Q4 Summary – Key Trends
Condo prices in Boston have risen steadily for years, reaching a post-recession high in Q2-2018 of $800K. In Q4-2018, the median closing price was slightly lower at $785K, a 2% increase year-over-year.
Boston’s condo market had substantially fewer closings in Q4-2018, down 17% year-over-year to 885 transactions at a median sales price of $785K.
The number of sales declined in nearly every market of coverage, with the exception of Back Bay (70 closings, +4 closings YoY), Seaport District (25 closings, +15 closings YoY), and Somerville (119 closings, +7 closings YoY).
Neighborhoods with the largest decreases in number of sales include South End/Bay Village (-41 closings YoY to 96 closings) and Newton (-36 closings YoY to 53 closings).
Median PPSF increased 6% overall year-over-year to $759/SF, with modest gains in most neighborhoods under analysis. However, valuations in the Seaport District grew substantially (+38% YoY to $1,231/SF), primarily due to the delivery of full-service luxury condominium buildings, such as the Muse and 50 Liberty.
Valuation in West End declined 17% year-over-year to $569/SF this quarter, which can be attributed to fewer new development closings in that area. Overall, condos in Boston spent 22 days on the market, an increase of one day year-over-year.