COGnitions

1 May
2025
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Boston Real Estate Update | May 2025 | By Jeff Hamilton

As we enter the peak of the spring selling season, South End and Back Bay remain among the most coveted neighborhoods in the city—even against a backdrop of elevated mortgage rates.

South End has seen steady appreciation, with home values rising 6.2% over the past year.

Back Bay has experienced even stronger growth, with values climbing over 10% during the same period.
Both figures are virtually records for this time period.

Buyer Demand

While not quite as frenzied as 2017–19, serious buyers are still willing to pay a premium for top-tier homes.

Look Beyond the Headlines

National reports may hype “massive inventory growth” or “price stagnation,” but Boston’s reality is more nuanced. Here, limited supply and enduring desirability continue to support strong price levels.

Recent speculation around potential tariffs—particularly on foreign goods and building materials—has added another layer of uncertainty to the market. If enacted, these tariffs could increase construction costs, placing upward pressure on new development pricing and, by extension, resale values. Buyers and sellers alike should stay tuned, but for the time being we haven’t seen a related shift in the market.

 


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Whether you’re looking to buy, sell, or simply understand how these trends affect your goals, let’s talk. Reach out today for a personalized market consultation.