While the sales data and reports for Boston's condo market are still filtering in, we wanted to share some preliminary data for how the market performed in 2021.
Source: Boston Annual Sales Summary 2021, Listing Information Network, Inc.
Looking at the 10 Year Price Index (Appreciation Rate), Boston condo home values remain strong. The COVID-19 Pandemic has impacted neighborhoods/market segments differently. For example, the "Luxe" market (luxury condominiums) was fairly stagnant in 2020 and saw an 83% increase in the number of sales in 2021 over the previous year, but the average sale price per square foot was down 12%. East Boston's condo market continues to outperform - the number of sales was up 145% over 2020 and the average sale price per square foot was up 29%.
Source: Boston Annual Sales Summary 2021, Listing Information Network, Inc.
The chart above does not include all Boston neighborhoods (we are happy to provide data on other areas in and around Boston, please contact us).
Source: Freddiemac.com, 1/18/2022
Interest rates have been on the rise and are expected to continue to do so. Generally speaking, this puts downward pressure on prices (the higher the mortgage rate, the less money you can spend on a home to have the same monthly payment). However, real estate is generally a sought after investment during inflationary periods (if we are indeed entering an inflationary period).
As always, there are great opportunities out there for both buyers and sellers, if you know where/how to look.