Boston Condos for Sale and Apartments for Rent
Is the housing market slowing down?
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Increasing evidence shows the housing market is finally slowing down. That doesn’t mean prices are coming down, though. Especially in the Boston condo for sale market according to Cas-Shiller prices in June rose over 14%.
The S&P CoreLogic Case-Shiller Index posted an 18 percent annual gain in June, down from the 19.9 percent increase in May. It was the third straight month of deceleration, meaning home price growth was less stark than the previous month.
Prior to the spring, there hadn’t been any signs of deceleration since November. After three straight months of slowing growth, though, it’s beginning to look like the market is normalizing as increased mortgage rates and inflation pinch buyers.
Grow is easing but prices are still up
While Boston’s condominium growth is easing, overall prices are up considerably. Further, appreciation is still happening on a monthly basis, but at a slower clip than before. And even the decelerating growth in recent months is high from a historical perspective.
Home prices went through the roof at the start of the pandemic as buyers flocked to larger spaces farther away from their offices. Low inventory is one contributing factor that has kept prices growing.
Americans’ buying power has been hindered by the rise in mortgage rates, though, which have grown significantly since January. As a result, demand for mortgages is falling off. Fewer mortgages mean fewer sales, which causes less force to push prices upward.
