2021 Market Recap
2021 was a memorable year as we all continued to persevere through many health, economic, and personal challenges. With that, our team still supported 114 clients in $41M worth of real estate transactions. Helping first-time homebuyers overcome the many hurdles in today’s market was truly a professional high for our team.
With the establishment of remote work as a “norm” many clients sought out more versatile space to work from home. Extra bedrooms and living areas took a back seat to small nooks or rooms that once served the purpose of nothing more than storage. While 2020 saw a “run to the suburbs”, competition increased greatly during 2021 in urban areas as well with the re-opening of cities.
Sustained low interest rates factored heavily into the ability of consumers to compete in the market and drove-up real estate prices. Many buyers now feel that paying a premium (in terms of home value) will still secure long-term savings with the current historically low interest rates. Recently, rates have started slowly rising from an all-time low last winter and are projected to continue doing so throughout 2022.
Greater Boston rental prices increased by 4.5% in 2021 after a 4% decrease in 2020. The increased cost of rent is another factor driving competition to buy. Vacancy rates are at a record low making is hard to find rentals, while being lucrative for real estate investors.
Note: The above picture is the building facade from one of our listings in the acclaimed Windsor Place on Commonwealth Ave in Boston.