A Look at the 2018 Real Estate MarketMarch 1, 2018
With the frenzy of interest rates increasing and the effects of the new tax plan, that may or may not have an impact on real estate, it is important to take a look at how the Boston luxury real estate market is reacting to these changes.
As the consumers look at all the facts, they realize that the tax plan may have a very small effect. All the financial market indicators are too strong to slow down the Boston luxury real estate market. We are still experiencing low inventory in the marketplace and sales over asking prices with multiple offers, in some cases.
The new Boston luxury homes coming on the market are commanding higher prices than the previous year. By the same token, sellers whose homes have been on the market for a while and are due for price reductions see the market indicators and are reluctant to reduce their price. In fact, in some instances, they raise the price of their Boston luxury homes. Their rationale is that due to price increase of new products and a stronger economy, it is only logical that it will help them.
Based on this assumption, buyers in today’s Boston luxury real estate market should seriously consider buying a home that has been on the market with “yesterdays” price and realize that they are getting a great value. Don’t be misguided by thinking if you wait, you will get a property with a better value.
The new construction projects are commanding a much higher price per square foot. Comparing the new construction prices in the high-rise towers with those in the same location in older buildings, the prices almost doubled. If you are looking for value, you will get a better bang for your buck in older buildings.