Southie Minute: Southie's Housing Inventory Just Hit a New Milestone

 

And just like that.

Southie is approaching 4 months of housing supply on market.

We haven’t since these since 2012. 🚨

Will we reach 2011 levels with close to 6 months of supply? Time will tell.

Why is this happening? It isn’t because new developments are flooding the market. It is all in the resales and my conversations with owners, many want to take advantage of their built up appreciation, especially absentee owners.

Now, rates are still muting transactions, but it won’t take many sales comps for there to be price movement.

I’m not calling a buyer’s market just yet, but here are the top reasons to consider selling as an owner, especially as an absentee owner.

1.) I’m concerned about impending property tax hikes in Boston into next year and beyond, insurance premium increases, and rising maintenance expenses.

2.) Now we know the development pipeline won’t give us enough inventory, but if enough resale owners head to the exits to capture gains, prices will fall.

3.) The juice isn’t worth the squeeze anymore. Renting your place was once a no-brainer, but CapEx is rearing its ugly head with a potential new roof, decking, siding, windows, and mechanical—all at a time when these types of projects are the most expensive they've ever been.

Stay tuned for the next Southie Minute!

Shoot me an e-mail at chris@fitzpatrickre.com to chat about your real estate goals.