Real Estate Trends – Boston’s Fenway (Condos)

Introduction:

Welcome back again for our latest real estate market trend report.  For those of you that are here for the first time what we do in these reports is examine the real estate market in a city or town in Massachusetts or New Hampshire to evaluate the current conditions.  We do this by looking at changes in three key metrics year over year for the municipality to see how the market has changed and evaluate what those observations mean for that market moving forward.

Today we are highlighting the condo market in The Fenway area of Boston, MA in Suffolk County

 Fenway area - Boston MA Real Estate

This is the 5th and final article of our 5 part series looking at parts of Boston, MA and showing that the general statement that the Boston housing market is red hot is not always true.  As we have stated in all the previous posts there are many areas in and around the city that are still doing very well, however several others have slowed down and many are declining.  The MYTH we are trying to bust is that these general statements about how hot the Greater Boston area real estate is are always true right now.  Each and every market in and around the city needs to be evaluated on its own merits.  Using sweeping generalizations can give false impressions on what that specific market is doing and can lead to poor decision making for both buyers and sellers.

Links to the rest of the articles added as soon as they are released: Part 1 – Boston, Part 2 – Hyde Park, Part 3 – West Roxbury and Part 4 – North End (Condos).

Market Trends in Boston’s Fenway – May 2014 and 2015:

The condo market in Boston’s Fenway neighborhood appears to be down significantly since last year.  The average listing prices and the average sale prices were both down a lot.  The days on market were up a very tiny amount, but are still extremely low.  Inventory was down a bit with 16 sales in May of 2014 and 10 in May 2015. 

Average Listing Prices:

First we are going to look at the average listing price.  For Fenway Condos the average listing price in May 2014 was $552,794.  This was down to $479,600 in May 2015.  That gives a large 13.24% decrease year over year. 

Since we have been looking at the medians as well in most of the posts in the series we will here as well.  Taking a look at those we see listing prices of $544,000 and $440,000 for a much larger drop of 19.12%.  Either method does lead to the same conclusion that listing prices are down a good amount since last year.

Average Sale Prices:

Next we will look at the average sale prices.  The average sale price for condos in Boston’s Fenway in May of 2014 was $560,400 and in May 2015 that was down to $489,300.  That gives a slightly smaller 12.69% decrease. 

Now let’s take a look at the median prices again, doing that we see sale prices for Fenway condos in 2014 of $552,000 and $447,500 in 2015.  Using these numbers we again see a much larger decline than with the averages, this time the result is a 18.93% decrease.

Average Days on Market:

The final metric we are going to look at are the average days on market, which is the measure of how long it takes for a house to sell in the current market.  For the Fenway the average days on market in May of 2014 were just 15.56 and the average days on market for May 2015 went up just a tiny amount to 17.90, for a 15.03% increase.  This is a situation where you need to look past that seemingly meaningful percentage to see that both of these numbers are so small that the very small increase leads to large percentages.  In this case I feel it is fair to say that days on market were mostly flat and the increase is not significant.

The Fenway, Mass Summary:

The Fenway, Massachusetts real estate condo market has fallen off quite a bit since last year.  The large drops in both listing prices and in sale prices make this argument very strongly.  The pretty meaninglessly small increase in days on market is a small reprieve for sellers now.

In summary if you are looking to sell a condo in Boston’s Fenway neighborhood right now you should expect to get much less than you would have last year.  However you should expect it to sell in about the same amount of time compared to last year if you have it priced right. 

Thank you for joining us for this series of articles.  The trends seen in these 5 areas on Boston along with some of the articles we did earlier this month on Winthrop, MA and Milton, MA (and some other Boston border towns still to come this month) shows that the perception that all of Boston and the Greater Boston area as being a hot real estate market is just not universally true.  Real estate is a very hyper local asset and this series was intended just to bring people back to reality and make sure to properly evaluate properties instead of just buying into the hype!

 

Do you need to sell your Fenway area of Boston, Massachusetts house or condo fast?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

Please share your questions and comments below.

 

 

 

(Image credit: Fenway via Wikipedia)

 

 

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