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Is Boston Real Estate in a Bubble?

Earlier this month, we were fortunate to have a private presentation from Debra Taylor, President of LINK Listing Information Network, to review some of the latest data and statistics on Boston's housing market. 

Some of the key takeaways:

The Boston market is stabilizing, not riding a bubble or coming off a cliff. This is due to a strong local economy, job opportunity and growth, the life sciences industry #1 in US, inventory shortage and strong demand for urban residential properties. Boston is at a new time high of appreciation.

Average selling price per square foot of condos in Boston's core neighborhoods increased.
Back Bay
:  $1,460 psf in 2022 vs. $1,267 psf in 2021
Beacon Hill:  $1,259 psf 2022 vs. $1,218 psf in 2021
South End:  $1,133 psf 2022 vs. $1,059 psf in 2021 

The average days on market for those neighborhoods decreased (i.e. sold quicker).
Back Bay:  76  in 2022 compared to 113 in 2021
Beacon Hill:  74 in 2022 compared to 120 in 2021
South End:  58 in 2022 compared to 87 in 2021

$5 Billion in residential sales speaks to the strength of the local economy.
 

In summary, the metrics are positive. They point to less aggressive home pricing, the percentage of homes selling over asking price decreasing, and more modest appreciation.

Despite rising interest rates and inflation, demand for citywide condos and single families remains strong. With low inventory, it’s still an opportune time to sell. With escalating rental rates and sale prices stabilizing, it could be an advantageous time to buy. 


 

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