Boston real estate 2026 predictions

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Boston real estate 2026 predictions

The real estate market was largely frozen in 2025. Boston condo sales continued to slow, as low inventory, high prices and relatively expensive mortgage rates kept many would-be homebuyers locked out of the market. The annual buyer and seller profile from the National Association of REALTORS® found the share of first-time buyers to be at its lowest level in history, as the median age of these buyers hit a record high of 40.

Fed Cuts

A pair of highly anticipated Fed rate cuts in the fall, alongside some price softening and inventory increases, pointed to what many expect to be a return to normalcy after five years of pandemic-driven disruptions. What other changes might be in store for 2026? Boston Agent asked some of the area’s top brokerage executives, mortgage lenders and developers for their predictions for the coming year. Will the industry return to “normal”? What are the keys for agents to have a successful year? What’s the mortgage rate outlook? What segments of the residential market are poised for growth?

Our contributors expressed cautious optimism for 2026, while also setting realistic expectations for what might lie ahead, given the numerous opportunities for disruption that are part and parcel of today’s economy. We thank all of them for taking the time to share their expertise with our audience.

How do you think buyer and seller expectations will evolve in 2026 compared to what we’ve seen over the past few years?

Colleen Barry: Our market has been shifting to a balanced state, and shifting markets create challenges. We need to bridge the gap between buyer and seller expectations. Buyers are reading that some markets have a year of inventory and steep discounts, but that is not happening in our region. Meanwhile, some sellers still believe we are in the fierce seller’s market we experienced during the pandemic, when homes received multiple offers and sold far above asking price. That is also not typically happening in our region.

Pauline Bennett: Over the past few years, buyers have faced affordability challenges that reshaped how they approach homeownership. According to the 2025 Coldwell Banker American Dream Report, 84% of Americans are willing to make concessions, whether taking on side jobs, considering smaller homes or exploring more affordable submarkets, to make buying possible. This signals a shift toward strategic decision-making rather than waiting for “perfect.” Sellers, meanwhile, have become more attuned to these realities, understanding that flexibility on price or terms can keep transactions moving.

In 2026, we expect these behaviors to persist, with creativity continuing to define the market. Co-buying with family or friends, for example, is gaining traction among younger generations. Sellers will likely prioritize transparency and value-driven marketing to stand out in a competitive environment. The dream of homeownership isn’t fading, it’s evolving. Buyers and sellers who embrace adaptability and work with knowledgeable agents will be best positioned to succeed.

Nick Warren: By 2026, we’ll likely be operating in a more balanced market, one that favors neither buyers nor sellers as strongly as the extremes we’ve seen in recent years. We started to see that shift in 2025, especially in the city, and I expect it to continue. Sellers will need to be realistic about pricing and open to making adjustments when the market demands it. Gone are the days of listing high and expecting multiple offers overnight. Buyers, on the other hand, will regain some negotiating power, with contingencies, such as inspections, once again becoming a standard part of the process. Overall, both sides will need to focus on fundamentals: accurate pricing, strong presentation and a willingness to collaborate to get deals done.

What role do you see AI, data analytics and emerging tech playing in how agents serve clients and run their businesses in 2026?

Barry: There is tremendous opportunity to improve processes with AI. However, there is also significant risk in misusing it. Smart agents and brokerages will streamline operations to free up more time to tailor their services to each client. They may even use AI to uncover new services that resonate with consumers. But others may relinquish too much control of their communications and advisory expertise to AI. Removing the human element, which clients value, leaves room for error and erodes trust. 

Bennett: Beyond efficiency, AI and data analytics empower agents to deliver hyperlocal insights and anticipate client needs with precision. We’re also seeing agents leverage AI for content creation, SEO and even automated client updates, innovations that free up time for what matters most: building relationships. As consumer behavior shifts toward AI-driven search, agents who embrace these tools will maintain visibility and relevance.

By 2026, tech will be less about replacing the human touch and more about amplifying it. Purposeful technology, combined with professional expertise, will help agents guide clients confidently through complex decisions. Our commitment is to equip agents with practical, scalable solutions so they can stay ahead of the curve while keeping trust and personalization at the center.

Warren: AI and data analytics are quickly becoming essential tools for agents who want to stay relevant. The most forward-thinking agents are using them to create content, analyze market trends, personalize client experiences and streamline their operations. It’s not about replacing the human touch; it’s about enhancing it. Those who embrace technology will deliver faster, smarter and more informed service to their clients. The agents who ignore it risk being left behind. By 2026, the divide between those two groups will be even more noticeable.

What steps will the industry need to take in 2026 to strengthen consumer trust and reinforce the value of Realtor representation?

Barry: Customers are looking for honest, transparent and experienced representation — and the recent regulatory shifts have made that clear. They want professionals who are responsive and capable of guiding them to the smartest move at the right time and under the best terms. Those who focus on the needs and goals of the consumer will earn trust, loyalty and long-term relationships. 

Bennett: Agents play a critical role in helping consumers navigate complexity, from understanding concessions to exploring creative paths like co-buying. To reinforce value, the industry must double down on education, transparency and advocacy. That means equipping agents with data-driven insights, elevating professional standards and communicating the tangible benefits of representation, such as negotiation expertise and risk mitigation.

Warren: It all comes down to education and transparency. Consumers deserve agents who can explain the “why” behind every recommendation, not just the “what.” We need to focus on producing content that helps buyers and sellers make sense of the process, not just content that promotes ourselves or our sales numbers. The more value and clarity we provide upfront, the more trust we establish in the long term. Agents who position themselves as educators and advisors, not just facilitators, will be the ones who elevate the profession and rebuild confidence in our industry.

Will Boston be a buyer’s or a seller’s market in 2026?

Barry: The 2026 market will likely be strong and balanced, driven by a few factors. First, there is growing demand from first-time buyers who are seeing more stable price gains than we experienced during the pandemic. Some are bringing cash to the table, in part due to the historic generational wealth transfer that is sweeping the globe. Second, most predictions point to lower mortgage rates in 2026, which will help ease the logjam created by homeowners who are sitting on properties with historically low rates. Finally, increasing inventory will give buyers more choices. Well-prepared properties in good condition will see quicker sales and higher prices. The fierce seller’s market we have experienced since the pandemic has intimidated some buyers. However, growing inventory moves us toward a more balanced market where both sides can win.

Bennett: Buyers are adapting, willing to make concessions, explore alternative ownership models and even delay major life milestones to achieve homeownership. Recent reports have demonstrated how buyers who purchased starter homes during the pandemic era are turning to renovations as a more affordable alternative to foregoing their historically low mortgage rates. Younger prospective buyers are likely to find other creative ways to make their move, such as co-buying with friends and family. 

Sellers, meanwhile, are navigating a market where pricing strategy and presentation matter more than ever. Whether conditions lean toward buyers or sellers in 2026 will depend on inventory and affordability trends, but one constant remains: Boston’s appeal. With strong economic fundamentals and cultural vibrancy, demand isn’t going away. The best approach for both sides is to stay informed, flexible and work with trusted professionals who can guide them through evolving conditions.

Warren: Boston has already shifted toward a buyer’s market in many neighborhoods, with months of inventory creeping above four months in several areas. I don’t expect that trend to reverse dramatically. The suburbs have held stronger, but even there, we’re starting to see more listings and longer days on market. If interest rates continue to drop, we might see things even out into a more balanced market, but the days of heavy seller dominance are likely behind us, at least for the near term.

How will the Clear Cooperation Policy/private listings debates evolve in 2026?

Barry: In the entry-level and midprice segments, growing inventory will give buyers more choices, and they won’t need to experience the hassle of seeking out private listings. Sellers who keep their listings private may risk missing opportunities to sell quickly and for more money. At the highest price points, we will still see private listings from those with complicated needs or significant privacy concerns. Ultimately, the open market continues to be the best path to achieving the strongest price and terms.

Warren: It’s tough to predict precisely how the CCP and private listings debate will play out, especially with some decisions possibly ending up in court. However, as the market becomes more balanced, or even buyer-leaning, limiting a listing’s exposure doesn’t serve the seller’s best interests. Sellers want as many qualified buyers as possible to view their property. My personal view? The debate has become more of a distraction than a productive conversation. Agents would be better off channeling that energy into improving their marketing, sharpening their skills and focusing on what truly matters: helping their clients succeed.

Peace be with you

Updated: Boston Real Estate Blog 2025

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Ford Realty Beacon Hill – Condo for Sale Office

Updated: Boston Condos for Sale Blog 2025

Byline – John Ford Boston Beacon Hill Condo Broker 137 Charles St. Boston, MA 02114

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