High Boston prices pushing buyers out
Courtesy American Advisors Group via Flickr
Homes are selling fast in and around Boston and Providence.
Low inventory and high demand are driving up prices in Boston and pushing potential home owners out of the city, according to the 2016 Fall Market Trends Report from RE/MAX INTEGRA.
“A combination of low interest rates and the demand to live near the city has resulted in heightened growth throughout major New England hubs which, in turn, has positively impacted the surrounding areas,” said Dan Breault, executive vice president and regional director at RE/MAX INTEGRA, New England. “As the cost of living in the city center continues to rise, surrounding areas conveniently located nearby have become increasingly attractive to first time homebuyers, millennials and empty nesters.”
The report focused on the cities of Boston; Providence, RI; Portland, ME; and Portsmouth, NH. The Boston market, which is most immediately influential to Central Massachusetts, was found to have record-low inventory levels and extremely high demand. And as this demand increases, so does the price, with the most expensive Boston home selling for $15.4 million, or 23 percent over the most expensive home the year before.
These price increases are driving overflow demand into the surrounding areas immediately around Boston, according to the report. Fringe cities like Malden, Chelsea, Everett, Revere and the Boston neighborhood Dorchester reported significant increases in median price and decreases in average number of days on market year over year.
In addition to the Boston market, increased competition for homes in the Providence and surrounding areas bodes well for Central Massachusetts. Providence saw an 18 percent increase in sales compared to last year, according to RE/MAX, with surrounding towns like Cumberland reporting more than a 29 percent increase in units sold.
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