Updated: Jan 23, 2019
We are excited to announce the release of the Compass Q2 2018 Boston Quarterly Market Insights Report. This report highlights the prevailing trends shaping the market.
01. National Housing Indicators
Boston remains one of the strongest housing markets as supply remains relatively tight. The spread between resales in Boston vs. the 20-City Composite is minimal, a general indication that Boston is delivering a sufficient amount of new inventory such that the premiums of resales remain tight to the overall Index. The recent boom in new developments throughout Boston, in particular in the Seaport District and in South Boston, echo that Boston is balancing new supply vs. existing supply sufficiently.
The condo market in Metropolitan Boston saw an increase in median sales price while the number of sales declined. Certain buyers have been priced out of the condo market, especially in the face of rising mortgage rates, which directly reduces affordability for leveraged purchasers. As a result of this decrease in sales, inventory increased year-over-year, but asking prices decreased only slightly, signaling that sellers are holding steady in their asking prices in spite of the influx of additional inventory.
Inventory levels increased 11% year-over-year in 2Q 2018 with 871 condos available at quarter-end with a median asking price of $1.05M, hovering around the range established in Q1 2017, when median asking price first broke $1M.
03. Single Family Homes
Lack of single family inventory continues to be the core trend in the Greater Boston market. Despite higher interest rates, buyer demand continues to far exceed single-family housing supply which has placed pressure on home prices. Buyers are acting quickly to lock-in financing before interest rates rise even higher. Although increasing year-over-year, inventory levels are still generally low, and homes spent just 19 days (median) on market before transacting. Furthermore, both median asking prices and median sales prices have risen year-over-year –- signs that demand continues to outpace supply.
Inventory of single-family homes increased 24% in 2Q 2018, from 218 homes in Q2 2017 to 270 homes in Q2 2018. These inventory levels, while increasing, are still very low. Compass’ universe of coverage for single-family homes includes 11 neighborhoods, 7 of which had 15 homes or fewer listed: Back Bay, Beacon Hill, East Boston, North End/Waterfront, South Boston, South End/Bay Village and Somerville.
Be sure to check out the marketing report for your neighborhood (or the report in it’s entirety) at the links provided below, and feel free to reach out with any questions.