Following up on my last post on the luxury market above $1 million (and for all of us "common folk" out there that can't quite afford to enter the booming Boston real estate luxury market by purchasing one of these homes), here are a few details on the downtown* Boston condo market below that mark:
| 2010 | 2009 | 2008 | 2007 | |
| # of Sales | 1318 | 1360 | 1734 | 1916 |
| D.O.M. |
96 | 100 | 83 | 90 |
| AVG Price | $509,612 | $494,760 | $498,034 | $488,931 |
| MED Price | $485,000 | $467,750 | $460,000 | $450,000 |
| Total Volume | $672,000,000 | $673,000,000 | $864,000,000 | $937,000,000 |
| AVG $/Sq Ft |
$593 | $585 | $588 |
$595 |
It's interesting to note, that while the number of sales has dropped off sharply since 2007, average and median prices are slightly up over that period - which, to me, is an amazing result that flies in the face of normal economics. As demand drops, and it has, prices should come down theoretically. However, in the case of the downtown Boston real estate market, supply has also declined, thereby keeping prices stable. Fewer sellers, little to no foreclosures, and lack of space in Boston to build has helped limit the supply of homes on the market leading to the stability.
I guess the bottom line is that if you're a downtown Boston home owner, it's great news....you've got a home in a world class city that has held its value as a stable investment through the worst downturn in recent memory; if you're a buyer, it is what it is...great place to live and buy a solid investment but there certainly are not many "steals" out there; and if you're a real estate agent....well, certainly fewer sales equals fewer opportunities to earn a commission (so there must be some starving agents out there now)!
*downtown market = Back Bay, Beacon Hill, Fenway, Midtown, North End, South End, Waterfront, West End
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