Real Estate Trends – Boston’s Fenway (Condos) #2

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 Fenway neighborhood of Boston, MA in Suffolk County

Back last June Condos in the Fenway was one of the first reports we did for the city of Boston.

Market Trends in Boston’s Fenway – June 2015 and 2016:

The Boston, MA Fenway neighborhood condo market has fallen off a lot since last year.   The average prices are down and the median prices were down more.  The days on market were up a lot, though that might be overstated some.  Inventory was level with 13 sales in June of 2015 and also in June 2016. 

Average Listing Prices:

We will first start off by looking at the average listing price.  In the average listing price for a condo in The Fenway area of Boston, MA for June 2015 was $547,038.  This was down to $490,431 in June 2016.  This gives a fairly large decrease of 10.35% year over year. 

Looking at the median prices we see that they were higher in both years.  For June of 2015 the median listing price for condos in Boston’s Fenway was $575,000 and in June 2016 it was $505,000 which now gives a larger decrease of 12.17%. 

Average Sale Prices:

The next thing we will be looking at is the average sale prices.  The average sale price for a condo in the Fenway section of Boston, MA in June of 2015 was $567,462 and in June 2016 that was down to $504,162.  That gives another large decrease of 11.15%, slightly higher than we saw for the average list price. 

We see the same pattern that we did for the median list price.  For June of 2015 the median sales price for a condo in Boston, MA’s Fenway neighborhood was $588,000 and in June 2016 it was $513,000 giving another larger decrease of 12.76% and the largest of the four pricing metrics. 

Prices have gone down a fair bit for condos in Boston, MA’s Fenway area in June.  The overall range was not that large going from a little over 10% to not quite 13% down.  The average list price was the lowest but also is the least useful of the metrics.  Dismissing that one gives a tighter range that is more like 11-13%.  Medians are the preferred metric for real estate pricing analysis and in this case those are both at the top of this range with the most important of them, the median sale price, as the highest overall.  So overall it is safe to say prices are down at least double digits it is also likely they are down at the top of the range we saw with a decrease of a little under 13%. 

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 the Fenway section of Boston, MA the average days on market in June of 2015 were 16.15 and the average days on market for June 2016 were 39.62 for a huge increase of over 145%.

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, Lowell (Condos) #2, East Boston (Condos), Dedham #3, Hanover, Canton (Condos), Belmont #2, Seabrook, NH, Hingham (Condos), Lakeville, Raynham, Holliston, Londonderry, NH, Georgetown, South Boston (Condos), Needham #2, Arlington #2, Foxboro #2, Boston’s Roslindale (Condos), Burlington #2, Salem NH #2, Boston’s South End (Condos) #2Somerset, Everett (Multifamily), Sharon, Dedham #4, Boston’s Brighton (Condos), Winthrop (Condos), Littleton #2, Ipswich, Westport, Franklin (Condos) and Groveland outliers in the data can really skew these numbers.  This again is the case for condos in Boston’s Fenway neighborhood in June.  In this instance there was a very high days on market place in 2016.

In 2016 there was a property with 211 days on market; this was more than the next 5 properties combined and almost 41% of the total days on market for all 13 Properties.  When removed the new calculation for the remaining 12 properties gives an average days on market of 25.33. 

Using the adjusted numbers we now get a much smaller increase of 56.84%.  This does not change the basic conclusion that the days on market were up a lot.  However this increase went from a humongous one to a large but not outlandish amount.  Also to be fair while up quite a lot even this high number is generally considered to be a pretty good number but last year they were terrific.

Boston MA’s Fenway Summary:

The Boston, Massachusetts Fenway condo real estate market is down a since last year.  The average prices were down a bit while the median prices were down even more.  The days on market were also up a significant amount which further shows a weakness in the market from last year.

In summary if you are looking to sell a condo in Boston, MA’s Fenway section now you should expect to get 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 Fenway section of 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: Landmark Center by Grk1011 via Wikipedia)

 

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)