Boston Condo Are Coming Buyers Back to the Market?

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Boston Condo Are Coming Buyers Back to the Market?

Yes, they are. Below is the latest update on home prices and the overall real estate market.

U.S. home prices will rise steadily over the next few years amid prospects for modest interest rate cuts by the Federal Reserve and as many existing homeowners keep their doors closed to selling, according to property experts polled by Reuters.

As aggressive Fed rate hikes have sharply pushed up the cost of standard 30-year mortgages to more than 7%, existing homeowners have held on to rock-bottom rates from the pandemic, some below 3%, limiting the supply of homes for sale.

That, combined with relentless demand for a place to live and a strong economy, cushioned a brief correction in the market. Average house prices soared around 50% during the pandemic and again hit a new record last year.

After rising about 6% last year, defying previous expectations of declines, average home prices are forecast to grow 3.3% this year and around 3.0% in 2025 and 2026, according to the median of 28 analysts in a Feb. 15-March 1 Reuters poll.

Forecasts were based on the S&P CoreLogic Case-Shiller composite index of 20 metropolitan areas.

That outlook was upgraded very slightly from three months ago, modestly outpacing expectations of headline inflation, seen averaging 2.7% and 2.3% this year and next, respectively, according to a separate Reuters survey.

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Boston Condo Are Coming Buyers Back to the Market?

Even though the Boston condo for sale market is no longer experiencing the frenzy that was so characteristic of the last couple of years, it doesn’t mean today’s market is at a standstill. In actuality, buyer traffic is still strong today.

The ShowingTime Showing Index is a measure of how much buyers are touring homes. The graph below uses that index to illustrate buyer activity trends over time to help put today into the proper perspective.

Boston condos – Ford Realty Inc

It shows there’s seasonality in the real estate for sale market. If you look at the last normal years in the market (shown in gray), there was a consistent pattern as buyer activity peaked in the first half of each year (during the peak homebuying season in the spring) and slowed as each year came to a close.

When the pandemic hit in March of 2020, that trend was disrupted as the market responded to the resulting uncertainty (shown in blue in the middle). From there, we entered the ‘unicorn’ years of housing (shown in pink). This is when mortgage rates were record-low and buyer demand was sky high. Similar seasonal trends still existed even during that time, just at much higher levels.

Now, let’s look at 2023. Traffic is down from the previous month and it’s also lower than the peaks we saw in the ‘unicorn’ years. But what’s happening isn’t a steep drop off in demand – it’s a slow return toward more normal seasonality. As the ShowingTime report explains:

“Showing traffic declined about 10% in May . . . This follows a typical seasonal pattern – disrupted by the pandemic but now beginning to return . . .”

And, to highlight this isn’t a drastic decline, let’s zoom in. Here’s a graph using just the May data for the last five years. It shows just how strong buyer demand still is.

What Does That Mean for Boston Condo Sellers?

Boston condo buyers are still out there touring homes. They’re more active than they were in May 2022 (when sticker shock over higher mortgage rates started to set in) and certainly more than they were in the last normal years. So, remember, buyer activity is still strong. And it could actually be even stronger if it wasn’t constrained by the limited supply of homes for sale. According to U.S. News:

“Housing markets have cooled slightly, but demand hasn’t disappeared, and in many places remains strong largely due to the shortage of homes on the market.”

Boston Condos for Sale and the Bottom Line

Don’t lose sight of just how active the Boston condo for sale market still is today. If your house isn’t on the market, it’s not getting in front of all those buyers who are looking to make a purchase right now. Let’s connect to start the process.

South End’s Quinn condos will start at $800,000 and go to $5 million – Ford Realty Inc

Updated: Boston Real Estate Blog 2024

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Boston Condo Buyers Back to the Market

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Boston Condo Buyers Back to the Market

Boston Condo Buyers Back to the Market, Boston condo for sale inventory has picked up, which is good news for downtown Boston condo buyers

Boston condo buyers

Boston Condo Buyers are Coming Back to the Market

Here’s some good news for Boston downtown condo sellers all indications show signs that Boston condo buyers are coming back to the market. In addition, buyers will like to hear Boston condo for sale inventory is on the rise. 

Yes. we do see light at the end of the tunnel

According to the latest FreddieMac Quarterly Forecast, mortgage interest rates have fallen to historically low levels this spring and summer and they’re projected to remain low. This means there’s a huge incentive for Boston condo buyers who are ready to purchase. And Beacon Hill condo owners looking for eager buyers can take advantage of this opportune time to sell as well.

Boston Real Estate Interest Rates

There’s a very positive outlook on interest rates going forward, as the projections from the FreddieMac report indicate continued lows into 2021:

“Going forward, we forecast the 30-year fixed-rate mortgage to remain low, falling to a yearly average of 3.4% in 2020 and 3.2% in 2021.”

Boston Real Estate Interest Rates Hit Another Historic Low

With mortgage rates hovering at such compelling places, ongoing Boston real estate interest is bound to keep driving the housing market forward. Rates also reached another record low last week, so homebuyers are in what FreddieMac is identifying as the buying mood:

“While the rebound in the economy is uneven, one segment that is exhibiting strength is the housing market. Purchase demand activity is up over twenty percent from a year ago, the highest since January 2009. Mortgage rates have hit another record low due to declining inflationary pressures, putting many homebuyers in the buying mood. However, it will be difficult to sustain the momentum in demand as unsold inventory was at near record lows coming into the pandemic and it has only dropped since then.”

Boston real estate for sale

There’s no doubt that even though Seaport condo buyers are ready to purchase, it’s hard for many of them to find a home to buy today. Mortgage rates aren’t the only thing hovering near all-time lows; Boston condos for sale that are available for sale are too. With housing inventory as scarce as it is today – a nearly 20% year-over-year decline in available homes to purchase – keeping buyers in the purchasing mood may be tough if they can’t find a home to buy (See graph below):

What does this mean for condo buyers?

Competition is hot with so few downtown condos available for purchase and low mortgage rates are helping to drive affordability as well. Getting pre-approved now will help you gain a competitive advantage and accelerate the homebuying process, so you’re ready to go when you find that perfect home you’d like to buy. Working quickly and efficiently with a trusted real estate professional will help put you in a position to act fast when you’re ready to make your move.

What does this mean for condominium sellers?

If you’re thinking of selling your property, know that the motivation for buyers to purchase right now is as high as ever with rates where they are today. Selling now before other sellers come to market in your neighborhood this summer might put your house high on the list for many buyers. Homebuyers are clearly in the mood to buy, and with today’s safety guidelines and precautions in place to show your condominium, confidence is also on your side.

Boston Real Estate and the Bottom Line

Whether you’re looking to buy or sell, there’s great motivation to be in the housing market, especially with mortgage rates hovering at this historic all-time low. Let’s connect today to make sure you’re ready to make your move.

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