Today’s Boston real estate market is nothing like the 2008 market. When an economic slowdown happens, it won’t resemble the last one.

No one knows for sure when the next recession will occur. What is known, however, is that the upcoming economic slowdown will not be caused by a housing market crash, as was the case in 2008. There are those who disagree and are comparing today’s Boston real estate market to the market in 2005-2006, which preceded the crash. In many ways, however, the market is very different now. Here are three suppositions being put forward by some, and why they don’t hold up regarding the Boston condo for sale market.

SUPPOSITION #1

A critical warning sign last time was the surging gap between the growth in home prices and household income. Today, home values have also outpaced wage gains. As in 2006, a lack of affordability will kill the market.

Counterpoint

The “gap” between wages and home price growth has existed since 2012. If that is a sign of a recession, why didn’t we have one sometime in the last seven years? Also, a buyer’s purchasing power is MUCH GREATER today than it was thirteen years ago. The equation to determine affordability has three elements:  Boston condo for sale prices, wages, AND MORTGAGE INTEREST RATES. Today, the mortgage rate is about 3.5% versus 6.41% in 2006.

SUPPOSITION #2

In 2018, as in 2005, housing-price growth began slowing, with significant price drops occurring in some major markets. Look at Manhattan where home prices are in a “near free-fall.”

Counterpoint

The only major market showing true depreciation is Seattle, and it looks like home values in that city are about to reverse and start appreciating again. CoreLogic is projecting home price appreciation to reaccelerate across the country over the next twelve months.

Regarding Manhattan, home prices are dropping because the city’s new “mansion tax” is sapping demand. Additionally, the new federal tax code that went into effect last year continues to impact the market, capping deductions for state and local taxes, known as SALT, at $10,000. That had the effect of making it more expensive to own homes in states like New York.

SUPPOSITION #3

Boston condo for sale prices will crash because that is what happened during the last recession.

Counterpoint

It is true that home values sank by almost  20% during the 2008 recession nationwide, but that didn’t happen in downtown Boston real estate market. However, it is also true that in the four previous recessions, home values depreciated only once (by less than 2%). In the other three, residential real estate values increased by 3.5%, 6.1%, and 6.6%.

Price is determined by supply and demand. In 2008, there was an overabundance of housing inventory (a 9-month supply). Today, housing inventory is less than half of that (a 4-month supply).

Bottom Line

We need to realize that today’s Boston real estate for sale market is nothing like the 2008 market. Therefore, when a recession occurs, it won’t resemble the last one.

Boston Real Estate for Sale and Apartments for Rent

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129 Results
0
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0
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9,999
SqFt
 
 
 
#72624581 | Condo
 
0
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0
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140
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#72624641 | Condo
 
3
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1
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814
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#72622601 | Condo
 
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1
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410
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#72622990 | Condo
 
3
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1
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997
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Open House: Feb 27, 2020 5:30 PM - 7:00 PM
 
#72622864 | Condo
 
2
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1
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976
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Open House: Feb 29, 2020 11:30 AM - 1:00 PM
 
#72622212 | Condo
 
2
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1
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734
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Open House: Feb 29, 2020 12:00 PM - 2:00 PM
 
#72623932 | Condo
 
1
Beds
1
Baths
753
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Open House: Feb 29, 2020 12:00 PM - 1:30 PM
 
#72623687 | Condo
 
1
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1
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500
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#72623090 | Condo
 
1
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1
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425
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(8)
Open House: Feb 29, 2020 12:00 PM - 2:00 PM
 
#72623452 | Condo
 
2
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1
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999
SqFt
(37)
 
 
#72622197 | Condo
 
2
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1
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1,118
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(21)
Open House: Feb 29, 2020 11:00 AM - 1:00 PM
 
#72624808 | Condo
 
3
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1 | 1
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1,719
SqFt
(24)
Open House: Feb 29, 2020 11:30 AM - 1:00 PM
 
#72623852 | Condo
 
1
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1
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615
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(16)
Open House: Mar 1, 2020 11:00 AM - 12:00 PM
 
#72622176 | Condo
 
3
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1
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1,042
SqFt
(22)
Open House: Feb 29, 2020 11:00 AM - 12:30 PM
 
#72624228 | Condo
 
2
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1
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1,020
SqFt
(22)
Open House: Feb 29, 2020 12:00 PM - 1:00 PM
 
#72624024 | Condo
 
2
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2
Baths
1,155
SqFt
(8)
Open House: Feb 29, 2020 11:00 AM - 12:30 PM
 
#72622711 | Condo
 
2
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1
Baths
907
SqFt
(16)
Open House: Feb 29, 2020 12:00 PM - 2:00 PM
 
#72623680 | Condo
 
1
Beds
1
Baths
619
SqFt
(8)
Open House: Feb 29, 2020 12:00 PM - 2:00 PM
 
#72623984 | Condo
 
1
Beds
1
Baths
705
SqFt
(14)
Open House: Mar 1, 2020 12:00 PM - 1:30 PM
 
#72623987 | Condo
 
1
Beds
1
Baths
644
SqFt
(18)
Open House: Mar 1, 2020 12:30 PM - 1:30 PM
 
#72624904 | Condo
 
3
Beds
3
Baths
1,164
SqFt
(42)
Open House: Feb 29, 2020 11:00 AM - 12:30 PM
 
#72624144 | Condo
 
1
Beds
1
Baths
650
SqFt
(13)
Open House: Feb 28, 2020 5:00 PM - 6:00 PM
 
#72623415 | Condo
 
2
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2
Baths
1,051
SqFt
(17)
Open House: Feb 29, 2020 11:30 AM - 1:00 PM
 
#72623708 | Condo
 
2
Beds
1
Baths
1,218
SqFt
(15)
Open House: Feb 29, 2020 12:00 PM - 1:30 PM
 
#72624573 | Condo
 
2
Beds
1
Baths
1,236
SqFt
(12)
Open House: Feb 29, 2020 1:00 PM - 2:00 PM
 
#72624584 | Condo
 
2
Beds
1 | 1
Baths
1,294
SqFt
 
 
 
#72622772 | Condo
 
2
Beds
1
Baths
1,079
SqFt
(9)
Open House: Feb 29, 2020 12:30 PM - 2:00 PM
 
#72623617 | Condo
 
2
Beds
1
Baths
1,069
SqFt
(18)
Open House: Feb 27, 2020 12:00 PM - 1:00 PM
 
#72622988 | Condo
 
1
Beds
1
Baths
475
SqFt
(7)
Open House: Mar 1, 2020 11:00 AM - 12:00 PM
 
#72623486 | Condo
 
2
Beds
1
Baths
807
SqFt
(15)
Open House: Mar 1, 2020 12:00 PM - 1:30 PM
 
#72622387 | Condo
 
2
Beds
2
Baths
1,110
SqFt
(23)
Open House: Feb 29, 2020 12:00 PM - 2:00 PM
 
#72624710 | Condo
 
1
Beds
1
Baths
675
SqFt
(16)
Open House: Mar 1, 2020 11:30 AM - 12:30 PM
 
#72624098 | Condo
 
4
Beds
3
Baths
2,266
SqFt
(33)
Open House: Feb 29, 2020 11:00 AM - 12:30 PM
 
#72623113 | Condo
 
3
Beds
2
Baths
1,040
SqFt
(16)
 
 
#72622052 | Condo
 
1
Beds
1
Baths
698
SqFt
(15)
Open House: Mar 1, 2020 11:00 AM - 1:00 PM
 
#72624167 | Condo
 
0
Beds
1
Baths
521
SqFt
(12)
Open House: Feb 29, 2020 12:00 PM - 1:00 PM
 
#72621942 | Condo
 
2
Beds
2 | 1
Baths
1,791
SqFt
(21)
Open House: Feb 29, 2020 1:00 PM - 2:30 PM
 
#72624073 | Condo
 
1
Beds
1 | 1
Baths
659
SqFt
(11)
Open House: Feb 27, 2020 12:00 PM - 1:00 PM
 
#72624788 | Condo
 
2
Beds
1
Baths
972
SqFt
(24)
Open House: Feb 29, 2020 12:00 PM - 1:30 PM
 
#72624319 | Condo
 
1
Beds
1
Baths
526
SqFt
(7)
Open House: Mar 1, 2020 12:15 PM - 1:30 PM
 
#72595097 | Condo
 
2
Beds
2
Baths
968
SqFt
(5)
 
 
#72624562 | Condo
 
3
Beds
2
Baths
1,240
SqFt
(14)
 
 
#72624428 | Condo
 
5
Beds
2
Baths
2,053
SqFt
(27)
Open House: Feb 29, 2020 11:00 AM - 1:00 PM
 
#72624798 | Condo
 
2
Beds
2
Baths
1,209
SqFt
(40)
Open House: Mar 1, 2020 12:00 PM - 2:00 PM
 
#72624377 | Condo
 
3
Beds
1 | 1
Baths
2,000
SqFt
(36)
Open House: Feb 27, 2020 12:00 PM - 1:30 PM
 
#72623884 | Condo
 
1
Beds
1 | 1
Baths
915
SqFt
(12)
Open House: Mar 1, 2020 12:00 PM - 1:00 PM
 
#72624453 | Condo
 
1
Beds
1 | 1
Baths
1,276
SqFt
(12)
Open House: Feb 29, 2020 11:30 AM - 1:30 PM
 
#72623561 | Condo
 
3
Beds
1
Baths
889
SqFt
(18)
Open House: Feb 29, 2020 11:30 AM - 1:00 PM
 
#72605905 | Condo
 
1
Beds
2
Baths
1,071
SqFt
(26)
 
 
#72621914 | Condo
 
0
Beds
1
Baths
708
SqFt
(7)
Open House: Feb 29, 2020 12:00 PM - 1:00 PM
 
#72622425 | Condo
 
2
Beds
1 | 1
Baths
1,120
SqFt
(24)
Open House: Feb 29, 2020 12:00 PM - 2:00 PM
 
#72623978 | Condo
 
2
Beds
1
Baths
626
SqFt
(8)
Open House: Feb 29, 2020 11:00 AM - 12:00 PM
 
#72623150 | Condo
 
1
Beds
1
Baths
767
SqFt
(18)
Open House: Feb 27, 2020 12:00 PM - 1:00 PM
 
#72624677 | Condo
 
2
Beds
2
Baths
817
SqFt
(13)
Open House: Feb 29, 2020 11:00 AM - 1:00 PM
 
#72623018 | Condo
 
2
Beds
1
Baths
910
SqFt
(26)
Open House: Feb 29, 2020 1:00 PM - 3:00 PM
 
#72624852 | Condo
 
2
Beds
1 | 1
Baths
980
SqFt
(22)
Open House: Feb 28, 2020 4:30 PM - 5:30 PM
 
#72623511 | Condo
 
2
Beds
2 | 1
Baths
1,180
SqFt
(23)
 
 
#72622350 | Condo
 
1
Beds
1
Baths
816
SqFt
(13)
Open House: Feb 28, 2020 11:30 AM - 12:30 PM
 
#72621484 | Condo
 
1
Beds
1
Baths
717
SqFt
(15)
Open House: Mar 1, 2020 11:00 AM - 1:00 PM
 
#72624163 | Condo
 
3
Beds
2
Baths
1,553
SqFt
(37)
Open House: Feb 27, 2020 11:00 AM - 11:30 AM
 
#72623940 | Condo
 
2
Beds
3
Baths
1,487
SqFt
(28)
Open House: Feb 29, 2020 12:00 PM - 2:00 PM
 
#72624489 | Condo
 
2
Beds
1
Baths
789
SqFt
(11)
 
 
#72622356 | Condo
 
2
Beds
1
Baths
805
SqFt
(22)
Open House: Mar 1, 2020 12:00 PM - 2:00 PM
 
#72624072 | Condo
 
3
Beds
3 | 1
Baths
1,583
SqFt
(26)
Open House: Mar 1, 2020 1:00 PM - 2:30 PM
 
#72581586 | Condo
 
1
Beds
1
Baths
897
SqFt
(15)
Open House: Mar 1, 2020 12:00 PM - 1:00 PM
 
#72623105 | Condo
 
2
Beds
2
Baths
1,040
SqFt
(26)
Open House: Feb 29, 2020 11:00 AM - 1:00 PM
 
#72624258 | Condo
 
3
Beds
2
Baths
1,462
SqFt
(2)
Open House: Feb 29, 2020 11:00 AM - 12:00 PM
 
#72624634 | Condo
 
3
Beds
1
Baths
765
SqFt
(19)
Open House: Feb 29, 2020 11:30 AM - 1:00 PM
 
#72624117 | Condo
 
2
Beds
1 | 1
Baths
825
SqFt
(18)
Open House: Feb 29, 2020 12:30 PM - 2:00 PM
 
#72623833 | Condo
 
2
Beds
1
Baths
885
SqFt
(23)
Open House: Mar 1, 2020 12:30 PM - 2:00 PM
 
#72624216 | Condo
 
2
Beds
2
Baths
1,036
SqFt
(11)
Open House: Mar 1, 2020 11:15 AM - 12:30 PM
 
#72624946 | Condo
 
3
Beds
2
Baths
1,562
SqFt
(20)
Open House: Feb 29, 2020 11:00 AM - 1:00 PM
 
#72624444 | Condo
 
2
Beds
1
Baths
793
SqFt
(19)
Open House: Feb 29, 2020 11:00 AM - 12:30 PM
 
#72624580 | Condo
 
2
Beds
2
Baths
1,191
SqFt
(18)
Open House: Feb 29, 2020 11:30 AM - 1:30 PM
 
#72623857 | Condo
 
1
Beds
1
Baths
1,089
SqFt
(25)
 
 
#72622405 | Condo
 
3
Beds
2
Baths
1,450
SqFt
(26)
Open House: Mar 1, 2020 12:00 PM - 2:00 PM
 
#72624341 | Condo
 
1
Beds
1
Baths
776
SqFt
(15)
Open House: Mar 7, 2020 11:00 AM - 1:00 PM
 
#72624170 | Condo
 
2
Beds
2
Baths
1,075
SqFt
(14)
Open House: Feb 29, 2020 12:00 PM - 1:00 PM
 
#72624276 | Condo
 
2
Beds
1
Baths
790
SqFt
(29)
Open House: Feb 29, 2020 12:00 PM - 1:00 PM
 
#72624017 | Condo
 
2
Beds
2
Baths
1,078
SqFt
(28)
 
 
#72623339 | Condo
 
2
Beds
2
Baths
796
SqFt
(25)
 
 
#72622467 | Condo
 
2
Beds
2
Baths
1,030
SqFt
(13)
Open House: Mar 1, 2020 1:00 PM - 2:00 PM
 
#72623703 | Condo
 
2
Beds
1
Baths
969
SqFt
(19)
Open House: Mar 1, 2020 11:00 AM - 12:30 PM
 
#72624758 | Condo
 
2
Beds
2
Baths
1,227
SqFt
(20)
 
 
#72623370 | Condo
 
2
Beds
2
Baths
1,074
SqFt
(27)
 
 
#72623677 | Condo
 
2
Beds
2
Baths
1,369
SqFt
(20)
 
 
#72623796 | Condo
 
2
Beds
2 | 1
Baths
1,380
SqFt
(21)
Open House: Feb 29, 2020 11:30 AM - 1:00 PM
 
#72624708 | Condo
 
2
Beds
1
Baths
1,063
SqFt
(10)
Open House: Mar 1, 2020 11:30 AM - 12:30 PM
 
#72622020 | Condo
 
2
Beds
1
Baths
955
SqFt
 
 
 
#72621849 | Condo
 
2
Beds
2 | 1
Baths
1,210
SqFt
(24)
Open House: Feb 29, 2020 12:00 PM - 1:30 PM
 
#72624366 | Condo
 
2
Beds
2
Baths
1,066
SqFt
(33)
 
 
#72624206 | Condo
 
2
Beds
2
Baths
1,245
SqFt
(7)
 
 
#72623313 | Condo
 
2
Beds
2
Baths
1,070
SqFt
(14)
Open House: Mar 1, 2020 1:30 PM - 3:30 PM
 
#72624678 | Condo
 
2
Beds
2
Baths
1,530
SqFt
(29)
Open House: Feb 29, 2020 12:00 PM - 2:00 PM
 
#72623936 | Condo
 
2
Beds
2 | 1
Baths
1,521
SqFt
(30)
Open House: Mar 1, 2020 11:00 AM - 12:30 PM
 
#72624659 | Condo
 
2
Beds
2
Baths
929
SqFt
(18)
Open House: Feb 29, 2020 12:00 PM - 2:00 PM
 
#72623251 | Condo
 
2
Beds
2
Baths
1,126
SqFt
(15)
Open House: Mar 1, 2020 11:00 AM - 1:00 PM
 
#72624171 | Condo
 
2
Beds
1
Baths
920
SqFt
(24)
Open House: Mar 1, 2020 12:45 PM - 2:30 PM
 
#72623653 | Condo
 
2
Beds
2
Baths
1,211
SqFt
(26)
 
 
#72624440 | Condo
 
2
Beds
1 | 1
Baths
1,174
SqFt
(27)
Open House: Feb 27, 2020 12:00 PM - 1:30 PM
 
#72624350 | Condo
 
2
Beds
2
Baths
1,075
SqFt
(29)
 
 
#72623700 | Condo
 
2
Beds
2
Baths
1,453
SqFt
(10)
Open House: Mar 1, 2020 11:00 AM - 12:30 PM
 
#72624844 | Condo
 
3
Beds
2
Baths
2,334
SqFt
(39)
 
 
#72622031 | Condo
 
2
Beds
2
Baths
1,206
SqFt
(17)
Open House: Feb 29, 2020 11:00 AM - 1:00 PM
 
#72624166 | Condo
 
2
Beds
2
Baths
1,251
SqFt
(17)
Open House: Feb 29, 2020 12:30 PM - 2:30 PM
 
#72624175 | Condo
 
2
Beds
2
Baths
1,419
SqFt
(19)
Open House: Mar 1, 2020 11:00 AM - 12:30 PM
 
#72623645 | Condo
 
3
Beds
2
Baths
1,380
SqFt
(21)
Open House: Feb 27, 2020 5:00 PM - 6:30 PM
 
#72624266 | Condo
 
2
Beds
2
Baths
1,321
SqFt
(19)
 
 
#72624900 | Condo
 
3
Beds
2 | 1
Baths
1,694
SqFt
(28)
 
 
#72624862 | Condo
 
2
Beds
2 | 1
Baths
1,290
SqFt
(18)
 
 
#72622979 | Condo
 
2
Beds
2 | 1
Baths
1,866
SqFt
(24)
Open House: Mar 1, 2020 12:30 PM - 1:30 PM
 
#72622269 | Condo
 
3
Beds
2
Baths
1,430
SqFt
(25)
Open House: Feb 29, 2020 1:15 PM - 2:30 PM
 
#72621867 | Condo
 
2
Beds
2
Baths
1,498
SqFt
(24)
 
 
#72623979 | Condo
 
2
Beds
2
Baths
1,825
SqFt
(25)
Open House: Feb 29, 2020 11:00 AM - 12:30 PM
 
#72624812 | Condo
 
2
Beds
2
Baths
1,574
SqFt
(27)
 
 
#72622645 | Condo
 
3
Beds
2
Baths
1,943
SqFt
(24)
 
 
#72624346 | Condo
 
2
Beds
2 | 1
Baths
1,971
SqFt
(15)
 
 
#72624446 | Condo
 
2
Beds
1 | 1
Baths
2,124
SqFt
(16)
 
 
#72622741 | Condo
 
3
Beds
3 | 1
Baths
2,381
SqFt
(25)
 
 
#72623371 | Condo
 
2
Beds
2
Baths
1,707
SqFt
(29)
Open House: Mar 1, 2020 12:30 PM - 1:30 PM
 
#72623131 | Condo
 
2
Beds
2 | 1
Baths
1,514
SqFt
(18)
 
 
#72623016 | Condo
 
2
Beds
2 | 1
Baths
1,589
SqFt
(11)
 
 
#72623726 | Condo
 
3
Beds
3
Baths
1,741
SqFt
(14)
 
 
#72623359 | Condo
 
2
Beds
2 | 1
Baths
1,764
SqFt
(42)
 
 
#72622438 | Condo
 
3
Beds
3
Baths
1,839
SqFt
(14)
 
 
#72622866 | Condo
 
4
Beds
4 | 2
Baths
4,150
SqFt
(26)
 
 
#72623282 | Condo
 
4
Beds
3 | 1
Baths
3,257
SqFt
(29)
 
 
#72623334 | Condo
 
4
Beds
3 | 1
Baths
3,960
SqFt
(42)
 
 
#72624397 | Condo
 
© 2020 MLS Property Information Network, Inc. (MLSPIN). All rights reserved.
The property listing data and information set forth herein were provided to MLS Property Information Network, Inc. from third party sources, including sellers, lessors and public records, and were compiled by MLS Property Information Network, Inc. The property listing data and information are for the personal, non commercial use of consumers having a good faith interest in purchasing or leasing listed properties of the type displayed to them and may not be used for any purpose other than to identify prospective properties which such consumers may have a good faith interest in purchasing or leasing. MLS Property Information Network, Inc. and its subscribers disclaim any and all representations and warranties as to the accuracy of the property listing data and information set forth herein.
MLS PIN data last updated at February 27, 2020 9:24 AM ET

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