Why Is Inventory So Low?
"Why is inventory so low?"
I am repeatedly asked this question and, unfortunately, there is no simple answer.
Boston is a vibrant city with world renowned educational institutions and hospitals and thriving tech and pharmaceutical industries. People want to live and buy real estate here but many homeowners are choosing to stay put rather than sell.
Why are homeowners staying put? Here are a few things to consider:
It's difficult to find a new home.
The low inventory issue is cyclical. Sellers may want to move or take advantage of being able to make a huge return on their investment, but with such low inventory, it is not easy to find a new home.
Prices are high.
Many homeowners want to upgrade when they move, whether it be to a more desirable location or a larger home to fit their growing family. While they can make a large profit by selling their current home, they are going to have to pay top dollar to get into that larger and more desirable home.
Boston real estate is a great investment.
Some homeowners are choosing to hold onto their homes as an investment property even when they do move to a new home.
Interest rates are on the rise.
Most homeowners are locked into a low interest rate. With rates on the rise, moving is less attractive.