December Blog – Boston Real Estate Market: Forecast 2022-2023

Hello Real Estate Enthusiasts,

The Greater Boston housing market is cooling off. In response to higher mortgage financing costs, increased consumer anxiety over inflation and the possibility of a recession and declines in savings and household wealth over the past year, the housing market in the Boston area continued to cool during the fall market.

The Boston housing market is still seeing some appreciation, particularly for single-family homes in places with low availability, but in much of the market, home values have been stagnant or have already peaked in recent months. Today, with fewer buyers in the market, higher interest rates, and few competitive offers, there is minimal upward pressure on prices.

According to a new report from the Greater Boston Association of REALTORS®, sales of single-family houses and condominiums both declined on an annual and monthly basis in October, while median selling prices decreased for the fourth consecutive month. In the single-family home market sales fell for a fifth consecutive month on an annual basis, declining 16.3 percent from 1,058 homes sold last October to 886 homes in October 2022.

Condominium sales slowed even further, falling 22.9 percent year on year from a near-record high of 963 condos sold in October 2021 to 742 this October. This marks the eleventh consecutive month condo sales have decreased on a year-over-year basis. The market has started to normalize and buyers now have room for negotiation and are proceeding much more cautiously.

The monthly median selling prices for both single-family homes and condominiums still reached new record highs for October. The median selling price of a single-family home has risen 6.7 percent in the last year, from $700,000 in October 2021 to a new monthly high of $747,000 this October. Meanwhile; the median price of a condominium increased by 0.8 percent from $609,900 in October to a new high for the month of $615,000 in October 2022.

According to the Greater Boston Association of REALTORS®, the single-family median home selling price has declined 17 percent from June when it hit a monthly record high of $899,950, while the median selling price for condominiums has fallen 14 percent from the all-time high of $715,000 in April 2022.

What will the winter hold?

Ask me!!

Barry~