Is the Condo Market Really Dying? A Q2-2025 Reality Check

A Shifting Narrative

There’s been plenty of buzz suggesting that the condominium market is on the decline. We hear lots of word around the industry that condos are languishing longer, that open houses aren’t as well attended. But then there are places are Rising interest rates, an urban slowdown, and growing buyer caution have cast a shadow. But the Q2 2025 data shows a more nuanced picture — one where certain towns and price points are still thriving, even as others cool.

Contrary Evidence: Where Condos Are Thriving

Some condo markets are not only holding their own — they’re outperforming expectations. These towns combined fast sales, strong buyer competition, and year-over-year price strength:

• Concord (Middlesex): Avg price over $1.05M, selling in just 9 days, at 105% of list.

• Hudson (Middlesex): Closed in 12 days, at 104.6% of asking.

• Arlington (Middlesex): One of the most active markets, condos sold in 12 days, at 104%.

• North Andover (Essex): Maintained price traction and 11-day average time to offer.

• Ashland (Middlesex): Quick 8-day average sales, at 103% of asking price.

These towns illustrate that condos in mid-price, commuter-accessible areas remain in high demand.

Where the Market is Cooling

On the flip side, some urban and luxury condo markets are clearly softening:

• Seaport (Suffolk): Avg. price $2.2M, but taking over 81 days to sell, at just 97% of list.

• Beacon Hill (Suffolk): Sales lagged with 50+ days on market and sub-98% sale ratios.

• Reading (Middlesex): High DOM and virtually flat sale-to-list ratios.

• West End & Hyde Park (Suffolk): Lingering listings and declining buyer urgency.

Urban cores and luxury-tier properties appear most vulnerable, with longer sell times and weaker price performance.

Highly Competitive Condo Markets

Looking at speed and sale-to-list strength, the most competitive condo markets right now are:

• Ashland: Just 8 days to offer and selling for 103% of list.

• Franklin: Less than 10 days to offer with a 103% sale-to-list ratio.

• Hudson: 12 days on market, with sale prices exceeding 104% of asking.

• North Andover: 11 days to offer and consistent price strength.

• Peabody: Selling in just 7 days and closing well above asking.

These markets combine low days to offer, high sale-to-list ratios, and strong transaction counts — clear indicators of buyer competition and tight inventory.

Buyer Opportunity Zones

Conversely, markets where buyers have more leverage (slow sales, lower offers) include:

• Seaport & Beacon Hill – luxury fatigue

• Reading – long DOM, flat pricing

• Stoughton & Quincy – slightly below-list closing ratios

Boston’s Neighborhood Divide: A Tale of Two Condo Markets

While luxury markets like Midtown, Seaport, and Back Bay dominated on price — averaging over $2M and $1,500+ per square foot — these condos are taking 45 to 80+ days to sell, with sale-to-list ratios under 98%. That means buyers have leverage, and overpricing is likely softening final sale numbers.

In contrast, Jamaica Plain, Roslindale, and West Roxbury are thriving. These neighborhoods posted average condo prices in the $635K–$780K range, with swift average days to offer (under 21 days) and sale-to-list ratios above 102%. This signals competitive bidding and tight supply — a stark contrast to the luxury tier.

Even mid-priced, centrally located areas like Charlestown and South Boston remain active. Though not quite as hot as the outer neighborhoods, they're still moving faster than downtown zones and maintaining values above $850K, albeit with slightly softer price dynamics.

In short, Boston’s condo market isn’t dying — it’s splitting. The urban luxury core is slowing, while outer-core and commuter-friendly neighborhoods are driving the action.

Looking Ahead: What Q3 2024 Tells Us About Q3 2025

Based on Q3 2024 data, we expect a relatively stable outlook for Q3 2025. Last year, average condo prices and price per square foot in many key markets held steady or saw slight gains. Transaction volume was also relatively healthy, suggesting seasonal strength even amid rate pressures.

Expectations for Q3 2025 include:

• Continued strength in mid-priced, suburban-accessible towns (e.g., Ashland, Franklin, Peabody).

• Stabilization in slowing higher-end segments, and no strong rebound yet.

• Slight YoY gains in price per square foot, especially in well-located markets with limited new inventory.

The wildcard will be buyer psychology and rate fatigue. Where do rates go during the second half of 2025? Will the chaotic tariff whiplash bring more uncertainty to the national economy? Will massive cuts in medical research and university funding impact the local housing market? If rates stay at 7%, the bifurcation will likely deepen: value-driven markets stay hot, while high-end inventory continues to test ceilings.

Final Thoughts

While the condo market is clearly more mixed than the single-family segment, the story isn’t one of universal decline. Instead, it’s a bifurcation: affordable, accessible condos are thriving, while urban luxury units face headwinds.

As always, we’re a locally focused, boutique Real Estate sales team working with buyers and sellers throughout Greater Boston. Get in touch if you want some intel on the local market trends specific to you and your needs.