The Boston condominium market continues to struggle amidst high mortgage rates and a shortage of available inventory. According to a recent report, condominium transactions in the first quarter of 2023 experienced a significant decline of 20.5% year-over-year. This decrease is part of a broader national trend, with total home sales across the country dropping by 20 to 30%. The report attributed this sluggish market to a combination of factors, including the limited inventory and rising interest rates.
The average condominium sales price in Boston has increased by 6.1% since the first quarter of 2023, reaching $1,107,828. This increase is particularly noticeable in neighborhoods like Allston, where prices have surged from $490,388 to $635,444. Experts attribute this increase to the growing number of new developments in the area.
Adding to the market’s challenges, the inventory of unsold condominiums in Boston has increased by 21.2% compared to the first quarter of 2023. This increase suggests that condos are taking longer to sell due to the current market conditions. Experts believe that high interest rates and the popularity of single-family homes are contributing to this trend.
Prospective home buyers are advised to be prepared for bidding wars and to research neighborhood trends before making a purchase. Experts do not anticipate any significant relief in interest rates in the near future, which could continue to impact the condo market. Buyers should stay informed and consider their options carefully when navigating this challenging market.
