Boston Area Luxury Home Market Report Jan 25 2016. I am a Million Dollar Guild member of the Certified Luxury Home Marketing Specialists group. The top 1% of agents in the country. The International Luxury Home Marketing specialists organization provides me with a weekly report that covers the world luxury market and drills down into the specific luxury areas of the world. I live in the Boston area and that is where I work. Here is this week’s report. As we leave the holiday season, we are looking down the barrel of the new spring season. While prices of luxury homes has always remained reasonably stable it appears we are in for an
earlier uptick in prices. The super high end luxury condos on the waterfront in Boston are reselling right now at a $500,000 profit as reported in today’s print edition of the Boston Globe.
Another plus side for the Sellers is that the inventory remains low. Low inventory sparks more competition for your property. Let’s be careful here in stating that not all luxury properties are the same and not all areas in Boston are receiving the exact same rise in prices and reduction of inventory. You can expect the market will perform normally and more inventory will be coming on the market soon.
Days on Market with luxury is always a bit longer than the normal markets since there are fewer people capable of buying a luxury property. Luxury is defined as the top 10% of the MLS in that area. The luxury market in a town like Newton begins above $2,000,000. The more prices rise and inventory rises with it the Days on Market will rise. With more homes for sale it takes longer for the Buyer to review all the potential homes and communities to make the right choice for their families. You can see the uptick in days here.
Reducing your price is one of the three factors in getting a home sold. The List price reflects the market and the Seller’s wishes in large part. This is not what the Buyer wants. The agent and the Seller have no and little control of what the Buyer will pay. Great marketing will bring people in if the price is right. The condition of the home will confirm the price, but it is the Buyer who sets the price. Most Sellers assume the Agent can control this and they can not beyond great marketing that draws lots of eyeballs to the listings and traffic to the house. Getting the price right is important, but reacting to the market in the appropriate way when you are not generating the traffic you want is the way to get your house sold. The longer it is on the market the more stale it seems and no one wins in that scenario other than the Buyer. This has been the Boston Area Luxury Home Market Report Jan 25 2016