Sales Prices Up as Market Maintains Fast Pace

Douglas Elliman Real Estate, the second largest independent residential real estate brokerage in the United States by sales volume, has today released the Q3 2019 Sales Market Report for Downtown Boston.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.

Results showed a very fast-paced market with limited supply holding back additional sales.The median sales pricefor condos rose year-over-year for the seventh time in the past eight quarters, while the number of sales for condos declined. However, despite the rapid pace, listing inventory expanded for the sixth straight quarter, indicating a very tight market.

“The incredibly brisk pace of the condo market we’ve been seeing in Boston was sustained again in the third quarter,” said Scott Elwell, Senior Executive Regional Manager of Westchester and New England, Douglas Elliman. “Even with inventory continuing to expand, buyers are encountering limited supply which is causing sales to decline. This is one of the tightest sales markets in the country, and we’ll have to see if the pace-to-supply ratio evens out going forward.”

Both the median sales price and the number of sales for townhouses rose for the fourth straight quarter, while listing inventory expanded year-over-year for the second time in the past three quarters. Similar to the condo market, the townhouse pace also remains very tight – accelerating in three of the past four quarters.

“As the locals might say, the townhouse market in Downtown Boston is moving ‘wicked fast,’” said Jonathan Miller of Miller Samuel Inc., the author of the report. “High demand is causing prices to rise, and sales numbers were strong this quarter. But unless the supply catches up we may see a decrease in sales in the coming months.”

DOWNTOWN BOSTON SALES HIGHLIGHTS

Overview

“The pace of the market was brisk as supply remained limited.”

CONDO

- Average price per square foot rose year over year to the second highest level in nineteen years

- Median sales price rose year over year for the seventh time in eight quarters

- Despite the rapid market pace, listing inventory expanded annually for the sixth straight quarter

TOWNHOUSE

- Median sales price and number of sales rose year over year for the fourth straight quarter

- Listing inventory expanded annually for the second time in the past three quarters

- The pace of the market accelerated in three of the past four quarters

Key Trend Metrics (compared to same year ago period)

CONDO (all sales)

- Median sales price rose 5% to $866,500

- Price per square foot increased 14.4% to $1,134

- Average sales price rose 21.2% to $1,328,458

- Number of sales declined 12.5% to 846

TOWNHOUSE

- Median sales price jumped 20.6% to $1,362,500

- Price per square foot rose 1.3% to $704

- Average sales price slipped 0.3% to $1,632,226

- Number of sales surged 31.6% to 104

- Listing inventory grew 6.3% to 51

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.