Bitter Sweet Experience in the Luxury Residential MarketNovember 14, 2015
As I’ve discussed on my Boston luxury real estate blog, there are number of buyers who participated in many sealed bidding processes. They tried to purchase a Boston luxury home and lost out, so sat back and decided not to participate in the frenzy of the market.
That is all fine and a reasonably sound decision, except for the fact that now some of these buyers are back hoping that that the market has calmed down. Boston luxury home buyers are re-entering the market and hoping they can find what they were looking for a year ago with the same budget as before.
As I have mentioned in my previous blogs, the home prices have climbed considerably; and not only in Boston, but areas and neighborhoods that we wouldn’t have even dreamed of. In areas such as Dorchester, East Boston (2 family for $1.1M) and Roxbury, there are homes for $1M+ and a Savin Hill property recently sold for $999,000. Granted, these Boston luxury home prices are not the norm in these neighborhoods, but nonetheless it’s becoming more evident that prices have gone up all across the board. The Boston luxury real estate market has trickled to all the surrounding neighborhoods and impacted pricing.
As a result, buyers who thought they were giving their search a rest need to be more realistic. Some buyers are resuming their search not only with the same budget, but with more requirements and criteria. This will make the search even more challenging, and some might say impossible. Being realistic and being market educated is very important in managing expectations and finding the right home for your next move.