Rising Property Prices Per Square FootApril 11, 2015
There doesn’t seem to be a relief in sight for Boston luxury real estate prices. Around my office, we can’t stop talking about the rising prices and wondering when or if property price tags will stop climbing. The new normal seems to be $1400-$1500 per square foot for renovated Boston luxury homes.
New construction exceeds way beyond this amount. Needless to say that some very unique Boston luxury homes don’t even hit the market before they’re sold privately close to $3000/sq ft. Boston luxury real estate agents are no longer in disbelief if we hear of a high end home sale with an 8-digit price tag.
When and how did this all happen? Shortage of supply and high demand is the driving force behind the rising prices in the Boston luxury real estate market. I’m seeing many first time home buyers being pushed out of the marketplace, because their expectations are not realistic. If you have a long wish list of must-haves, you may want to consider what you absolutely cannot live without and delete less important criteria — this will make your home search easier in this hyper-competitive market.
If your list of demands is non-negotiable, you may end of renting for years to come. Prices will keep going up and your budget will most likely stay the same, creating a situation that prices you out of the market unless expectation are reset.
In some cases, buyers are not fast enough to settle for a property that has pretty much everything on their list, but NOT everything. After a few days, or in some cases mere hours, when they go back to make an offer, the property is already under agreement. Timing and lowering expectations are the key to purchasing your new home sooner rather than later.