When the Federal Reserve slashed interest rates early in the pandemic, it was the opportunity of a lifetime for Boston condo buyers who took advantage of the cheap financing that was available.
Two years later, interest rates are spiking and prices remain stubbornly high in the Boston condo-for-sale market.
The simple answer is that it is not good. First-time homebuyers are seeing an increase in the interest mortgage rates and a slowdown in sales activity which has not coincided with a decline in prices.
Secondly, fewer people are listing their homes right now. Those who were able to refinance and lock in low mortgage rates over the last two years have little incentive to move. If they did, an identical Boston condo for sale would cost a lot more.
They’re just better off staying put and keeping their mortgage rate than moving and trying to buy something else.