If you belong in Beantown, be prepared for a fight. In the Boston housing market, the gloves are off.
It’s no surprise that the Boston housing market is competitive. Just how competitive? A new metric by Redfin ranks this very thing. Compared on a score of 0-100, Redfin ranks the competitive nature of each city’s housing market.
While Boston isn’t the most competitive market out there, it ties Denver, Colorado for 5th on the list. This is not a huge surprise as Boston is ranked as one of the hottest real estate markets today.
What Does A Competitive Housing Market Mean?
Okay, so Boston’s a hot market and it’s competitive. What does that mean exactly? Well, it means that new listings don’t tend to stay listed for very long. It also means that it isn’t uncommon for a single listing to receive multiple offers. This creates a competitive Boston housing market and can increase the final sale price of the home.
In fact, Boston homes tend to spend about a month on the market (32.5 days). Properties are actually moving 14% faster than they did last year. And last year wasn’t a down year in Boston real estate either.
Massachusetts isn’t a bad state for real estate taxes either. The state ranks 34th with an effective real estate tax rate of 1.21%. The average taxes paid on a median-priced home in the state come out to $4,132.
When put in terms of real dollars, that $4K is good for 5th highest in the nation. Behind New Jersey, New York, Connecticut, and New Hampshire.
It’s All About Location
How can Massachusetts have the 34th in property taxes when residents pay the 5th most? Because the median price of a home in Massachusetts is $420,000. In fact, that level was recently reached this year for the first time in state history. This will push the annual tax bill to over $5,000.
Consider then a state like Illinois with an effective property tax rate of 2.32%; nearly double Massachusetts’s rate of 1.21%. The rate is much higher, however the median home price in Illinois is around $174,000. Almost 1/3 of Massachusetts.
Even though the tax rate is higher, the amount of real dollars being spent is lower.
Of course, the value of the home has a lot to do with it. A $420,000 house in Illinois will pay far more in property taxes than the same home in the Boston housing market. All things being equal, you’re better off in Boston.
Buying A House?
While housing can be expensive, you can do a lot worse than the Boston housing market if you’re looking to buy a home. The question is: can you do better? That’s where City vs City can help. City vs City is a powerful cost of living app that helps determine the true cost of of living in your city and compare it with other cities you may be thinking of moving to.
For example, let’s look at their East Coast rival: New York City. Both are major cities in big states. Both have a lot to offer. The question is: which one can give you more bang for your cost of living buck?
City vs City has you covered.
Simply input your data and start comparing cities. Our powerful algorithm goes to work and show you how your costs will differ in another city. If you’re thinking of moving, don’t make a move without Downloading City vs City first