The Boston Real Estate Market is on fire!
According to: NECN – This may not be surprising to most New Englanders, but Boston’s real estate market is pretty unaffordable for many.
However, a new affordability survey has found that Boston’s real estate market is the seventh most unaffordable in North America.
Researchers with Point 2 Homes analyzed data points, such as home prices and annual incomes, to determine real estate affordability of the 50 most-populated cities in the U.S., Canada and Mexico.
Data suggests that should someone buy a house in Boston and if they hypothetically put their entire income toward paying their mortgage, it would take seven years to pay it off.
What may be surprising to some real estate watchers is that the Canadian city of Vancouver topped the list. The New York Times reports the affordability crisis in Vancouver has been fueled by foreign investments in real estate, and Point 2 Homes researchers estimate it would take 17.3 years for someone to pay off their mortgage in that market.
Manhattan in New York City came in at number two on the list, San Francisco came in at third, and Brooklyn and the rest of the New York boroughs came in at fourth and fifth place, respectively. Los Angeles came in at sixth place for high real estate prices, while San Jose, Seattle and San Diego came in at eighth, ninth and 10th in the survey.
How Expensive IS the Boston Real Estate Market?
According to: WBUR.ORG
For many would-be homebuyers, it’s probably a little too hot.
“It’s a little scary the way things fly off the market,” says 34-year-old Katie McGee, a first grade teacher who lives in a small Somerville condo with her 2-year-old daughter and her fiancé, Charlie Linehan, a landscaper in Cambridge.
When we met McGee months ago, she was expecting child No. 2. The family had been actively looking for a larger home since early spring, going to open houses almost every weekend, reluctant to bid on what they saw.
“Even if I put in an offer,” McGee says, “it’s a little discouraging when you know there’s going to be like 20 other offers and that yours probably won’t even get a glance.”
The Massachusetts Association of Realtors says the inventory of homes for sale across Greater Boston is the lowest it’s been since it started keeping records 15 years ago.
“It used to be that once in a while, you would run into a multiple-offer situation,” association President Paul Yorkis says. “When I talk to realtors across the commonwealth now, multiple-offer situations are becoming the norm, and the only way that’s going to change is by having more inventory.”
A Top Real Estate Broker Was Quoted as Saying
Although the Boston market is hot – that is NOT a bad thing. Although rising prices may make entering the Boston housing market a little harder, if you currently own Boston real estate, its a very good thing.
Jeff Chubb was recently awarded the RE/Max Lifetime achievement award – and recently was the “recommended broker” for a local Boston website — http://bostonma.properties
Jeff Chubb went on to say:
Many Boston homeowners have seen substantial increases in the value of their properties. This increase in wealth generally gets passed on from generation to generation. The frustration of the first time home-buyer is understandable, but if you can manage to purchase a home in Boston, it has proven to be a great investment.
Moving to the Suburbs
Many of the first time home buyers have chosen to live right outside of Boston proper and commute into the city for work. This has provided the best of both worlds for many families – providing great schools, affordable housing and quick access to Boston — which is the 6th largest economy in the US. This has spurred interest in many of Boston’s surrounding cities such as Higham, Milton and Weymouth.