Myths about buying a Boston condo
Boston Condos for Sale 2024
Myths about buying a Boston condo
There’s a lot of uncertainty right now and that’s leading to some dramatic headlines. And if you’re thinking about buying a Boston condo, that can make you feel a little less sure about your decision.
A recent study by CNBC asked homebuyers what they’re most worried about, and three themes kept coming up again and again:
- Mortgage rates
- The number of homes for sale
- Home prices
But a lot of what you may be hearing on those is based more on misconceptions. Not facts. So, let’s break it down and separate fact from fiction.
Misconception #1: “I’ll Just Wait, Because Mortgage Rates Are Going To Fall Dramatically”
One idea doing its rounds on social is that Boston condo mortgage rates are going to drop dramatically soon. So, it’s better to wait to buy.
But is that really what’s expected?
While mortgage rates have come down a bit in the last few weeks, forecasts don’t show a major drop ahead. The most likely scenario is that rates stay somewhere in the low 6% range this year.
And that’s not a big change from where rates are now (see graph below):
Of course, this depends on where inflation and the economy go from here. But, based on what we know today, waiting for a big drop in rates may not work out the way some people hope. As U.S. News explains:
“Mortgage rates aren’t expected to change much over the next several quarters . . .”
Not to mention, even with rates where they are today, it’s already more affordable than a year ago. So, even if they don’t change much, it’s still better than it was.
Misconception #2: “There Are Too Many Homes for Sale Right Now”
You’ve probably heard inventory is up. And nationally, it is. The number of homes for sale is 8% higher than this time last year. But that’s not a bad thing. In fact, it’s one of the reasons buyers have a bit more breathing room right now.
The problem is the headlines are making something good, sound bad. They’re focusing on how this is the most inventory we’ve had since 2019 or how many homes builders are building. And that can make it sound like the number of homes for sale is rising too far, too fast.
But that’s not what the bigger picture shows.
Data from Realtor.com proves that, even though inventory is up compared to last year, it’s still nearly 14% lower than it was during the last normal housing market (2017-2019):
While it can vary a lot based on where you live, only 9 states have more inventory than pre-pandemic today. That’s a key reason why there still aren’t enough homes for sale to trigger something like the crash back in 2008.
Misconception #3: “Home Prices Are About to Crash”
You’ve probably seen this one, too. The confusion is coming from the fact that some metros are experiencing slight price declines. And influencers are running with that and saying prices are crashing. But that’s not the reality.
Most areas are seeing prices rise, not fall. And that’s because:
- Many homeowners aren’t selling because they don’t want to give up the low mortgage rate they locked in a few years ago. And that’s keeping a lid on how much inventory can grow.
- Since inventory is still below pre-pandemic norms, there aren’t enough homes for sale to cause a price crash.
- And even in markets with more inventory, some sellers are choosing to pull their homes off the market instead of cutting prices.
And those are 3 big reasons prices aren’t headed for a Boston condo for sale crash.
And even in the markets experiencing mild declines, the drops aren’t enough to cancel out the big gains most homeowners have seen in the last 5 years (see graph below):
That’s not a crash. That’s just prices moderating after a few record-breaking years.
Boston Condos for Sale and the Bottom Line
Online posts are going to make things sound worse than they are. If you want a true, data-bound look at what’s really happening in today’s market, lean on a real estate agent.
Connect with John Ford from Ford Realty Inc so you have someone to separate fact from fiction today.
Peace be with you
Ford Realty Beacon Hill – Condo for Sale Office
Boston condos for sale – Ford Realty Inc
Updated: Boston Condos for Sale Blog 2025
Byline – John Ford Boston Beacon Hill Condo Broker 137 Charles St. Boston, MA 02114
Myths about buying a Boston condo
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If you’re following the news, chances are you’ve seen or heard some headlines about the Boston condo for sale market that don’t give the full picture. The Boston housing market is shifting, and when that happens, it can be hard to separate fact from fiction. That’s where a trusted real estate professional comes in. They can help debunk the headlines so you can really understand today’s market and what it means for you.
Here are three common housing market myths you might be hearing, along with the expert analysis that provides better context.
Myth 1: Home Prices Are Going To Fall
One piece of fiction many buyers may have seen or heard is that home prices are going to crash. That’s because headlines often use similar, but different, terms to describe what’s happening with prices. A few you might be seeing right now include:
Appreciation, or an increase in home prices.
Depreciation, or a decrease in home prices.
And deceleration, which is an increase in home prices, but at a slower pace.
The fact is, experts aren’t calling for a decrease in prices. Instead, they forecast appreciation will continue, just at a decelerated pace. That means home prices will continue rising and won’t fall. Selma Hepp, Deputy Chief Economist at CoreLogic, explains:
“. . . higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”
Myth 2: The Housing Market Is in a Correction
Another common myth is that the housing market is in a correction. Again, that’s not the case. Here’s why. According to Forbes:
“A correction is a sustained decline in the value of a market index or the price of an individual asset. A correction is generally agreed to be a 10% to 20% drop in value from a recent peak.”
As mentioned above, home prices are still appreciating, and experts project that will continue, just at a slower pace. That means the housing market isn’t in a correction because prices aren’t falling. It’s just moderating compared to the last two years, which were record-breaking in nearly every way.
Myth 3: The Housing Market Is Going To Crash
Some headlines are generating worry that the housing market is a bubble ready to burst. But experts say today is nothing like 2008. One of the reasons why is because lending standards are very different today. Logan Mohtashami, Lead Analyst for HousingWire, explains:
“As recession talk becomes more prevalent, some people are concerned that mortgage credit lending will get much tighter. This typically happens in a recession, however, the notion that credit lending in America will collapse as it did from 2005 to 2008 couldn’t be more incorrect, as we haven’t had a credit boom in the period between 2008-2022.”
During the last housing bubble, it was much easier to get a mortgage than it is today. Since then, lending standards have tightened significantly, and purchasers who acquired a mortgage over the last decade are much more qualified than they were in the years leading up to the crash.
Boston Condos and the Bottom Line
No matter what you’re hearing about the housing market, let’s connect. That way, you’ll have a knowledgeable authority on your side that knows the ins and outs of the market, including current trends, historical context, and so much more.
Updated: Boston Real Estate Blog 2022
Click Here to view: Google Ford Realty Inc Reviews
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