As residents anticipate the launch of several new luxury condo buildings in downtown Boston, most notably, the Clarendon Back Bay and the W Boston Hotel & Condos, along with the recent launch of 45 Province, the market for luxury condominiums is poising itself for an influx of additional inventory.
In the face of this influx, data from MLSpin, one of Boston’s two MLS systems, show that the $1 million + condo market year-on-year from July to August has remained somewhat steady in the number of units that sold, along with some increases and decreases across various measures. On a whole the numbers have stayed relatively similar year over year.
The data (see below table) demonstrate that there may be a trend beginning to surface in that luxury homes are being priced more aggressively out of the gate (possibly evidenced by a decrease in the highest condo sales price during the period), while still maintaining the sales to list and original price ratios from the previous year.
Following the launch of the Clarendon and the W Boston, the city will see a hiatus in the delivery of large-scale condo developments for several years, as the W was the last major development in the city to receive financing before the credit crunch hit the downtown Boston real estate market. While Buyers have a good assortment of luxury condo inventory to choose from at present, and that pool will grow with the onboarding of the Clarendon and the Boston W, the available choices are now on the table, with no surprises to come for several years. If a luxury purchase is going to be made, this represents a time to compare and contrast condos and condo developments to secure a unit that fits the lifestyle and desires of a Buyer, with a relatively low concern that there will be new condo options in the next 3-4 years.
Keith Munsell 
