Boston Condos for Sale and Apartments for Rent
Boston condo buyers and sellers this post may surprise you
Following a national trend, the price and number of homes sold in Boston fell from June to July as inventory rose.
Specifically, Boston’s median sales price of $650,000 was 2.2% below June’s $664,450 reading, while homes sold fell 17.3% to 4,952. Active inventory was up 6.1% to 6,202. Year over year, the sales price was up 8.3%, while transactions were 20.5% lower, and inventory was 10% higher.
Nationally, the median sales price slid 2.9% from June but rose 8.1% from July 2021 to $415,000, while closed transactions were down 16.6% on a monthly basis and 26.3% on a yearly one. Active inventory rose for the fourth month in a row, with a 13.3% increase over June and a 30.4% surge over July 2021.
The average close-to-list-price ratio of the 53 metro areas surveyed was 101%, down from 102% in the preceding month and year-ago period. The ratio represents the average value of the sales price divided by list price, and any number over 100% means the home sold for more than asking.
The average days on market totaled 25, up from 23 in June. Months’ supply of inventory rose to 1.8 from 1.4 in June and 1.2 in July 2021.
“The market is rebalancing after favoring sellers for so long,” RE/MAX President and CEO Nick Bailey said in a press release. “There’s still ground to make up with new construction, but the change in recent months has brought some much-needed relief to buyers. And sellers still have it good, too. A calming market doesn’t mean a stoppage — and there are plenty of benefits to being on that side of the equation.”
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Boston condo buyers and sellers this post may surprise you
If you’re wondering if Bostom condo for sale prices are going to come down due to the cooldown in the housing market or a potential recession, here’s what you need to know. Not only are experts forecasting home prices will continue to appreciate nationwide this year, but most of them also actually increased their projections for home price appreciation from their original 2022 forecasts (shown in green in the chart below):
As the chart shows, most sources adjusted up, and now call for more appreciation in 2022 than they originally projected this January. But why are experts so confident the housing market will see ongoing appreciation? It’s because of supply and demand in most markets. As Bankrate says:
“After all, supplies of homes for sale remain near record lows. And while a jump in mortgage rates has dampened demand somewhat, demand still outpaces supply, thanks to a combination of little new construction and strong household formation by large numbers of millennials.”
Knowing that experts forecast home prices will continue to appreciate in most markets and that they’ve actually increased their original projections for this year should help you answer the question: will home prices fall? According to the latest forecasts, experts are confident prices will continue to appreciate this year, although at a more moderate rate than they did in 2021.
Boston Condo for Sale and the Bottom Line
If you’re worried home prices are going to decline, rest assured many experts raised their forecasts to say they’ll continue to appreciate in most markets this year. If you have questions about what’s happening with home prices in our local area, let’s connect.
