in Maryland, just one mile south of the Mason Dixon line. After graduating with a degree in Mathematical Economics from Hampden-Sydney College, the 10th oldest school in the country, I spent 5 years in Washington, DC working as a financial consultant. I also studied at The National Conservatory of Dramatic Arts and I’m a former actor who once moonlighted as a stand-up comedian. Many years ago, I authored APPLE PIE – The Real Ingredients for Buying and Selling Your Slice.
