I just had a conversion with a Coldwell Banker broker and he claims that our exuberant Boston condo market is most likely heading for a slowdown in 2018.
I have to admit, the signs are out there: Interest rates are ticking up, with many forecasts predicting that we’ll be looking at four- to five-percent rates as the norm in the near future. And the stock market’s reaction to those rising rates has been fluctuating from one extreme to another. The Boston Realtors that I spoke with expect only a five percent price increase this year—nothing like our recent history.
With those signs comes a domino effect where buyer and seller behavior are concerned. The higher interest rates naturally lead to a situation where buyers are less willing to pay current prices. (It certainly feels like buyers are starting to reach their financial limits.)
Sellers start worrying about missing the top of the market. With that incentive, they decide to sell sooner rather than later, boosting inventory and easing housing demand. With fewer Boston condo buyers for each property, pricing begins to level off. Overbidding becomes far less dramatic, and listing agents begin advising sellers to price their homes closer to the targeted sale price than their wish price.
I’ve been selling residential real estate in Boston since 1998, and I have to admit that I’m seeing signs of a slowdown on a day-to-day basis. Some properties are sitting on the market longer than I would have expected, for example. But I personally believe that a more level market is healthier for buyers and sellers.
I’m not anticipating prices necessarily falling. But I do believe we’ll be seeing far less extreme overbidding, frenetic contingency-waiving contracts and maybe some Boston luxury condos—particularly in the $2M+ range—spending more time on the market.
My advice at the moment is to do business if you can. Need to move? Plan on putting your condominium on the market this Spring. (Now is the time to get the prep work going.) Want to buy a home? Assess what’s realistically in your price range, and decide whether that will work for you.
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SEARCH FOR CONDOS FOR SALE AND RENTALS
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For more information please contact one of our on-call agents at 617-595-3712.
Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs
In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.
For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.
Charles River Park
Surrounding Communities of Boston
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.
Ford Realty Inc
137 Charles Street
Boston, Ma 02114
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