Stay Focused S2 Ep43: Market Update
This week, Erik and Randal chat a little bit about where they think the housing market is heading in Boston. Are we about to see the end of a seller's market?
Erik: Welcome, to Stay Focused, Focus Real Estate's weekly video series. I'm Erik.
Randal: And I'm Randal.
Erik: And this ... We're done with the third quarter already. We're into the fourth quarter of 2018. Can you believe that?
Randal: You make it sound so much more exciting than it actually is.
Erik: I know, it is exciting.
Randal: It is.
Erik: So, this month, or this week's topic is our Market Update.
Erik: So, share with you a little bit of what we've seen from the third quarter numbers.
Randal: Yeah, it's really kind of interesting this year because we really do pride ourselves at Focus Real Estate to be a market expert and be really abreast of what's happening in the market in the greater Boston area, and then specifically in the different neighborhoods.
Randal: One of the things that we saw that we wanted to point out and we thought was really interesting and we wanted to share with our viewers, in 02130, in the Jamaica Plain neighborhood, we've seen a doubling of the amount of sales of multi-family houses.
Erik: Yeah, interesting.
Randal: It's very interesting. But when you see a doubling in the sales of something, it let's you know something is happening there. So, and these aren't huge numbers, guys. This is, I'm looking at the number of closed transactions. The first three quarters of 2017 was 20. So 20 sales happened in Jamaica Plain of multi-family homes.
Erik: Multi-family homes, right.
Randal: So far, or for the first three quarters of 2018, 40 multi-family homes have sold. So that made us want to dig a little deeper. What's happening?
Erik: 100% increase in the sales in this one property range.
Randal: Yes. So it made us dive a little deeper to say, okay, well if we're talking about a doubling in the amount of inventory being sold, it would obviously mean that the prices are coming down. But it's actually not true. The prices are up about 2% over those first three quarters year over year. Days on market are actually almost identical.
Erik: You would think the days the on market ...
Randal: Days on offer are almost identical.
Erik: You'd think those would go up, as you have more to choose from, take a little longer for things to sell.
Erik: But we're not seeing that the case here yet.
Randal: I think partially because the rentals have come up so high in Jamaica Plain. I also think that a lot of these multi-family homes in the area we're seeing, need some love. And I think the previous owners of these are done up keeping them, and looking for someone to take on the stewardship of these properties and really where the money is in rentals in the area, is things that are in really good condition.
Randal: So, when things are in really great condition, they actually rent for big prices and partially because our competition is so great for rentals right now.
Erik: Interesting trend. We'll keep you posted. We'll keep watching the data and watching trends in the different markets.
Randal: Yup. And let us know if you have questions about exactly what's happening in your market segment. If you're thinking of making a move in that area. Because it's really important to look right in that price range, property type, all of those things when you're trying to make a decision on buying and selling.
Randal: So give us a holler if you have any questions about that. Yeah. Thanks for watching today everybody. Don't forget to like us on Facebook.
Erik: And subscribe to our YouTube channel.
Randal: Then, until next time ...
Erik and Randal: Stay Tuned and Stay Focused.