“It was the best of times, it was the worst of times…” It was the year 2020, and the then called Corona Virus was making its first appearance in the United States, and notably at the Biogen conference in Boston. We all remember the fear, confusion, and uncertainty this brought. We grew mustaches we shouldn’t have, we ate far too much ramen (thanks Yume Wo Katare), we finally found time to watch Game of Thrones, but most importantly we stayed home and we waited.
I remember the eerie feeling that crept over the city. I remember worrying about my (future) wife as she began working in the Covid ICU. And I remember wondering what toll this would have on the real estate industry. I am a Realtor® after all.
It didn’t take long to find out how the pandemic would turn real estate upside down. People began leaving the city in droves, looking for larger homes and more outdoor space, among other things (home offices). With offices, bars, restaurants, museums, and entertainment venues closed, the city was no longer the hub of activity it had once been.
Sales in the second quarter of 2020 in Boston decreased by 43 percent, with the average sale price decreasing 15 percent from the previous year. Across the board in all city neighborhoods the price index showed a sharp decline in home values in Q2 2020. Average sale prices remained down throughout the year, especially in the luxury markets.
Then, something interesting started happening at the end of 2020. As restaurants started to reopen and the roll out of the Covid 19 vaccine began, home values in the city began to increase again. Many renters decided it was time to purchase. The crazy “Covid deals” buyers were experiencing in 2020 were no longer happening.
Now, almost two full years since the pandemic began for us in Boston, home values are more or less where they were before the shutdowns started. The fourth quarter for 2021 in Boston saw record average sale prices in Charlestown, the North End, South Boston, and the South End. The city now faces the same problems of the suburbs, and most of the country - exceedingly low inventory.
What does this mean for Boston in 2022? With hardly anything on market (inventory is about 63 percent of what it was a year ago), I expect home values in Boston to continue to grow. Of course, I don’t have a crystal ball, but with the less deadly Omicron variant, restaurants and entertainment venues open, and the promise of warmer weather as Spring approaches, I’d say we should expect to see a pretty exciting Q1 and Q2 in Boston.
Through his many resources and relationships in the industry he will make sure your house will sell for the highest possible price, in the least amount of time, with the least amount of hassle.
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