Keeping track of real estate updates is no small feat. Even seasoned real estate agents can experience difficulties, especially once you consider the various factors that can substantially impact the market. So, to help you out, we are going to cover the essential Massachusetts real estate updates.
Top Massachusetts real estate updates
The pandemic has impacted the Massachusetts real estate market in a surprising way. At the start, most people believed that the market will slow down and that prices will either stay the same or drop significantly. However, prices for most types of real estate are on the rise. Even though the economy has been relatively slow, homebuyers were abundant. This combination of a slower economy, remote work, and increased demand has led to some surprising updates that few people could have foreseen at the start of the pandemic.
City vs suburbs
The first notable update in real estate is that buyers are redirecting their attention to suburbs rather than the inner city. A substantial percentage of companies have either gone online entirely or have incorporated the partial remote work model. This has lead to a large number of people working from home. Some look forward to going back to the office, while others would prefer to keep working from home. And, if they do, why should they spend more money to live in the city?
This line of thought has inspired many people to no longer look for inner-city housing and instead opt for suburban real estate. Therefore, the demand for housing in the suburbs and smaller cities is on the rise. While large cities are still the center of the housing market, there is a noticeable decline in the overall demand. And seeing how the popularity of remote work won’t go away soon, we expect that this trend will continue, at least in the foreseeable future.
Strong competition among buyers
At the start of the pandemic, most real estate agents were worried. Turbulent times in the global economy were ahead, which usually means bad news for the real estate market. But, surprisingly, during the past year, there has been no sign of slowing down when it comes to selling homes. Yes, commercial real estate is not as strong as it used to be. And people are refraining from renting out places that they would otherwise need for work or college. But, the buyers’ market is as strong and possibly even stronger. Bidding wars are constant, and real estate agents sometimes have more work than they can handle.
You would think that the increased competition has driven buyers to be looser with their money. However, buyers are still trying to save every dollar. The uncertainty of recent times has impacted the buyers’ mentality, causing them to seek cost-effectiveness wherever possible. This mentality has helped commission rebates to go mainstream. Commission rebates are when the real estate broker gives the homebuyer a percentage of their commission. Currently, the average rebate in Massachusetts is between 1 – 1.5%, although some brokers go as high as 2%. This means that if you purchase a home for $1,250,000, you can get as much as $25,000 back, which is nothing to scoff at.
Among many Massachusetts real estate updates, digital home buying seems to stand out. Those that are familiar with real estate trends already know that digital homebuying is hardly a new concept. However, the lockdowns and a general lack of travel have caused a significant spike in the number of online home buyers. Modern technology has made it possible for real estate agents to present homes online like never before. Furthermore, buyers are more willing than ever to purchase homes online, especially if given the necessary info. VR tours, in particular, became popular as they provide the best possible vision of the house. Online payments are safer than ever, which also motivates buyers to purchase homes overseas. All in all, we simply don’t see digital homebuying slowing down.
If you plan to buy a home, we still suggest that you see it in person at least once before purchasing it. While VR presentations can be helpful, they cannot give you an accurate idea of what the neighborhood is like and how the home truly feels. Furthermore, by first visiting your neighborhood, you can prepare adequately and relocate stress-free to your brand new home. With the help of residential movers, you and your belongings will be in your humble abode in no time.
Smart home solutions
Similar to digital home buying, smart home solutions have been around for a while. And, considering the current trends in technology and buyer expectations, they will only become more prevalent. Smart home solutions are a welcomed upgrade to any home as they improve both energy efficiency and eco-friendliness. Most homebuyers are tech-savvy nowadays, which makes smart home systems more and more desirable. You’d be hard-pressed to find a buyer that wouldn’t enjoy smart home solutions in their home.
When considering the Massachusetts real estate updates, it seems logical to separate them into two categories. The first one is mostly a reaction to the recent pandemic. And the second is all about technological updates, and the general trend of people leaving large cities. While no one can say for sure what the future holds, we believe that smart homes will become the norm. Furthermore, if the current trends continue, we should see a gradual decline in the number of people living in big cities, which will increase the value of suburban properties. If you do plan to invest in a large city, you can expect substantial competition. However, that might not be the case in a year or two.