The Boston real estate market report for 2023 looks promising as property values increase and interest rates level out. Moving out of this seller’s market, we are seeing fewer bidding wars, yet homes are still selling for the asking price, as inventory has just started to meet demand.
While the buying frenzy of last summer will likely not be repeated, we can expect a more even playing field for both sides of the transaction moving into the second half of the year. Interest rates are not tempting hordes of buyers anymore, which means sellers aren’t getting multiple offers as they were in 2022.
Overall, property in Boston is climbing in value. Looking towards the rest of the year, we should see rates leveling out that encourage buyers to make their move. There are many angles to consider as you decide whether this is the right time to invest in the Boston real estate market. Consider the market we are heading into before making a decision on upgrading or investing.
Last year versus now
In the summer of 2022, the real estate market was seeing incredibly low-interest rates, and buyers were eager to both buy and refinance their homes. As the demand for property increased, sellers were seeing their asking price met and, in some cases, surpassed as bidding wars ensued. As the year progressed, interest rates rose sharply, and the trends from the summer came to a halt.
In 2023, we have seen the interest rates come back down, but they have not dipped to the lows of last summer. The real estate market has started to pick back up, with rates lowering, yet sales prices are not lowering as property values have gone up for many homeowners. Boston property is selling for more in 2023 than last year, and many sellers want to strike while the iron is hot while securing a decent interest rate for their next purchase. Many thought last year was a good opportunity to get an investment property, whereas this year, the general consensus seems to be buying what you need or upgrading when you are ready.
The market today
The market today is still tipped in the seller’s favor, even though the number of homes that are currently for sale has increased. With more homes on the market, buyers have more inventory to choose from, which means multiple offers are few and far between. The lowering of interest rates has brought a sigh of relief among those looking to buy, and sellers are again eager to cash in on their investment.
Homes take about 10 days longer to sell compared to last year, which has slowed the market down, but the fervor of last summer has led to some buyer's remorse. The average time to sell is around a month, which means buyers and sellers are still moving quickly. Overpaying for property and acquiescing to the seller's demands has been coming to an end, which has encouraged buyers who were previously apprehensive to start scouring the market. Purchasing property, especially in a metropolis like Boston, will be a significant investment that should be made carefully and only after financial planning.
Trends for the rest of the year
With interest rates slowly decreasing, the expectation for the rest of the year is that more people sidelined waiting for better rates will be encouraged to start hunting and be ready to act at another interest dip. We should see the rising inventory positively affect the housing market, and industry professionals are hopeful as we move into 2023 that the joint leveling of the rates and inventory will bring a balance to Boston’s real estate market.
You will need to determine whether upgrading your home or buying an investment property is a financial burden you can take on and set a budget early. The rise in the home value we have seen over the last year in Boston just goes to show how much city property can appreciate over time. Homes are selling for almost 4% more this year than they were last year, and for many homes at the luxury price point, that can be a significant increase in their proceeds.
Navigating the Boston market
While some housing markets have seen sales prices come down as interest rates have been lowering, Boston real estate continues to be priced aggressively. For those that are moving to the area from out of state or have little experience handling real estate transactions, working with a real estate agent will be the best way to navigate the market. When it comes to appraisals and inspections, title companies, and negotiations, your agent can help you work with the best in the business and secure the best help on your way to homeownership. Another aspect of Boston real estate is the speed at which homes get snatched up. With people moving to the area for work, school, family, or friends, the housing market hasn’t had a chance to slow down. Boston is one of the oldest cities in the country, which is likely one of the reasons why property values keep rising, and newcomers keep arriving.
Do you have reliable representation?
Navigating the Boston real estate market can be treacherous as you avoid the many pitfalls and financial missteps that could occur without a real estate professional by your side. Your experience during your purchase or sale can be improved when you hire an agent to represent you. With an experienced real estate agent advising you through the process, you can be prepared, informed, and confident at every step of your transaction.
From the gorgeous townhomes to the condos for sale in Boston, your agent should have industry resources and connections to help you during the buying or selling process. Ricardo Rodriguez is a seasoned real estate agent who has lived and worked in Boston for almost 30 years. With a passion for his city and profession, Ricardo will guide you to the closing while protecting your financial interests.