The Boston real estate market in late 2024 remains competitive, driven by a combination of low inventory, high demand, and elevated interest rates. Key trends include:
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Low Inventory and High Prices: Boston's housing supply is constrained, with many homeowners reluctant to sell due to "rate lock," keeping prices elevated. The average price for homes is nearing $900,000, and areas like Brookline, Cambridge, and Wellesley have median prices above $1 million. Despite high prices, demand remains robust, especially for properties near public transportation
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Rising Rental Costs: Rental prices have surged, with an average one-bedroom apartment costing around $2,700 per month, and two-bedrooms reaching up to $3,600. Boston's low vacancy rate of about 3.5% fuels these increases
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Shift in Buyer Preferences: While suburban homes were in demand during the pandemic, buyers in 2024 are prioritizing homes closer to downtown areas to reduce commuting time as more people return to in-person work
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Mortgage Rates Impact: While home prices are high, fluctuating mortgage rates have caused some slowdown in sales, particularly as interest rates remain a key factor in determining affordability for buyers
Overall, it's a challenging market for buyers but favorable for sellers, with inventory remaining tight and prices unlikely to decline significantly in the near future.