Real Estate Trends – East Boston, Massachusetts (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 East Boston neighborhood of Boston, MA in Suffolk County

 Plane Approaching Logan Airport - East Boston Massachusetts Real Estate

This is our 2nd look at East Boston, MA and we profiled the Multifamily market there back in September.

Market Trends in East Boston, MA – October 2014 and 2015:

The East Boston, MA condo market is a bit inconsistent with some pricing metrics looking to be up a bit while others are saying it is down.  The days on market appear to be up moderately at first glance, but as we have seen before this might not be correct.  Inventory was down some with 11 sales in October of 2014 and 7 in October 2015. 

Average Listing Prices:

To start off first we are going to look at the average listing price.  For Condos in Boston, MA’s East Boston neighborhood the average listing price in October 2014 was $308,335.  This was up to $330,671 in October 2015.  This gives a nice increase of 7.24% year over year. 

 Looking at the median prices we see that they are quite a bit lower than the average in 2015.  For October of 2014 the median listing price for a condo in East Boston, MA was $310,000 and in October 2015 it was $239,500 which now gives a huge decrease of 22.74%!

Average Sale Prices:

Next up we will be looking at is the average sale prices.  The average sale price for East Boston, MA condos in October of 2014 was $302,135 and in October 2015 that was up to $316,659.  That gives another modest 4.81% increase. 

We see the same basic pattern with the median sale prices as we did for the listing prices.  For October of 2014 the median sales price for condos in Boston, MA’s East Boston area was $305,000 and in October 2015 it was $244,000 giving another giant decrease of 20.00%.

Pricing is a bit of a mixed bag for the East Boston, MA condo market in October.  By the averages we are looking at modest increases but by the medians we are seeing huge drops.  In this case it is a classic example of why using the medians is the more common and preferred way to evaluate real estate pricing.  In October of 2015 there was one Condo in East Boston, MA that sold for over $200K more than any other condo in either year.  This was so far off from the rest of the properties that it skewed the average listing and sales prices up very high.  Given this it is safe to say that prices are definitely not up for condos in Boston, MA’s East Boston area.  They may not be down over 20% as the medians indicate but they are down and by a significant amount.

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 East Boston, MA condos the average days on market in October of 2014 were 42.82 and the average days on market for October 2015 were 62.71 for a sizable 46.45% increase. 

However, as we have seen many times before in our previous posts for AbingtonBedfordSeekonk, BelmontTopsfieldCanton,  Dracut (Condos)HamiltonWakefield, Amesbury (Condos), Dracut #2, Taunton, Reading, Stoughton, Wrentham, Stoneham, Dedham, Nashua, NH, Tewksbury, Brockton (Multifamily), Lowell (Multifamily), Acton, Foxboro, Pembroke, Chelmsford, BeverlyFramingham (Condos), Plymouth County (Condos), Marlborough, Billerica, Waltham, Dracut (Condos) #2, Derry, NH, Framingham, Burlington, Duxbury, Acton #2 , Taunton (Condos), Tyngsborough, Milton, Salem, NH, Boston’s Hyde Park, Boston’s West Roxbury , Somerville, Canton #3, Pelham, NH, Westford, Plymouth (Condos), Boston’s Jamaica Plain , Halifax,Braintree (Condos), Newton (Multifamily), Plainville ,Boxford, Wayland , West Bridgewater, East Bridgewater, Marlborough (Condos), Natick (Condos), Gloucester, (Condos), Melrose (Condos), Norton (Condos), Newburyport, Atkinson, NH, Fairhaven, Lexington, Arlington (Condos), Salisbury, Weston, Groton, Wellesley, Littleton and Lowell (Condos) #2 outliers in the data can really skew these numbers.  This again is the case for East Boston, MA condos in October.  In this instance there was a very high days on market place in the 2015 data.

In 2015 there was a property with 209 days on market; this was much more than the next 3 properties combined and almost 48% of the total days on market for all 7 Properties.  When removed the new calculation for the remaining 6 properties gives an average days on market of 38.33. 

Using the adjusted numbers we now see a small decrease of 10.49%.  This changes the general conclusion of the days on market being up a good amount.  Now it looks like they are fairly flat with a small decline rather than being up by a decent amount.

East Boston, Mass Summary:

The East Boston, Massachusetts real estate condo market is a bit less clean cut than most places we look at.  It is not that rare for the magnitude of a change to vary a bit between the averages and the medians, however it is not that common to see a totally different conclusion about the direction of a change like we are seeing with month with East Boston, MA condos.  In the end we determined that the medians in fact are the much better metric to focus on in this case and therefore Boston, MA’s East Boston condo market is down a fair amount since last year with the median prices being down 20%.  We also saw that the adjusted days on market were down slightly but in absolute terms they were only down four and a half days so, so this 10% decrease is really just a blip and they are mostly flat.

In summary if you are looking to sell a condo in East Boston, MA now you should expect to get less for it than you would have gotten last year.  You should also probably expect it to take about the same amount of time, but maybe a little less, to sell compared to last year too. 

 

Do you need to sell your East Boston, 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: Airplane Approaching Logan Airport via Wikipedia)

 

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)