The shifting of the Boston condo market

Boston Condos for Sale and Apartments for Rent

The shifting of the Boston condo market

Here’s something you need to know. The Boston condo for sale market is getting back to a healthier, more normal place. And even though it may not sound like it, this shift is actually a good thing.

It’s what you should expect. It’s just that our expectations have been skewed by the intense Boston condo seller’s market over the past few years.

But what you need to remember is: there’s still plenty of opportunity to be had if you’re thinking about selling your Beacon Hill condo – whether that’s next month or next year. You just need to stay up to date on what’s happening in the market, and have a strategy that matches the moment. Here’s your update.

1. Boston Condo for Sale Inventory’s Up. Buyer Power Is Coming Back.

According to the latest data, the number of homes for sale is rising back toward more normal levels (see graph below):

But inventory growth is going to vary a lot based on where you live.

If you’re in a market where the number of homes for sale is back to normal, Boston condo buyers may have more sway than you’d expect. That doesn’t mean buyers have all the power – it just means they have more choices, so your home has to stand out.

But if you live where inventory is still pretty limited, you may see more buyers competing for your condominium.

No matter where you are, the key is to work with a pro who can help you adjust your game plan for your local market.

2. The Right Price Matters More Than Ever

With more homes to choose from, today’s buyers are quick to skip over homes that feel overpriced. That’s why pricing your house right is the secret to selling quickly and for top dollar. That’s a point Realtor.com really drives home:

“ . . . a seller listing a well-priced, move-in ready home should have little problem finding a buyer.”

Miss the mark, though, and you may have to backtrack. Today, about 1 in 5 sellers (19.1%) are reducing their asking price to attract buyers (see map below):

Here’s how to avoid being one of those sellers who has to reduce their asking price. Danielle Hale, Chief Economist at Realtor.com, says:

“The rising share of price reductions suggests that a lot of sellers are anchored to prices that aren’t realistic in today’s housing market. Today’s sellers would be wise to listen to feedback they are getting from the market.”

The best way to get that information? Lean on your local agent. They have the expertise to set a price that sells in any market. Because if your price isn’t compelling, it’s not selling.

3. Flexibility Wins Negotiations

Gone are the days of buyers waiving inspections and appraisals just to get a deal done. Now, because they have more homes to choose from, buyers are able to ask for things like repairs, credits, and help with closing costs. And data from Redfin shows nearly 44.4% of sellers are willing to negotiate (see graph below):

The takeaway? This isn’t a bad market. It’s just a different one. And it’s in line with more normal years in the housing market, like back in 2019. The savviest sellers are the ones taking advantage of every opportunity to work with buyers and make their house shine.

And it’ll help if you think of concessions as tools, not losses. Use them to bridge gaps, sweeten deals, and get across the finish line. And don’t stress. Since prices went up roughly 55% over the past five years, you’ve got plenty of room to make a concession or two and still come out ahead.

Just be sure to work with your agent to understand which concessions could be the key to sealing the deal.

Boston Condo for Sale Market and the Bottom Line

Sellers for Boston condos who are going to succeed in the weeks and months ahead are the ones who understand this market shift and lean into it with the right expectations and the right strategy.

Connect with a local agent and talk about what’s working in your area right now – and how to make those wins work for you, too – whenever you’re ready to make a move.

Love thy neighbor

Updated: Boston condo for sale blog 2025

Updated: Boston Real Estate Blog 2025

Ford Realty Beacon Hill – Condo for Sale Office

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The shifting of the Boston condo market

The number of home sellers making concessions to buyers has nearly doubled since last year, according to a new Redfin report. 

More than two in five home sellers have had to make concessions during the selling process to attract buyers.  

In the three months ended April 30, 42.9% of sellers made concessions to buyers, up from 25.5% last year, and just shy of February’s record high of 45.6%, according to the report. 

These concessions include money towards everything from repairs to closing costs and mortgage rate buydowns.

The report notes concessions are usually less common in the spring market, as more buyers are looking for a home, but high mortgage rates are making it harder for sellers in the current environment, as many house hunters have put their plans on hold.

Homebuilders are also throwing in freebies, according to the report, as they try to sell off their inventory, offering would-be buyers everything from money toward closing costs to gift cards and even free cars. 

But concessions aren’t the case in all markets right now. Some markets have so few homes for sale that there continues to be competition driving up prices, and those involved in bidding wars aren’t seeing concessions from sellers, Redfin says. 

Shauna Pendleton, a Redfin agent in Boise, Idaho, says high mortgage rates and low supply have thrown the housing market out of whack, but that each deal is different. 

“Some buyers are asking sellers for the sun, the moon and the stars in addition to offering below the asking price, and some are requesting no extras because they’re so motivated to secure one of the few homes on the market,” she said. “The one consistency in the market right now is homebuilders handing out freebies. Most builders are offering concessions equal to about 3% of the sale price, which gets credited to buyers at closing, to offload properties. Buyers are using the extra cash to cover closing costs or buy down their mortgage rate.”

Concessions are up most in towns that saw huge activity during the pandemic, but the increase is being seen in many markets across the country as well.

In the three months ending April 30, just under 16% of sellers in Boston gave concessions to buyers, up from 12% a year earlier. 

Concessions aren’t the only way sellers are trying to move their homes; they are also accepting less money. 

According to the report, 15.7% of sellers dropped their asking price and provided a concession to a buyer during the three weeks ended April 30 – that’s four times more than the number of sellers who did the same a year ago. 

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Boston condo sellers saw condominiums flying off the market in downtown Boston as recently as a month ago. Now, as some prepare to list their own condo for sale, some Boston condo sellers are on the edge. 

Mortgage rates, property taxes, and homeowners insurance and inflation are all on the rise, and many interested Boston condo for sale buyers are dropping out of the market. On real estate sites like Zillow , notes homes are spending more time on the market and sellers are dropping their asking price, which hasn’t been seen in downtown Boston in a long time.

Across the country, agents report working with people who are increasingly unnerved by the prospect of selling a home. Mortgage rates have increased at a historic pace this year, making buying a Boston condo for sale even more expensive. Boston condo buyers are already pinched by high prices. 

The increase in borrowing costs has reduced buyers purchasing power in a matter of months. The rate on a 30-year mortgage earlier this month increased to nearly 6% from about 3% at the end of last year. At 6%, a buyer on a $2,500 monthly budget could afford an approximately $400,000 Boston condo—down from $517,500 condo at the end of 2021, according to Redfin .  

That has caused some buyers to call off their Boston condo for sale search. In recent weeks, the volume of applications for a loan to purchase a home, as measured by the rolling 4-week average, fell to its lowest levels since the pandemic’s early days, according to Mortgage Bankers Association data. And existing-home sales have fallen, too, declining in May to their lowest level since June 2020, according to the National Association of Realtors. 

Boston condo buyers have more choices now, too. The number of active and new listings has increased on a year-over-year basis recently, according to Realtor.com’s gauge.

Boston Condos for Sale and the Bottom Line for Condo Sellers

These shifts aren’t sitting well with Boston Beacon Hill condo sellers seeking top-dollar for their homes. And the cool-down has led some sellers to slash listing prices. While listing prices nationally are still well above year-ago levels, according to Realtor.com data, a record share of home listings saw a price cut last week, according to brokerage Redfin. 

Updated: Boston Real Estate Blog 2022

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