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
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