Challenges of Buying 1-2 Bedroom Condos in BostonApril 7, 2018
Unfortunately, there are too many Boston luxury homes buyers and a very high demand for one and two bedroom condos in all neighborhoods of Boston. Smaller units move fast in all of the most desirable neighborhoods, including Back Bay, Beacon Hill, South End, North End, Waterfront, South Boston and the Seaport.
Many Boston luxury real estate buyers seeking smaller units are either first time buyers, single professionals or empty-nesters trying to downsize. Therefore, the demand is extremely high. For every such unit, there are hundreds of Boston luxury homes buyers and approximately 10-20 offers with some buyers prepared to pay much higher than the asking price and “more” than what the property is worth in the market. This only matters to those Boston luxury homes buyers who are conscious about price per square foot.
Unfortunately, this is not the market for buyers who are looking for “value” or a “great deal.” If you are looking to spend a max of $800K, you should be looking at units priced in the $700K range or less for which you can push up to your limit in hopes of having the winning bid. But be prepared and aware that you ARE PAYING more than what the unit is worth. That’s the nature of the current market.
Many Boston luxury real estate buyers who are not comfortable with the market prices simply end up renting in the meantime with plans to buy a luxury condo later. Needless to say, unless the market rashes, prices are only going up.