Amid speculation of whether the upper class is being impacted as much as other socioeconomic classes during the world’s economic downturn, luxury million dollar real estate in downtown Boston points to a slowdown. From 2008 to 2009, sales activity in the $1 million + downtown Boston condo market fell approximately 22%.
While the rich may be buying again in certain product areas (see Rich Buying Again, But Middle Class Still Hurting), luxury housing in Boston is not yet one of them. Year-to-date in 2009, 198 condos priced at or above $1 million have sold in downtown Boston, down from 255 during the same time period in 2008 according to MLSpin. The amount of time, or days on market, that those units are sitting on the market for sale has decreased from 164 during 2008 to 139 during 2009, a sign that what is being listed for sale is selling at a faster pace. However, the sale price to original listing price ratio, a measure of how well units are being priced in the eyes of the market, has fallen, from 105% in 2008 to 90% in 2009.
The $4 million to $10 million market has been hit hardest, with sales down approximately 71% from 2008 to 2009.
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