Boston Housing Market Trends and Forecast for 2024
As we move from 2023 to 2024, people looking to buy homes in Boston are wondering if this year will be easier. Last year, finding a home was hard because there weren’t many homes for sale, prices stayed high, and loan rates were up. But, things might look up for those wanting to buy a home in Boston in 2024, thanks to expected changes in loan rates by the Federal Reserve.
The Homeownership Hub points out key trends for Boston’s housing market in 2024, especially the chance of lower mortgage rates.
Economists Anticipate Lower Mortgage Rates in 2024
For much of 2022 and 2023, buyers faced high mortgage rates, sometimes over eight percent for a 30-year loan, due to the Federal Reserve increasing rates to control inflation. Now, there’s hope that these high rates will drop.
After a recent stop in raising rates, the Federal Reserve hinted at possible cuts in 2024. This has already led to a slight drop in mortgage rates, and experts think they could go lower. Lower rates would help more people afford homes, leading to smaller monthly payments.
This change is good news for those looking to buy in Boston, suggesting 2024 might bring more homes for sale and more reasonable prices. Buyers interested in Boston’s neighborhoods or thinking about investing should keep an eye on these trends and the overall health of Massachusetts’ housing market.
Buyers Discover Commission Rebates to Save
When selling homes, owners often focus on real estate commission rates, a major expense at closing. Until the end of 2023, buyers were less familiar with these costs. A lawsuit in Missouri has begun to change that, spotlighting how both buyers and sellers deal with commissions.
Despite ongoing legal battles, this case has made commission practices clearer to everyone involved. Now, buyers are learning about commission rebates, a way for them to save when purchasing a home.
Commission Rebates Explained
A commission rebate happens when a real estate broker gives back part of their commission to the buyer. This can lead to significant savings, especially in areas like Boston where homes can be expensive.
For example, with a service like Prevu, buying a $1.6 million condo in Back Bay could offer up to $16,000 back to the buyer through their Smart Buyer Rebate. This move towards transparency and savings is reshaping how buyers approach the Boston housing market.
Boston Housing Market Inventory Improving
Economists are optimistic about Boston’s housing market in 2024, predicting that lower mortgage rates could encourage more homeowners to sell. This is good news for the Greater Boston area, where limited inventory has been a major challenge, often leading to bidding wars. With the possibility of more homes on the market, we might see a more balanced market, giving buyers more negotiating power after years of a strong seller’s market.
New Construction Homes To Hit The Boston Real Estate Market
The past few years have seen a low inventory in Boston, but this has opened doors for new construction homes. Developers and local builders are adding much-needed homes for sale in Boston, including townhomes in Medford and custom homes in Lexington, Newton, and Weston. This increase in newly built homes aims to ease the housing supply shortage, making 2024 an exciting year for real estate in the Boston area.
Return To Office Influences Homebuying
The shift back to office work is changing home buyers’ priorities. Remote work had many looking for homes with office space far from the city. Now, with more Boston companies requiring in-office attendance, there’s a shift towards finding homes with shorter commutes to Downtown Boston and Cambridge. This change underscores the dynamic nature of Boston’s real estate market, balancing the need for home office space with the desire for easier commutes.
