RESIS Real Estate

APRIL 2020: COVID-19 and The Boston Condo market

It’s early to say what effect the covid-19 pandemic will have on Boston’s condominium market, but here’s what we do know:

All in all, there are pockets of continued momentum and there are pockets of interruption. Some of the continued momentum is driven by low rates, high rents, and the demands of life moving people in new directions regardless of pandemics. Surely some of the stagnation is caused by fears over where the economy is or might be headed, but some is simply caused by the inability of real estate agents or prospective buyers to enter condominium buildings.

In some cases, reduced inventory plays a part in the number of reduced contracts. While in other cases, fewer contracts could be the result of higher asking prices compared to last year.

A comparison of the Boston condominium market from March 1st to April 22nd this year versus last year reveals each neighborhood is having its own reaction.

It’s clear there are still serious buyers and sellers in the market. There are also still bidding wars in some niche parts of the market.  However, deals are often harder to put together. Transactions can take longer to put together with the new steps added to the process and restrictions put in place by health advisors and condo associations (and the additional restrictions put in place by some sellers and/or brokers).  Ultimately, these factors have an impact in the number of transactions. But overall, we remain cautiously optimistic that the strength of the Boston condo market will endure well. New records were set across many statistical indicators in 1Q 2020 and, so far, the pandemic has caused more of a slowdown in transactions than a reduction in values. Time will tell, but the early signs are encouraging.

Exit mobile version