Most of you have probably already heard that the Federal Reserve lowered interest rates by 50 basis points last week. This was a big move. This brought the federal funds rate down to a range of 4.75% to 5.00%. This marks the first rate cut since 2020 and comes as inflation cools and economic conditions stabilize. 

In the real estate market, this change means lower mortgage rates. The average rate for a 30-year fixed loan is now around 6.20%, and some lenders offer rates in the mid- to high-5s. This is a big drop from the peak rates of 2023, when rates were close to 8%. Lower rates make monthly payments more manageable and give buyers more buying power. Homeowners, too, can benefit by refinancing at these lower rates.

MA Single Family Home Market Trends

There are also some interesting trends in the Massachusetts real estate market. The average sale price of a single-family home in the state has increased by 7.18 percent, reaching $817,517. Homes are selling faster than last year, spending an average of only 22 days on the market before getting offers. Also, the inventory has grown by 37.42%, giving buyers more choices. With more homes on the market and lower mortgage rates, now is a great time for buyers to act.

Boston Condo Market Trends

The story is a little different when we look at the condo market in Boston. While sales are down 7.13 percent year-over-year, condo prices have stayed the same, at just over $1.07 million on average. However, the price per square foot has gone up by 3.49 percent, which shows that there is still a strong demand for condos, especially smaller ones. There are also more listings on the market, up 24.11%, and sellers are changing their prices more often to get people to buy. This provides excellent opportunities for buyers to find the right deal, especially as more listings hit the market.

Lower interest rates and more homes for sale make now a good time for buyers to look at their options. This is true for both the single-family and condo markets. Prices are going up and deals are closing quickly in the single-family market, which is good for sellers. However, there is more competition in the Boston condo market.

Whether you're looking to buy, sell, or refinance, our team is ready to help you navigate this changing market and make the most informed decisions possible.

Nick Warren
Broker/Owner Berkshire Hathaway HomeServices Warren Residential