Number of condo sales’ closings, 2005, 1/1/05-6/16/05: 2015
Average sales price: $549,323
Median sales price: $428,500
Average $ / SF: $508
Average days on market: 38
Number of condo sales’ closings, 2004, 1/1/04-6/16/04: 2353
Average sales price: $495,711
Median sales price: $392,000
Average $ / SF: $460
Average days on market: 16
Average sales price and median sales price have increased, as has the average $ / SF. However, average days on market has more than doubled.
Some may see this as troubling, as a sign of weakness in the market. However, the average days on market in 2005 is still a very low number of days, compared to other time periods and other cities & towns. Six to eight weeks is the average, elsewhere. (In 2003, properties sold were on the market for an average of 33 days.) More importantly, the data is "average days on market … for those properties that sold within the first six months", not for all the properties on the market as of June 16th. Right now, for example, the average of ALL properties on the market is only 17 days.
There have been less sales this year, during the first six months, than last year. However, in 2003, there were only 1688 sales during the same time period. Also, in 2004, several large projects were completed, including Bowdoin Place in Beacon Hill, Spencer Lofts, in Chelsea, at Strada234, and a good amount of units in the Ritz Towers, as well as in my building, Court Square Press. This year, the only projects being completed were the Regatta and Parris Landing.
One thing I find odd, however, is June sales activity. During the first 16 days of June, 2004, 360 units closed. However, during the first 16 days of June, 2005, only 192 units have closed.
I think this is solely because of … dare I say … the weather. It was a very cold spring, and, honestly, there were periods of time where no one was looking. Closings happening during the first two weeks of June would have been on condos that went under agreement six-to-eight weeks ago, meaning the middle and end of April.
We should watch this carefully, however, to see how it develops over the coming weeks. There could be a moderate slow-down going on in the sales market.
You heard it here, first!