Ever wonder how different the Boston real estate market is from neighborhood to neighborhood? How do Back Bay condo prices compare to South End condo prices? How do Jamaica Plain property values compare to South Boston property values? If you're thinking of buying a condo in Boston, but aren't sure which neighborhood fits in your price range, here's a quick chart to show the relative price differences from neighborhood to neighborhood over the past two years (as well as any increase or decrease in values from 2007 to 2008):
As you can see, Back Bay is the king of Boston neighborhoods (in terms of condo prices at least, well that and the fact that my office is in the Back Bay!), followed by North End/Waterfront, Midtown (which includes buildings like the Ritz Carlton and Tremont on the Common), Seaport (surprising I suppose, but because a lot of larger loft condos are in this area, the median price is ranked a lot higher than it would if we were looking at price per square foot), and South End. This is the "luxury" market of Boston.
Bringing up the bottom is Mattapan, Dorchester, and East Boston, mainly due to the heavy concentration in foreclosure and distressed property sales in those neighborhoods that have a real drag on prices (you can see this clearly on this map of all foreclosures sold in Boston in 2008). Because prices are depressed much more here than other neighborhoods, there are some real opportunities in these neighborhoods to pick up a more affordable home or buy an investment property that can actually generate substantial positive cash flow.
And in the middle you have neighborhoods like South Boston, Charlestown, and Jamaica Plain, all hotbeds of first time buyer activity. Those neighborhoods still offer much of the same culture and amenities the more expensive neighborhoods offer, along with the great "vibe" of Boston, but have more reasonable prices that attract more first time buyers.
With median condo prices in Boston ranging from about $100,000 at the bottom to over $700,000 on the high end you can see the extreme variation from neighborhood to neighborhood. The same variation can be seen when looking at price per square foot data or appreciation (and depreciation) or list price to sale price ratios. Real estate is local, as I've said time and time again, but this data very clearly and quickly shows just that.
What are your thoughts? Comment below!
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