Boston

A majority of Boston’s neighborhoods saw a decline in the number of transactions and an increase in sales prices. Citywide, the number of units sold decreased by roughly 12%. On the flip side, the median sales price increased roughly 5% and now sits at $725,000 while the average number of days on market decreased by one week, year-over-year. Keeping with the trends that we have been seeing for the past few years, the most competitive price point for buyers remains condos priced between $700,000 - $800,000. Homes sold on average in 24 days and for 100% of their asking price, leaving next to no room to negotiate.

As we look ahead to the coming year, experts are predicting a dynamic housing market in 2023, as the frenzied pace continues to slow down. Industry experts forecast a decline in long-term mortgage rates, but not a drop in asking prices. With median home prices in Boston well above the national average ($725,000 v. $428,000) investors were hardpressed to find bargains.

While buyers from all generations face the challenges of a tight real estate market, younger generations face steeper hurdles to homeownership.

Nationally, Millennials make up the largest share of homebuyers. In 2022, Millennials accounted for 67% of mortgage applications in the U.S. for first-home purchases (we expect this trend to continue) and 37% of those for repeat purchases.

However, in the Boston area, Millennials may feel the effects of the home-buying crunch. Millennial homebuyers place a premium on location, particularly a location that minimizes their commute to work.

Many in Generation Z have entered the home-buying market and home ownership is important to them. However, student loan burdens and early-career salaries often don’t keep pace with the rising cost of housing, so many will have to defer homeownership. Instead, they will turn to rentals.

According to National Association of Realtors, 74% of those aged 22 to 30 cited “convenience to the workplace” as the most important reason for choosing a particular neighborhood, and 65% of those buyers said that the quality of the neighborhood influenced their purchase.

This generation prioritizes amenities, especially those of the communal type, such as co-working spaces and fitness centers.

Individual communities experienced variations in the housing trends we’ve discussed above. We will explore the various communities within the Greater Boston area in more detail throughout this report.

According to a report from the National Association of