Should you sell your property in Boston, USA online in 2017? The real estate market in Boston is in a very healthy state right now. Property prices have risen in double digits every year for the past four years, and this looks set to continue in 2017 as well.
Boston’s real estate market is highly competitive. Home prices are expected to rise in 2017 as well, but at a slower pace compared to the 2012 to 2016 period.
#1: Mortgage rates are expected to rise
Mortgage rates in Boston have been under 4% for the past few years. They have been at their historic lows. This is expected to change as the Federal Reserve looks determined to increase the interest rates every quarter in 2017. E
Earlier this week, the Fed raised the interest rates for the first time in many years by 25 basis points. But this should not have too much of an impact on home buyers as interest rates are very close to the bottom. So any increase should not discourage anyone from making a bid for a property for sale in Boston, USA.
#2: Expect there to be a bidding war over the property.
Bidding wars are very common in Boston. About 80 percent of buyers engage in bidding wars, which often works to the advantage of the seller. Sellers always have an advantage over buyers in the city because of the low inventory of the homes available for sale.
Boston is also a prominent business centre. There are a lot of people moving to the city practically every day. So there will always be a huge demand for real estate here. The competition among buyers for the limited number of homes that are available for sale will remain high as well.
#3: Rental prices are on the up.
The rental market in Boston is flourishing. Rents have increased in the city by 30 percent over the last few years. An average two-bedroom apartment in a neighbourhood such as Malden would have gone for a rent of $1,200/month in 2012.
But now, the same apartment will fetch a rent of $1,600/month. In 2017, we expect the average apartment in Boston to have a rent of $1,800/month, which makes Boston one of the most expensive cities in the USA.
#4: Foreign interest in Boston will only increase.
Over 50 percent of the real estate investments in Boston are made by immigrants or foreign investors. That is quite a lot. Boston offers excellent business opportunities and is a major educational and research centre, so there will always be a number of wealthy and highly educated foreigners who will want to buy homes here.
Also, Boston is home to many great universities and colleges, including Harvard University and the Massachusetts Institute of Technology. A number of wealthy Chinese, Indian and Brazilians have their children studying here. So, buying a home in Boston is an imperative for many of them, because of the desire to stay close to their children.