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Boston Globe
17-04-2025
- Business
- Boston Globe
The 36 Top Spots to Live in Greater Boston in 2025
Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up The confounding circumstances of the past few years — notable even in a market that's been mind-boggling for far longer — started when the Federal Reserve began raising interest rates in early 2022 in response to surging inflation. Mortgage rates that had lingered below 4 percent for the better part of three years soon started climbing, peaking at 7.8 percent in late 2023. Suddenly, a $2,400 monthly mortgage payment on a $500,000 loan turned into a $3,600 one. Advertisement And that's not all. Those who dared venture into the Massachusetts market have run headlong into the frustrating fact that there just haven't been that many houses for sale, especially in the mid-price range. Lately, the inventory shortage has been even worse than usual: Continued high interest rates make many potential sellers reluctant to give up the low rates they locked down in 2020, says Cassidy Norton, associate publisher with Peabody-based real estate data firm Advertisement 'That shifts people's buying power,' Norton says. 'There's always been kind of an inventory crunch in Massachusetts. Sometimes it's worse than other times, and this is one of those times.' Overall, the housing shortage — the state needs to add at least 222,000 units by 2035, Governor Maura Healey estimates — is a stubborn problem. In February, the Healey administration released a comprehensive plan for addressing this gap through a variety of measures aimed at increasing housing supply, rehabilitating and repairing existing substandard housing stock, and providing financial support to struggling households. The ambitious plan's 10-year implementation, however, means it won't meaningfully change housing prices or availability in the coming months. Thankfully, there may be some relief ahead. Interest rates, still well above the lows of four years ago, have started to temper, remaining under 7 percent for most of 2024 — that's at least a glimmer of good news, though it's impossible to tell if it will last. And sales volume is starting to inch its way back: In 2024, single-family home sales increased 4 percent in Massachusetts, as compared with the previous year. (That's a bigger turnaround than it might seem: In 2023, the number of sales had plummeted 21 percent compared with 2022.) Prices aren't sinking, but they may be starting to stabilize. Homes priced at the high end of their estimated property values are spending more time on the market and seeing their asking prices reduced more often, Gustafson says. More aggressively priced homes, however, are still receiving multiple offers and getting snapped up quickly. Advertisement Slowly expanding inventory may help. In January, the number of listings in the state was up 7.1 percent over the previous year, according to research from the Massachusetts Association of Realtors. And in Gustafson's Of course, there are wide variations between the dynamics in different regions, towns, and even neighborhoods. There are 'nuances to all our markets, because all real estate is local,' Gustafson says. And that's where the 2025 edition of Top Spots to Live comes in, providing a primer on the housing options, perks, and community character of 36 of the state's most in-demand housing destinations, from the cultural vibrancy of Lawrence to the seaside charms of Marion. Explore the Top Spots to Live by region: Methodology: To arrive at this annual list, we relied on the finite — but meaningful — wisdom of supply and demand: Significantly increasing prices in these communities are a signal that many buyers are eager to call them home. We analyzed median home prices from 2019 and 2024 to find the biggest five-year increases across three price tiers for each region. In the Boston suburbs, we looked at single-family data from The Warren Group, excluding communities with fewer than 50 sales in 2024. For Boston and Cambridge neighborhoods, we used median home price data — including both single-family and condo sales — from Advertisement Sarah Shemkus is a frequent contributor to the Globe Magazine. Additional research by Jon Gorey. Send comments to magazine@
Yahoo
15-02-2025
- Business
- Yahoo
Massachusetts homebuyers hope mortgage rates ease, inventory loosens in 2025. Will they?
Real estate experts say prospective homebuyers could catch a slight break in 2025 as inventories marginally increase, but demand will still remain high for single-family homes. Through the first 11 months of 2024, the total number of single-family homes sold in Massachusetts totaled 34,784, a 1.6% increase from the previous year's historically low sales, according to The Warren Group, a Peabody-based provider of banking and real estate data. But last year's statewide median sales price through Nov. 30 was $616,925, up a robust 8.2% Mortgage rates declined during the fall, which helped prospective buyers. But the average 30-year mortgage rate has since moved up, from a little over 6% in September to closer to 7% today. According to Nicole Rideout Hartwick, president of Gibson Sotheby's International Realty, 2025 will bring an early and busy spring market. 'Almost 80% of buyers were sidelined in the fall across all price points due to the election, as well as the perception that interest rates would improve in the spring,' she said. 'This will bring that much more demand and competition to the market.' Sales of high-end properties — those selling for $3 million or more — softened in the fall with the election, Hartwick said, but that's typical. 'We expect to see that come back in early spring," she said. "New construction can't be built fast enough for demand and that will continue to rise. Newer construction priced below $1.5 million is in huge demand, as the largest group of millennials enters their prime homebuying years.' Stewart Young, principal and luxury real estate agent at LandVest, agrees there seems to be a lack of new construction, despite demand for it. He said all markets — luxury homes, new construction, smaller homes and condominiums — are on the rise. 'Since 2021, high-end inventories and sales have been increasing with record levels in many New England markets,' Young said. 'I expect these trends to continue.' More real estate: Elon Musk's shadow looms over this tiny Texas town. Can it cope with the rapid growth? And while there's a preference for turnkey properties requiring minimal cosmetic upgrades, savvy buyers also see opportunity in buying fixer-uppers, he said. 'Buyers continue to value good schools, access to amenities and reasonable commuting,' Young said. Hartwick and Young both said suburban markets have been extremely competitive, with record sales prices. 'Within these towns, there is a definite preference to be in the town or village center vs. out in the country,' Young said. 'Likewise, in cities and larger towns there is a trend toward being able to walk to amenities.' The Boston market has remained steady and healthy, Hartwick added. Hartwick thinks interest rates will become more favorable in 2025. 'They are predicted to drop to high 5% and low 6% by the end of 2025, which will make a difference for a lot of buyers,' she said. Young was more cautious in his outlook. 'There are so many factors that will be in play with the new administration,' he said, in reference to Donald Trump's return to the presidency. 'I wouldn't expect a return to the record low rates of a few years ago. While financing is less of a concern in the high-end market, generally high interest rates are an obstacle for buyers.' Kim Williams, a Realtor with Gibson Sotheby's International Realty in Westwood, said the biggest obstacle for buyers remains low housing inventory, especially for first-timers. 'Hopefully, providing opportunities for existing homeowners to downsize will stimulate some additional housing options for first time buyers,' she said. Hartwick thinks the Greater Boston housing market will be steady and competitive across all markets and price ranges. 'Sales are expected to increase 5% to 8% nationally, and inventory is also projected to increase slightly,' she said. '2025 will bring opportunity for buyers and sellers alike, but preparation and proper representation are key, as the market will remain very competitive.' Buyers will benefit from increasing inventories, suggesting a more balanced market, but demand continues to outstrip supply, so sellers will still have the advantage, Young said. Climate change-type risks, particularly sea level rise, ocean storm surge and inland storm-related flooding, are increasing concerns for real estate owners and buyers, he added. 'Insurance costs are increasing, and coverage is decreasing or not available at all in high-risk markets," Young said. "Recent hurricanes in Florida are likely to increase these concerns. Buyers will benefit from improving inventories and will find exceptional deals for high-risk properties.' On the other hand, demand still outstrips supply, he said. 'Owners of high-risk properties will be wise to engage engineers to conduct climate risk assessments and develop preventive measures,' Young said. This article originally appeared on Greater Boston real estate experts cautiously optimistic about 2025
USA Today
15-02-2025
- Business
- USA Today
Massachusetts homebuyers hope mortgage rates ease, inventory loosens in 2025. Will they?
Massachusetts homebuyers hope mortgage rates ease, inventory loosens in 2025. Will they? Show Caption Hide Caption President of Columbus Realtors breaks down homebuying and selling Columbus Realtors President Scott Hrabcak explains how new real-estate rules impact homebuyers and sellers. Real estate experts say prospective homebuyers could catch a slight break in 2025 as inventories marginally increase, but demand will still remain high for single-family homes. Through the first 11 months of 2024, the total number of single-family homes sold in Massachusetts totaled 34,784, a 1.6% increase from the previous year's historically low sales, according to The Warren Group, a Peabody-based provider of banking and real estate data. But last year's statewide median sales price through Nov. 30 was $616,925, up a robust 8.2% Mortgage rates declined during the fall, which helped prospective buyers. But the average 30-year mortgage rate has since moved up, from a little over 6% in September to closer to 7% today. According to Nicole Rideout Hartwick, president of Gibson Sotheby's International Realty, 2025 will bring an early and busy spring market. 'Almost 80% of buyers were sidelined in the fall across all price points due to the election, as well as the perception that interest rates would improve in the spring,' she said. 'This will bring that much more demand and competition to the market.' Realtor says new construction can't keep up with demand Sales of high-end properties — those selling for $3 million or more — softened in the fall with the election, Hartwick said, but that's typical. 'We expect to see that come back in early spring," she said. "New construction can't be built fast enough for demand and that will continue to rise. Newer construction priced below $1.5 million is in huge demand, as the largest group of millennials enters their prime homebuying years.' Stewart Young, principal and luxury real estate agent at LandVest, agrees there seems to be a lack of new construction, despite demand for it. He said all markets — luxury homes, new construction, smaller homes and condominiums — are on the rise. 'Since 2021, high-end inventories and sales have been increasing with record levels in many New England markets,' Young said. 'I expect these trends to continue.' More real estate: Elon Musk's shadow looms over this tiny Texas town. Can it cope with the rapid growth? And while there's a preference for turnkey properties requiring minimal cosmetic upgrades, savvy buyers also see opportunity in buying fixer-uppers, he said. 'Buyers continue to value good schools, access to amenities and reasonable commuting,' Young said. Hartwick and Young both said suburban markets have been extremely competitive, with record sales prices. 'Within these towns, there is a definite preference to be in the town or village center vs. out in the country,' Young said. 'Likewise, in cities and larger towns there is a trend toward being able to walk to amenities.' The Boston market has remained steady and healthy, Hartwick added. How do interest rates and inventory look for 2025? Hartwick thinks interest rates will become more favorable in 2025. 'They are predicted to drop to high 5% and low 6% by the end of 2025, which will make a difference for a lot of buyers,' she said. Young was more cautious in his outlook. 'There are so many factors that will be in play with the new administration,' he said, in reference to Donald Trump's return to the presidency. 'I wouldn't expect a return to the record low rates of a few years ago. While financing is less of a concern in the high-end market, generally high interest rates are an obstacle for buyers.' Kim Williams, a Realtor with Gibson Sotheby's International Realty in Westwood, said the biggest obstacle for buyers remains low housing inventory, especially for first-timers. 'Hopefully, providing opportunities for existing homeowners to downsize will stimulate some additional housing options for first time buyers,' she said. Experts say that despite improvement, sellers maintain advantage Hartwick thinks the Greater Boston housing market will be steady and competitive across all markets and price ranges. 'Sales are expected to increase 5% to 8% nationally, and inventory is also projected to increase slightly,' she said. '2025 will bring opportunity for buyers and sellers alike, but preparation and proper representation are key, as the market will remain very competitive.' Buyers will benefit from increasing inventories, suggesting a more balanced market, but demand continues to outstrip supply, so sellers will still have the advantage, Young said. Climate change-type risks, particularly sea level rise, ocean storm surge and inland storm-related flooding, are increasing concerns for real estate owners and buyers, he added. 'Insurance costs are increasing, and coverage is decreasing or not available at all in high-risk markets," Young said. "Recent hurricanes in Florida are likely to increase these concerns. Buyers will benefit from improving inventories and will find exceptional deals for high-risk properties.' On the other hand, demand still outstrips supply, he said. 'Owners of high-risk properties will be wise to engage engineers to conduct climate risk assessments and develop preventive measures,' Young said.
