Boston Condos for Sale and Apartments for Rent
Mortgage rates continue to rise into the 7% range, they haven’t been this high for over twenty years, but it’s far worse to be a Boston condo buyer now than then.
Today’s condominium buyers are still sticker-shocked by the memory of historically low rates when they could afford so much more two years ago. Those still on the hunt in today’s market are facing a major Boston housing inventory shortage as many homeowners keep their properties off the market, because they locked in on such low rates. That’s just pushed up Boston condo for sale prices higher at a rapid pace.
Add in high inflation and decades of stagnant wage growth, today Boston home buyers now have less purchasing power than twenty-some years ago, which has cascaded into an entrenched affordability crisis as rates rise.
So what’s the good news? I see wage growth growing in the net few years for both skilled contractors (plumbers, electricians etc.,) and for skilled white collar workers with useful business skills
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Expect bad news from the media on the Boston condo market, even though its not that bad
The downside to record-low interest rates is that they tend to go back up and when rates go up the media jumps on the bad news. The downside to a record-breaking year in home sales like 2021 is that if the next year isn’t even better the real estate news is all doom and gloom.
Boston condo sellers its not all gloom and doom
Much of the news about Boston condo sales and the housing market is grim yet homes sell for more today than they did in the fall of 2020, or in the fall of 2019. There have been times in my career when on average it took months or even a year to sell a house. Right now a downtown Boston condo priced right will sell in less than 30 days even in October.
Boston condo buyers less bidding wars more negotiations
If you are buying a condominium you may be able to negotiate and get the pre-pandemic price. You may also be able to get the seller to make some repairs or pay some closing costs or points.
Boston condos for sale and the Boston line
If you bought a Boston condo during the peak in 2021 don’t worry. It is going to be alright because of that loan you got with the super low-interest rate. Looking ahead I think 2023 will be more like 2019 than like 2021.
