Member Field Notes

A Tale of Two Markets

By Zach Feldshuh, Owner of Feldshuh Real Estate

My active projects in Roxbury, Needham, East Boston, and Watertown give me a perspective on two different sides of the current market. Properties range from $500,000 two-bedroom, two-bath condos to $1.799M townhomes.

Across the market, I'm seeing more negotiating, tougher contingency periods, and more work to get deals done. But at the higher end, in desirable areas, competition remains strong.

The difference is clear at the lower end. Condos priced between $500,000 and $600,000 that previously would have sold quickly are sitting. In my experience, that is mostly because first-time buyers feel the strain of rising interest rates more acutely. A monthly payment increase of $500 or more compared with spring is harder for them to absorb than it is for buyers at higher price points who have more equity to put toward a purchase.

For those higher-end buyers, the question is still whether a home they want is available. Inventory in those markets remains too low. In response, we are seeing builders shift from larger condo projects to oversized townhomes or luxury single-family homes. While the aquisition, carrying cost, and build numbers are higher, the risk seems to be less on these types of projects than smaller condo or more emerging neighborhoods.

For people who build, invest, or buy in Boston, this divide matters because lower-priced condos face slower sales and buyers' payment constraints, while desirable higher-end properties remain competitive and builders are shifting what they build.