Buying
05/20/25 | Liz and Ellie Local
With the spring market now well under way in Greater Boston, buyers, sellers, and we in the real estate industry are reckoning with an ever more complicated residential landscape. National economic uncertainty, along with unease about local industries, is making it more important than ever to make fully informed decisions. With that in mind, we’ve compiled some top-down information to help you on your way.
National Overview: Mortgage Rates and Buyer Sentiment
Up to mid-May 2025, mortgage rates have been quite stable with the 30-year fixed-rate mortgage at 6.92% on average as of May 16 (Mortgage News Daily). Freddie Mac released an equivalent rate of 6.81% for the week ending May 15 (Freddie Mac PMMS), the 17th consecutive week that rates have been fractionally below 7%. This represents an improvement over the 2023 highs but is still above pre-pandemic levels, which continues to affect affordability.
Economic sentiment remains subdued. The University of Michigan's Consumer Sentiment Index fell to 50.8 in May, reflecting growing worry about inflation and economic uncertainty. This has led to a mixed reaction from buyers—some rushing in to lock in current prices before potential hikes, others pausing amid rising costs and uncertainty.
Despite these challenges, purchase application activity is on the rise. Freddie Mac reports an 18% year-over-year increase in purchase applications, indicating that buyer demand, while measured, remains active amid fluctuating rates and economic uncertainty (Freddie Mac Purchase Applications).
While these national trends paint a broad picture of the housing market, local dynamics can tell a very different story. In Massachusetts, rising inventory and evolving buyer behavior are creating a market environment all its own.
The Massachusetts Market: Local Implications
Buyer sentiment in Massachusetts suggests a shift toward balance. Insights from Rockland Trust reveal that fewer buyers are willing to pay significantly over appraised value—pointing to a more cautious, value-conscious buyer mindset. Rather than rushing to lock in rates, many are taking a wait-and-see approach, evaluating affordability more carefully as the market adjusts.
Boston Focus: A Closer Look at Urban Buyer Behavior
Boston's housing market in mid-May 2025 reflects a dynamic interplay between rising inventory and persistent affordability challenges. The number of homes for sale increased by 31.8% from March to April, reaching 2,493 listings, indicating a growing supply in the market.
Despite the rise in inventory, prices continue to go up. Boston's median sales price was $829,000 in April, a 7.0% year-over-year increase. Homes are moving fast, with a median of 23 days on the market, indicating continued demand.
Spring is historically one of the busiest seasons of real estate, and 2025 is no exception—no matter what we're hearing on the national news. Whether you're a buyer in Boston or a seller in suburban Massachusetts, staying ahead of both macroeconomic trends and hyperlocal change will put you ahead of the curve.
As housing affordability continues to challenge our local communities, we find it encouraging to see legislative steps that prioritize affordability, flexibility, and access, like Massachusetts’s Affordable Homes Act, signed into law last year by Governor Maura Healey. One of the changes we find most intriguing is the expanded ability to build Accessory Dwelling Units, or ADUs. These are small residential living spaces located on the same lot as another home, either within an existing primary residence, like converting a basement into an apartment, attached to a primary residence as a new construction addition, or completely detached, like a cottage or converted detached garage in a backyard.”
Here at Liz & Ellie Local, we are always looking for ways to make life a little greener. And if you’ve been in the Boston area for any length of time, you’ll know that there are areas where paving your yard was all the rage…and the remnants of that craze are still all over town. But things are changing. In Somerville, in particular, residents are tearing up their pavement in favor of something green.
We’re a few days from “official” summer, but there are already plenty of things happening outdoors in the Boston area. And while we love a good Red Sox game or concert at the Pavilion, there are tons of ways to take advantage of summer without spending a dime. From free music, to lectures, to movies and more, Boston has a plethora of free events worth checking out. As local residents of Cambridge and Somerville, who adore the communities we live and work in, we'd like to share a few of our favorite events.
With their complementary communication styles, responsiveness, competence, and ability to truly listen, Ellie and Liz enable their clients to feel at ease throughout any real estate transaction. They would welcome the opportunity to be your next real estate advisors.
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