Boston condos for sale. My thoughts on the upcoming spring Market
Boston Condos for Sale and Boston Apartments for Rent
Boston condos for sale. My thoughts on the upcoming spring Market
The Boston condo for sale Spring market is in full swing, and the housing market is picking up along with it. And if you’ve been wondering whether now is the right time to buy or sell, here’s the inside scoop on why this spring may be a great time to make your move.
1. There Are More Homes for Sale
After a long stretch of tight inventory, the number of homes for sale is finally improving.
According to recent national data from Realtor.com, active listings are up 27.5% compared to this time last year.
Look at the graph below and follow the green line for 2025. You can see, even though inventory levels still haven’t returned to pre-pandemic norms (shown in gray), that number is higher than it has been going into the spring market over the past few years (see graph below):
Boston Condo Buyers: This means you have more choices, and you can be more selective.
Boston Condo Sellers: With more homes available than in recent years, you’re more likely to find what you’re looking for when you move. And knowing that inventory is still below more normal levels means there will be demand for your home when you sell it, too.
2. Home Price Growth Is Moderating
As inventory grows, the pace of home price growth is slowing down – and that will continue into the spring market. This is because prices are driven by supply and demand. When there are more homes for sale, buyers have more options, so there’s less competition for each house. Rising supply and less buyer competition causes price growth to slow, but it should still remain positive in most markets. As Freddie Mac says:
“In 2025, we expect the pace of house price appreciation to moderate from the levels seen in 2024, while still maintaining a positive trajectory.”
And while prices aren’t dropping at the national level, every market is different. Some areas are seeing stronger price growth, while others are cooling off or even seeing some price declines.
Boston Condo Buyers: The slower pace of growth means prices aren’t rising as quickly as before – and that’s a relief. Any home you buy now is likely to appreciate in value over time, helping you build equity.
Boston Condo Sellers: While prices are still rising, you might need to adjust your expectations. Overpricing your house in a more balanced market could mean it takes longer to sell. Pricing your house competitively is going to be key to attracting offers.
3. Mortgage Rates Are Stabilizing
One of the biggest hurdles for buyers over the past couple of years has been high, volatile mortgage rates. But there’s some good news – overall, they’ve stabilized in recent weeks – and have even declined a bit since the beginning of this year. And while that decrease hasn’t been a big drop, stabilizing mortgage rates has helped make buying a home a bit more predictable. According to Selma Hepp, Chief Economist at CoreLogic:
“With the spring homebuying season upon us, the recent improvements in mortgage rates may help invite homebuyers back into the market.”
Boston Condo Buyers: When mortgage rates are more stable, it’s easier to plan ahead because you have a better idea of what your future payment might be. But remember, rates will continue to be volatile. So, lean on your agent and your lender to make sure you know what the latest mortgage rate means for you.
Boston Condo Sellers: Slightly lower rates that are starting to stabilize are encouraging more buyers to move forward with their plans. That’s good for demand when you’re planning to sell your house.
4. More Buyers Are Returning
With more inventory, slowing price growth, and stabilizing mortgage rates, buyers are gaining confidence and coming back into the market. Demand is picking up, and data from the Mortgage Bankers Association (MBA) shows an increase in mortgage applications compared to the start of the year (see graph below):
Buyers: Acting sooner rather than later could be a smart move before your competition heats up even more.
Sellers: This is great news for you – more buyers mean a better chance of selling your house quickly.
Boston Condo for Sale Bottom Line
Do you have questions about what the spring market means for you? Connect with a local real estate agent and talk about how to craft your plan this season.
With more homes for sale, slowing price growth, and stabilizing mortgage rates, how will this impact your decision to buy or sell this spring?
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Boston condos for sale. My thoughts on the upcoming spring Market
In order to make any sort of predications about what the 2023 spring market, it’s important to look at where we are today. The first few weeks of 2023 has been an intense time for the Boston condo for sale market, as we’re beginning to see the effects of the boosted interest rates and uncertainty that have characterized the economy for the past several months. Mortgage originations plummeted, financing homes became extremely costly, and Boston apartment rent growth has slowed.
Boston Condo Market and The Fed
Action from the Federal Reserve will be a key factor in determining what Boston condo Spring market will look like for the whole economy and especially for our Boston real estate market . If supply chain issues persist, inflationary pressure will remain high and the Fed will keep upwardly adjusting rates, albeit more slowly, through the first half of 2023, if not longer. However, slower consumer spending, a decline in shelter inflation, and a lack of supply-side surprises could bring about the soft landing we’ve been hoping for – and the end of mortgage rate increases for Boston homebuyers.
A Closer Look at Housing
Housing-family market dried up considerably, responding to skyrocketing interest and mortgage rates that stemmed from monetary policy. Transaction volumes for Boston condo sales dipped in December versus same time last year. Boston condo owners are reluctant to leave their low-rate mortgages to become sellers, and perspective condominium buyers are having affordability issues with these new mortgage rates. Median Boston condo sale prices fell in December with demand.
As significant as the shift in the Boston condo for sale market seems, it’s more of a normalization than a crash. Market dynamics are coming back into alignment with labor markets and incomes. But not as much as needed has been a hot button issue in the media this year – Massachusetts population decline, work-from-home measures, and affordability policies have all been leading in the local news. And when one of these factors shifts, it has a ripple effect on the others.
The Boston rental market has lagged behind its Boston condo counterpart, and we’ve yet to see widespread rent declines throughout the downtown Boston area.
Moody’s Analytics Baseline for 2023
Top economists’ forecast calls for cautious optimism. “The continuation of current trends in low energy prices, supply chain stability, modest wage growth, and softening consumer spending will bring inflation on a path back towards the Fed’s comfort zone of 2-3%. There is even an outside chance rates could reverse their course later in the year.“
What does this all mean? If this forecast holds true, overall shortages and trouble within Boston condominium market will stabilize for now.
In order for Boston apartment rents to fall, it would require a larger hit to wage and employment than we’re currently seeing. The Boston condo market will likely tick up again in Summer 2023. This, in turn, will ease apartment rental demand, bringing 2023 rent growth to about 3-4%.
Boston condos and apartment rental market
An outright freefall for the Boston condo and apartment sectors is unlikely as both continue their long-term evolutions.
Boston Real Estate Blog Updated 2025
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