Boston Real Estate Market AnalysisJune 30, 2012
The 2012 spring market has been fairly active and the quarterly report for the Back Bay neighborhood definitely demonstrates recent, robust activity. The Boston real estate market has been especially active in certain Boston condos that fall within a specific square footage.
The sweet spot of the Back Bay market is between 100 to 1500 square feet, and Boston condo sales in that market category is up by 55.5% (based on Q1 stats). These listings are generally on the market for 123 days average. Fewer units between 1600 square feet and 2500 square feet have been sold. The larger homes usually stay on the market longer than 123 days.Needless to say, there has been much less inventory recently in larger Boston condos over 1600 square feet. Less inventory has a direct impact on number of sales, since there are a limited number of homes to choose from.
Some really encouraging news deals with the the rising price of square footage. On average, the price per square foot in the first quarter rose by 0.17% (compared to -5.73% in 2011). Keep in mind that average selling prices fell by -2.42%. But the more homes introduced to the market will only strengthen local Boston real estate prices.
In addition to analyzing price per square foot, it's also important to compare the price of Boston condos by number of bedrooms. The median selling price of one bedroom units rose by 12.77%, but, again, the inventory was down. The median selling price for two bedroom condos rose by 7.08%, and inventory actually increased by 13%. Median sale price for three bedrooms was down by 27.5% and inventory also down by 31%. There's currently a higher demand for smaller Boston condos.
The shortage of inventory has been a major problem in the Back Bay, Beacon Hill/South End and Waterfront areas, especially in the luxury home category. Sellers are waiting to put their units on the market and hoping for much higher prices and a more aggressive market. Contact me to discuss the timing of your next move!