Boston condos for sale are moving towards a more balanced market
Boston Condos for Sale and Apartments for Rent
Boston condos for sale are moving towards a more balanced market
Are We Heading into a Balanced Market? Read more to find out.
Boston condos for sale
If you’ve been keeping an eye on the Boston housing market over the past couple of years, you know sellers have had the upper hand. But is that going to shift now that inventory is growing? Here’s a breakdown of what you need to know.
What Is a Balanced Boston Condo Market?
A balanced market is generally defined as a market with about a five-to-seven-month supply of homes available for sale. In this type of market, neither buyers nor sellers have a clear advantage. Prices tend to stabilize, and there’s a healthier number of Boston condominiums to choose from. And after many years when sellers had all the leverage, a more balanced market would be a welcome sight for people looking to move. The question is – is that really where the market is headed?
After starting the year with a three-month supply of homes nationally, inventory has increased to four months. That may not sound like a lot, but it means the market is getting closer to balanced – even though it’s not quite there yet. It’s important to note this increase in inventory is not leading to an oversupply that would cause a crash. Even with the growth lately, there’s still nowhere near enough supply for that to happen.
The graph below uses data from the National Association of Realtors (NAR) to give you an idea of where inventory has been in the past, and where it’s at today:
For now, this is still seller’s market territory – it’s just not as frenzied of a seller’s market as it’s been over the past few years. As Mark Fleming, Chief Economist at First American, says:
“The faster housing supply increases, the more affordability improves and the strength of a seller’s market wanes.”
What This Means for You and Your Move
Here’s how this shift impacts you and the market conditions you’ll face when you move. Lawrence Yun, Chief Economist at NAR, explains:
“Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis.”
The graphs below use the latest data from NAR and Realtor.com to help show examples of these changes:
Boston condos for sale
Boston Condo Are Sitting on the Market Longer:
Since more homes are on the market, they’re not selling quite as fast. For buyers, this means you may have more time to find the right home. For sellers, it’s important to price your house right if you want it to sell. If you don’t, buyers might choose better-priced options.
Boston Condo Sellers Are Receiving Fewer Offers:
As a Beacon Hill condo seller, you might need to be more flexible and willing to compromise on price or terms to close the deal. For buyers, you could start to face less intense competition since you have more options to choose from.
Fewer Buyers Are Waiving Inspections:
As a buyer, you have more negotiation power now. And that’s why fewer buyers are waiving inspections. For sellers, this means you need to be ready to negotiate and address repair requests to keep the sale moving forward.
How a Real Estate Agent Can Help
But this is just the national picture. The type of market you’re in is going to vary a lot based on how much inventory is available. So, lean on a local real estate agent for insight into how your area stacks up.
Whether you’re buying or selling, understanding how the market is changing gives you a big advantage. Your agent has the latest data and local insights, so you know exactly what’s happening and how to navigate it.
Boston Condos for Sale and the Bottom Line
The real estate market is always changing, and it’s important to stay informed. Whether you’re buying or selling, understanding this shift toward a balanced market can help. If you have any questions or need expert advice, don’t hesitate to reach out to a local real estate agent.
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Boston condos for sale are moving towards a more balanced market
Balance is returning to the real estate market as homebuyers finally start finding some relief, according to a new Redfin report.
Sellers are slashing prices at a record rate, inventories are increasing, competition is declining, and mortgage rates are starting to drop following months of increases, the report found.
In the four weeks ended July 3, a record high number of sellers dropped their asking prices, and homes selling for above asking fell for the first time since June of 2020.
Redfin chief economist Daryl Fairweather said signs are pointing to improving conditions for homebuyers.
“Housing remains expensive, but mortgage rates just posted their biggest weekly drop since 2008, which makes buying a home a bit more affordable,” he said. “One way buyers can take advantage of the shift in the market is seeking concessions from sellers. That could include asking the seller to buy down your mortgage rate, pay for repairs or cover some of your closing costs.”
Redfin found fewer Google searches for “homes for sale” during the week ended July 2, down 2% from a year earlier. Its Homebuyer Demand Index, which measures requests for home tours and other services, fell 15% year over year during the week ended July 3.
Additionally, mortgage applications fell 17% from last year during the week ended July 3, as the 30-year mortgage fell to 5.3% for the week ended July 7, the largest one-week drop since 2008, and down from a 2022 high of 5.81%, while still up from 3.11% at the beginning of the year. With that, the monthly mortgage payment on a median asking-price home fell slightly to $2,342, which was still up 40% from $1,668 a year earlier, when mortgage rates were 2.9%.
In the four weeks ended July 3, active listings fell 2% year over year (the smallest decline since Oct. 2019). The median asking price rose 15% from 2021 to $399,973, but was down 2.1% from the all-time high set during the four weeks ended June 5. Meanwhile, the median sale price increased 3% year over year to $396,000. The report also noted this growth rate is down from March’s 16% peak.
Forty-five percent of homes went under contract with an accepted offer within the first two weeks of being listed, down from 49% last year. Thirty-two percent of homes went under contract with an accepted offer within one week, down from 35% in 2021.s
Homes remained on the market a median of 18 days, flat from 2021 and up slightly from May and early June’s record low of 15 days. Fifty-two percent of homes sold above list price, down from 53% a year earlier.
Updated: Boston Real Estate Blog 2000 – 2024
Click to View Ford Realty Inc., Google Reviews
Boston Condos for Sale are Moving Towards a More Balanced Market
Predicting how the real estate market will perform is like looking into a crystal ball. So, the best way to forecast how 2019 is by taking a look back at trends from the previous year.
2019, New Market
Last year truly was split down the middle with two distinct tales. The first half of the year kicked off with the same flurry of Boston condos for sale excitement . By late 2018, Boston condo for sale inventory jumped. At that time, the adjustment formally commenced and, since, conditions have been moving toward a more balanced market.
Home Sellers are Still in Control, with One Exception
Despite what feels of a market shift, Boston midtown condo sellers are still in control in all housing price ranges
Surprisingly, Home Prices Continued to Rise
With home sales evening out and inventory up, it might not make a lot of sense for Boston condo for sale prices to be up, but they continued to rise..
Notably, though, with more competition, many downtown Boston condo sellers have recently had to make price reductions for the first time in years.
Conclusion
Overall, a more balanced market is a good thing as we are shifting to a bit more normalcy. The Boston Beacon Hill condo housing market is still hot, albeit inventory is starting to rise which offers exceptional opportunities for homebuyers and sellers alike.
