South Shore Living: Navigating the Boston Area Real Estate Market in 2025 - What can we expect?
As a Realtor on the South Shore of Massachusetts, I have a front-row seat to the dynamic shifts in the Boston area real estate market. The landscape is continuously evolving, influenced by a myriad of factors from mortgage rates to policy changes. Here’s a closer look at what’s happening both in the broader Boston area and right here on the South Shore.
Upcoming predictions for the Boston Area Real Estate Market 2025
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Moderate Growth in Home Sales: The sales of existing homes are expected to grow at a moderate pace. Buyers are gradually becoming accustomed to higher prices and mortgage rates. However, there’s potential for a surge in transactions if mortgage rates decline. This is particularly relevant for South Shore Living, where the charm of coastal communities and great schools continues to attract buyers.
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Policy Changes on the Horizon (but is it real?): New policies regarding real estate commissions and the sharing of home listings on public MLS systems are anticipated. These changes will likely vary between regions before any revamped national rules are enforced. My Honest takeaway on this; not much has changed here on the South Shore or in Boston. If you wan't to attract buyers, it is in your best interest to offer buyer agency compensation. Since the new rules went into affect in August 2024 - nothing has changed in the way I do business and we are still selling our clients homes for top dollar.
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Newly Built Homes Filling Supply Gaps: The shortage of existing home inventory is being addressed by newly built homes. Homebuilders, especially those who can buy down mortgage rates, are stepping in to fill the supply gaps. This trend is evident on the South Shore, where new developments are sprouting up to meet demand. Cities like Quincy and Weymouth are seeing an influx of new construction multi unit properties. Suburban towns like Scituate, Norwell, Hanover etc. are seeing more singular tear down and rebuild projects in the works as there isn't as much available land and not as much approval for multi unit properties. Large land tracks are still desirable for larger developers to make communities in, but they are hard to find.
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Mortgage Rate Projections: Mortgage rates are likely to hover between 6% and 7% unless a recession occurs. However, short-term lending rates are expected to continue falling through 2026. For South Shore buyers, understanding these trends can help in making informed decisions about timing their purchases. Overall, it is hard to time the market so I always advise people - if you love the house, "go for it" waiting for the right rate or right condition could leave you waiting years while prices increase.
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Long-term Market Influences: Over the next five years, several factors could impact the housing market, including changes in immigration policies, expanding tariffs, and the rising costs of climate change-related damages. The expansion of AI and shifts in global trade flows will also play a role. Yet, mortgage rates remain the most significant factor. If they stay high, transactions will be driven by life changes such as job relocations or family dynamics. Conversely, a drop in rates could unleash pent-up demand, potentially altering the list of hottest housing markets by 2029.
The South Shore Perspective
Living and working on the South Shore, I see firsthand how these broader trends manifest locally. The South Shore offers a unique blend of coastal beauty and proximity to Boston, making it a desirable area for many homebuyers. As a Realtor, my goal is to help clients navigate these changes, ensuring they make the best decisions for their future.
Whether you’re buying or selling, understanding the nuances of the South Shore and Boston area markets is essential. With the right insights and guidance, you can successfully navigate this ever-changing landscape. South Shore Living is not just about finding a home; it’s about embracing a lifestyle that combines the best of Massachusetts’ coastal charm with the vibrancy of the Boston area.
If you're considering buying or selling on the South Shore or in the Boston area, I am happy to be a resource for you - reach out any time!
Hillary Birch
