Frenetic Market Pace, Price Records Set, Chronic Inventory Shortage

Douglas Elliman Real Estate, the second largest independent residential real estate brokerage in the United States by sales volume, has today released the Q2 2019 Sales Market Report for Downtown Boston.The report showed price trends reaching record levels in both condo and townhouse sales and a fast pace of sales, despite rising inventory.

The report covers condo sales in the Back Bay, Beacon Hill, Charleston, Fenway, Midtown, North End, Seaport, South Boston, South End, and West End neighborhoods, and townhouses sales throughout Downtown Boston. The median sales price rose year-over-year for the sixth time in the past seven quarters in condo sales. In addition, the average price per square footage showed larger annual gains for bigger units. The average sales price increased while the number of sales declined in the condo market.

“Boston is showing better results this quarter when compared to last quarter,” said Scott Elwell, Senior Executive Regional Manager of Westchester and New England at Douglas Elliman. “In condo sales, the market is moving at a rapid pace despite five consecutive quarters of inventory expansion.”

More than half of all townhouse sales have sold within thirty days on the market while the number sales declined. Inventory increased annually for the first time in three quarters. Also, price per square foot rose 11.9% this quarter.

“The Downtown Boston market is moving quickly -- two to three times faster than what we’re seeing in Manhattan,” said Jonathan Miller, of Miller Samuel Inc., the author. “We’re seeing so many price records that it reminds me of the rapid market conditions in Brooklyn.”

DOWNTOWN BOSTON SALES HIGHLIGHTS

Overview

CONDO

“All price trend indicators moved higher with average price per square foot setting a record high.”

- Median sales price rose year over year for the sixth time in the past seven quarters

- Average price per square footage showed larger annual gains for bigger units

- The market pace remained blistering despite five straight quarters of yearly inventory increases

TOWNHOUSE

“Rising price trends reached record levels as a blistering sales pace remained.”

- More than half of all townhouse sales sold within thirty days on the market

- All three price trend indicators increased year over year with the median rising for the third straight quarter

- Sales declined, and inventory expanded annually for the first time in three quarters

Key Trend Metrics (compared to same year ago period)

CONDO (all sales)

- Median sales price rose 6.7% to $910,000

- Price per square foot increased 107% to $1,139 [record]

- Average sales price rose 13.1% to $1,336,307

- Number of sales declined 15.9% to 952

TOWNHOUSE

- Median sales price increased 7.6% to $1,399,000 [record]

- Price per square foot rose 8.2% to $756 [record]

- Average sales price rose 11.9% to $1,846,959 [record]

- Number of sales declined 7.6% to 109

- Listing inventory grew 11.4% to 64

About Douglas Elliman Real Estate

Established in 1911, Douglas Elliman Real Estate is the largest brokerage in the New York Metropolitan area and the second largest independent residential real estate brokerage in the United States by sales volume. With more than 7,000 agents, the company operates approximately 118 offices in New York City, Long Island, The Hamptons, Westchester, Connecticut, New Jersey, Florida, California, Colorado and Massachusetts. Moreover, Douglas Elliman has a strategic global alliance with London-based Knight Frank Residential for business in the worldwide luxury markets spanning 60 countries and six continents. The company also controls a portfolio of real estate services including Douglas Elliman Development Marketing, Douglas Elliman Property Management and Douglas Elliman Commercial. For more information on Douglas Elliman as well as expert commentary on emerging trends in the real estate industry, please visit elliman.com.