South Shore life, what can we expect from the 2025 Real estate market?
As a long time Real Estate Broker here on the South Shore and in Boston I have a long term understanding of what the market here is like and how the small shifts can effect both buyers and sellers. Like many industries, the real estate industry is always evolving and changing and I pride myself on staying up to date with what is happening here on the South Shore.
Hillary's upcoming predictions for 2025 Boston area + South Shore Real Estate Market
1. There will be some growth in home sales: The sales of homes is expected to grow at a moderate pace, the reason for this is that buyers are getting accustomed to the higher interest rates and higher prices. The initial shock of interest rates changing has sort of worn off and people are ready to get back into the market. This is even more relevant here on the South Shore as work style has changed and people aren't required to go into the office as much so further out towns like Marshfield, Kingston, and Plymouth are seeing an influx in buyers who don't have to worry as much about commute time.
2. Policy Changes, Commissions, what is the deal? There was a lot of talk about new changes in the way real estate commissions are presented. To be honest, this was a lot of headline grabbing news but really, not a lot has changed here on the South Shore or in Boston. If you want buyers to come see your property (most of whom are going to be working with agents) it is in your best interest to offer buyer agency compensation. Since these new rules went into effect in August - nothing has changed in the way I do business and my clients are still getting top dollar for their homes.
3. New construction, do we have any? We have obviously had a shortage of inventory in recent years and there has been some attempt to address this with new home construction. This trend is evident on the South Shore where developments are popping 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 acreage is still desirable for larger developers to make communities in, but they are hard to find here on the South Shore.
4. Mortgage rates - Mortgage rates are probably going to stay around 6-7%, sadly there won't be a huge drop unless a recession occurs, which feels unlikely. For South Shore buyers, it is honestly pretty 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. The fact is, prices aren't dropping so you're better off locking in a home sooner rather than waiting another 5 years when rates may be lower but houses are 20% more expensive.
5. Long term, what's going to happen? Over the next few years, I think there are lot of factors that could impact the housing market. We have new government leadership in place which always opens up different possibilities. Insurance is changing due to climate related damages, and mortgage rates are still unpredictable. If we do have a drop, the market will flood with buyers but until we have more inventory - it may remain pretty much the same. I don't forsee any prices going down as we in the Boston area are pretty well insulated from huge recessions with our strong hospitals, education, and job markets.
6. My South Shore Real Estate Perspective - It's no secret that I love the South Shore. I think it offers an incredible quality of life, coastal beauty, proximity to Boston and it's cultural opportunity. We have some of the best schools around and there are 100 reasons it is desirable for buyers to move here. As a full time Realtor it is my job to help prospective buyers and sellers understand the nuances of this special market in order to ensure they have the best possible outcomes. If you're considering a move here, please don't hesitate to reach out. And if you are a seller trying to gauge the best time to market your property, and anticipate who your future buyer is - I would be happy to discuss and create a tailored plan to market your property and its special qualities.
Hillary Birch
