January 2024
2023 TWO & THREE-FAMILY REPORT
NOTE FROM CARLETON
I hope this letter finds you in good health and good spirits, with your income property performing well with respectful and appreciative tenants. As part of my ongoing commitment to deliver valuable information, below you will find the two and three-family market report for 2023. This market report provides an in-depth look at 2023, compared with 2022. I looked at 12 key multifamily markets in Greater Boston that were selected because of their density of multifamily housing. Information from this report was gathered using MLS data to provide the most accurate overview of the multifamily market, with a timeframe of January 1st-December 31st.
Given the interest rate environment, there has been a lot of speculation on pricing - investors and, landlords like you, want to know where pricing and supply is. This market report looks at data to provide answers to those questions.
To discuss your real estate goals and objectives in 2024, please reach out to me directly.
I look forward to speaking with you soon! Carleton Ashley Broker Associate M: 617.272.5440 carleton.ashley@compass.com
MARKET NOTE The following observations are based on year-to-data MLSPIN data for Greater Boston communities. The MLS data provided a year-year comparison on how the two and three-family market performed.* I looked at the City of Boston and 11 “Greater Boston Suburban Markets”. The two-family market showed a significant reduction in the number of properties sold (-26.33%) and the gross sales volume (-24.39%). Fewer homes sold with fewer volume of transactions. The limited supply left fewer choices for buyers but no noticeable change in pricing as the blended price-per-square foot average rose 0.75%. Several markets such as Brookline and Cambridge saw year-over-year gains, but that can be attributed to smaller data samples. The Watertown two-family market performed particularly, well seeing year over year increases in the price per-square-foot of 7.20%. The top half of that market saw prices go 107.97% to-ask with a two-family at 55 Morse Street go $155,000 over-asking. The three-family market saw similar reduction in the number of properties sold (-24.03%) and gross sales volume (-30.79%). The pullback in inventory led to a (-3.18%) decline in the blended price-per-square foot in the 12 markets. Considering the interest rate environment, this pricing results can be considered a win for sellers. Although short-term interest rates caused some pain, those pain points were confined to pockets like Chelsea, Revere and Boston. Historical price increases have continuously set sellers up for success, as the buyer pool and buyer confidence remains bullish in Boston.
While two and three-family properties mostly held their pricing, fewer properties sold over-asking, and properties took longer to sell. Conditional-offers, extended due diligence periods and buyer friendly terms were more prevalent than in years past. The interest rate environment had the largest impact of the number of sellers entering the market. Looking ahead to 2024, the Fed has signaled three potential interest rate drops, which means an opportunity for buyers to re-enter the market. Will we see appreciation back in the 4-8% range? Time will tell.... NOTE FROM AUTHOR: If you are thinking about buying or selling real estate, please reach out to discuss the outcome you’d like to have happen. I am in constant contact with landlords like you about options available - including MLS-listed sales, private sales and conditional selling.
I look forward to speaking with you soon.
Carleton Ashley 617 272 5440 Carleton.Ashley@compass.com
MLSPIN sold 1/1/22–12/31/22 vs 1/1/23-12/31/23 *Areas used: Boston, Brookline, Cambridge, Chelsea, Everett, Malden, Medford, Newton, Revere, Somerville, Watertown, & Waltham
ANDOVER 2 Elm Square, Suite 204 978.248.8081
CONTENTS
BOSTON 126 Newbury Street, 2nd Floor 617.206.3333
CAMBRIDGE 1100 Massachusetts Avenue, 1st Floor 617.303.0067
GLOSSARY
CAPE COD 4 Wianno Avenue, Osterville 1 734.203.7601 CHESTNUT HILL 1330 Boylston Street, 2nd Floor 617.752.6845
SUMMARY PAGE
CITY OF BOSTON
TOWN OF BROOKLINE
CONCORD 2 Lexington Road 351.207.1153
CAMBRIDGE & SOMERVILLE
HINGHAM 18 Shipyard Drive, Suite 3C 781.285.8028
NORTH AND EAST OF BOSTON
LEXINGTON 7 Muzzey Street 781.386.0624
WEST OF BOSTON
ABOUT COMPASS
MARBLE HEAD 46 Atlantic Avenue 781.534.9229
WELLESLEY 161 Linden Street, Suite 102 781.365.9954
WESTON 450 Boston Post Road 781.739.2640 WINCHESTER 41 Thompson Street 781.219.0313
GLOSSARY
TWO-FAMILY A two-family property includes attached and free-standing two-family properties. THREE-FAMILY A three family property includes attached and free-standing three-family properties. GROSS SALES VOLUME The gross sales volume is the total amount of sales closed within a data set/neighborhood, within the given time period. PRICE PER-SQUARE-FOOT (PPSF) The price per square foot is defined as the average selling price per-square-foot within the data set. SALE-LIST PRICE Sale-List price is defined as the selling price divided by the listing price. This listing price is defined as the last asking price listed on the MLS. CLOSED SALES Figures for the year are based on closings recorded on the MLS. Years are defined as January 1st-December 31st. OMITTED SALES: A small number of sales were omitted (less than 1%). These includes properties that were fire damaged, unihabitable, or sales where the value of land exceeded the value of the property. WEIGHTED AVERAGE: The weighted average provides an accurate average across data sets, and allows some data sets to be weighed more than others. If there are ten results at 300 and one result at 200 the weighted average looks at 11 datapoints (not 2) for a weighted average of 291, not 250. How the weighted average should be used to measure different data sets is open to interpretation. The weighted average should be used with other data to provide context of data sets.
The following observations are based on year-to-data MLSPIN data for Greater Boston communities.
The MLS data provided a year-year comparison (2022 vs 2023) on how the two and three-family market performed. I looked at the City of Boston and 11 ‘Boston Suburban Markets’.
The blended-price-per-square should be looked at with other data points taken into consideration.
PICTURED: 40 Mt Vernon Street, Charlestown. This three-family property sold at asking price of $2,300,000 by Eve Dougherty, Compass. For details on the sale, click HERE.
TWO-FAMILY INVENTORY*
ALL MARKETS 2023
TWO-FAMILY SALES 482 (-26.63%)
$783,620,912 (-24.39%)
GROSS SALES VOLUME
PRICE PER SQUARE FOOT $398 (+0.75%)
THREE-FAMILY INVENTORY*
JAN 1, 2023- DEC 31, 2023
THREE-FAMILY SALES 351 (-24.03%)
GROSS SALES VOLUME $421,371,719 (-30.79%)
PRICE PER SQUARE FOOT $383 (-4.76%)
*Two and three-family sales and gross sales volume are the sum of 12 communities listed in this report (see following two pages). Price per square foot is a weighted average of 12 markets. Changes are taken from MLS and reflect
Total sold market statistics January 1, 2022-December 31, 2022 Total sold market statistics January 1, 2023 - December 31, 2023
Two-Family Data
Three-Family Data
776 Boylston Street, Unit PH2B, Boston | Exclusively listed by Jeannemarie Conley
Living in Boston means a life at the center of everything - innovation and the arts, tradition, and technology. Bostonians are known for moving ever forward while cherishing simple, timeless pleasures like skating on Frog Pond, strolling the Public Garden, taking in various neighborhoods’ architectural gems, and shopping the boutiques of Newbury and Charles Streets. Just across the Charles River from Boston, leisure seekers in the Cambridge area can escape city life for the likes of Fresh Pond Reservation, and the manicured campuses of internationally-renowned universities.
Residents make their homes in spaces that are as diverse as the cities themselves - from the iconic brownstones of Back Bay, Beacon Street, and the South End, to Brookline and Cambridge’s generous estate properties, and the extraordinary painted ladies of Jamaica Plain. PICTURED: 813 Parker Street, Boston. This Mission Hill three- family sold for $3,000,000, 3.2% below the listing price. Property sold by Eric Johnson, Mission Realty Advisors, Compass. For details on the sale, click HERE.
TWO-FAMILY INVENTORY*
CITY OF BOSTON, 2023
TWO-FAMILY SALES 263 (-21.73%)
$264,095,694 (-22.95%)
GROSS SALES VOLUME
$379 (-4.89%)
35 (0.00%)
AVERAGE PPSF
AVERAGE DAYS ON MARKET
THREE-FAMILY INVENTORY*
THREE-FAMILY SALES 228 (-17.39%)
$286,520,369 (-19.01%)
GROSS SALES VOLUME
AVERAGE DAYS ON MARKET 45 ( +18.42% )
$362 (-4.07%)
AVERAGE PPSF
*Market data based on MLS Total Sold Market Statistics January 1, 2022-December 31, 2022 vs Total Sold Market Statistics January 1, 2023 - December 31 2023
Two-Family Data
Three-Family Data
CITY OF BOSTON
Brookline is known for it’s tree-lined streets, beautiful parks, architectural gems ranging from historic Victorian homes to modern condominium complexes. It’s a town that seamlessly combines a sense of tradition and contemporary vibe. With it’s strong commitment to education, the town is home to several top-rated schools and the renowned Brookline High School.
Brookline’s proximity to Boston offers residents and visitors easy access to the city’s countless attractions, from renowned universities to picturesque parks and tree-lined streets. Vibrant neighborhoods, such as Coolidge Corner and Washington Square offer a diverse array of dining and shopping options. PICTURED: Selected two and three-family sales in Brookline in 2023. To see the sales in more detail, click HERE.
Brookline’s proximity to Boston offers residents and visitors easy access to the
TWO-FAMILY INVENTORY*
BROOKLINE, 2023
9 (12.50%)
$19,860,000 (+14.03%)
TWO-FAMILY SALES
GROSS SALES VOLUME
$664 (+12.40%)
41 (-29.31%)
AVERAGE PPSF
AVERAGE DAYS ON MARKET
THREE-FAMILY INVENTORY*
TOTAL THREE-FAMILY SALES 6 (-14.29%)
$12,538,000 (-25.30%)
GROSS SALES VOLUME
$502 (-2.20%)
35 (-75.00.%)
AVERAGE DAYS ON MARKET
AVERAGE PPSF
*Market data based on MLS Total Sold Market Statistics January 1, 2022-December 31, 2022 vs Total Sold Market Statistics January 1, 2023 - December 31, 2023
Two-Family Data
*Comps listed to provide context into small data set
Three-Family Data
BROOKLINE
526R Merrimac Street, Newburyport | Exclusively listed by GOODRICH
The city has an eclectic vibe with a number of art galleries, craft breweries, and boasting some of the best restaurants that Greater Boston has to offer.
Cambridge and Somerville are neighboring cities that offer unique experiences and are known for their intellectual atmosphere and cultural diversity. Cambridge is home to two world renowned institutions, Harvard and MIT, and known attractions such as Harvard Yard and MIT’s Great Dome. Somerville, located just northwest of Cambridge has undergone a transformation in recent years and has become a popular residential area for a diverse range of people.
PICTURED: 315-317 Pearl Street Cambridge. This landmark two-family sale traded for $4,125,000 or $906 per-square foot. Property sold by Donahue & Greene, Compass. For details on the sale, click . HERE
TWO-FAMILY INVENTORY*
CAMBRIDGE & SOMERVILLE, 2023
TWO-FAMILY SALES 121 (-26.67%)
$170,100,427 (-23.20%)
GROSS SALES VOLUME
$514 (+2.40%)
29 ( +1.53% )
AVERAGE PPSF
AVERAGE DAYS ON MARKET
THREE-FAMILY INVENTORY*
THREE-FAMILY SALES 52 (-31.58%)
GROSS SALES VOLUME $84,160,750 (-36.77%)
AVERAGE DAYS ON MARKET 37 (- 22.22% )
$475 (-6.69%)
AVERAGE PPSF
*Average DOM and Average PPSF are a weighted average of Cambridge & Somerville. Market data based on MLS Total Sold Market Statistics January 1, 2022-December 31, 2022 vs Total Sold Market Statistics January 1, 2023 - December 31, 2023.
Two-Family Data
Three-Family Data
CAMBRIDGE & SOMERVILLE, 2023
The communities north and east Boston feature the luxuries of modern living amid picturesque streetscapes that honor New England’s history. Attractions such as the Mystic River, and Malden Center have made Malden and Medford options for those looking to enjoy options just outside of Boston. Tufts university boasts a significant campus, in addition to it’s well known academics. The streets near the campus offer arguably some of the most idyllic tree lined streets in Boston, that have made the homes close to Tufts some of the most desirable real estate in the Greater Boston region.
Runners, hikers, and cyclists take full advantage of expansive green spaces like the Middlesex Fells Reservation, and Revere Beach Parkway, while children attend schools that rate among the best in the country. PICTURED: 43-35 Malden Street, Medford. This two-family property sold for $843,000, or 20.4% over-asking. The listing received over 60 offers. The property was sold by Mike Cohen, Compass. For details on the sale, click HERE.
TWO-FAMILY INVENTORY*
NORTH AND EAST OF BOSTON, 2023
TWO-FAMILY SALES 253 (-33.42%)
$215,481,224 (-32.88%)
GROSS SALES VOLUME
$342 (+1.41%)
27 (+18.90% )
AVERAGE PPSF
AVERAGE DAYS ON MARKET
THREE-FAMILY INVENTORY*
THREE-FAMILY SALES 53 (-42.39%)
$52,904,600 (-40.56%)
GROSS SALES VOLUME
AVERAGE DAYS ON MARKET 35 (+40.00%)
$306 (+2.03%)
AVERAGE PPSF*
*North & East of Boston include Chelsea. Everett, Malden, Medford & Revere. Average DOM and Average PPSF are a weighted average of the communities listed. Market data based on MLS Total Sold Market Statistics January 1, 2022-December 31, 2022 vs Total Sold Market Statistics January 1, 2023 - December 31, 2023.
Two-Family Data
Three-Family Data
NORTH AND EAST OF BOSTON
The communities north of Boston feature the luxuries of modern living amid picturesque streetscapes that honor New England’s history. Residences are as varied as that history itself, from Victorian homes and Colonial estates to updated farmhouses and new condominiums. Community investment has breathed new life into well-preserved town centers such as the Lexington Common and Andover’s Shawsheen Village Historic District. Beautifully restored mills house top-rated restaurants, and antique stores share space with contemporary boutiques.
Runners, hikers, and cyclists take full advantage of expansive green spaces like the Boxford and Harold Parker State Forests, Breakheart Reservation, and Middlesex Fells Reservation, while children attend schools that rate among the best in the country. Residents enjoy an easy commute into Boston via car or commuter rail and can head a few miles north to New Hampshire for weekend getaways.
PICTURED: Selected sales in Watertown in 2023, for details on sold listings in Watertown, click HERE.
TWO-FAMILY INVENTORY*
WEST OF BOSTON, 2023
99 (-20.80%)
$114,083,567 (-14.66%)
TOTAL TWO-FAMILY SALES
GROSS SALES VOLUME
$427 (+4.35%)
26 (-5.41%)
AVERAGE PPSF
AVERAGE DAYS ON MARKET
THREE-FAMILY INVENTORY*
TOTAL THREE-FAMILY SALES 12 (0.00%)
$15,610,000 (-3.70%)
GROSS SALES VOLUME
AVERAGE DAYS ON MARKET 33 (+31.74%)
$374 (+4.71%)
AVERAGE PPSF
*West of Boston includes Newton, Watertown and Waltham. Average DOM and Average PPSF are a weighted average of the communities listed. Market data based on MLS Total Sold Market Statistics January 1 2022-December 31 2022 vs Total Sold Market Statistics January 1, 2023 - December 31 2023.
Two-Family Data
Three-Family Data
WEST OF BOSTON
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Compass is a licensed real estate broker and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage.
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