Have Boston Real Estate Prices Stabilized in 2025?

If you’re a prospective homebuyer in the Boston area this spring, you’re likely wondering: Have prices in the Boston real estate market finally stabilized, or are they still coming down?

The short answer: Boston home prices have mostly stabilized in 2025, though there are important variations by neighborhood, property type, and price point.

Where Boston Real Estate Prices Are Softening

Over the past year, we’ve seen some price softening in higher-end condos and new construction properties, especially in:

  • Seaport District

  • South Boston

  • Downtown/Back Bay

These areas, particularly properties priced over $1.5M, have seen sellers become more flexible—offering price reductions, closing credits, and even upgraded finishes to attract buyers. High HOA fees and lingering inventory have played a role in this adjustment.

Where Prices Are Holding Strong (or Climbing)

On the other hand, entry-level and mid-range properties under $800,000 remain highly competitive in neighborhoods such as:

  • Jamaica Plain

  • Roslindale

  • Dorchester

  • Somerville

  • Cambridge

Similarly, single-family homes in the suburbs, particularly those with parking, yards, or recent updates, are holding strong in:

  • Newton

  • Arlington

  • Belmont

  • West Roxbury

These areas continue to attract families and first-time buyers, often leading to bidding wars and quick sales.

Why Boston Prices Are Stabilizing

The market is shifting from the frenzy of 2021-2022 to a more balanced environment in 2025. Key reasons for price stabilization include:

  • Slight drop in interest rates encouraging more buyers to re-enter the market

  • Low housing inventory in many areas, which continues to support pricing

  • Buyer fatigue easing, as home shoppers become more patient and strategic

What This Means for Boston Buyers in 2025

  • Don’t expect fire-sale prices: Deep discounts are rare, especially in well-located, turnkey properties.

  • You may have room to negotiate, especially on homes that have been sitting for 30+ days or have dated interiors.

  • Get clear on your must-haves: Competitive properties move fast, and pre-approval is still a must.

If you’re waiting for a major crash to buy in Boston, you might be waiting a while. The market has cooled from its pandemic highs but is far from collapsing. Now is a good time to buy if you’re looking for value, particularly in areas where pricing has adjusted and interest rates are becoming more favorable.

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Kevin Woo