It’s no secret that the fix and flip market is hot right now. After a year of urban flight fueling the markets in smaller cities across the country, the waters are just beginning to settle, with urban areas seeing a return to more densely populated centers, the Boston market is ready to keep producing. Let’s take a look at the data and explore what exactly we’ve seen and can expect moving forward.
In Boston, Less room isn’t a deal breaker
Less room isn’t a deal breaker – Amidst all the chaos of the 2020 housing market, the experts were watching for trends that non-analysts may miss; one of the most surprising of said trends is something that goes against a lot of traditional fix and flip considerations. In the Boston area, people are willing to move into smaller homes.
According to Real Estate, a collaboration between Boston.com and Globe.com, “houses sold to out-of-towners were 60 square feet smaller than the movers’ origin ZIP codes.” If you’ve been eyeing potential investment properties and felt discouraged by the size of the home, take another look. The disparity in size of move-in purchases is interesting when compared against the national average of upgrading by an average of 33 square feet. To read more about the Boston market versus national average click here.
The market is staying hot – It’s easy to get swept up in the hype surrounding just how hot the real estate market has been across the country, but you should also consider the truth that fuels the excitement. According to an April article from Curbed Boston, the median price of a home for sale is still increasing and housing inventory is still decreasing. By the numbers, the median sales prices for a home and condo were up 3.6% and 17.8% respectively in Boston while the number of active listings for each dropped by 35.8% and 19.6% respectively.
While that trend began as the kindling through the market rebound in 2020, there is a degree of speculation about just how long this trend will continue. For more about how the experts at Curbed speculate about the future of the amped up Boston market, read more here.
The Boston area is one of the most expensive rental markets in the country.
Rent has dropped because of the demand for housing – The Boston area is one of the most expensive rental markets in the country. The median cost per month for rent had been steadily climbing towards $2,500 over the past few years, but thanks to the recent drop in mortgage rates, the rental market has reflexively become more approachable.
The current median rent in Boston has fallen to $2,230. Still more expensive by about $500 than the national average, but another living example of just how hot the housing market is, as reported by The Motley Fool’s millionacres. Also highlighted in the report is the lack of jump in construction costs in the Boston area.
While the country is facing lumber shortages and other fix and flip materials in short supply, it hasn’t had a drastic role in the relatively steady cost of construction in Boston. The millionacres report contains a lot of objective facts relative to the real estate market in eastern Massachusetts, drawing away from the subjective nature of some other expert-based sources of information.
As the adage goes, it’s best to strike when the iron is hot. The metal of the real estate market is as hot as it can be; if you’re considering going in on a fix and flip in the Boston market, now is the time. To make your strike that much stronger, contact the experts at EMCAP Lending today. Our asset-based lending model is designed to help your fix and flip project succeed. For more information please contact us today or get started with our no-commitment pre-qualification form.