For the first time in the region’s history, the median sale price of condo units in greater Boston is virtually equal to the median sale price of single family homes. In 2000, condos sold for two-thirds the price of a single family home in Greater Boston. Today, they are at 99 percent of the value of a single family home. The increase demand and subsequent price hike is due to high-end units and amenities as well as the buying power of younger buyers and investors.
Millenials do not want maintenance heavy homes as they prefer to enjoy the finer things in life. They prefer to pay the higher price to forego, yardwork, snow removal, and other bothers. The convenience of proximity to public transportation, simple luxuries as in building gyms or pools are extremely appealing. In the past, inventory was cramped and older, today, we have more amenities which comes at a premium. In addition, the cost of construction has increased which makes more sense for developers to produce luxury units as opposed to single family homes as they also get a greater return on their investment.
Millenium Tower is under construction and it’s already more than 90 percent pre-sold. It is not scheduled for occupancy until the summer of 2016. Buyers are signing Purchase and Sale agreements 2 years in advance to secure this prime real estate. Although many are priced out of these areas, the key is to focus on the next up and coming neighborhoods. Prices in these areas are also on the rise but at a slower rate than the most desired neighbrohoods. Currently, Roxbury is the hotbed for millenials due to its proximity to the city and rich culture.
For more information or to work with our Roxbury specialist, Call Terrance Moreau today at 857-399-0960 or email us at contact@Mandrellco.com for more information.