Boston Condos and Real Estate for Sale

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Well, of course, lower interest rates led to higher home prices!

Over the years I have joked about not being able to afford to buy my own home with today’s prices.  In downtown Boston, the household income needed to qualify for a median-priced new home is in the 6 figures. In my neighborhood in Beacon Hill, $500,000 will only get you a studio or very small one-bedroom condo

Back when I bought my home I could not have afforded a 300K house. At the time interest rates were more than triple what they are right now. Prices are starting to cancel out those low rates in affordability calculations.

Here is a look at the last 30 days of downtown Boston condo sales in a few prime neighborhoods. It should be noted that home prices may not have reached their high for the year yet.

Boston Fenway Condo Sales


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Boston South End Condo Sales


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Boston Seaport Condos for Sales


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Boston Condos and Real Estate for Sale

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Yeah, probably.

Following up on my earlier post, I need to clarify (i.e., correct) what I wrote earlier.

A New York City consultant had studied some data from the past thirty years which led him to the conclusion that housing prices fluctuated without regard to mortgage loan interest rates. This flies in the face of all logic and contradicts what most people believe, including me and just about every economist, statistician, and living person.

The data did not support the usual claim that rising interest rates causes a decrease in market prices, and dropping interest rates causes an increase in market prices.

Well, I’m happy to report that other, smarter people have done their own analysis, and have come to the opposite conclusion, or, at least, find enough holes in the consultant’s argument to make his results very suspect.

Jonathan J. Miller, co-founder, principal, president and CEO of residential real estate appraisal firm Miller Samuel has this to say:

I think a lot of the problem is the data set chosen.

The subject is the Manhattan market which does not always behave like the national market due to the international nature of the local economy as well as the predominant co-op housing stock (this has kept investors out during this recent boom).

He [the consultant] uses fixed mortgage rates yet adjustable rates are one of the primary drivers of the recent housing boom.

Plus he makes the assumption that mortgage rates are the only factor that causes prices to fluctuate. Over the past 10 years, the Manhattan housing market has been plagued by the chronic limitation in supply. So the premise of rising rates causing prices to slow would not be immediate if inventory is tight.

His conclusion:

Despite all this, my stats do show a clear pattern of influence of mortgage rates using a CPI adjusted 1-year adjustable and a 30-year fixed unadjusted.

More information:

 – By Jonathan J Miller, Matrix

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Updated: Boston real estate and condos for sale in 2021

Boston Condos and Real Estate for Sale

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