Analyzing and comparing the market for condos in Boston, we saw the trend of rising home prices continue. Sky-high prices and rising mortgage rates have put a bit of a chill on the volume of sold listings but not the price.

During the month of August, there were 379 condos sold in Boston, which is a 38% decrease from August 2021 which saw 612 condos sold. Despite the 38% decrease in total sold condos, the median sale price shot up 16% in August 2022. The median sale price in August 2021 was $795,195. However, in August of 2022, the median sale price was a whopping $946,849!

Mortgage rates are now well over 5% while last year they were under 3%. The condo prices are now $150,000 more than a year ago. Speaking with lenders or loan officers, it doesn't seem like the rising mortgage rates will slow down. Overall, we'd prefer the market to cool off a bit rather than have a "crash."

A market trending up for too long is a recipe for disaster. We are seeing evidence suggesting it will cool off slowly, as we've noticed in the data. Prices rose at a much higher rate in the prior cycle. The 16% rise from last August to the current August was closer to 25% in the previous cycle.

While it is still a great time to sell, the market is much different than it was a couple of months ago. We're seeing fewer offers per property and homes will sell in weeks instead of days. As a result, price appreciation is more modest, which should continue as inventory levels go up.