The Boston Globe, perhaps following up on posts on this blog, covers the thriving “Boston Proper” real estate market.
[While] sales of downtown area properties under $500,000 are down 20 percent from last year at this time, [the] number of properties under $500,000 in the downtown market is down to 53 percent, down from 78 percent in 2000. Properties over $1.5 million now comprise 15 percent of the market, up from 2 percent eight years ago.
Does it make sense that the downtown Boston real estate market would have stable prices while the rest of the state and country are showing drops anywhere from 5-30%?
According to the Globe:
A couple of things could be happening: price inflation, even in this soft market, may be pushing borderline properties above the half-million mark. Also, judging by the declining inventory numbers, prospective sellers are holding back, keeping their properties off the market, maybe choosing to rent rather than testing the direction of a soft market.
As has been pointed out here, sales volume has dropped, but at the same time, so has inventory, meaning anyone looking to buy has little to choose from.
It seems as though buyers and sellers are still waiting for the other side to blink. Perhaps after the new year, perhaps in the spring, we’ll see lower prices, more activity, or both.
Source: Midrange squeeze in Back Bay – By Ted Siefler, The Boston Globe