With around 1,000,000,000 people living in Boston, it is safe to say that New England’s largest city has been undergoing drastic changes over the past year.
We had the opportunity to sit down with Michael Ahorn, a Boston resident and realtor at Coldwell Banker in the South End of Boston. He shared his skills as a resident and realtor, discussing insights into moving the market forward.
How has the epidemic affected real estate in Boston?
Although the Covid-1 pandemic epidemic spread to dense cities throughout the United States, Boston was not nearly as badly affected as the others. During the epidemic, Boston announced the essential staff of real estate professionals, who turned the wheel. Not to mention, the Fed has helped the housing market move upwards over the past year by implementing extremely low interest rates.
As of May 2021, there is a heated real estate market in the Greater Boston area that shows no signs of slowing down.
“We’ve seen a dramatic increase in buyers looking for single-family homes, including office space and yards in the suburbs,” Ahearn said. “Combined with the fact that buyers are looking for places with low interest rates, we have a hot seller market.”
According to the Boston Globe, the average price of a single-family home in Boston has risen to 765,000. In the suburbs, bidding battles abound. At one point, the Covid-1 tourists snatched the tourists, and the city slowed down like the rest of the world. However, the attraction of Boston has helped bring it back to the prosperous city that was pre-epidemic. Foreign buyers also recognize the city as a key investment.
The suburbs are hot, but is the city overlooked?
There is no question of becoming a suburban resident during the epidemic. But Ehren believes things are starting to return to pre-epidemic rules.
“Bidding wars are again more common in the city,” he says. “Traffic on the streets is back, and people are realizing that buying a single family in the suburbs doesn’t really fit their livelihoods because now the epidemic is coming to an end.”
Work will continue from home, but the trend to return to the office is fast approaching. With that in mind, buyers want less travel and public transport.
Although we see the possibility of going back to the city, there is still unused potential in certain areas. Ahearn is a listed area where luxurious heights, new shopping centers, restaurants and other signs of development have been observed.
“There are still neighborhoods that investors should consider that have the potential to be healthily appreciated: neighborhoods like East Boston, Dorchester, Roseland and even Chelsea,” he said. “Quincio, our nearest town to the southeast, is a great place to invest, because the quality of the house there is constantly rising, and it is served by the Red Line train from Boston.”
Another positive indicator is that Boston is seeing growth as it leaves the Northeast. People from all over the world visit the city for its rich history and move there for job opportunities in the growing industry.
“Our growing biotech industry, moving to and investing in Boston with other large corporations, is providing a layer of insulation by influencing other levels (even within this state) from market fluctuations,” Ahearn said. “Foreign investors also recognize Boston as a safe place to keep their capital. All of these things make Boston real estate a clever investment. “
Boston is well known as a popular rental area, especially for students. Before the epidemic, Boston’s rate was about 1%. According to the Boston Pad, in March 2021, the same rate rose to 5.44%. Issues such as distance learning were influencing whether students would rent or stay home. Although places continue to reopen, the guidelines are not yet clear on whether students will return to school or continue distance learning.
At the moment, Ahearn feels that Boston’s rental market has already begun to return.
“Boston landlords were getting 25-30% less rent than in previous rental cycles,” he says. “This is changing as we see the monthly rent close to the pre-epidemic price.”
Although rental prices are still lower than before, short supply of housing is creating a new buzz for renters. People who initially wanted to buy a home now have no choice but to rent in many situations. There aren’t enough homes here just to buy, which gives people long rents. If companies continue to bring back employees and return to private schools with a transfer of education, look to return to the full rental market.
Spring market and beyond
For the real estate market in general, the spring market started in January. With no signs of slowing, the market is likely to continue throughout the summer.
There is a lot of optimism that the epidemic will continue to return to the United States as it nears its end, especially with the introduction of vaccines in the United States. In Massachusetts, the Mayo Clinic reports that 69% of residents have had at least one dose so far.
Although restrictions are being relaxed and people are feeling more comfortable living in the city, there are not enough homes for sale. People looking to buy a home need to keep it off and level out the market.
“Many buyers say‘ enough is enough ’and are temporarily suspending their search in frustration as there is no profit even after a few months of offers. This, along with the growing inventory and rising interest rates, will help level the playing field for shoppers, coming in late summer or early autumn, ”Ahron said.
With the end of the epidemic in sight, the balance is shifting back to living in the city – at least in Boston. The largest city in New England had to shake off the effects of the epidemic like everyone else. Boston is returning at a fast pace despite going through changes. It remains an attractive destination for college students, tourists and investors from outside the state.