“Sellers have to be more realistic to the changing Boston condo for sale market.
Low mortgage rates in recent years had fueled demand in many markets, causing some to overheat, explained Redfin’s chief economist, Daryl Fairweather.
“Those markets have had more of a swift return to Earth now that mortgage rates are high,” she said.
While 30-year fixed-rate mortgage interest rates were around 3% at the end of December, those rates have jumped to nearly 6% as the Federal Reserve hikes its benchmark rate to fight rising inflation.
As a result, we’re all seeing the same slowdown and pullback in the Boston condo for sale market.
Indeed, high-dollar homes in areas such as Back Bay and Beacon Hill have been harder hit as 30-year mortgage rates have approached 6%,
With a 6% interest rate, a $1 million home with a 20% down payment may cost about $1,400 more per month than it would at a 3% rate.
It’s enough to make somebody decide to rent or move somewhere else entirely.
As the market cools, sellers should no longer expect one open house to draw multiple competing offers or bidding wars to 20% to 30% over the asking price, Those days are gone.
When preparing to list a home, hire an experienced real estate agent or broker who knows your neighborhood or region to help you figure out the right asking price, he said. If your pricing is too aggressive, it’s going to be the kiss of death.
If an initial high price turns buyers away and the home languishes on the market, buyers coming across the listing later may perceive something is wrong with the property,