Purchasing a home in the Boston area continues to present significant challenges amid rising prices, increasing interest rates, and stagnant wage growth. Over the past year, the monthly mortgage payment for a typical single-family home in Greater Boston rose by approximately $820—a 14 percent increase—reaching an average of $6,750. This shift corresponds with an uptick in the average 30-year fixed mortgage rate from 6.3 percent to 7.4 percent.
With real incomes little changed after adjusting for inflation, prospective buyers are turning increasingly to online real estate platforms to navigate the competitive market. Nearly half of recent homebuyers begin their search online, and more than half find their eventual purchase through such sites, according to Stephen Brobeck, a senior fellow at the Consumer Policy Center who has researched the real estate sector for three decades.
In a recent study focusing on 21 communities nationwide—including Cohasset and Watertown in Massachusetts—Brobeck examined the offerings of the four largest real estate search sites: Zillow, Realtor.com, Redfin, and Homes.com. His findings indicate that while these portals draw most of their listings from the same local and regional multiple listing services (MLS), differences in their inventory and features exist.
Among the distinctions is Redfin’s inclusion of “Early Access” listings offered by Compass and its affiliated brokerages such as Coldwell Banker, Sotheby’s, and Christies. In the Boston region, these exclusive listings accounted for 64 of approximately 2,215 total properties. If these homes remain unsold after several weeks, they typically appear on the other major portals. Conversely, no similar exclusivity was identified among Zillow, Realtor.com, or Homes.com, although some non-Compass brokerages may develop exclusive relationships with portals in the future.
Other variations include Realtor.com’s display of properties under contract—designated “contingent” or “pending”—which can be misleading as about 15 percent of these agreements fail to close, returning homes to the market. Buyers are advised to monitor a home’s “days on market” (DoM) across multiple platforms since a new pricing strategy can reset this metric, masking a property’s true market duration. Additionally, “Coming soon” listings affiliated with Compass do not usually provide DoM or price history data, requiring buyers to seek this information directly from sellers.
Many portals feature “contact agent” buttons aimed at connecting buyers with real estate agents. Zillow discloses that these contacts connect users with buyer agents and retains 30 to 40 percent of the agent’s commission. Realtor.com, however, does not clarify that the contact is not necessarily with the listing agent, which may cause confusion among users.
Automated property value estimates generated by algorithms are based on recent sales and market trends. These estimates tend to be more reliable for homes actively listed but may not account for factors such as maintenance issues or unique home conditions.
Despite the usefulness of online tools, Brobeck cautions buyers against relying solely on internet searches, especially in Boston’s tight market where multiple offers on desirable homes are common. He recommends supplementing online searches by consulting with local residents about unadvertised properties and, when feasible, reaching out to owners directly. Additionally, engaging an experienced, full-time real estate agent with a proven track record can provide critical advantages. Buyers should inquire about an agent’s fees, marketing approach, personal commitment, and fiduciary responsibilities before entering into agreements.
These combined strategies may enhance a buyer’s ability to navigate the complex and competitive Boston housing market effectively.