COVID-19’s Impact on Boston Real Estate

We’ll get straight to the point – we don’t know how COVID-19 will impact real estate prices in the near term, medium term, or long term.

There is too much uncertainly right now around the many important variables: supply, demand, interest rates, credit standards, unemployment, foreclosures, treatments, vaccines, second waves, stay-at-home, working-from-home, aging-in-place, etc.

What we can tell you is what’s happening right now in the mortgage and residential market in and around Boston.

Mortgages

Mortgage rates are starting to normalize in the low to mid 3% range for those with the best credit
Some lenders, who are dealing with a wave of refinancing requests, are artificially inflating rates to turn business away since they’re having difficulty handling the current volume
Refinancing is easier if you’re simply changing your interest rate and loan term; harder if you’re looking to take cash out
Lenders will verify employment as close to the closing date as possible to make sure you’re still employed
Appraisers and homeowners are both reluctant to do in-person appraisals so when they are required, many physical distancing precautions are taken

Residential Real Estate

Open houses are very rare unless its new construction or the property is vacant; this will continue for the foreseeable future as buyers and sellers engage in social distancing
Pre-recorded video tours and pre-scheduled, individual showings are the new normal
Tire kicking and window shopping are out of the question; only serious, pre-qualified buyers are getting inside to see homes
Listings are down, supply is low, and demand is unknown since many spring buyers are re-assessing their needs and financial situation

Catalysts For Change

Massachusetts has been hit particularly hard by the coronavirus pandemic (3rd most cases in the US) because of our population density; Bostonians may look to move out of the city or buy a second home in a less dense area like the Cape or Berkshires
With many working from home (and the potential for that to become a more common occurrence), homeowners are considering renovations to create a home office or even a larger home to accommodate
We may see a boom in births over the next year which may require more spacious living arrangements for growing families
We may also see a rise, unfortunately, in divorces which creates motivated sellers and the need for two homes
And with long term care facilities being hit particularly hard, older adults may prefer to age in their homes which would constrain the supply of starter inventory for younger generations

Sean Kaukas

April 26, 2024.

Blackacre Properties was a pleasure to work with! I’m a first time landlord and they helped find me great tenants for my condo in Boston and took away the stress of the process. Greg and Julina kept in constant communication and handled all of the paperwork for the rental. They are true professionals and easy to work with. I will absolutely use Blackacre again.

Julia Daly

October 18, 2023.

It was an absolute pleasure working with Greg! He was incredibly responsive and supportive through our entire moving process. Greg helped us rent our Boston apartment and find a new place on the South Shore. He was respectful of our time and highly professional. I could not recommend working with Greg more. We will continue to work with him for years to come!

Laura Thompson

August 5, 2023.

I cannot recommend Greg and Blackacre Properties highly enough. Having lived in Boston on and off for over a decade, I suddenly found myself needing to rent an apartment in downtown Boston for work with a relatively modest budget. Greg was accessible and thoughtful in his recommendations and helped me consider factors in my apartment search that I otherwise never would have taken into account. I am well-positioned to say what an independent apartment search in downtown Boston is like (I tried it!), and how Greg helped streamline that process once we began to work together. Specifically, Greg was able to help me narrow down the very long list of available apartments that were worth visiting, taking into account things like nearby greenery, beauty/age of buildings in the area (something I cared about), street parking availability, tourism flows (esp in summer), public transport accessibility, local amenities (grocery stores, restaurants, walking paths, access to the Charles), and building amenities (rooftops, courtyards, etc). He also helped me gauge prices in terms of local apartment offerings (and so could help me figure out what I could expect and what was a deal and so might go more quickly). I had originally thought that using a broker would be only for people with a large budget for their apartment search, but I finished this process thinking that even apartment searchers with a more modest budget can benefit from working with someone like Greg. Greg helped me maximize my time in town, helped me visit apartments remotely (which was easier once we had made clearer what I was interested in, and which he did by FaceTiming me from the apartment, which he physically visited), and then facilitated the signing of my lease after I had left town. One final note: a number of the apartments I visited on my own in downtown Boston are represented by brokers who are understandably ambitious, but also pushy and competitive (with one another). Having a broker on your side--especially someone like Greg who is thoughtful, reasonable, and easy to get along with (for other brokers)--helps insulate you from having to manage those relationships directly. Once you visit an apartment represented by a broker (the vast majority of apartments in downtown Boston), you will be paying that broker fee---so why not pay it to someone who can think with you, navigate the world of apartment brokers, and also negotiate for your interests? So overall, even in the rental market and for those with a more modest budget, working with a broker can make a lot of sense (even financially). If you are looking to work with a broker, I highly recommend Greg Kanarian at Blackacre.

Gwendolyn Collaco

July 3, 2023.

Greg was the best agent that we could have asked for. I'm very picky and had been looking on rental sites for about a month for a new apt. With Greg, the first listing he sent to me and my roommate was the one we rented! He worked with us to ensure we included all the info that we could to strengthen our application and secure the apt on this competitive market. He was the best advocate for us to the owner. I say all this after having lost out on other apts prior to working with Greg. Despite having great credit, income, and history, I was always passed over for stronger candidates, but with Greg the first application was all we needed. It was such a welcome relief after a long and harrowing apt search! He answered all our questions about the lease in a timely manner and made sure that the listing agent made all corrections necessary to the final version. We were well-informed every step of the way.

Chan Lee

June 29, 2023.

Greg from Blackacre Properties was extremely communicative and hands-on during my search for rental apartments in the summer of 2023. He was quick to respond to my questions with informative answers, and most importantly, I could tell his priority was in advocating for his clients when he successfully negotiated a better lease for me. I strongly recommend Greg and Blackacre Properties for your real estate needs. Thanks again Greg!

Jacqueline Cornejo

June 28, 2023.

Moving in Boston is stressful especially with the housing market right now. But Greg and Blackacre Properties LLC made the process so easy and smooth. Greg made sure to answer all my questions and always made himself available. Really great experience!

Allisson Dugan

March 13, 2023.

I cannot recommend Greg and Blackacre Properties enough. I recently worked with Greg to rent my 1BR condo and as a first time landlord he made the process quick and simple. He was able to market the place beautifully and secured a tenant quickly. He also provided me with all the information I needed on my end to complete the process. I will certainly work with Blackacre in the future.

Kristen Tomlinson Carter

March 4, 2023.

I was lucky enough to come across Greg when I was first renting my property in Bay Village, and have now worked with Greg for many years. His knowledge of the rental market, his professionalism and candor throughout the process, and his willingness to go above and beyond are just a few reasons I've continued to work with him, and will continue to do so going forward.

Ana Abraham

February 28, 2023.

Greg and Blackacre were extremely helpful in facilitating our move! Greg works very fast, got us a showing of an apartment within a couple days, and helped us get all of our documents in order to sign our lease! We couldn't be happier, and we recommend Greg and Blackacre to anyone looking to move!

mjlgraham

Blackacre Properties LLC and Greg provided me with what I'd describe as a 'best in class' experience in helping me rent an apartment in late 2022. Consummate professionalism, domain knowledge and dedication to satisfying all parties involved in the transaction. Highly recommended, and will use the company again.