According to multiple articles, the median home price in Boston is $900,000.00. Imagine: That’s the average. You might need to be nearly a millionaire to buy in Boston. If you already own your home…You could be a millionaire. That’s wild! Here’s one article for your review:
https://bostonagentmagazine.com/2024/04/18/median-home-prices-in-greater-boston-hit-900k/?
OK, just to wrap my mind around this…$900K is the median, meaning if you average all the single family homes sold in Boston, you get $900,000.00. Statistically, over half of Boston homes sold are worth more than that. I just had to say it out loud again for my mind to grasp it. I grew up in Roslindale. I’m floored by this. I wouldn’t describe my neighborhood as wealthy back then. Oh…How times are changin’!
Let’s break that down. A $900K home, assuming a 20% downpayment of a whopping $180K, would mean a colossal mortgage of $720,000.00. A 30 year fixed rate mortgage at 8.62% interest rate comes to a monthly mortgage payment of $6,799.00 including taxes and fees. That is downright terrifying, especially considering the seller’s market, high interest rates and low inventory dominating the Boston marketplace.
Thank God for the commuter rail. Buying a home outside of Boston might be the best option for bang for your buck. I’d like to welcome all buyers to Massachusetts’ lovely South Shore. The North Shore and Metrowest can be a bit lower than Boston Proper, but not by very much. The South Shore is usually where the bargains are and, with the commuter rail, Boston is in easy reach. In the interests of full disclosure, driving in to Boston from the South Shore can still be a tough proposition though.
It’s a pretty tough market for buyers right now and an uncertain near future for it to get any better. Talk to your Realtor or to a favorite mortgage provider, or better yet, both, to find out where you are in the market, how much you can afford and develop some strategies to make your buying power stand out in a huge crowd of buyers before you start shopping for a house.
Think about it…Rents are higher than mortgages, apples to apples. Tenants want to buy. The expected buyers from any area, 1st time homebuyers, downsizers, upsizers, etc. want to buy. Now add in an outflow of buyers from Boston. All of them are competing for near historically low inventory. You, as a prospective buyer, need to stand out.
Call me to find out how. I’d actually recommend calling a bunch of me’s(other Realtors too). I like me and I think I’m great, but it’s best for you to really like who you choose. Interview us all and find out who suits you best, who do you like and who has the best strategies for you to maximize your impact on the day you place your offer. It’s best to be ready before you fire off an offer. That prep maximizes your strategy options too. There should be no place in Real Estate for an impulse purchase or “Firing from the Hip”.
Lew McConkey,
Brook Realty, Serving Whitman Hanson& Surrounding Towns (781)252-9789
If you have questions about your place in the current Real Estate market, as a buyer, seller or Landlord, Please feel free to call text or email for your free, no obligation consultation.
Lewmcconkeyhomes@outlook.com
www.lewmcconkeyhomes.com