Boston condos for sale are moving towards a more balanced market
Balance is returning to the real estate market as homebuyers finally start finding some relief, according to a new Redfin report.
Sellers are slashing prices at a record rate, inventories are increasing, competition is declining, and mortgage rates are starting to drop following months of increases, the report found.
In the four weeks ended July 3, a record high number of sellers dropped their asking prices, and homes selling for above asking fell for the first time since June of 2020.
Redfin chief economist Daryl Fairweather said signs are pointing to improving conditions for homebuyers.
“Housing remains expensive, but mortgage rates just posted their biggest weekly drop since 2008, which makes buying a home a bit more affordable,” he said. “One way buyers can take advantage of the shift in the market is seeking concessions from sellers. That could include asking the seller to buy down your mortgage rate, pay for repairs or cover some of your closing costs.”
Redfin found fewer Google searches for “homes for sale” during the week ended July 2, down 2% from a year earlier. Its Homebuyer Demand Index, which measures requests for home tours and other services, fell 15% year over year during the week ended July 3.
Additionally, mortgage applications fell 17% from last year during the week ended July 3, as the 30-year mortgage fell to 5.3% for the week ended July 7, the largest one-week drop since 2008, and down from a 2022 high of 5.81%, while still up from 3.11% at the beginning of the year. With that, the monthly mortgage payment on a median asking-price home fell slightly to $2,342, which was still up 40% from $1,668 a year earlier, when mortgage rates were 2.9%.
In the four weeks ended July 3, active listings fell 2% year over year (the smallest decline since Oct. 2019). The median asking price rose 15% from 2021 to $399,973, but was down 2.1% from the all-time high set during the four weeks ended June 5. Meanwhile, the median sale price increased 3% year over year to $396,000. The report also noted this growth rate is down from March’s 16% peak.
Forty-five percent of homes went under contract with an accepted offer within the first two weeks of being listed, down from 49% last year. Thirty-two percent of homes went under contract with an accepted offer within one week, down from 35% in 2021.s
Homes remained on the market a median of 18 days, flat from 2021 and up slightly from May and early June’s record low of 15 days. Fifty-two percent of homes sold above list price, down from 53% a year earlier.
Updated: Boston Real Estate Blog 2022
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Boston Condos for Sale are Moving Towards a More Balanced Market
Predicting how the real estate market will perform is like looking into a crystal ball. So, the best way to forecast how 2019 is by taking a look back at trends from the previous year.
2019, New Market
Last year truly was split down the middle with two distinct tales. The first half of the year kicked off with the same flurry of Boston condos for sale excitement . By late 2018, Boston condo for sale inventory jumped. At that time, the adjustment formally commenced and, since, conditions have been moving toward a more balanced market.
Home Sellers are Still in Control, with One Exception
Despite what feels of a market shift, Boston midtown condo sellers are still in control in all housing price ranges
Surprisingly, Home Prices Continued to Rise
With home sales evening out and inventory up, it might not make a lot of sense for Boston condo for sale prices to be up, but they continued to rise..
Notably, though, with more competition, many downtown Boston condo sellers have recently had to make price reductions for the first time in years.
Overall, a more balanced market is a good thing as we are shifting to a bit more normalcy. The Boston Beacon Hill condo housing market is still hot, albeit inventory is starting to rise which offers exceptional opportunities for homebuyers and sellers alike.