This year will bring the Seaport condo market back to earth, one without the runaway prices and jaw-dropping bidding wars, yet still difficult for anyone but the region’s wealthiest Boston condo buyers to afford.
Economists say home prices are likely to fall or flatten in downtown Boston and across the country. Fewer people will buy homes. Rents, too, may climb far more slowly than they have in recent years, as people stay put.
But Boston’s inequality will remain: Apartment rents and condo for sale prices will remain far out of reach for many Bostonians.
Here’s what I forecast for the year to come.
The pandemic frenzy is over. After two years that saw home prices shoot up by double-digits, particularly for the new Seaport District new high-rise luxury condo buildings.
A recession threatens and interest rates remain high which will both have an impact on pricing on Seaport condominiums.
Higher interest rates driving higher monthly payments appear to be here to stay. After super-low rates between 2% and 4% earlier in the pandemic, Fannie Mae projects rates will hover around 6% throughout 2023. which should keep Seaport condo sale prices in check.