Real Estate Trends – Boston’s Dorchester (Multifamily)

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 the changes in three key metrics year over year for the municipality to see how the market has changed and then evaluate what those observations might mean for that market moving forward.

Today we are highlighting the Multifamily market in the Dorchester section of Boston, MA in Suffolk County

 JFK Library in Dorchester MA - Boston Massachusetts Real Estate

Today we continue to highlight areas in the city of Boston, MA to show that the general hype of the hot market is overblown.  This article follows our 5 part series on various Boston submarkets in June, our video discussion the market then and our article on Jamaica Plain last month.

Market Trends in Boston’s Dorchester – July 2014 and 2015:

The Dorchester, MA multifamily market appears to have gone down a little bit since last year.   The average sale prices were down as were the median listing and sale prices.  The days on market were also up.  Inventory was stable with 21 sales in July of 2014 and July 2015. 

Average Listing Prices:

To start off first we are going to look at the average listing price.  For multifamilies in Boston’s Dorchester neighborhood the average listing price in July 2014 was $517,690.  This was up a little to $523,981 in July 2015.  This gives a fairly meaningless increase of 1.22% year over year.  

However looking at the median prices we see they are both a little bit lower than the averages, especially in 2015.  For July of 2014 the median listing price for a multifamily in Dorchester, MA was $515,000 and in July 2015 it was $509,900 which now gives a still fairly inconsequential 0.99% decline

Average Sale Prices:

Next up we will be looking at is the average sale prices.  The average sale price for a multifamily in Boston’s Dorchester area in July of 2014 was $514,006 and in July 2015 that was down to $505,457.  That gives a pretty insignificantly small decrease of 1.66%. 

We see the same pattern with the median sale prices as we did for the listing prices above but much more dramatically with the 2015 number.  For July of 2014 the median sales price for Dorchester, MA was $515,000 and in July 2015 it was $480,000 giving a much larger 6.80% decrease. 

While not a huge drop it is not trivial and much larger compared to the other numbers we saw.  This is the largest drop of any of the four numbers we looked at and is also generally considered the best one to use to evaluate things.  While not cut and dry I would say that prices are down at least a little bit in the Dorchester multifamily market since last year.

Average Days on Market:

Finally the last metric we 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 Boston’s Dorchester neighborhood the average days on market in July of 2014 were 45.76 and the average days on market for July 2015 were 60.52, for a fairly large 32.26% increase. 

Dorchester, Mass Summary:

The Dorchester, Massachusetts multifamily real estate market looks slightly uneven.  Looking at everything together I feel that this market is down some since last year.  While both the average listing price and median list price as well as the average sale price only changed by small amounts the median sale price was a good amount less than last year and with the increased days on market a small decline in the market is the best conclusion.  Digging a bit deeper we also see the gap for both average and median prices between listing and sale prices were large in 2015.  Seeing sellers taking a bigger discount with higher days on market, so it is taking longer to sell, is pretty consistent with what you would expect to see with a decline in the market.

In summary if you are looking to sell a multifamily house in Dorchester, MA now you might expect to get a less for it than you would have gotten last year.  You should also expect it to take more time to sell compared to last year as well.   

 

Do you need to sell your Dorchester, Massachusetts multifamily house 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: JFK Library by Fcb981 via Wikipedia)

 

 

 

 

Speak Your Mind

*