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Real Estate Market Update May 2022

In this month’s update we will review market data from the Greater Boston real estate market to help inform what’s happening with the local real estate market and how this is impacting homeowners, sellers, buyers, and real estate investors.

First, we look at the premium (or discount) that homes are selling for when compared to their listing price. As you can see in the chart above properties have, on average, been selling more than 2% above asking price in the month of May. This premium has been trending upward since the beginning of 2022 and is a significant change from the “discount” that properties were selling for as this same time last year. It is common for properties to trade at a small discount in Greater Boston during the winter months. 2022 has seen a significant shift from the norm due to the continued high buying demand and historically low inventory. It continues to be a seller’s market.

Next, we look as the supply side of the market. As shown in the chart above we can see the market has approximately 1.5 months of supply, incredibly low when compared to the last 20 years. This means that if zero new listings came on the market it would take less than 2 months to clear all existing listings. We also see that 2022 has seen even further reduction in supply compared to 2021 further compressing inventory and keeping prices high. We did see a fairly sharp move up in May and will continue to watch if the economy and higher mortgage interest rates increase the number of listings we see going into Summer.

Total listings have remained about the same as this time last year. We’ve seen our usual increase in listings coming into Spring and early Summer. We expect this to continue throughout the summer and into Fall. We will be watching to see if fears in the economy and continued higher interest rates bring new sellers to the market who may fear missing out on the strong seller’s market we’ve seen the past couple of years. If you’re thinking of selling I would encourage you to think about what would happen if a flood of new listings came on the market and interest rates continue to rise. This could swing the pendulum to a buyer’s market quite quickly!

Last, we look at the total number of multifamily properties sold in the Greater Boston area. As you can see total sales for 2022 have been slightly below that of 2021, except for the month of April which saw a spike upwards. I attribute this to many buyers looking to lock in property purchases before interest rates moved up further. We expect to see sales increase due to summer and fall seasonality.

Overall, the Greater Boston real estate market is in a period of transition. Buying demand remains quite strong, especially with interest rates stabilizing after their rapid rise in Q1 of 2022. Inventory and listings remain at historically low levels keeping prices high. Bad economic news, continued higher interest rates, or a surge of new listings could quickly flip the dynamic in the market and putting buyers in a position of power they haven’t seen in the past several years. We will continue to keep a close pulse on the market!

Reach out to me at if you’re interested in discussing the market or your particular situation buying or selling a property in Greater Boston.

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