2024 Greater Boston Real Estate Market outlook

Massachusetts housing has continued to experience very high demand and very low supply into 2024, which continues to push prices up. While demand slowed in 2023 due to higher rates and high prices (the market has reached the affordability limit for many homeowners), the lack of supply has kept housing prices from falling. In addition, new construction slowed dramatically due to high rates and construction costs, which added to the lack of supply issue. However, interest rates have recently come down from about 8% to 6%-6.5%, bringing more buyers off the sidelines. The market has picked back up going into 2024 in certain pockets.

The sub-$3m single family market in 2023 continued to trade competitively in towns surrounding the city, even though rates were high due to extremely low inventory. In 2024 I expect these markets to become much more competitive with the rates coming down. The buyers who were on the sidelines in 2023 will add to an already over-crowded buyer pool in 2024. There is still a lack of inventory and I expect it to be extremely competitive. If you are looking to sell, it’s a still a great time. If you are looking to buy, it’s important to have good representation. The sub $3m condo market in the city overall slowed in 2023. However certain pockets such as Back Bay under $2m, continued to trade competitively and have picked up even more into 2024.

In 2023 I helped secure a house in Foxborough, winning a bidding war over 9 other offers, which included my client’s contingency to sell their other home. It was a great win for my client. Also in 2023, I helped my long-time friends secure their dream home in Scituate, winning a bidding war over 6 offers.

The high end condo and single family market in and around the city has slowed dramatically, which has created great buying opportunities. The Boston market is so dynamic that premium inventory usually is sold very quickly and with very little buying negotiation. However, this slow-down has created some great opportunities to find premium assets at a discount. Even though rates have come down, the high-end market is still moving slowly into 2024.

In 2023, I found a distressed high-end condo in Back Bay for my clients on Beacon Street. It originally was priced at $4.9m and the previous owner had purchased the home for $4.2m, I was able to get a deal done at $3.9m for my buyer. We locked in close to $1200/sq ft for a turn-key asset, on the 5th floor Charles River side, in a prime location. It was a great deal.

Multi-family: Interest rates reaching almost 8% on home loans in 2023 caused a major slow-down in a normally very competitively traded multi-family Boston market. While rates have come down to the 6’s in 2024, multi-family and investment purchases are most likely going to still be slow due to the rates still being too high for investment purposes, especially with your standard 75% leveraged investment. However, if you are a cash buyer or can put more down (50%+) to make the investment make sense, there are opportunities to find premium properties potentially at a discount, in an historically very competitive market. The rental market is booming and will continue to boom, which makes these investments very attractive. You can always refinance the property when rates come down to increase returns.

In 2023, I worked with a multi-family investor and found an off-market, newly gut-renovated three-family in a great location. I was able to negotiate the price down on the asking price and raise prices on the rentals, to turn it from a 5 Cap to a 7 Cap. It was a very successful deal.

I am also thrilled to announce I received a 2023 nationwide top production award (top 10%) for my sixth straight year. Thank you to my clients and for the trust my network has had in me with all the referrals. 2023 was a challenging year, albeit, very successful for me and my clients. I am looking forward to a great 2024 and I am available to help with your real estate needs.