Real Estate Trends – Boston’s South End (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 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 Condo market in the South End section of Boston, MA in Suffolk County

 Aerial View of Boston's South End - Boston Massachusetts' South End Real Estate

We continue to try to profile many different sections of Boston and the different markets within them.  At this point we have done one or more articles on the neighborhoods of Dorchester, East Boston, The Fenway, Hyde Park, Jamaica Plain, The North End and West Roxbury, as well as looking at the single family market for the whole city of Boston.  We will continue to try to look at one section at least once a month. 

Market Trends in Boston’s South End – November 2014 and 2015:

The condo market in Boston’s South End has fallen off since last year.   The average prices were both down significantly while the median prices were down as well.  The days on market were also up significantly.  Inventory was up a bit going from 44 sales in November of 2014 to 54 in November 2015. 

Average Listing Prices:

We will first start off by looking at the average listing price.  For condos in Boston’s South End the average listing price in November 2014 was $1,099,750.  This was down to $894,657 in November 2015.  This gives a huge decrease of 18.65% year over year. 

Looking at the median prices we see that it was a bit lower than the average in both years, especially in 2014.  For November of 2014 the median listing price for South End condos was $854,500 and in November 2015 it was $807,500 which now gives a much smaller decrease of 5.50%. 

Average Sale Prices:

The next thing we will be looking at is the average sale prices.  The average sale price for a condo in Boston’s South End in November of 2014 was $1,103,352 and in November 2015 that was down to $930,770.  That gives another very large 15.64% decrease. 

We see a similar pattern with the median sale prices as we did for the listing prices for both years.  For November of 2014 the median sales price for South End condos was $862,000 and in November 2015 it was $844,500 giving a much smaller decrease of just 2.03%. 

Prices are down for condos in Boston’s South End this month.  There is a pretty large discrepancy between what the averages say and what the medians say.  Usually the medians will be the favored tool which says that prices are only down a touch.  However this is a case where both items give some value.  While the medians are thought to keep a few outliers from distorting the data, in this case however it obscures some important points.  While the “middle” did end up being similar the averages were different because two major points.  In 2014 many more sold on the high end (18 in 2014 vs. 15 in 2015 even though there were 10 more total sales in 2015) and many more selling for under $700K in 2015 (only 10 in 2014 but 18 in 2015).  Knowing that a lot of higher end stuff was selling last year and a lot more on the low end this year is valuable info and shows that there is some truth to what we are seeing in the average numbers too.  All that being said I would not conclude things are down over 15% but I would say that it would be more than the 2-5% seen with the medians.  Best guess from us is that reality is a 5-10% decline depending on exactly what kind of unit you are selling.

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 property to sell in the current market.  For condos in Boston’s South End the average days on market in November of 2014 were 47.61 and the average days on market for November 2015 were 92.98 for a tremendous 95.30% increase.  Increasing days on market usually accompany price declines which further supports the above argument that prices are probably down more than the minor dip seen with the median prices. 

The South End, Mass Summary:

The South End, Massachusetts condo real estate market is down a bit since last year.  The average prices were down a lot and median prices were down as well, though much less.  The days on market nearly doubled further supporting the conclusion of a decline in the market. 

In summary if you are looking to sell a condo in Boston’s South End now you should expect to get less for it than you would have gotten last year.  You can also expect it to take substantially longer to sell compared to last year as well. 

 

Do you need to sell your South End, Massachusetts 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: South End – Boston, MA (Aerial View) by Richard Schneider via Wikipedia)

 

 

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