Charlestown Condo Market Recap: 2024 Trends & Insights
Charlestown’s real estate market saw notable trends throughout 2024, with fluctuations in sales, days on the market, and pricing. Economic factors such as interest rates, inflation, and consumer prices significantly shaped buyer and seller behavior. Understanding these patterns can help you navigate the market more effectively.
Interest Rates and Mortgage Rates
Throughout 2024, the Federal Reserve maintained a cautious approach to interest rates, aiming to balance economic growth with inflation control. Mortgage rates fluctuated, with the 30-year fixed-rate mortgage averaging around 7% by the end of the year. These elevated rates posed challenges for homebuyers, increasing borrowing costs and dampening demand in the housing market.
inflation and Consumer Prices
Inflation remained a significant concern in 2024, affecting various essential costs:
- Food Prices: Food-at-home prices increased by 1.2% over the year, below the historical average pace of growth, while food-away-from-home prices rose by 4.1%, slightly outpacing their historical average.
- Gas Prices: Gasoline prices contributed to inflationary pressures, fluctuating throughout the year and impacting consumers’ transportation costs.
- Housing Costs: Shelter costs were the main driver of inflation, accounting for over 65% of the 12-month increase in the all-items-less-food-and-energy index.
Condo Sales Activity
- The number of condos closed varied throughout the year, peaking in June (26 sales) and May (24 sales).
- The lowest months were February (6 sales) and January (7 sales), aligning with typical seasonal slowdowns.
Market Speed – Days on Market
- The fastest-moving condos were in December (23 days on the market) and February (16 days on the market), indicating strong demand.
- The slowest periods were in January (62 days) and November (55 days), suggesting buyer hesitation toward the end of the year.
Homes Selling Above Asking
- May led the market, with 15 condos selling above the asking price, followed closely by June (13) and July (12).
- Only three and two homes sold above the asking price in September and November, respectively, indicating a cooling trend later in the year.
Median Sales Prices
- The highest median sales price was in August at $1,225,886, showing a strong summer market.
- March also saw a surge to $1,160,767, potentially driven by limited inventory.
- The lowest price point was in September at $748,780, reflecting a seasonal dip.
Impact on Buyers and Sellers
The combination of higher mortgage rates and rising living costs influenced both buyers and sellers:
- Buyers: Elevated borrowing costs reduced purchasing power, leading some buyers to delay home purchases. Increased expenses for essentials like food and gas also constrained budgets, making it harder to afford higher-priced homes.
- Sellers: Aware of the financial strain on buyers, sellers faced pressure to price their properties competitively. Homes priced above market value or lacking compelling offers tended to linger longer.
Understanding these economic dynamics is crucial for real estate market participants. Staying informed about interest rate trends, inflation, and consumer prices can help buyers and sellers make strategic decisions in a fluctuating market environment.
Key Takeaways for Buyers & Sellers
✔️ Buyers: The best opportunities may be in early winter or late summer when prices dip. ✔️ Sellers: If you’re looking for top dollar, list in the summer months (May-August) when demand is highest. ✔️ Investors: Look for buying opportunities in slower months (January, September, November) when competition is lower.
What to Expect in 2025
Looking ahead to 2025, prospective buyers can expect a market that may shift depending on economic conditions. The Federal Reserve has hinted at potential rate adjustments, which could influence mortgage rates. If interest rates decrease slightly, buyer demand may rise, increasing competition for available properties. However, if inflation remains persistent, prices could fluctuate, requiring buyers to be strategic in their approach.
For those considering buying in 2025, early-year and off-peak months may present the best opportunities to secure favorable deals before the market heats up again in the summer. Staying informed on economic trends, mortgage rates, and local inventory will be key to making well-timed decisions in the evolving real estate landscape.
💬 Thinking of buying or selling in Charlestown? Let’s connect to discuss how these trends impact your real estate goals! If you are interested in seeing how Charlestown Single Market performed in 2024, Click Here
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