Boston Real Estate Statistics and Market Analysis, First Quarter 09’

With property, equity, and job markets worldwide experiencing nearly unprecedented turmoil during the past six months, a review of key 1st quarter 09’statistics for downtown Boston real estate, reveal a market, that while not entirely immune to the broader financial crisis, has fared better than most other locations and sectors. The number of sales decreased by 33% from the same period in 08’, with 339 transactions closed during the first quarter. The average selling price was $593,668 down almost 15% from a year earlier. The price per square foot dropped to $522, down 9.74%, while the average days on market for Boston properties grew from 110 to 123 days.

A few important points help to provide context for these statistics. First, inventory has consistently remained at historically low levels throughout the past year and it is difficult to have a classic buyer’s market without a glut of property for sale. Additionally, the 1st quarter stats reflect activity levels and sales prices during the period immediately following the financial shock of last fall, as it is the sales activity in the 4th quarter 08’ that principally comprises recorded closings for 1st quarter 09’. Though 2nd quarter statistics are not yet available, many agents report a sharp increase in the level of activity across the city over the past couple of months. Some observers have noted that the drop in the number of closings is a logical precursor to lower sales prices because declining markets take time to adjust to new realities. Others point to the release of pent up demand now taking place as a factor that is restoring equilibrium to the Boston real estate market. It is also important to note that these statistics, compiled by Listing Information Network (LINK), are summary statistics for virtually the entire city of Boston. Insofar as all real estate is intensely local, differences in performance exist even among neighborhoods within the city. The following is a breakdown of statistics for a few specific Boston neighborhoods.

Back Bay

The number of sales that recorded in Back Bay during the first quarter was 49, down from 80 during the same period in 08’ Selling prices actually increased by 14%, possibly due to closings in a couple of very high end condominium buildings. The price per square foot remained unchanged at $779, while the average days on market grew from 107 to 148.

Beacon Hill

Twenty four sales took place on Beacon Hill during the first quarter, down from 37 during 1st quarter 08’. Prices dipped 12.74% from an average of $675,626 to $589,554, while prices per square foot dropped just over 5%. The average number of days on market rose from 112 during 1st quarter 08 to 166 during 1st quarter 09’.

South End

The South End saw a steep drop in the number of closings, down nearly 47%, from 122 in 1st quarter 08’ to 65 during 1st quarter 09’. Average selling prices declined 17.71% from $711,239 to $585,243. Per square foot prices fell just over 7%, from $589 to $547 while average days on market were stable at 105, up from 102 in 08’.

South Boston
South Boston recorded 76 sales in 1st quarter 09’, nearly as many as the 85 sales witnessed in the same period a year earlier. While the average selling price dropped more than 12% from $371,359 to $325,844, prices per square foot were down just 4.3% at $339, down from $355. Days on market were stable at 119, up from 117 for 1st quarter 08’.

Charlestown

Charlestown saw a drop in the number of sales in the 1st quarter 08’ to 27, down from 42 during the same period a year earlier, which was a nearly 36% drop. Prices corrected nearly 15%, from $480,252 to $408,617. Per square foot prices dropped 7.7% from $463 to $427 and days on market were up from 103 in 1st quarter 08’ to 139 in 1st quarter 09’.