Boston Luxury Home Sales Pick Up Their PaceJune 4, 2011
The luxury real estate market has experienced a steady slow down, due to several factors: lack of buyer confidence, stricter mortgage guidelines, commercial development projects put on hold, etc. But finally, after two long years, the property transaction pace is picking up at great speed in many cities – Boston real estate market included. The Institute for Luxury Home Marketing recently announced that luxury homes spend less time on the market than the average listing, priced under $1M.
Many Boston luxury homes that have been on the market for over a year recently sold – and they’re selling rapidly, one after another. Most listing prices are fair to buyers and sellers, because astonishingly, sellers are getting close to their original asking prices. The economy is strengthening and restoring consumer confidence, creating more self-assured buyers. Many potential buyers were waiting on the sidelines for the right time and best market prices. These cautious buyers are now optimistic and stepping forward to make reasonable offers, knowing that the prices will rise soon when the economy is back in full swing.
Many luxury buyers have been waiting to make their move – holding out for more inventory to peruse or hoping that the asking prices will decrease further. Boston luxury homes in the Back Bay, Beacon Hill, South End and Midtown (for the most part!) have held onto their value and maintained their original asking prices, regardless of days on the market (DOM). Buyers are recognizing the Boston real estate market is strong, unlike many other areas across the nation. Those potential sideline buyers are feeling that the moment is here to make their move, and their instincts are right on – judging by the volume of Boston luxury homes selling at a rapid pace.
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