October 2022 Greater Boston Market Report

Overview In reviewing the October 2022 data for the Greater Boston area we observed a few notable trends.  First off is interest rates jumped up in a big way and oscillated around 7% for most of the month. The increase in interest rates is now starting to pump the brakes on the real estate market as buying power continues to erode with interest rates increasing.  The declining sales volume and median purchase price are partially expected due to seasonality, so what we're doing is focusing more on the year over year comparisons to October of 2021. For single family homes, the increased interest rates has resulted in a 16.2% decrease in sales volume compared to October 2021 and an increase in price of 6.7%.  Similarly, condominiums sales volume is down 22.9% and the median sales price is up only a modest 0.8% from October 2021. While interest rates are continuing to rise, the good news is the Consumer Price Index (CPI) came in at 7.7% for the month of October, which is below the expected 7.9%.  This means the interest rate hikes that the Federal Reserve have been doing are finally starting to take hold and have some effect on bringing down the price increases we've been seeing over the past two years.   Upon close review of the data, we also want to highlight that for the first time in years the Sold To List Price Ratio is below 100% for both single family homes and condominiums in the Greater Boston area at 99.5% and 98.8%, respectively.  If you're a buyer, this is important for you to take note of because it means you should no longer be broadly going way above asking price when buying a home.  We're still seeing that the well priced homes in good condition have interest from multiple parties, but we are far from the feeding frenzy that some may have grow accustomed two over the last few years.   It's more important now than ever that you work with an agent that's able to conduct detailed analysis on the home you're interested in buying.  The alternative can end up costing you tens of thousands of dollars because that market is shifting faster than most are able to keep up with.   If you want to learn more about a specific area or town, be sure to reach out to Billy (Billy@DigitalRealtyUS.com)

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Can a Landlord Charge a Tenant a Monthly Pet Rent in Massachusetts?

Can a Landlord Charge a Tenant a Monthly Pet Rent in Massachusetts? Yes, according to a recent Massachusetts Appeals Court ruling in Phoebe Flemming vs. Greystar Management Services, L.P., charging a tenant a recurring, monthly rent for the ability to keep a pet in a rental property is not a violation of the security deposit statute (Massachusetts General Laws Chapter 18, Section 15B). Under the law, landlords are prohibited from collecting monies in excess of first month’s rent, last month’s rent, a security deposit not to exceed the first’s month’s rent, and a fee to change the lock and key at or prior to the commencement of a tenancy. In this case the “pet rent” was collected on a recurring, monthly basis, and therefore not a violation of section 15B(1)(b).The court additionally analyzed the applicability of section (1)(d), which prohibits a landlord from collecting rent in advance or a security deposit in excess of one month’s rent. The court opined that Section 15B)1)(b) and (d) must be applied individually and, as such, “pet rent” is not considered rent paid in advance or an additional security deposit, and therefore is not a violation of the security deposit statute.This is a ruling of the Appeals Court and therefore the Massachusetts Supreme Judicial Court may weigh in on the case if it so chooses.    

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