We sent a poll around to a bunch of real estate agents doing business in the Boston area. We asked them for their candid thoughts on the upcoming housing market in 2023. Here are the results of that poll. Note: We sent out a few hundred emails, and got just under 40 responses. So the information here is purely anecdotal and not necessarily representative of the majority of Boston area real estate professionals.

First question: How do you see the spring market performing in 2023?

It’s pretty clear that most agents are feeling that inventory (or lack thereof) will dictate the flow of the market this Spring and for the year in general. On a national level, there’s a still housing shortage. Unlike 2006-2010, where housing units nationally outpaced demand, there hasn’t been a significant boost in available housing, leaving the market’s continued historically low inventory to set the tone for high market demand. It’s the same here. Also, in addition to there being a dearth of available housing and new construction, there is not much of a shadow inventory in the form of foreclosures. There’s been so much equity gain since 2011 that very, very few homes are currently underwater and thus foreclosures are just a fraction of what we were experiencing between 2008-2012.

CONCLUSION? We agree that as long as inventory remains low, the rising interest rates will have less impact on value and demand.

Next, we asked: where do you expect mortgage interest rates to go in 2023?

By a fairly wide margin, a majority of agents feel that rates are going to soften over the upcoming year. If global market predictions are true and a recession is coming, it’s likely true, as historically happens during a recession, that rates will come down again. Given the absolute meteoric rise in rates last year, it would be hard to imagine a cycle where they didn’t come down a some in 2023.

Even if they’re trending up, another year like last year, where rates more than doubled, there’s always ebb and flow, given last year’s Perigean tides, we are hoping to see some soft ebbing in 2023.

We asked if agents felt as though they were working harder to find better rates for their clients. We found that the dramatic rise in rates impacted different banks and lenders at varying rates. They’re harder to find now, but last year there were disparities from varying lenders as much as 2% for conventional 30 yr fixed loans.

And almost half of the respondents felt that they’re doing more to help their clients find better rates. Pro tip: We have some fantastic lenders to whom we’ve referring our clients for years, because we trust them and we know they’re getting the most reliable and solid advice in a shaky rate market.

Which areas in or around Boston are poised for growth or more rapid appreciation? Will there ever be another Seaport boom? Will Cambridge see the growth in value its enjoyed over the past decade and a half? We asked agents for their thoughts on which areas had potential for faster than average growth.

Lots of singular votes, and more than one agent conceded not to know, but Hyde Park definitely made a splash.

So Hyde Park, a neighborhood with comparably larger lot sizes than most Boston neighborhoods and an area with high prevalence of single family homes, gets the most votes. I can’t say I disagree.

Next, we asked what agents are finding to be their buyer clients biggest needs. Here, the results weren’t surprising.

Outdoor space has always been a big checklist item for buyers, both with condos and single families, but I think the pandemic really pushed that desire to the forefront to make it the indisputable amenity queen. (Note to potential home sellers: As you’re prepping your home for sale, don’t shirk on maximizing your outdoor spaces and showing them off in their best light.)

The last question was more of a philosophical question on the direction of the city. What did agents see as the biggest challenges for housing in the Boston area?

The big takeaway from these responses is: AFFORDABILITY. I suppose that’s a challenge that isn’t limited to just housing and there are the greater forces of wage economics and employment that factor into housing affordability. But it is interesting that most agents share this thought.

Market affordability is big topic and not one we’re going to broach here today in any meaningful way, but we (the BHT) are in agreement that this, along with building climate ready housing, is one of the biggest challenges we face in Greater Boston.

So there you have it! An informal but interesting opinion poll from trenches of Greater Boston real estate. What do you think? If you have thoughts, feel free to connect with us here, on our site, and tell us what you think! As well, if you’re looking for more granular information, specific to a property you’re trying to evaluate or to an area in which you’re considering investment, give us a ring! We love talking shop and we’re more than happy to share any data we’re privy to.