Boston Condo Hits $3M Average, Luxury Market Shifts
Current Market Dynamics and Buyer Behavior Amid a shifting economic environment, the Boston condo luxury market experiences significant changes in buyer behavior. Rising interest rates have shaped buyer preferences within the luxury segment. Jumbo loan rates increased to 6-7% by 2025, reducing borrowing capacity. This has led to market segmentation, where cash buyers remain active. They sustain demand for prime properties while financed buyers face challenges. Sellers are also reassessing strategies and expectations amidst changing market conditions. Selectivity among high-end consumers is notable. Days on market extend to over 70 days in premium areas like Seaport. Demand thrives in affordable and mid-tier segments, contrasting luxury trends. Inventory constraints due to homeowner reluctance to sell further influence buyer choices. Renovated properties priced over $1,500 per square foot attract swift transactions. Continued anticipation of price rises drives strategic purchasing beha...