Downtown Boston condo market looks strong
Boston Condo Buyers Back to the Market. The housing market in Greater Boston showed strong gains in both sales and prices in June, according to a new report from the Greater Boston Association of Realtors.
Single-family homes and condominium sales both increased for the 10th consecutive month, as median selling prices in both markets again rose to record highs.
GBAR’s report says the boost in market activity and prices continues to be driven by strong demand from millennial buyers, homebuyers looking for more living space, a healthier job market and lower mortgage rates.
This was the sixth most active June on record for home sales, according to the report. Single-family home sales rose 59.2% in June over last year with 1,848 homes selling compared to 1,161 in June 2020. June sales jumped 56.9% from the 1,178 homes sold in May. June also had the largest percentage gain in sales over 12 months since sales rose 68.7% in November of 2009.
Condo sales also showed significant increases in June, rising to an all-time monthly high. Condo sales climbed 104.4% to 1,596 units sold compared to 781 a year prior. The previous record for condo sales, according to the report, was 1,546 sold in June of 2005. They also had a 15% increase from the 1,388 units sold in May.
In the condo market, sales rose even more sharply after falling to a 19-year low for the month last June. Sales rose to a new all-time monthly high, climbing 104.4% to 1,596 condominium units sold in June 2021 from 781 last June. The previous record was 1,546 condos sold in June 2005. Condo sales also improved on a month-to-month basis by 15% from 1,388 units sold in May.
“It’s been a spring for the ages. Just when it appears the market can’t get any hotter it does,” GBAR President Dino Confalone said in a press release. “It began with traffic jams and buyers waiting in the snow for an hour or more to enter open houses and culminated in June with the single busiest month for sales ever in our market.”
Confalone says the second half of 2021 likely won’t see the same fast pace, making for less competition and more opportunity for buyers and sellers.
Median selling prices also set new records in June in both the single-family home and condominium markets. The median price of a single-family home rose for the 20th consecutive month, up 19.3% from last year’s $680,000 to $811,500. In the condo market, the median selling price increased 9.1% from a year earlier from $590,000 to $643,750.
Inventory, though, still may be an issue as the summer begins to wane into fall.
“Despite the record sales pace last month, we’re still facing an inventory shortage in many communities, and that imbalance between supply and demand is fueling the latest run-up in prices,” Confalone said. “With more buyers than listings in the market, sellers have been able to dictate their price for months. We’ve also seen the value on many properties bid up considerably through multiple offer situations and that in turn is raising the ceiling on prices higher and higher.”
In June, single-family home listings were down 31.6% from a year prior, while condo listings dropped 7.4% year over year.