Byline – John Ford Boston Beacon Hill Condo Broker 137 Charles St. Boston, MA 02114
Housing predictions for 2025. Both nationally and the local Boston condo for sale market.
Boston Condos for Sale and Apartments for Rent
Housing predictions for 2025. Both nationally and the local Boston condo for sale market
Here we are in the middle of the summer of 2025. So let’s dive into what we think the Boston condo for sale market is heading.
If you’ve been watching the Boston condo for sale market, you’ve likely noticed a few changes already this year. But what’s next? From home prices to mortgage rates, here’s what the latest expert forecasts suggest for the rest of 2025 – and what these shifts could mean for you.
Will Home Prices Fall?
Many Boston Beacon Hill condo buyers are hoping home prices will come down soon. And recent headlines about prices dipping in some areas are making some people believe it’s just a matter of time before there’s a bigger drop. But here are the facts.
While home price growth is slowing down, that doesn’t mean we’re headed for a crash. As NAHB explains:
“House price growth slowed . . . partly due to a decline in demand and an increase in supply. Persistent high mortgage rates and increased inventory combined to ease upward pressure on house prices. These factors signaled a cooling market, following rapid gains seen in previous years.”
But experts say, even with that slowdown, prices will still rise this year at the national level and for Beacon Hill condos for sale. The average of 8 leading forecasters shows prices are expected to go up 1.5-2% in 2025 (see graph below):
That means, if you’re waiting for a major drop, experts agree that’s just not in the cards.
Keep in mind, while some Massachusetts home markets are already seeing prices come down slightly, the average dip is just -3.5%. That’s a far cry from the nearly 20% decline the market experienced during the 2008 crash.
Plus, those small changes are easily absorbed when you consider how much home prices have climbed over the past few years. Data from the Federal Housing Finance Agency (FHFA) shows prices are up 55% nationally compared to just 5 years ago.
The takeaway? Boston condo for sale prices aren’t crashing. They’re expected to keep climbing – just not as quickly these days. And some may argue they’ll be closer to flat by the end of this year. But, again, this is going to vary by each neighbor market, with some local ups and downs. So, lean on Ford Realty Boston condo expert to see the latest price trends for your area.
Will Mortgage Rates Come Down?
Another common thought among today’s Boston condo buyers is: I’m just going to wait for rates to come down. But is that a smart strategy? According to Yahoo Finance:
“If you’re looking for a substantial interest rate drop in 2025, you’ll likely be left waiting. The latest news from the Federal Reserve and other key economic data point toward steady mortgage rates on par with what we see today.”
In other words, don’t try to time the market or wait for a drop that may not be coming. Most experts say rates will remain in the 6s, and current projections have them settling in the mid-6% range by the end of this year (see chart below):
And that’s not a big change from where they are right now. So, if you need to move, let’s talk about how to make it happen and what you should watch for. Because while rates may not be as low as you want them to be, you don’t want to put your needs on the back burner, hoping for something the data shows isn’t likely to happen.
Working with an expert who is keeping an eye on all the economic factors that can influence mortgage rates is going to be essential this year. That’s because changes in things like inflation and other key drivers could impact how rates move going forward.
The Takeaway for Buyers and Sellers
Whether you’re buying, selling a Boston condo, or thinking about doing both, this market requires strategy, not guesswork. Prices are still rising nationally (just more slowly), and rates are projected to stay pretty much where they are, so the bigger picture is one of moderation – not a meltdown.
Boston Condos for Sale and the Bottom Line
If you want to make a move, your best bet is to focus on your personal situation – not what the headlines say – and work with a real estate pro who knows how to navigate the shifting conditions in your local market.
Housing predictions for 2025. Both nationally and the local Boston condo for sale market.
Updated: Boston Real Estate Blog 2024
Condo Broker 137 Charles St. Boston, MA 02114
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Housing predictions for 2025. Both nationally and the local Boston condo for sale market.
Recently the president of the local association of realtors was asked what the real estate market will do in the future. His response: “Nobody knows what the market is going to do in the future”. Of course, immediately after that comment he said, “Interest rates have to drop to 5.5%. Then you’ll see everyone get excited and say, ‘Hey, let’s sell our house and get another one.’”
Even if mortgage rates to go back to 5.5%, people are living in their forever home. The difficulty of finding a better home for a decent price will overwhelm any minor inconvenience at their existing home.
Boston condo for sale inventory
I don’t mind predicting the future. The rest of 2023 is going to look ugly. Hopefully in 2024 Boston condo for sale inventory will increase, but first we’ll need relief from the Fed on current interest rates.
Updated: Boston condos for sale website 2024
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