Boston’s Back Bay neighborhood was the second most expensive Massachusetts zip code in 2021. Six other Massachusetts zip codes made it to the top 100. These included Wellesley, Weston, Newton, Beacon Hill and Downtown Boston.
To say that buying a home in Massachusetts is competitive is an understatement. In 2020, urban areas like Boston’s Back Bay disappeared from the rankings due to depressed sales, but once the lid was off after lockdowns eased, prices rose steeply again, and intense bidding wars were seen in the spring of 2021.
Will home-buyers face the same stiff competition in 2022? And will sellers continue to have the upper hand? Let’s take a look at what Massachusetts home buyers and sellers should consider when entering the property market in 2022:
According to Boston.com In 2021, Sellers of Condominium Units saw an average 8.6% increase in the value of their property, while sellers of single-family homes enjoyed a 10.9% increase from the previous year. The demand for more space and the freedom of work-from-home arrangements caused a huge rise in the value of single-family homes. Although the market for condominium units dipped during the pandemic, it has since made a strong recovery.
Demand continues to outweigh housing inventory, and rents are on the rise, so sellers will continue to benefit from a captive audience of buyers. Sellers should, however, be aware of new selling-point trends, such as the demand for outdoor space, parking and other amenities that accommodate the new work-from-home norms.
Sellers should also be mindful that the low interest rates that have boosted the housing market are likely to rise. The Central Bank is planning to raise interest rates to combat inflation. Buyers will likely be eager to buy before these changes occur.
Home buyers in Massachusetts will continue to face competition due to low supply. First time buyers should consult carefully with their realtor and attorney when it comes to decisions like waiving an inspection, mortgage and appraisal contingency to increase the attractiveness of their offers. Buyers would be wise to determine the median price in the area as well as the duration of time a property has been on the market to determine if the property is accurately priced. Sellers may accept bids under the asking price if the home has been sitting on the market for an extended duration.
Overall, there are plenty of opportunities to look forward to for Massachusetts home buyers and sellers in 2022. If you are an investor, or if you are thinking of selling your home, or if you are looking to purchase residential real estate, the attorneys at Valanzola Law Group are here to help you through the process. Please contact us for a consultation.