As we enter Fall, let’s look back at some August statistics for where the housing market will be in the next few months. When looking at the August market data collected by the Greater Boston Association of Realtors, it seems like we’ll be in for a much tighter market this Winter than we’ve seen in the past.
One of the more interesting statistics noted is the 14% growth in condominium sales between July and August of this year, especially after the 19.5% decline in condo sales seen in July. The market also saw a 13% growth in condo sales between August 2010 and August 2011. All of this can be attributed to better affordability, a steady increase of rental rates in the Metropolitan Boston area, as well as the recent boost in consumer confidence.
What does this mean? At this rate there is just less than 4 months of supply on the market in Greater Boston leading to a shortage of condo units for sale to meet the current buyer demand. There fore as economic conditions and consumer confidence improve in the coming months, we’ll most likely start to see an increase in condo prices reflective of pressure put on the market.