Real estate prices are always changing. You will find that property buyers are always being faced with escalating prices. This is because the market has become so competitive.
The prices are dependent on factors beyond our control. The factors that affect real estate prices include:
- The location of the property.
Are there any good schools in the area? What is the property’s proximity to the nearest recreational centers? These factors immensely affect the value of the property.
- Appraisal value
At what value is the property priced?
- The inspection report.
Is the apartment move-in ready? Does it need an upgrade or update?
- Comparable neighborhood property costs
The appraisal process relies heavily on the prices that similar properties have been sold for, within your neighborhood.
- Economic indicators
The strength of the economy will affect the overall consumer’s power.
What level of appetite do the investors have for real estate?
- Interest rates
Interest rates have a huge impact on the establishment of mortgage rates.
- Regulations on building
These dictate the pricing of new homes.
- Mortgage interest tax credit
- Others: quality of roads, internet connectivity, traffic volume, crime rates, noise and air pollution and zoning laws.
Prices in the Boston Market
In recent times, Boston has experienced a huge rent growth as people have flocked apartments making the supply of apartments to be limited. This is due to the high number of job-seekers moving into these Boston apartments.
The limited supply has driven rent prices even higher favoring rental owners and their managers. Young professionals are finding these rents too high that they have resulted to move to other more affordable areas.
This has led developers to step up to the task and work on new supply to meet the high demands. More micro-units are being set up and others are in planning stages to feed the demand for housing.
- Housing prices will continue to go up
Almost all real estate experts agree on the fact the home values are expected to continue rising. This is due to the limited inventory of condos, apartments, and houses caused by the fast-growing population.
To accommodate the growing population, it would require Boston to put up approximately 30,000 units annually.
- Institutional investors will be bullish on the local market
Institutional investors such as banks, insurance companies, endowment, and pension funds have started investing their capital in the Boston real estate. This is because Boston’s relevance in the real estate market has been stabilized by presence of universities, hospitals and industries.
- The transition of Boston’s inner–city neighborhoods
New investments will be made in Boston’s inner neighborhoods to expand the supply for additional housing and commercial property.
- Secondary markets will grow in popularity
Outer-lying areas that have a great access to transit usually attract commuters headed downtown.
- Amazon’s second headquarters
This project is dubbed HQ2 and Boston is among the potential sites pitched. If Amazon picks Boston as their second headquarters, this will greatly boost the real estate market and bring in a lot of investors
In general, Boston housing prices have been on the rise. This increase has been brought about by the incredibly low vacancy rates, high demand for houses and low supply for the same.