Real Estate Trends – Boston’s East Boston (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 East Boston section of Boston, MA in Suffolk County

 Boston's Logan Airport - East Boston Real Estate

We continue our recent focus on areas in the city of Boston, MA showing that a lot of the general hype of the hot market is not as true now as it was in the recent past.  While Boston and the surrounding areas are still great real estate markets, you cannot take for granted that prices are constantly rising.  This article follows our 5 part series on various Boston submarkets in June, our video discussion of the market then and our article on Jamaica Plain in July and Dorchester’s multifamily market last month.

Market Trends in Boston’s East Boston – August 2014 and 2015:

The East Boston, MA multifamily market appears to have gone down a bit since last year.   The average listing and sale prices were down as were the median prices.  Though the days on market were down a good amount.  Inventory was down some with 8 sales in August of 2014 and 6 in August 2015. 

Average Listing Prices:

To start off first we are going to look at the average listing price.  For a multifamily in Boston’s East Boston neighborhood the average listing price in August 2014 was $541,350.  This was down a little to $513,783 in August 2015.  This gives a small decrease of 5.09% year over year. 

However looking at the median prices we see they are both lower than the averages, especially in 2015.  For August of 2014 the median listing price for a multifamily in East Boston, MA was $526,950 and in August 2015 it was $444,900 which now gives a very significantly large 15.57% 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 East Boston area in August of 2014 was $517,913 and in August 2015 that was down to $499,333.  That gives a pretty small decrease of 3.59%. 

We see a slightly different pattern with the median sale prices as we did for the listing prices above.  In this case it is a little bit higher in 2014 and quite a bit less in 2015.  For August of 2014 the median sales price for East Boston, MA was $530,500 and in August 2015 it was $420,500 giving a tremendous 20.74% decrease. 

This is a huge drop 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 totally clear cut prices are definitely down at least a little bit in the East Boston multifamily market since last year.  Since the numbers were really all over the place it is hard to really drill it down.  I would say that they are likely down more than the 3-5% numbers but probably not the 15-20% either.  Given that medians are generally considered to be the preferred metric so I would give a little more weight to those and would guess prices are probably down more in the 10% range plus or minus a little.

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 East Boston neighborhood the average days on market in August of 2014 were 41.63 and the average days on market for August 2015 were 24.67, for a fairly large 40.74% decrease.  This is a little surprising given the price drops.

East Boston, Mass Summary:

The East Boston, Massachusetts multifamily real estate market looks slightly uneven.  Looking at everything together I feel that this market is down some since last year.  With all pricing metrics down, and the medians by very large amounts, it is hard to say that the market is not down.  While the fairly large drop in days on market is a counter argument to this I would say that the fact that things are moving pretty fast is just a consolation to a seller looking at getting less for the property than last year.

In summary if you are looking to sell a multifamily house in East Boston, MA now you might expect to get a good amount less for it than you would have gotten last year.  You should however also expect it to take less time to sell compared to last year if you have it priced at the new lower level.   

 

Do you need to sell your East Boston, 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: Aerial view of Boston’s Logan Airport via Wikipedia)

 

Comments

  1. Great information here. I think understanding the direction the market has been moving can reveal key trends going forward, especially in a place as competitive in real estate as Boston.

  2. Hi Hannah,
    Thanks for reading and the positive feedback.

    Can’t agree more that it is important to understand where the market is going to be able to be able to fully analyse any property you want to either buy or sell.

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