It’s no secret that the real estate market has changed drastically in recent years. If you’re thinking of buying or selling a home in the near future, it’s important to stay up-to-date on the latest trends.
But when the market shifts and changes in the blink of an eye, it can be tough to know which trends are here to stay.
That’s why we’ve compiled a list of real estate trends that we believe will have a major impact in 2022 and beyond.
Here are 12 Massachusetts real estate trends to watch this year:
1. The housing market will continue to favor sellers.
Summer is around the corner, and it’s still a seller’s market. Despite a decrease in listings, buyers are still competing for a limited number of houses. This is good news if you’re thinking of selling your home.
Five tips sellers in Massachusetts should know in 2022
1. Don’t overprice your home.
We know you want to get the most money possible, but in this market, overpricing will only lead to your home sitting—and not selling.
In Boston, the median listing home price is $824,300 as of April 2022.
2. On the other hand, don’t be afraid to ask for what you want.
With the current state of the market, you may be able to get more than you thought possible for your home.
3. Get your home in tip-top shape.
This is the time to make any necessary repairs and stage your home for showings. If your home suffered damage from the brutally cold winter, now is the time to fix it up.
4. Be prepared to move quickly.
Once you receive an offer, be ready to move forward with the sale. This may mean being flexible on your timeline and being prepared to negotiate.
5. Work with a real estate professional.
A realtor will help you determine the right asking price and market your home to buyers. At Herrick Lutts Realty Partners, we have extensive knowledge of the Massachusetts housing market. With our experts on your side, the selling process will be smooth sailing for you.
2. Mortgage rates are expected to remain low, making it a good time to buy.
Mortgage rates in Massachusetts are still near historic lows. The average 30-year mortgage rate in Massachusetts is lower than the national average, and rates are expected to remain low throughout 2022.
Five tips buyers in Massachusetts should know in 2022
1. It’s best to get pre-approved for a mortgage.
In a seller’s market, being pre-approved for a mortgage gives you an edge over other buyers who haven’t done their homework.
2. Have your down payment saved up before you start house hunting.
Sellers often prefer buyers who can pay cash or offer a large down payment.
3. Don’t low-ball your offer.
Buyers often have to pay close to the asking price to get the home they want, especially in a seller’s market.
4. Be flexible on your must-haves.
With inventory tight, you may have to compromise on factors like location, lot size, or number of bedrooms.
5. Find a realtor to help you navigate the competitive market.
Our team at Herrick Lutts Realty will help you find homes that fit your budget and needs, and we’ll also guide you through the negotiation process with ease.
3. Home prices will continue to rise, although at a slower pace than in recent years.
Home prices in Massachusetts have been rising steadily for the past few years, and they’re not expected to stop anytime soon. However, the rate of price increases is expected to slow down in the next few years.
How to combat increasing home prices as a buyer
1. Save for a larger down payment.
By increasing your down payment, you’ll be able to afford a more expensive home.
2. Look for homes in less expensive areas.
Prices are rising fastest in the Boston area, so you may be able to find a more affordable home by looking in other parts of the state.
3. Consider a less expensive home.
If you’re not able to afford your dream home, look for a less expensive home that you can afford. Chances are you can compromise on factors like square footage or non-essential amenities.
4. Wait to buy a home.
If you can’t afford a home right now, waiting a few years may help you save enough money for a down payment. However, it’s still a great time to research your options to see how much cash you’ll need when you’re ready to buy.
5. Consider renting instead.
If you’re not ready to commit to a mortgage, renting may be a more suitable option for you. As of April 2022, the median rent in Massachusetts is $2,200.
4. There will be more Millennial and first-time buyers entering the market.
As more Millennials enter their 30s, they feel ready to start buying homes. Additionally, many of them will be first-time buyers. This is good news for sellers since there will be more potential buyers.
What are first-time buyers looking for in Massachusetts?
When looking for their first home, many buyers are looking for a property that is:
- Affordable: With home prices on the rise, affordability is a top concern for first-time buyers.
- Low maintenance: First-time buyers often don’t have the time or money to fix up a home, so they look for one that doesn’t need a lot of work.
- Centrally located: With busy lifestyles, many buyers are looking for a home in a prime location that is close to work, shopping centers, and other activities.
5. The rise of the “urban burbs”
With the rise of the work-from-home and remote learning lifestyles, the suburban real estate market is expected to thrive. Families are looking for more space, and the suburbs can offer that.
Popular suburbs to buy a house in Massachusetts
Here are a few noteworthy urban burb communities in Massachusetts. They all lie outside of Boston, and they’re incredibly popular with families.
Winchester is known for its quaint downtown area.
Concord is a historic town with a lot to offer, including great schools and a variety of shops and restaurants.
Lexington is popular not only with families but young professionals as well. It’s known for its good schools and its vibrant downtown area.
Weston is known for its large homes and proximity to the city.
6. The condo market will remain strong in Boston and other urban areas.
Condo prices in Boston have been rising steadily for the past few years, and we expect that trend to continue. Urban areas are still popular with buyers, especially those who are looking for a more convenient lifestyle.
Features of top-selling condos in Boston
- Location, location, location: Many buyers are looking for a condo that is centrally located and easy to get around. For condo buyers, the most in-demand neighborhoods in Boston are the South End, Downtown, Back Bay, and Charlestown.
- Proximity to public transportation: Another important factor for condo buyers is the proximity to public transportation. With many people working in the city, they want to be able to easily get to and from work.
- Amenities: Buyers are looking for condos with outstanding amenities, such as a gym, pool, and concierge service. Additionally, luxury condos often have access to private gardens and outdoor spaces, which are becoming more popular in the city.
7. The vacation home market will keep growing, especially in coastal communities.
Vacation homes are always in demand, but they’re especially popular now. With more people working remotely, they have the flexibility to live in a vacation home and work from there. Coastal communities are especially popular, as people are looking to escape the cold winters.
Most popular coastal communities for vacation homes in Massachusetts
Cape Cod is a popular summer destination for Massachusetts residents. It’s recognized for its beaches, seafood, and quaint towns.
Martha’s Vineyard is known for its beaches, relaxed atmosphere, and golf courses.
Nantucket is known for its beaches, ample shops, and rich history.
Trends to keep an eye on in the Massachusetts vacation home market
- Rising prices in popular tourist areas: Due to the popularity of vacation homes, prices are rising in many popular tourist areas. If you’re thinking of buying a vacation home, be prepared to pay more than you would have a few years ago.
- Increased interest in second homes as investment properties: Many people are now buying vacation homes as investment properties. They’re renting them out when they’re not using them and earning a solid return on their investment.
8. The rental market will remain strong, especially in urban areas.
The rental market has been booming for the past few years, and we expect it to continue to be strong in the future. Urban areas are still popular with renters because they offer a more convenient lifestyle.
9. The senior housing market will continue to grow.
When looking for a home, seniors have different needs than other buyers. They’re often looking for smaller homes that are easy to maintain and located in safe neighborhoods.
Here are a few factors that contributed to the growth of the senior housing market:
Retiring seniors are looking for the next step.
The Baby Boomer generation is reaching retirement age, and more seniors are retiring each year.
More seniors are living alone.
Seniors are living longer these days. In fact, they often outlive their spouses. As a result, more seniors are living alone, and they need assistance with day-to-day tasks.
In some cases, seniors want to downsize.
After their children move out of the house, many seniors want to downsize to a smaller home. This is especially true if they no longer need a large home.
10. There will be more new construction homes available for sale.
A new construction home is the perfect option for buyers who want everything to be brand new. And with more people looking to buy homes, there will be more new construction homes available for sale.
Trends we see in the Massachusetts new construction home market
People are often looking for suburban homes with more space.
The square footage of new construction homes has been increasing in recent years to accommodate this trend.
Families are looking for new construction homes that offer more amenities.
In 2022, the most in-demand amenities include pools, spas, and home theaters.
Buyers are willing to pay more for a new construction home that is eco-friendly.
In order to appeal to these buyers, builders are using more sustainable materials and energy-efficient features.
That leads us to the next Massachusetts real estate trend:
11. Green real estate will become more popular as buyers look for energy-efficient homes.
As buyers become more conscious of the environment, they will start looking for homes that are energy-efficient. This environmentally-conscious trend is more than just a trend—it’s a movement. Therefore, it’s not going away anytime soon.
Common features of energy-efficient homes in Massachusetts
- Solar panels: leverages a renewable energy source to keep your electric bill low.
- Geothermal heating and cooling: use the Earth’s heat to keep your home comfortable all year long.
- Double-paned windows: keep your home well insulated so it is resistant to changing temperatures outside.
- Energy-efficient appliances: use less energy and help to save money on your utility bills.
- LED lighting: uses less energy than traditional light bulbs.
12. Real estate investing will continue to be a popular way to make money.
Investing in real estate can be a lucrative way to make money, and that trend is expected to continue as long as the housing market favors sellers.
Three real estate investing strategies we often see in Massachusetts
- Rent to own: This strategy involves finding a property that is for sale and negotiating a contract with the seller. The contract should include an option for the renter to buy the property at a set price within a certain timeframe. This option should be at a price below the current market value.
- Wholesaling: Wholesaling is a real estate investing strategy where an investor finds a property, contracts it at a below-market price, and then assigns the contract to another buyer. The investor makes a profit from the difference between the contracted price and the price the buyer pays.
- Fix and flip: The fix and flip real estate investing strategy involves finding a property that needs repairs, fixing it up, and then selling it for a profit. This strategy can be profitable, but it requires a lot of work and can be risky.
Is real estate investing right for you?
If you’re thinking about investing in real estate, it’s important to do your research and understand the risks involved. Real estate investing is not a get-rich-quick scheme. You have to be dedicated to it if you want to be successful.
Tell us your real estate goals and we’ll show you how we can help.
Here at Herrick Lutts Realty, we are always keeping an eye on the latest real estate trends. We would love to help you achieve your real estate goals, whether you’re buying, selling, or investing in real estate.
We’re ready to answer all your questions and discuss how to make your real estate dreams a reality. Contact us!