Boston condo mortgage payment is up 15% since mid-August, climbing $337 to a new high of $2,547, according to a new Redfin report.
Pending home sales fell 21% year over year, the largest decline since May of 2020.
As Boston condo mortgage rates approach 7%, Redfin found potential homebuyers are delaying or canceling plans to make a purchase. That was increasingly evident in August as pending home sales fell to their lowest level since the start of the year.
The number of homes selling above list price dropped to its lowest level in more than two years.
The market is reacting as homes are staying on the market longer and the number of sellers dropping their list price has reached its highest level since Redfin started tracking this data in 2015.
Home sellers need to adjust pricing immediately if you want to be competitive and attract offers from a smaller pool of qualified homebuyers,” he said. “If your home isn’t the ‘belle of the ball’ in your neighborhood, you’re going to need to cut the price to sell it.
Sellers should anticipate that buyers are unwilling or unable to pay a price similar to what their neighbor’s home sold for a month ago, and buyers should connect with their lenders to find ways to mitigate the impact of rising rates.
Google searches for “homes for sale” during the week ended Sept. 24, down 33% from last year. Its Homebuyer Demand Index, which measures requests for tours and other services, was down 13% from last year.