Boston real estate predictions for the remainder of 2025
Boston Condos for Sale and Apartments for Rent
Boston real estate predictions for the remainder of 2025
Boston real estate predictions for the remainder of 2025
From rising Boston condo for sale prices to mortgage rate swings, the housing market has left a lot of people wondering what’s next – and whether now is really the right time to move. There is one place you can turn to for answers you want the most. And that’s the experts.
Leading housing experts are starting to release their projections for the rest of the year. These insights will give you clarity – and a little more optimism than you might expect. Business Insider sums up the forecasts (and why they’re good news for you):
“As mortgage rates go down this year, affordability may improve slightly for homebuyers. Inventory is also expected to grow, which should help moderate price growth and make finding a home easier.”
Let’s break it down.
1. Boston Condo Mortgage Rates Should Come Down (Slightly)
While a major drop isn’t on the table, forecasters are calling for a modest decline in rates in the months ahead as the economic outlook becomes more certain. Based on the information we have right now, here’s a look at where they say rates should be by year-end (see graph below):
Even this slight decrease is a welcome change. A seemingly small decline can still help bring down your future mortgage payment and give you a bit more breathing room in your budget.
Just remember, everything from inflation to employment and broader economic shifts will have an impact on where rates go from here. So, don’t try to time the market. And do expect some volatility along the way.
2. Boston Condo for Sale Inventory Will Continue To Grow
Boston condo for sale inventory has already improved a lot this year. A big portion of the growth the market has already seen is because homeowners are getting tired of sitting on the sidelines. They’ve tried the wait and see approach with rates, and it hasn’t really paid off. And at a certain point, you need to move no matter what the market is doing. This is one reason more homes have been listed lately. And experts say that should continue. As Lance Lambert, Co-founder of ResiClub, says:
“The fact that inventory is rising year-over-year . . . strongly suggests that national active housing inventory for sale is likely to end the year higher.”
If rate forecasts pan out as the experts say, that could be enough to tip some more sellers off the fence and back into the market – giving you even more options for your move.
3. Boston Home Prices Are Moderating
As more homes hit the market, there will also be less upward pressure on home prices. Expert forecasts are still calling for growth, but the pace of that growth is slowing down as inventory climbs. The average of all 7 forecasts shows prices will rise about 2% this year (see graph below):
That means you could finally get a little bit of relief from rapidly rising home prices. When you combine the forecast for healthier price growth with projections for slightly lower mortgage rates, that could mean more buying power in the months ahead.
Keep in mind, though, the housing market is hyper-local. So, this is going to vary by area. Some markets will see prices climbing higher. And some may even see prices dip a little if inventory is up significantly in that location. So, lean on a local agent for insights into what’s happening in your area.
Boston Condos and the Bottom Line
So, if you want or need to buy a Boston condo for sale this year, know that the experts say things should start looking up. And a Ford Realty agent can help you take advantage of any market shifts that work in your favor.
Boston real estate predictions for the remainder of 2025
Boston real estate predictions for the remainder of 2025
Peace be with you
Updated: Boston real estate blog 2025
Here’s where you can look at Ford Realty’s Google Reviews
Prediction 1: There may be less competition for higher priced homes
Mortgage rates are on the rise: Mortgage rates on a 30-year fixed-rate mortgage hit 5% this month, the first time that’s happened since 2011, and pros say they may keep going up. Most Boston condo buyers base their price range on how much they can afford every month and mortgage payments go up for a given loan size as rates increase. As a result, the increase in mortgage rates means that homebuyers will have to adjust their expectations, and begin shopping in lower priced Boston condos for sale. We might see less competition for Boston luxury condos and more competition for lower-priced homes.
Prediction 2: Rising mortgage rates may force some Boston condo buyers out of the market
Some Boston condo buyers will be forced out of the market because of the hit to affordability from rising interest rates. With Boston condos prices on the rise and an increase in interest rates now up to 5% will force some out of the Boston condo market.
Prediction 3: Boston condo prices will keep going up, but growth will slow
Boston real estate will go even higher over the coming year, Fortune reported this week. But the good news for Boston condo buyers is that home price growth may slow somewhat in 2022. Zillow says that annual home value growth will “continue to accelerate through the spring, peaking at 22% in May before gradually slowing to 17.8% by February 2023.”
That said, don’t expect this to become a seller’s market anytime soon.
Here’s where you can look at Ford Realty’s Google Reviews
Boston Condos for Sale
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Boston real estate predictions for the remainder of 2021
With the nation’s economy climbing out of a COVID-19 hole, home sales continue at a record pace. Total existing-home sales rose 2.4% from July to a seasonally-adjusted annual rate of 6 million in August. Sales were up 10.5% from a year ago.
Home-buying demand
After plummeting in March, home-buying demand continues to take steps towards recovery. On average, newly listed properties remained on the market for 22 days in August, down from 31 days in August 2019. Sixty-nine percent of homes sold in August 2020 were on the market for less than a month.
“The demand for houses is easily eclipsing the available inventory in metro areas across the country,” said Adam Contos, CEO of real estate brokerage RE/MAX Holdings. “Buyers are moving forward in record numbers, unfazed by inventory challenges and consistently higher prices. Homeowners in a position to sell are seizing the opportunity and benefiting from the one-two combination of enthusiastic, competitive buyers.”
The number of homes for sale continues to lag. Housing inventory totaled 1.49 million units at the end of August, down 0.7% from July and 18.6% from one year ago. Unsold inventory sits at a three-month supply at the current sales pace, down from the four-month figure recorded in August 2019. Six-months of supply is considered healthy.
Scarce real estate inventory
Scarce inventory has been problematic for the past few years, an issue that has worsened in the past month due to a steep surge in lumber prices and a dearth of lumber resulting from the massive wildfires devastating Western states.
Here are nine predictions from housing industry experts on what the rest of the year will spell for the nation’s housing demand. (The text has been lightly edited.)
https://money.com/housing-demand-forecasts/
My 2021 real estate forecast?
More exuberant but lower-motivated sellers will enter the marketplace committed to not giving it away! Their list prices will be 5% to 10% higher than today, causing some areas to be whipped into a frenzy, but in other areas, the unsold stack up too quickly and become a glut. Buyers will determine which is which!
Beacon Hill apartments for rent will continue to lag as colleges continue to push off-campus courses
Contact me to find to set up an appointment to start your Boston condo-buying process.
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Updated: Boston Real Estate Blog 2025
