As a Boston-area loan officer securing mortgages for home owners of all types—from first time buyers seeking their dream home to empty nesters ready to downsize—I know there’s no such thing as the best time to buy a specific type of home. There are many variables. That said, the condo market in Boston saw a booming 2013, setting new price records, and many people are asking me why. They’re also wondering if this will continue.
Why Condos Are Soaring
Boston’s condo sales in 2013 were at their highest levels since 2004; 3,575 condos sold in the city’s downtown neighborhoods, up 7.5% from 2012. The median price increased to $555,000, marking an 11% jump and the highest ever median price. This was the cumulative effect of lower mortgage rates in the beginning of the year, high demand for particular neighborhoods (especially South Boston), and what experts such as Debra Blair of LINK called a “rapid-fire market.”
Condos in 2014 and Beyond
In a previous post, we discussed the predicted rising mortgage rates, and why now is a good time to secure a lower rate. As these rates continue to rise, this could mean more potential sellers and more availability—which could lead to more competitive condo pricing. However, rising rates could lead more buyers to locking in rates now, meaning more demand. So the short answer is, if you’re considering buying a condo, don’t wait. While prices could level off, downtown Boston’s popularity isn’t waning, and the competition probably isn’t going anywhere.
If you’re looking to buy a condo in the Boston area, and wondering how mortgage rates and other circumstances will affect you, contact me at any time for advice or help with your mortgage.