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Boston Housing Market 2020
2019 was another exciting year for the Massachusetts economy and housing market and 2020 had started off very well. Boston’s market reflected markets in New York and Atlanta where prices rose and listings rose suddenly.
Enjoy the housing market report for Boston and Massachusetts below.
And while the Corona Virus shutdown is flattening the Boston real estate market in 2020, the forecast is for renewed housing market strength in the second half of the year. How the Corona virus will affect real estate?
Demand for homes is strong, and a good population of wealthy buyers and a fast recuperating economy means demand for homes will return by August. By then, buyers will be more certain of their employment picture.
The 2.2 trillion dollar stimulus should be enough to get each state through this short but tough period. Some suggest real estate sales could drop by 35% typically. Will house prices fall in Boston? March and April’s prices will plummet but not as much as sales. We’ll know the trend in 2 weeks from now.
What will happen after the Corona Virus shutdown? By July, consumer demand will pick up. Interest rates are low and credit is available, and demand from Millennials will not go away. They’re raising families and need a home.
House Sales in Greater Boston
House prices rose month over month in February by 2.5%, and this up 8.3% over February 2019. Sales of homes however fell sharply from January by 29%, and down 7.4% year over year. Year to date, sales are 2.7% over last year.
Median home prices rose $14,000 or 8.3% to $619000 from $605,000 in January. That is a 2.5% rise from January.
Metro Boston home prices last 4 year history.
Active listings jumped by almost 16% from January’s volume, yet that is still down by 14.7% from last February. New listings 49% from January, which was up 16.6% from last February. Days on market fell from 57 to 49 which is a 14% drop. And months of supply dropped by 8.8% YoY to 3.1 days.
Metro Boston Region
How about Metro Boston communities of Arlington, Belmont, Boston, Brookline, Cambridge, Chelsea, Dedham, Everett, Milton, Newton, Revere, Somerville, Waltham, Watertown, and Winthrop?
These towns saw the median price of a house climb to $745,000 which is up 17.5% from last year and is up 2.8% from January. Number of houses sold dropped 2.5% YoY, and were down 20.2% from last month. Active listings grew 14.9% from January but this is down 4.2% from last February. Pending sales are up 50% from January so there was a flurry of buying what was appearing on the market. Days on market fell 23% from January and that’s down as well, 17% from last year.
In the condo sector, sales were down 15% from last month. Median prices fell 5% from January, but rose $54,000 from last year. Pending sales of condos was very strong, up 55% from last month to 612 units. New condo listings increased 12% and were up 5.4% from January at 1202 units.
City Boston Home Sales
Only 41 single family homes were sold in February which is down 22% from last year, and down 15% from January. Boston house prices grew 14% YoY but were down 1% from last month. Active listings rose from January by 5%, and new listings were up 20%. Pending sales are up 32% compared to last year, and that is up 49% more than January. Days on market shrank to just 44 days leaving the city with only 2.6 months of units available.
City of Boston Condos grew 6% YoY in sales but were down 17.5% from last month. The median selling price of a Boston condo in the city was $664,000 which is up 17.5% up from last February, yet down 5% from January’s price of $700,000. More people put their condo up for sale. New listings rose 14.6% YoY, and 6.4% from last month. DOM remained at last year’s level of 55 units. Pending sales rose 51% from January.
Zillow Boston Market Report
Zillow rates the Boston housing market as cool and perhaps even cooler with the Corona Virus shutdown. Even within that estimate they believe average house prices will rise 4.2% to their assessed average of $662,000. Only 6.7%of homes in Boston are underwater (8.2% US Avg) and .8% are delinquent on their mortgage (1.1% US Avg).
In South Boston, Zillow expects home prices will only grow 2% this year.
Please do share this report on Boston’s housing Market
Massachusetts Housing Market Report
Statewide, house sales fell 1% last month, and that was down 7% from last year. Houses for sale fell a whopping 32% while new listings grew 12% compared to February 2019. The median sales price grew 4.2% to $379,000 from last February.
while houses for sale dropped by 9.5%. Condo sales rose 7.2% while availability rose by 5.6%. Home prices rose 7.7% while condo prices fell 3.1%.
Condo Sales in Massachusetts in February 2020
This chart below courtesy of Realtor.com shows home price growth in Boston’s largest communities.
|Town||Avg Home Prices||Average Home Price 2014||Forecasted Price end of 2018|
Take a good look at this heatmap of rental prices, and it might give you a good idea of home prices as well. The further you go from Downtown Boston, the more likely you are to find affordable homes. Be forewarned of Boston’s congested, time consuming commutes to which I can attest are as bad as any.
Boston Home Prices Not all That Severe Compared to California
Investors might want to review properties outside of Boston city such as Easton, Lawrence, Worcester, Lynn, Salem, Stoughton, Framingham, Brockton, and Dedham. They’re nice communities and there’s plenty of property to build on.
However, it looks as though home prices are about to rise in Boston. So the questions: “should I buy a house?” or “should I sell my house” in Boston aren’t easy to answer. To help with a sell decision, see the post on selling tips and on best renovation for ROI.
What Supports the Boston area Economy?
Boston has a strong regional economy bolstered by transportation, tourism, financial services, and increasingly venture capital. Boston is becoming the Silicon Valley of the north with major influx of funding for startups in FinTech, MedTech and EduTech. Ultimately, all decisions to buy a home in Boston relate back to the US economy, US housing market, and the Massachusetts economy.
Forecast For Boston GDP
Boston’s Powerful Economic Engine
Boston’s economy is a power house yet restrictions on immigration will retard its output. Retiring babyboomers (although many are continuing to work) and a full employment situation mean growth will be constrained by a lack of workers, including skilled workers from other countries.
It’s good news for workers in other cities and states who need jobs. If you can find somewhere to live in Boston, you should have little trouble finding a great job.
Finding a Home In Boston’s Many Neighborhoods
If you’re thinking of a move to Boston, you’ll want to scout out the most affordable neighborhood for you and your family. Prices vary a great deal. NAR reports these recent prices:
|Area||Units For Sale||Units For Rent||Median
|Back Bay East||85||148||$1,800,000|
|Back Bay West||52||118||$1,300,000|
There you have a good look at the State of Massachusetts and the Boston Housing market in spring of 2020.
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