Cash Buyers vs First-Time Home Buyers
Boston Condos for Sale and Apartments for Rent
Cash Buyers vs First-Time Home Buyers
This is a good time to buy a Boston condo for sale if you can pay cash. Higher interest rates have slowed home sales and have made housing even more unaffordable. While it is true that rates were higher in the 1980s it is also true that Boston condos were less expensive as compared with household income.
Current rates are more than 7%. If I were a Boston condo for sale buyer I would wait until the president reduces interest rates before buying a home. Sure loans can be refinanced but that is an added expense. A change in circumstances, such as a job loss, can mean a borrower won’t qualify for a new home loan.
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Where is Ford Realty Located?
Ford Realty is located at 137 Charles Street in Beacon Hill
Byline – John Ford – Boston Seaport Condo Broker 2025.
Boston Condos for Sale and Apartment Rentals
Ford Realty Inc., Boston Real Estate for Sale
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Updated: Boston Real Estate 2025
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Cash Buyers vs First-Time Home Buyers
First time home buyers competing with baby boomers
First-time Boston condo buyers looking for a Boston Seaport condo or Back Bay home are often competing with older homebuyers who want to downsize. This has been the trend for the past few years.
The younger buyer sometimes has an advantage because they don’t have a home to sell and some older buyers have an advantage because they can pay cash.
The number of cash purchases is up. In 2021 about 30% of home purchases were cash which is up from 2020 when it was less than 25%.
There are also investors who can pay cash and the number of Boston condos for sale that is being bought by investors is rising.
The only upside to the situation is that when people downsize they often have a house to sell.
What will the future Boston condo market be like?
In the next 8 to 10 years we should start to see a shift in the housing market as more baby boomers reach their 80s and in twenty years there may even be more condominiums for sale than there are Boston condo buyers
Boston Condos for Sale and the Bottom Line.
The best way for buyers to navigate the housing market this spring is to be flexible and ready to act quickly. Take advantage of holiday weekends and stay in town and make an offer. Affordable Boston condos for sale often go on the market on Thursday with offers due by Sunday.
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Cash Buyers vs First-Time Home Buyers
I have noticed that investors have reemerged in the Boston condo market (condos below $400,000), triggering in some cases bidding wars in some neighborhoods. For example, over the holiday weekend, Vilma in my office, had several offers on a small studio located at 21 Beacon Street, which prompted interest from both first-time homebuyers and cash investors.
With Boston condo prices down from their peaks, all-cash investors appear to be snapping up the cheapest properties and helping clear out the excess supply of low-priced Boston condos on the market. They’re betting that the market has hit bottom or will soon.
But that’s of little consolation to traditional home buyers, who find themselves at a disadvantage because their offers usually hinge on financing contingencies, appraisals and home inspections. I also noticed some sellers will actually accept a lower sales price over a traditional mortgage offer.
Just curious, has anyone else been noticing this trend?
