Leaves are falling but not Boston condo prices.
Boston Condos for Sale and Apartment Rentals
Leaves are falling but not Boston condo prices.
You may be wondering if Boston condo for sale prices are going to crash. And believe it or not, some people might even be hoping this happens so they can finally purchase a more affordable Boston home, perhaps even purchasing an affordable Boston Seaport condo for sale. But experts agree that’s not what’s in the cards – and here’s why.
There are more people who want to buy a Boston condo for sale than there are homes available to purchase. That’s what drives prices up.
Let’s break that down and explore why, both locally and nationally, home prices aren’t going to be coming down anytime soon.
Prices Depend on Supply and Demand
The Boston condo for sale market works like any other market – when demand is high and supply is low, prices rise.
According to the latest estimates, the U.S. is facing a housing shortfall of several million homes. That means there are far more people looking to buy (demand) than there are homes for sale (supply). That mismatch is the key reason why prices won’t fall at the national level. As David Childers, President of Keeping Current Matters (KCM), puts it:
“The main driving force on pricing is the limited amount of inventory in most markets across the country. That issue is not going to be solved overnight or in the next twelve months.”
How Did We Get Here?
For over 15 years, homebuilders haven’t been building enough Boston condos to keep up with buyer demand. After the 2008 housing crisis, homebuilding slowed significantly, and it’s only recently started to recover (see graph below):
Even with new construction on the rise over the past few years, builders are playing catch-up. And according to AmericanProgress.org, they’re still not even keeping up with today’s demand, let alone making up for years of underbuilding.
And as long as there’s a housing shortage, home prices will remain steady or increase in most areas.
What About Next Year?
The majority of experts agree prices will keep rising next year, but at a much slower, healthier pace (see graph below):
But it’s important to note home prices vary by market. What happens nationally might not reflect exactly what’s happening in your area. If your local market has more inventory available, prices could grow more slowly or even decline slightly. But in areas where inventory remains tight, prices will keep climbing – and that’s what’s happening throughout most of the country. That’s why it’s crucial to work with a local real estate expert who understands your market and can explain what’s going on where you live.
Boston Condos for Sale and the Bottom Line
If you’re wondering what it’ll take for prices to come down, it all goes back to supply and demand. With inventory still limited in most markets, prices are likely to remain steady or rise.
To see what’s happening with home prices where you live, connect with a local real estate expert. They can help you understand your market and make a plan that works for you.
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Leaves are falling but not Boston condo prices.
During the fourth quarter of last year, some housing experts projected home prices were going to crash in 2023. The media ran with those forecasts and put out headlines calling for doom and gloom in the housing market. All of this negative news coverage made a lot of people have doubts about the strength of the residential real estate market.
If it made you question if you should delay your own plans to move, here’s what you really need to know.
Home Prices Never Crashed
Disregard what you saw in the headlines. The actual data shows home prices were remarkably resilient and performed far better than the media would have you believe (see graph below):
This graph uses reports from three trusted sources to clearly illustrate prices have already rebounded after experiencing only slight declines nationally. That’s a far cry from the crash so many articles called for.
The declines that did happen (shown in red), weren’t drastic but were short-lived. As Nicole Friedman, a reporter at the Wall Street Journal (WSJ), says:
“Home prices aren’t falling anymore. . . The surprisingly quick recovery suggests that the residential real-estate downturn is turning out to be shorter and shallower than many housing economists expected . . .”
Even though some media coverage made a big deal about home prices pulling back, the slight correction that happened is already in the rearview mirror. Basically, this data shows you home prices aren’t falling anymore – they’re actually going back up.
What’s Next for Home Prices?
The consensus from experts is that home price growth will continue in the years ahead and is returning to normal levels for the market. That means we’ll still see home prices appreciating, just at a slower pace than the last few years – and that’s a good thing.
Some news sources will see home price growth slowing and put out stories that make you think prices are falling again. The return of misleading headlines like those is already having an impact on how homebuyers are feeling again. You can see how this affects general opinion in the Consumer Confidence Survey from Fannie Mae (see graph below):
While the percentage of Americans who think prices will fall has been slowly declining this year, the latest Consumer Confidence data indicates that’s ticked back up recently (shown in red). This change is surprising especially since the home price data shows prices are going up, not down. It tells you the impact the media still has on public opinion.
Don’t fall for the negative headlines and become part of this statistic. Remember, data from a number of sources shows home prices aren’t falling anymore.
Boston Condos Bottom Line
Even though the media may make things sound doom and gloom, the data shows home prices aren’t falling anymore. So, don’t let the headlines scare you or delay your plans. Let’s connect so you have a trusted resource to cut through the noise and tell you what’s really happening in our area.
Update :Boston Condo for Sale 2023
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Boston condo price reductions based on MLS data.
BOSTON CONDO ASKING PRICES
Boston condo price reductions, last 60 days.
Number of Back Bay condo listings – 187/# price reductions -4
Number of Beacon Hill condo listings – 57/# price reductions – 1
Number of Hyde Park condo listings – 22/# price reductions – 1
Leather District condo listings – 11/# price reductions – 1
Jamaica Plain condo listings – 98/# price reductions -0
Boston Common condo listings – 44/# price reductions – 1
Boston Seaport condo listings – 29/# price reductions – 1
Boston South End condo listings – 152/# price reductions – 7
Boston Waterfront condo listings – 90/# price reductions – 0
SEARCH FOR CONDOS FOR SALE AND RENTALS
For more information please contact one of our on-call agents at 617-595-3712.
Updated: 2024
