Boston condo market splits between small and large buildings

The Goodrich Team says Greater Boston condos are now trading in two separate markets, with smaller associations drawing stronger demand while larger buildings face slower sales and more price pressure. The team expects the divide to widen through 2026 as financing scrutiny, fees and carrying costs weigh on high-rise inventory.

Why it matters: - Boston condo buyers and sellers are no longer seeing one unified market. - The Goodrich Team says building size has become the main divider, not neighborhood or price. - That split affects pricing power, time on market and how much leverage buyers have.

What happened: - The Goodrich Team, a luxury real estate group at Compass in Boston, released a mid-year analysis of the Greater Boston condominium market. - Year-to-date in 2026, the team reports an average of 31 days to offer across its Greater Boston listing and buy-side transactions. - The team reports an average list-to-sale price ratio of 98.49%, showing most properties are closing below asking. - Ethan Goodrich, founder of The Goodrich Team, said larger associations of 10 or more units are struggling. - Goodrich said smaller condominium associations are moving more quickly and drawing stronger demand.

The details: - Buyers in larger associations are concerned about big capital projects, surprise assessments after purchase and high monthly fees. - As of Aug. 1, lenders removed limited review for larger associations, adding more scrutiny from underwriters. - Boston neighborhoods with mostly small buildings, including Back Bay and Beacon Hill, are largely insulated. - Midtown, Seaport, Fenway and parts of the South End have more inventory in large managed buildings and face a harder sales environment. - Charlestown is performing well because inventory is extremely low. - The team points to 22 Liberty and 50 Liberty in the Seaport as exceptions, with both buildings still seeing low turnover and strong demand despite premium pricing. - Goodrich said taxes, association fees and parking costs continue to rise on top of already high home prices. - Goodrich said buyers with a five-year horizon are losing confidence in concierge buildings with high fees and high inventory. - For sellers in slower-moving luxury high-rises, Goodrich recommends disciplined initial pricing. - Goodrich said sellers should study competition inside their own building and be prepared to sell for less than they paid if the market requires it. - In larger buildings, buyers are gaining leverage mainly through successive price cuts rather than single steep discounts. - Goodrich said offers about 10% below asking usually do not get a response unless the seller has already cut price once. - In the more competitive small-association segment, the team advises tight timelines, strong deposits and short inspection windows. - Massachusetts rules now bar inspection waivers as a condition of acceptance. - The Goodrich Team says that rule has changed how buyers structure offers in competitive deals.

Between the lines: - The market split suggests Boston condo demand is becoming more selective, with buyers rewarding lower-fee, lower-complexity ownership. - Higher operating costs and financing scrutiny are making large buildings look more like a liability than a premium, especially for buyers who may not stay long term. - The strongest properties are not necessarily the newest or most expensive; they are the ones with fewer moving parts.

What's next: - The Goodrich Team expects the gap between small and large associations to widen through 2026. - Goodrich said smaller-association condos should appreciate while larger associations may languish and depreciate. - The team says the pressure on larger buildings will persist until interest rates fall meaningfully into the 4% to 5% range. - Learn more at the company's announcement.