Boston Real Estate Market Update I May 2020
We have been closely monitoring the Boston real estate market during Covid-19 and its impact. Below is what we see so far.
Source: MLS, Freddie Mac, Home Type: Single Family, Multi-Family, Condominiums, Counties: Middlesex, Norfolk, Suffolk
What to know about home prices
Compared to last year, despite Covid-19, 2020 median home prices, year to date, have continued to show strength, increasing at a rate of +6%. In parallel, average home prices have increased +8-9%.
What to know about homes on the market
Compared to last year, primarily due to Covid-19, 2020 home listings, year to date, have been lower by an average of -25%. It's important to mention that in mid-April, listings were down -45%, driven by Covid-19 creating an unprecedented fear in the market. Most sellers responded by holding off on listing their property when generally this time is considered the start of the Spring market, when active listings increase.
What to know about homes which sold
Compared to last year, sales in May of 2020 are on track to drop -45-50%. This has been driven primarily by the shortage of homes available on the market.
What to know about interest rates
The 30 year fixed mortgage rate is at a low at 3.28%, down -14%, from this time last year, making it a prime time to lock in a competitive rate. This has kept home buying and refinance demand strong.
What to know about home buying right NOW in Greater Boston
Pre-pandemic, home listing supply was already considered low. With the onset of Covid-19, home listing options shrunk further. We believe home buyer demand has shrunk as well, but not nearly as much as home listings. This is due to an already strong buyer demand and now the availability of lower mortgage rates. Thus, home pricing has stayed on a continued path of growth.
If you're in the market to buy a home, options may be slim, but that is improving week-to-week. We also believe mortgage rates will stay low for the foreseeable future.
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