Making Sense of the Boston Property Market's £179 per Square Foot Value

Boston, a vibrant town with a diverse property market, offers countless opportunities for homeowners seeking their next home. However, navigating this landscape requires a strategic approach to avoid common pitfalls. If you're a current Boston homeowner weighing up your options for a potential move, this guide will shed light on some key factors to consider.

 

The Diverse Landscape of Boston Properties

 

Boston boasts an array of properties varying in age, size, and style, which means there's something for everyone. Some homebuyers prefer newly built homes for convenience and low maintenance, while others opt for established homes. These older homes offer more space for your money and sometimes renovation potential.

 

However, this diversity makes it crucial to look beyond surface-level data to understand a property's value truly. Other distinctions that impact a property's value include location, layout, bedrooms, condition, and unique features.

 

A prime example is the disparity in price per square foot among properties across the town.

 

Currently, the average Boston property is

on the market at £179 per square foot

 

Yet, this only tells half the story.

 

The problem with averages is they hide the outliers and exceptions. Outliers/exceptions are the statistics and numbers that go far outside the average value of a group of statistics, yet they are where the magic happens.

 

Therefore, I suggest we look at the 'central 80% range' instead of just the average. This is, in essence, the core 80% cut of the stats, thus excluding the top and bottom 10% of stats. Consequently, looking at the 'central 80% range’ for Boston …

 

80% of properties currently for sale in Boston are

between £116 per square foot to £245 per square foot

 

This broad range highlights the importance of not relying solely on square footage averages when valuing your next home.

 

Another example is bedrooms. Typically, a 4-bedroom home is expected to be valued higher than a 3-bedroom home, which generally holds true. However, there is some overlap between their price ranges.

 

In Boston, the average asking price of a 3-bedroom home is £195,000, compared to £309,000 for a 4-bedroom home

 

Everything is in order there, as would be expected.

 

Yet when examining the 'central 80% range' - the prices for 3-bedroom homes in Boston fall between £120,000 and £285,000. Meanwhile, the 'central 80% range' for 4-bedroom homes spans from £199,000 to £410,000.

 

As you can see, there is quite an overlap!

 

Finding the Right Balance: Practicality vs. Emotional Connection

 

When considering your next Boston property, it's important to strike a balance between practicality and the stuff you can't measure with a statistic - i.e., the emotional appeal.

 

On the practical side, you could create a list of essential features - such as desired neighbourhoods, reception rooms, layout, garden size, and local amenities - to help you prioritise properties that meet your needs. For instance, proximity to good primary schools will be vital if you plan to start a family or already have children. Similarly, desirable features like south-facing patios and gardens, modern kitchens, and open floor plans can significantly impact your enjoyment of the home.

 

On the practical side, evaluate the duration of your stay in the new property. Most homeowners of smaller to medium-sized Boston homes move every five to six years, so considering the marketability of your home when it's time to sell is crucial. An area with convenient transport links, a vibrant local community, and proximity to shops or leisure facilities will appeal to future buyers.

 

However, your personal ‘emotional connection’ to a property should not be overlooked. The feeling you get when you walk through the door, the view from the kitchen, and the unique atmosphere of each home influence long-term satisfaction and value. The blend of rationality and emotional resonance will ultimately guide you toward a decision that reflects your aspirations.

 

Recognising Hidden Costs and Potential Returns

 

When moving into a new property, it's essential to factor in hidden costs like Stamp Duty, legal fees, surveys, and mortgage arrangement fees. You should also be mindful of the maintenance costs, renovation expenses, and unexpected repairs that can arise, especially with older properties.

 

Conversely, consider the potential for returns if you invest in upgrades or improvements. A well-thought-out renovation could significantly increase the value and desirability of your home, providing excellent returns if you decide to sell. However, assessing the cost-benefit ratio before embarking on a project is essential, as over-investing might not always yield a profitable return (again, I can advise on that).

 

Ready for Your Next Move?

 

In conclusion, finding your ideal Boston property involves much more than crunching numbers. Your decision should reflect a careful blend of practicality and emotional resonance with the home, all while understanding market conditions.

 

If you are considering a move and would like expert advice on your property's value or the current Boston property market, don't hesitate to reach out.

 

I'd be delighted to help you assess your options and guide you toward making an informed decision that aligns with your aspirations. Your dream property awaits, and I'm here to help you find it.

 

 

 

Is it a Boston Buyers’ or Sellers’ Property Market?

 

Navigating the property market in Boston? Understanding the current market dynamics is essential whether you're looking to buy a dream home or sell a cherished property. Recent data reveals a fascinating surge in property transactions across the UK, with Boston included in all this bustling activity.

 

As of April 2024, property sales and listings have increased significantly, indicating a robust market. Yet, what does this mean for you? Is Boston a buyers’ market, favouring those looking to purchase, or a sellers’ market, giving an edge to those wishing to sell?

 

This article delves into the latest figures and trends, offering crucial insights and strategic advice for prospective buyers and sellers in Boston. Read on to discover the opportunities in this dynamic property landscape and how you can best navigate it to your advantage.

 

Up to Sunday, 21st April 2024, the number of UK homes that went under offer (sold stc) was 10.3% higher than during the same period in 2023.

(377,217 home sales agreed on YTD in 2024 compared to 341,271 YTD in 2023)

 

Even more interesting when we compare the average of 2017/18/19 year to date (YTD) sales agreed figure of 351,027.

 

Every UK region has seen an increase in the number of properties selling (subject to contract). Yet what is more interesting is that the different regions of the UK property market have shown a remarkable uniformity in growth across the country for the YTD in 2024, signalling robust health and widespread confidence.

 

Leading the charge, Inner London showcased a stellar rise of 21.09%, closely followed by Outer London at 20.47%, reinforcing the enduring appeal of the capital. East Anglia and the South East were not far behind, registering impressive gains of 19.65% and 19.48%, respectively, underscoring the continuous attractiveness of the South East. The Midlands, both East and West, also enjoyed substantial growth at 18.20% and 18.02%, indicating a resilient market presence. Up North, the North West at 17.70% and Yorkshire & Humber at 17.27% demonstrated significant upward movement, whilst the South West advanced with a respectable 16.11% increase.

 

The North East, Wales, Scotland, and Ulster presented growth figures of 14.74%, 14.00%, 12.43%, and 12.38%, respectively, suggesting a balanced expansion across the entire UK. Although most pronounced in London and the South East, the growth spectrum exhibits a promising scenario for the UK property sector, with the narrow gap between the highest and lowest growth regions illustrating a cohesive national uptrend.

In addition to increased property sales, the supply of UK properties on the market in April 2024 was 11.8% higher than in April 2023.

(654,913 properties for sale in April 2024 versus 585,741 for sale in April 2023)

 

This increase in the number of properties for sale is good news, as it gives buyers greater choice.

 

Even if you sell your property, there's no guarantee that it will go through to exchange of contracts and completion. Thankfully, 2024 sale fall-throughs are at 22.5% of gross sales YTD, which is much lower than the 7-year average of 24.3%.

 

Net sales (house sales agreed less sale fall throughs) paint an

even better picture, with a rise of 12.6% year on year.

(295,912 Net sales YTD 21^st April 2024 vs 262,871 Net sales YTD 21^st April 2023)

 

Prospective purchasers and vendors are witnessing a rise in confidence as mortgage rates, after climbing sharply last year, have begun to decline recently. Inflation stands at 3.8%, a steep fall from the 9.6% high of October 2022. Furthermore, average mortgage rates have settled, with many banks and building societies now offering decent rates. For example, at the time of writing, Nat West was offering a 5-year fixed rate of 4.37% for those with a 30% deposit, Virgin Money a 5-year fixed rate of 4.69% with a 10% deposit and the Leeds Building Society a 5.14% 5-years fixed for those with a 5% deposit.

 

Despite these positive signs, Boston house price levels are expected to hold steady, with the market remaining buyer-friendly due to mortgage affordability issues.

 

The easing of mortgage costs (compared to the summer of 2023) has undoubtedly sparked renewed interest and dealings in the property market, particularly after a lull period in the second half of last year, when many considering a move put their plans on hold. This revitalisation is anticipated to boost the volume of homes sold, which had dipped to an 11-year low of just over one million in 2023.

 

Nevertheless, it's unlikely this momentum will cause a marked rise in house prices in 2024, with the market maintaining a delicate equilibrium, in contrast to 2021's full-on extreme sellers’ market.

 

Boston homeowners planning to sell in 2024 may be buoyed by this uptick in market activity; however, they should temper their expectations as buyers remain keen on value, which could dampen the current pace of recovery in the property market. Caution is also advised due to the traditional hesitance seen in the property market during a general election year, with buyers and sellers often taking a more conservative approach as the election looms.

 

This is the time to be realistic with your pricing if you’re

going to put your Boston home on the market.

 

So, what sort of market are we in?

 

The measurement of whether it's a buyers', balanced, or sellers' market is based on the proportion of properties marked as "Sold STC" and "Under Offer" compared with the total number of properties on the market. For example, if there are 43 properties sold STC and 100 properties available/for sale, then 43 as a percentage of 100 is 43%.

 

This isn't just a numbers game; it's a gauge of market sentiment:

 

·         Extreme Buyers' Market (0%-20%)

·         Buyers' Market (21%-29%)

·         Balanced Market (30%-40%)

·         Sellers' Market (41%-49%)

·         Hot Sellers' Market (50%-59%)

·         Extreme Sellers' Market (60%+)

 

The weight of these brackets can’t be overstated. They directly impact everything from listing prices to negotiation leverage.

 

Current Boston Property Market Snapshot

 

To calculate Boston's property market's current status, let's incorporate our most recent findings for April 2024. The numbers and statistics have been taken from the website 'The Advisory', which has calculated the market state for many years. I am sharing them from the summer of 2018 to April 2024.

 

·         The Boston postcode district of PE21 showed an extreme sellers’ market at 71% in the summer of 2021, which eased off throughout 2022.

 

·         Throughout 2023, the Boston property market was in the high 30%/early 40% ranges (a balanced/sellers’ market). As expected, because of the seasonal nature of the property market, by February 2024, this had reduced to 36%.

 

·         Since February 2024, it has increased slightly to 40%.

 

 

The Consequences and Thoughts for Boston's Property Market

 

This new data prompts me to take stock and ponder.

 

For Boston Sellers: We are transitioning into a market where sellers must be more strategic, flexible, and patient. It would help if you braced yourself for your home to be on the market for longer with an extended marketing period. Realistic pricing is even more vital than ever. Setting at the right price is crucial for attracting suitable buyers.

 

Why? Because your chances of selling your Boston home have dropped in the last few years.

 

In the spring of 2022, 77.16% of Boston homes that were on the

market sold and completed. Since 1^st January 2024, that figure has dropped to 61.54%.

 

Your marketing strategy is just as important. Employing tools such virtual 360 tours, targeted social media campaigns, or interactive property listings could be particularly beneficial in this more ‘normal’ market of 2024.

For Boston Buyers: Expect intense competition if you're interested in highly sought-after types of properties. Securing mortgage pre-approval can put you ahead of other prospective buyers. Consider expanding your search area to discover potential deals that others may overlook. Conversely, in less competitive markets, Boston buyers have more leverage to negotiate, from the offer price to inclusions like carpets, fixtures, and fittings. You will also have the luxury of choice and time with other homes.

 

Remember, four out of five sellers are also buyers, so what you

may lose on the sale might be compensated for on the purchase.

 

External influences, such as global economic trends, inflation, and interest rate repercussions, could all cast shadows on the Boston property market. The election will undoubtedly affect the Boston property market, as everything will go on ice in the three or four weeks before the election itself.

 

Final thoughts: As we progress into the fifth month of 2024, the Boston property market presents challenges and opportunities for buyers and sellers. Understanding these market subtleties is crucial for anyone considering a move, from existing homeowners to seasoned buy-to-let investors, first-time buyers, or those looking to relocate to Boston.

 

Stay flexible, stay informed, and remember that your home-moving experience is as much about the journey as the destination.

 

What are your thoughts on Boston's developing property market?

 

Do you anticipate any other shifts or trends in the Boston property market?

 

What are your local insights and experiences?

 Let's delve into the fascinating world of British housing trends and statistics. Have you ever pondered over the average time British people stay in their homes? This graphic reveals the answer!

As expected, those in private rented accommodation stop for the least time, at 4.3 years.

Those buying a home with a mortgage tend to stay an average of 9.2 years. Those in social rented homes (council housing or housing association properties) stay a little longer, at an average of 12.2 years. Finally, those homeowners without a mortgage stay the longest, at 23.2 years!

Are there any surprises in this? How does your own living situation compare? How long have you lived in your Boston home?