scare

While 2024 was certainly a challenging year for the Boston condo for sale market, 2025 may be a doozy if the Counselors of Real Estate’s (CRE) 2025 Top Ten Issues Affecting Real Estate report is to be believed.

From price expectations to the impact of a Trump presidency, uncertainty is the main driver of today’s market. T

CRE is a global organization consisting of roughly 1,000 members representing a wide swath of real estate professionals from agents and appraisers to urban planners, architects and economists. This is the thirteenth year the group has put together its “Top Ten” list.

In order of least to most impactful, the 2025 list includes

The price expectations gap,
Office vacancies and the tax base,
Sustainability,
Artificial intelligence,
Housing attainability,
Insurance costs,
Geopolitics
regional wars,
Loan maturities and debt repricing
The cost of financing.

Price expectations gap

My biggest concern, Boston condo buyers and sellers are in a standoff when it comes to home pricing.

I think the expectations for Boston condo sellers are probably much different than Boston condo buyers.

Despite expectations gap and the fact that sellers are still holding strong on their positions, Boston condo buyers are holding out and will continue to do so, because they have to, especiallly first time-home buyers. Than you have Boston condo buyers waiting for an uptick in demand to list their property in order to get a better price. So here it is, a tug of war between buyers sitting on the sidelines in hopes that prices may come down and sellers pulling the other way.

My Second Fear for the Boston Condo for Sale Market

Office vacancies and the tax base

Although it may not appear that office vacancies would have much of an impact on the Boston condo market, let me quickly dispel that myth.

Recently, the Boston Globe reported how a office building sold 40% below thought of as market value . So, what happens when that kind of deal occurs? How does it impact the Boston condo market? Well, obviously the buyer resets the market because they paid a fraction of what it had traded for a few years earlier

As office vacancies increase, the value of commercial office buildings decreases, and if the properties are reassessed for much less than they were worth a few years ago, the Boston will see a dramatic decrease in property tax revenue. Boston still has bills to pay, so, they may then decide to pass on some of those financial challenges by taxing Boston condo owners at a higher rate or by providing fewer services,( i.e. garabage colletion) which may lead Boston condo owners to leave the city, selling their properties, which could result in dropping home prices due to a rapid rise in inventory, but also a drop in demand for Boston condo for sale. As Boston condo buyers get discouraged as property taxes increase, so does building condo fees.

To do our part to keep the Boston condo for sale market on track Ford Realty Inc will provide buyers 50% rebate from our portion of the broker fee at closing.

Next week I’ll tell you more resons why I fear the 2025 Boston condo for sale market.

Not looking yet for a Boston condo for sale? We have plenty of Beacon Hill apartments for rent under $5,000.

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