With the weather changing its course, and the chill in the air is noticeable, it's only a matter of time before Bostonians see the change in the leaves. That's right, just like that, summer has passed, and fall is finally settling in. And as the seasons change, so too does the market shift, as most properties have flown off the shelves during the rush of the summer selling season, leading to the dwindling number of properties available out there.
In fact, an analysis of the Back Bay, Beacon Hill, and South End neighborhoods show that the inventory is extremely low. According to the Multiple Listing Service (MLS) - the main tool for brokers and agents to list and monitor the exchange of properties - there are only 162 units available in these neighborhoods as of September 4. And to give you a better appreciation of the inventory situation, here's a look at the past three years, and how much this years' is, compared to previous peak months:
2011: 391 units 2012: 196 units 2013: 162 units
The reality is, the drop in inventory is so exaggerated that it totals to 141 percent!
And so, now that we've already established that the inventory levels of residential real estate in Boston are down, we'd like to give you a preview of the properties that are to come in the following months, not only adding to the city's sprawling skyline, but also replenishing the property sectors' coffers. These properties are poised to become the primary source of new listings in the city, and though some are nearing its full capacity, there are still tons of properties turning over that you can look forward to when it's time to make that big step, not to mention the probability that some buildings meant to be leased out could possibly turn a corner and decide to sell instead!
Just to give you an insight, there are approximately 3,200 new leased apartments expecting to be delivered to market in the Boston metro area in 2013. This is more than doubled from 1,500 new supplies in 2012. Add to that an additional 8,000 units expected to be delivered in the next two to three years, and you see why and where our speculations come from.
Here are a few of the larger developments both hitting the market today and in the near future:
Millennium Tower 426 Washington St. 500 units Ground breaking Sept. 17
The Kensington 659 Washington St. 381 units Currently being leased.
L West Square 320 D St. 260 units
45 Stuart Street 45 Stuart St. 404 units
Ink Block 1 Herald St. 475 units
*Keep in mind that this is a partial list of the "bigger" developments scheduled to come up in the city's Downtown neighborhoods. There are at least an additional 5,000 units for sale and lease citywide that are scheduled to be turned over in the next one to three years.
So, don't despair - even though the inventory is in a dip right now, it'll surely recover. The bottom line is that the city's real estate market continues to be robust, showing strong signs of growth supported by the steady improvement in the overall economic employment environment, a steady rise in new construction, a decrease in the overall vacancy rate, a busy buying and selling turnover, and last but not least, a supremely strong rental market.