Good news for Boston condo buyers: It’s becoming a buyers market. What can real estate sellers do?
Boston Condos for Sale and Apartments for Rent
Good news for Boston condo buyers: It’s becoming a buyers market. What can real estate sellers do?
If your selling strategy still assumes you’ll get multiple offers over asking, it’s officially time for a reset. That frenzied seller’s market is behind us. And here are the numbers to prove it.
From Frenzy to “Normal”
Right now, about 50% of homes on the market are selling for less than their asking price, according to the latest data from Cotality.
But that isn’t necessarily bad news, even if it feels like it. Here’s why. The wild run-up over the last few years was never going to be sustainable. The housing market needed a reset, and data shows that’s exactly what’s happening right now.
The graph below uses data from Zillow to show how this trend has shifted over time. Here’s what it tells us:
- 2018–2019: 50–55% of homes sold under asking. That was the norm.
- 2021–2022: Only 25% sold under asking, thanks to record-low rates and intense buyer demand.
- 2025: 50% of homes are selling below asking. That’s much closer to what’s typical in the housing market.
Why This Matters If You’re Selling Your House
Why This Matters If You’re Selling Your HouseIn this return to normal, your pricing strategy is more important than ever.
A few years ago, you could overprice your house and still get swarmed with offers. But now, buyers have more options, tighter budgets, and less urgency.
Today, your asking price can be make or break for your sale, especially right out of the gate. Your first two weeks on the market are the most important window because that’s when the most serious buyers are paying attention to your listing. Miss your price during that crucial period, and your sale will grind to a halt. Buyers will look right past it. And once your listing sits long enough to go stale, it’ll be hard to sell for your asking price.
The Ideal Formula
Basically, sellers who cling to outdated expectations end up dealing with price cuts, lower offers, and a longer time just sitting on the market. But homeowners who understand what’s happening are still winning, even today.
Because that stat about 50% of homes selling for under asking also means the other half are selling at or above – as long as they’re priced right from the start.
So, how do you set yourself up for success? Do these 3 things:
- Prep your house. Tackle essential repairs and touch-ups before you list. If your house looks great, you’ll have a better chance to sell at (or over) your asking price.
- Price strategically from day one. Don’t rely on what nearby homes are listed for. Lean on your agent for what they’ve actually sold for. And price your house based on that.
- Stay flexible. Be ready to negotiate. And know that it doesn’t always have to be on price. It may be on repairs, closing costs, or some other detail. But know this: today’s serious buyers expect some give-and-take.
If you want your house to be one that sells for at (or even more than) your asking price, it’s time to plan for the market you’re in today – not the one we saw a few years ago. And that’s exactly why you need a stand-out local agent.
Boston Condos for Sale and the Bottom Line
You don’t want to fall behind in this market.
So, talk to a Ford Realty Inc., agent about what buyers in your area are paying right now. With their expertise and a strategy that gets your house noticed in those crucial first two weeks, anything is possible.
View Boston condos for sale in South Boston. Updated in real-time.
All Downtown Boston real estate listings updated in 2025
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May marks turning point in housing frenzy, homebuyers starting to regain control
by Liz Hughes June 07, 2022
Homebuyers are finally starting to regain some control.
May was a turning point in the pandemic housing frenzy, according to a new Redfin report, which saw home inventory climb to a new high and more sellers dropping their prices.
But that all comes at a great cost as record-high prices, along with the 5% mortgage rates continues to keep many buyers out of the market. Last month a record 57% of homes sold above list price, up from 51% a year earlier.
Redfin’s economics research lead Chen Zhao said the sudden surge in mortgage rates led to May’s sudden and significant housing market cooldown.
“However, mortgage rates are now stabilizing and homes remain in short supply, so while we do expect home-price growth rates to decline, we don’t expect prices to fall much at the national level,” Zhao said. “For homebuyers trying to determine the best timing this year, the main benefit of waiting is that there may be less competition as supply starts to build up.”
Redfin found fewer Google searches for “homes for sale” during the week ended May 21, down 10% from a year earlier. Its Homebuyer Demand Index, which measures requests for tours and other services, fell 9% year over year during the week ended May 29, the seventh consecutive decline in the index.
Additionally, mortgage applications fell 14% from last year as the 30-year mortgage fell slightly to 5.09% for the week ended June 2. With that, the monthly mortgage payment on a median asking price home fell slightly to $2,391 up 40% from $1,710 a year earlier, when mortgage rates were 2.99%.
In the four weeks ended May 29, active listings fell 10% year over year (the smallest decline since April 2020). The median asking price rose 17% from 2021 to $412,450. Meanwhile, the median sale price increased 16% year over year to a record $400,999.
Fifty-four percent of homes went under contract with an accepted offer within the first two weeks of being listed, up from 53% last year. Thirty-nine percent of homes went under contract with an accepted offer within one week, remaining flat from last year.
Homes on the market fell to a record-low 15 days, a drop from 19 days in 2021. And they continue to sell well above asking price. A record 57% of homes sold above list price last month, up from 51% a year earlier.
Reports have emerged from real estate firms that some Boston condo sellers have been lowering their asking prices, in the first sign that buyers may finally be getting a break in the red-hot housing market.
That’s according to a report from realtor.com last week, cited by CNBC. It said new listings the previous week rose 8% from a year earlier, following four straight weeks of annual declines. While the total active inventory in the residential real estate market is still down 13% from a year ago, the rise in new listings of late suggests that things may have bottomed out. Traditionally, new listings tend to peak in May.
Boston condo prices still high
That said, Boston condo prices remain well above last year’s level. In addition, higher mortgage rates than a year ago mean houses become even more expensive for anyone who needs to finance a purchase. The average borrower is now paying 38% more on their monthly payment than they would have done for the same home one year ago.
Inflation rate and real estate
The rise in inflation and related mortgage rate hike means many Boston condo buyers have less flexibility in their budget to chase after newly listed homes. For those who still can persist, they may benefit from having less competition, which could in turn translate into relief from growing home prices.
Real estate Supply on the rise
With more supply of listings and mortgage rates rising fairly sharply, Boston condo sellers appear to be in the mood for compromise, at least a little bit. Around 12% of listed homes during the four weeks ending April 3 lowered their asking price, up from just 9% of sellers one year ago.
Boston condos price drops are still rare
“Price drops are still rare, but the fact that they are becoming more frequent is one clear sign that the housing market is cooling,” Redfin Chief Economist Daryl Fairweather. “It goes to show that there’s a limit to sellers’ power. There is still way more demand than supply, and buyers are still sweating, but sellers can no longer overprice their home and still expect buyers to clamor at their door.”
Mortgage News Daily reported that the interest rate really took off in the past few weeks, surpassing 5% last week. As a result, consumers are more pessimistic about the housing market than they have been for some time, according to a survey on the matter by Fannie Mae.
Mortgage rates to rise further for Boston condo buyers
Now, 69% of consumers expect mortgage rates to rise further, up from 67% in March. A growing number of consumers also believe home prices will continue to make steady gains.
“If consumer pessimism toward homebuying conditions continues, and the recent mortgage rate increases are sustained, then we expect to see an even greater cooling of the housing market than previously forecast,” wrote Mark Palim, vice president and deputy chief economist at Fannie Mae.
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It’s going to be a Boston real estate buyer’s market for the next 2-6 months, and the vast majority of Boston condo agents have never seen a buyers’ market in downtown Boston, let alone know how to navigate it. Over the last ten years, listing agents have gotten away with doing little or nothing to accommodate the Boston condo buyers – their mantra has been, “hey, if you don’t like it, then cancel and we’ll get someone else”. But will there be any other buyers today?
Buyers were signing Offers at a price close or above asking price to make the sellers happy, but that will be major challenge today. Yes, I thought I never would say this, but the downtown Boston real estate market is becoming a buyers’ market.
Here are my tips for sellers in a buyers’ market:
- Get a pre-listing inspection, and fix as many issues as possible before going on the market.
- Have specific quotes available for other issues that aren’t fixed yet.
- In spite of furnishing this data to the buyers, expect that they will want to re-negotiate.
- Build a defense in advance.
You may still need to do a little something for them to get the deal done, but at least being prepared will keep it to a minimum.
