Boston condos for sale: The big question should I buy now?

Boston condos for sale: The big question should I buy now?

Boston Condos for Sale and Apartments for Rent

Boston condos for sale: The big question should I buy now?

At one point or another, you’ve probably heard someone say, “Yesterday was the best time to buy a home, but the next best time is today.”

That’s because nationally, home values continue to rise. And with mortgage rates still stubbornly high and Boson Seaport condo for sale prices going up, you may be holding out for prices to fall or trying to time the market for that perfect rate. But here’s the truth: waiting for the right moment could cost you in the long run.

Home Prices Are Still Rising – Just at a More Normal Pace

The idea that Boston condo for sale prices will drop dramatically is wishful thinking in most markets. According to the Home Price Expectations Survey from Fannie Mae, industry analysts are saying prices are projected to keep rising through at least 2029.

While we’re no longer seeing the steep spikes of previous years, experts project a steady and sustainable increase of around 3-4% per year, nationally. And the good news is, this is a much more normal pace – a welcome sign for hopeful buyers (see graph below):

What This Means for You

While it’s tempting to wait it out for prices or mortgage rates to decline before you buy, here’s what you’ll need to consider if you do.

• Tomorrow’s home prices will be higher than today’s. The longer you wait, the more that purchase price will go up.
• Waiting for the perfect mortgage rate or a price drop may backfire. Even if rates dip slightly, rising home prices could still make waiting more expensive overall.
• Buying now means building equity sooner. Home values are rising, which means your investment starts growing as soon as you buy.

Let’s put real numbers into this equation. If you purchase a $400,000 home today, based on these price forecasts, it’s expected to go up in value by more than $83,000 over the next five years. That’s some serious money back in your pocket instead of being left on the sidelines (see graph below):

Why Aren’t Prices Dropping? It’s All About Supply and Demand

Even though there are more homes for sale right now than there were at this time last year, or even last month, there still aren’t enough of them on the market for all the buyers who want to purchase them. And that puts continued upward pressure on prices. As Redfin puts it:

“Prices will rise at a pace similar to that of the second half of 2024 because we don’t expect there to be enough new inventory to meet demand.”

While every market is different, most areas will continue to see moderate price growth. Some may level off a bit, but a major national drop? Not likely.

Boston Conds for Sale and the Bottom Line

Time in the Market Beats Timing the Market

If you’re debating whether to buy now or wait, remember this: real estate rewards those who get in the market, not those who try to time it perfectly.

Yes, today’s housing market has its challenges, but there are ways to make it work —exploring different neighborhoods, considering smaller condos or townhomes, asking your lender about alternative financing, or tapping into down payment assistance programs. The key is making a move when it makes sense for you rather than waiting for a perfect scenario that may never arrive.

Want to take a look at what’s happening with prices in your local market? Whether you’re ready to buy now or just exploring your options, reach out to a local agent so you have a plan in place that’ll set you up for success

Peace be with you

Ford Realty Inc., Charles Street, Beacon Hill

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Looking for a Back Bay condo for sale with the best views in town. Ford Realty Inc., can help you out on your Boston condo for sale search. Check these condos out:

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Boston condos for sale: The big question should I buy now?

If you’ve been thinking about buying a Boston condo for sale, you likely have one question on the top of your mind: should I buy right now, or should I wait? While no one can answer that question for you, here’s some information that could help you make your decision.

The Future of Boston Condominium Price Appreciation

Each quarter, Pulsenomics surveys a national panel of over 100 economists, real estate experts, and investment and market strategists to compile projections for the future of home price appreciation. The output is the Home Price Expectation Survey. In the latest release, it forecasts home prices will continue appreciating over the next five years (see graph below):

As the graph shows, the rate of appreciation will moderate over the next few years as the market shifts away from the unsustainable pace it saw during the pandemic. After this year, experts project home price appreciation will continue, but at levels that are more typical for the market. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says: 

“People should not anticipate another double-digit price appreciation. Those days are over. . . . We may return to more normal price appreciation of 4%, 5% a year.”

For you, that ongoing appreciation should give you peace of mind your investment in homeownership is worthwhile because you’re buying an asset that’s projected to grow in value in the years ahead.

What Does That Mean for You as a Boston Condo Buyer ?

To give you an idea of how this could impact your net worth, here’s how a typical home could grow in value over the next few years using the expert price appreciation projections from the Pulsenomics survey mentioned above (see graph below):

As the graph conveys, even at a more typical pace of appreciation, you still stand to make significant equity gains as your home grows in value. That’s what’s at stake if you delay your plans.

Boston Condos for Sale and the Bottom Line

If you’re ready to become a homeowner, know that buying today can set you up for long-term success as your asset’s value (and your own net worth) is projected to grow with the ongoing home price appreciation. Let’s connect to begin your homebuying process today.

In this video, the quest is asked should you Buy Now or Wait? Inflation is out of control, Interest rates are rising along with a decline in buyer demand? Should you buy now or wait for a housing crash? In this video, the host discuss the changes that we are currently seeing in the housing market and what you need to consider as a home buyer in order to help you make the best decisions when buying a house or condo in a changing market.

Click to View Ford Realty Google Reviews

Should I buy a Boston condo or wait? Are prices over-inflated?

These are not easy questions to answer. The simple answer it depends. Let me explain

• While Boston condo valuations have  been all over the map, they will more than likely return towards the middle range of their historical levels.
• Currently, downtown Boston real estate is quite expensive.
• But unusually low rates are keeping monthly payments at reasonable levels, and should those low rates persist, it’s possible they could prop up valuations indefinitely. But lets face it a Seller’s market never dies of old age.
• It’s also possible that due to unique economic factors, valuations could settle at a different equilibrium level than they have historically. But this would likely be subtle and somewhat risky to bank on.

So where does that leave a potential buyer? It depends on the situation, and whether one is more concerned with future changes in monthly payments or prices.

Long-term hold 

If one is buying a Boston high rise condo to keep for the long haul, and financing the purchase with a fixed mortgage, then the main priority is probably to lock in a reasonable long-term monthly payment. In this case, it may well make sense to buy.  Monthly payments are lower than the historical average even despite high ac-acquisition prices.

Short-term hold 

If on the other hand a buyer isn’t planning to keep a Boston Seaport condo for long, then it makes sense to be more concerned with what prices will be when the time comes to sell.  While it’s possible that valuations could remain elevated, current price levels suggest more downside than upside. However, this will become less of an issue as time marches on and incomes and rents have a chance to catch up with prices. (To put some very rough numbers on it: 5 years feels risky; 10 years a lot less so).

Every situation is different, but the rough rule of thumb is:

• If monthly payments are the primary concern, it may make sense to buy.
• If future price changes are the primary concern, it may be best to hold off until valuations are a bit more reasonable.

The good news here is that there isn’t a lot of pressure to do either one. There have been times where it was crazy to buy Beacon Hill condos for sale, and times where it was crazy not to. This is neither of those times. Either choice is reasonable, depending on circumstances, so you can do what best fits your own circumstances and lifestyle.