T
he Greater Boston Association of Realtors reported that single-family home prices rose 9% year-over-year in November, reaching $865,000, while condo prices increased by 3.1% to $700,000. These numbers are a far cry from the peak prices seen in June when they approached the $1 million mark. According to Rideout, more properties will hit the market in 2025, leading to a 5-8% increase in home sales.

    As of November, Massachusetts had seen a 1.7% increase in single-family home sales and a 3.1% drop in condo purchases. The Warren Group reported that mortgage interest rates are expected to decrease, bringing more inventory onto the market. Rideout believes that if rates drop to around 5.5%, it would be a significant improvement.

    A panel of housing experts assembled by Fannie Mae forecasts modest price growth of 3.8% in the national market for 2025 and 3.6% in 2026. Mortgage rate uncertainty remains, with some predicting a decline in rates next year. Shant Banosian expects mortgage interest rates to decrease to the high fives or low sixes by the end of 2025.

    Banosian and Rideout agree that rates in the mid-to-high 5% range would present an opportunity for people who bought in the last year or so to refinance their mortgages. Selma Hepp, chief economist at CoreLogic, revised her prediction after the presidential election, citing uncertainty about government spending, tariffs, and inflation.

    Greg Vasil emphasized the unpredictability of the Trump administration and its potential impact on interest rates. What's on tap for renters in 2025 is modest increases in rent and fewer concessions from landlords, according to Kara Ng, Zillow senior economist. Nearly 29% of rental listings offered a concession in November, compared with 23.1% a year ago.

    Ng expressed concern about affordability, noting that Boston renters spend around 31% of their income on housing, leaving little wiggle room for saving money to buy a house. Ultimately, the solution to affordability is to build more houses, Ng concluded.