Boston Back Bay Condo Information for 2022

Boston Condos for Sale  2021

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Back Bay Condo Market: Prices and Trends

Like so many property markets throughout the country, Boston condos for sale remains red hot, with values increasing month after month so far this year. This buzzing market is seeing not only record-breaking prices, but historically low inventory, making for a strong seller’s market. With some buyers scrambling to snap up whatever they can get, while others wait it out while inventory remains so low, it’s a very interesting time to be involved in the Boston housing market in any capacity.

 To shine a light on this disparity, despite a year-on-year increase of almost 53% in May sales, the number of listings plummeted by just over 40%. These parallel dynamics create hugely squeezed market conditions with such a competitive climate that keeps the value of homes high and rising.

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Surging Boston condo prices showing no signs of slowing

When it comes to Boston condos for sale, the region’s median prices have been consistently increasing. Boston’s population has increased by 12.62% since the most recent census, so it’s easy to see why the demand for housing remains strong. 

 At $761,000 for May 2021, values came in at a 14% increase from the year before, and the 1,161 single-family homes sold represented just shy of a 30% increase from the 894 that went under contract in May 2020. 

 The latest data from the Greater Boston Association of Realtors depicts an ongoing trend, with 1,848 detached single-family homes being sold in June 2021 – a staggering 59.2% rise from the year-on-year figure of 1,161. Furthermore, the median sales price also continued to soar, increasing by just over 19% year-on-year – from $680,000 in June 2020 to $811,500 in June 2021 – achieving a record median price for the month of June in the Greater Boston area.

Condominium sales equally active and thriving

Amidst the most active May on Greater Boston’s record, condominium sales were up a colossal 123.1% – taking the number of units sold in May 2021 to 1,372 (up from 615 in May 2020). The price of condominiums in Greater Boston rose by 10.3% year-on-year for May, going from $578,754 to another market record high of $638,250. 

And again, June demonstrates continued growth, with just shy of 1,600 condos being sold, and again breaking June records for the region. This figure represents a 104.4% year-on-year increase from June 2020, during which 781 sold. Condo median sales prices also came up by a more modest 9.1% to $643,750, from the June 2020 median of $590,000.

Boston homes skyrocketing

The Greater Boston area saw a mind-blowing 176.9% increase year-on-year for multi-family unit sales in May, taking the 2021 figure to 252 over the May 2020 total of just 91. The June figues show little change, with 244 being sold for the month, although this is still a 110.3% increase from the June 2020 total of just 116.

 What is most notable for this property type is the remarkable increase in sale of three-family homes – these homes witnessed a mind blowing 400% rise in its volume of sales, going from 15 sold in June 2020 to 75 for June 2021. The median sales price of these properties also jumped by 19.2% year-on-year, taking it from $990,000 to over the million dollar threshold of $1,180,000.

The acceleration of the digital home-buying experience

Shopping online is one of the greatest industry booms to come from Covid-19, and the real estate sector has certainly been no exception. Online home-buying platforms are enabling people to not only search for properties, but schedule inspections or virtually view them and even place digital sales offers. Out of sheer necessity, realtors have made swift and highly efficient adaptations to the traditional property-buying process, only furthering the speed with which the market is moving.

When will this Boston real estate market balance out?

In a balanced property market, inventory is typically available to keep the sector running for approximately five to six months. Boston would need the addition of new listings to rise back up to at least five months worth of supply to balance the market out.

 May 2021 figures reported that single-family property inventory was sitting at a critically low equivalent of 1.1 month’s worth of supply, suggesting a very long road back to balanced market conditions.

 That said, there are some early signs of inventory recovery. The number of active single-family home listings increased by an encouraging 25% from May to June of 2021, and condominium listings also rose month-on-month by a significant 18%. 

Boston Condos for Sale and the Bottom Line

While it will take time for the inventory to build back up to balanced-market levels, these early signs of increased inventories across property types is very encouraging. For the short-term, Boston can’t help but remain a strong seller’s market, but so long as new listings continue to rise, buyers should be able to regain some negotiating power before too long.

Boston Condos for Sale  2021

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Ford Realty Inc., Boston Real Estate for Sale

Ford Realty Inc., Boston Real Estate for Sale

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