2021 Annual Residential Market Report

The Boston housing market was booming in 2021. A combination of high demand and low inventory caused prices to rise and the housing market to remain tight. The market was especially competitive for first-time homebuyers, who discovered that they needed to expand their home searches further from the city center. 2021 was a seller’s market with demand outpacing supply and most homes not only selling quickly but also above the asking price. Prospective buyers faced increased prices, along with increased competition.

As we look ahead to the coming year, experts are predicting a slightly more balanced housing market in 2022, as the frenzied pace slows down somewhat. Mortgage rates are increasing due to the strength of the economy and inflation and these increased rates combined with scarce housing inventory will keep prices inflated and may keep some prospective home-buyers out of the market.