What’s happening with Boston condo prices?
Boston‘s housing market remained hot in October, with the price of homes inching up 0.1% from September and 15.1% from a year before, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index.
Nationally, housing prices were also on the rise, according to the index, which registered an 0.8% seasonally adjusted gain from September and a 19.1% year-over-year increase.
After seasonal adjustment, the 10-city and 20-city composite indexes posted increases of 0.8% and 0.9%, respectively.
“We continue to see very strong growth at the city level,” S&P DJI managing director Craig Lazzara said in a press release. “All 20 cities saw price increases in the year ended October 2021. October’s increase ranked in the top quintile of historical experience for 19 cities, and in the top decile for 17 of them.”
Lazzara noted that despite the broad-based increases, the pace of rising prices slowed in 14 of the 20 cities compared to September.
Phoenix, followed by Tampa, Fla., and Miami claimed the largest price gains among the 20 metro areas in the index.
“We have previously suggested that the strength in the U.S. housing market is being driven in part by a change in locational preferences as households react to the COVID pandemic,” Lazzara said. “More data will be required to understand whether this demand surge represents an acceleration of purchases that would have occurred over the next several years, or reflects a more permanent secular change.”
Ford Realty Inc., Boston Real Estate for Sale[/caption]
What’s happening with Boston condo prices?
The median price of a home in the U.S. reached its highest point in 13 years last month as inventory continued to fall, according to the RE/MAX National Housing Report for February.
The national median of $291,000 represented a record high for February, though it was far lower than the Boston area’s median of $537,500. Boston’s median price decreased 0.3% month over month, from $539,000 in January. The metro area’s median prices increased 10.6% year over year from $486,000 in February 2020. Nationally, February home prices were up 5.7% year over year.
There were 2,359 real estate transactions in Boston in February. That figure represents a 23.6% decrease from 3,086 in January and is 0.4% lower than the 2,265 transactions recorded in February 2020. Boston’s active inventory fell by 0.3% month over month, from 5,522 in January to 4,704 in February. Inventory was down 44.4% year over year, from 8,460 last February.
Nationally, the month’s supply of inventory was down 11.9% from January and 42% year over year. Month over month inventory has fallen for 20 of the past 21 months, according to the report.
Boston-area homes took an average of 50 days to sell in February, a month-over-month increase from 42 days in January. Year over year, the number of days homes spent on the market fell by 26.5% from 68 days in February 2020. Boston’s days on the market average for last month were higher than the national average of 42 days. Nationally, homes sold an average of 18 days faster than last February.
Boston condo for sale values has softened over the last twelve months. We are no longer seeing 6-7% annual appreciation levels of the past
However, a stronger-than-expected economy and a good spring housing market have changed some opinions. Some analysts are now predicting that home value appreciation may begin to increase as we move forward.
Here are three examples:
“Data on the movement of unadjusted house prices during the early spring home-buying season won’t be available for a few more months, but it’s quite likely that price appreciation will accelerate again.”
“Home prices nationwide, including distressed sales, increased year over year by 3.7% in March 2019 compared with March 2018…The CoreLogic HPI Forecast indicates that home prices will increase by 4.8% on a year-over-year basis from March 2019 to March 2020.”
Boston condo price appreciation has slowed over the past year. However, a strong economy and a good housing market have many experts thinking that home values might re-accelerate moderately throughout the rest of this year.
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