As we enter fall, Boston’s housing market remains competitive, but conditions are showing early signs of improvement. For much of the past two years, inventory has been historically tight as homeowners held onto low mortgage rates, creating the so-called “lock-in” effect. Still, more listings are beginning to appear, giving buyers slightly more choice compared to last year.
Neighborhoods like South Boston, East Boston, and Dorchester continue to see strong demand, but new condo developments and single-family homes in surrounding suburbs are helping to ease pressure. HUD (United States Department of Housing and Urban Development) reports that Boston’s metro area had just a 1.5-month supply of homes earlier this year—still far from balanced, but an uptick nonetheless. Roughly 1,500 new homes are also under construction, which will provide gradual relief over the next few years.
Looking ahead, the spring market is expected to bring cautious but meaningful improvement. Mortgage rates, projected to settle closer to 6%, could encourage more homeowners to sell, reducing the inventory crunch. At the same time, buyers sidelined by higher borrowing costs may reenter the market, pushing activity higher. The National Association of Realtors forecasts existing-home sales to rise 7%–12% nationwide in 2025, with Boston positioned as one of the hottest metro markets.
Price growth is likely to remain steady but not overheated, with experts predicting 2%–4% annual appreciation in the near term. For buyers, this means spring could present more options without a dramatic surge in prices. For sellers, strong demand and limited supply will continue to support competitive offers.
Bottom line: This fall, Boston buyers will still face tight competition, but more inventory is on the horizon. By spring, the market should offer greater balance—making it an opportune moment to plan your move!
Tips for Buyers:
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Work with a tech-savvy, local agent for instant alerts on new listings and off-market listings. Access to off-market listings is just one of the advantages of working with our team!
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Have a pre-approval from a local, reputable lender ready to act quickly in a fast-moving market. If you need a recommendation, we would be happy to make an introduction.
- Set up a time to discuss your goals with us. We're here to assist you curate a plan for real estate success!
