Real Estate Trends – Boston’s South Boston (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 Boston neighborhood of Boston, MA in Suffolk County

 South Boston Massachusetts Landscape - South Boston MA Real Estate

Market Trends in Boston’s South Boston – February 2015 and 2016:

The condo market in the South Boston area of Boston, MA is a little uneven this month.   The average and the median prices tell pretty different stories about where pricing stands.  The days on market appear to be down a fair amount, but as we have seen in the past this may be a bit overstated.  Inventory was up some going from 21 sales in February of 2015 to 26 in February 2016. 

Average Listing Prices:

We will first start off by looking at the average listing price.  For condos in Boston, MA’s South Boston neighborhood the average listing price in February 2015 was $600,876.  This was down to $593,131 in February 2016.  This gives a very small decrease of 1.29% year over year. 

Looking at the median prices we see that they were higher in 2015 but lower in 2016.  For February of 2015 the median listing price for Condos in Boston’s South Boston area was $625,000 and in February 2016 it was $539,450 which gives a very larger decrease of 13.69%. 

Average Sale Prices:

The next thing we will be looking at is the average sale prices.  The average sale price for condos in South Boston, MA in February of 2015 was $585,571 and in February 2016 that was down just a touch to $584,702.  That gives a completely negligible decrease of 0.15%. 

We see the same pattern with the median sale prices as we did for the listing prices.  For February of 2015 the median sales price for South Boston, MA Condos was $615,000 and in January 2016 it was $525,500 giving the largest decrease we have seen at 14.63%. 

We are seeing to very different stories for the pricing for Condos in Boston, MA’s South Boston neighborhood depending if you are looking at the averages or the medians.  The averages say that prices are mostly flat with the declines seen likely being well within the noise.  However looking at the medians all of a sudden instead of a fairly flat market we see steep declines of 13-15%.  Medians are the preferred method of analysis so we would give most of the weight of those.  That being said we do not like to totally dismiss the averages so while it would be legitimate to say that prices are down around 15% based on the median sale price that may be a little overstated.  However it is impossible to look at those median price changes and not assume that South Boston condos are not down at least double digits this month.

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 South Boston area of Boston, MA the average days on market in February of 2015 were 84.76 and the average days on market for February 2016 were 61.37 for a pretty sizable 25.24% decrease. 

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 and Georgetown outliers in the data can really skew these numbers.  This again is the case for Boston, MA’s South Boston condos in February.  In this instance there was a very high days on market place in 2015.

In 2015 there was a property with 391 days on market; this was almost as much as the next 3 properties combined and almost 22% of the total days on market for all 21 Properties.  When removed the new calculation for the remaining 20 properties gives an average days on market of 69.45. 

Using the adjusted numbers we now get a more modest decrease of 11.63%.  This does not change the general conclusion of the days on market being down.  However instead of a fairly large drop the days on market now appear to be down a pretty small amount.

South Boston, Massachusetts Summary:

The condo market in the South Boston area of Boston, Massachusetts market is down some since last year.  The average prices were pretty much flat but the median prices were down significantly.  The days on market were down some though, as another counter argument to how much the market is down. 

In summary if you are looking to sell a condo in Boston, MA’s South Boston neighborhood now you should probably expect to get less for it than you would have gotten last year.  However you can also expect it to take less time to sell compared to last year as well. 

 

Do you need to sell your South 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: South Boston Landscape by Luciof via Wikipedia)