That the real estate market conditions in Boston continue to ebb and flow is an understatement. You’ve heard time and again that “all real estate is local”, and the current statistics contained herein demonstrate why this is indeed a truism. Any sweeping statement of market conditions in the vast “Boston Real Estate Market” is virtually meaningless. To get a true picture, one has to drill down to look at current neighborhood-specific information. This article looks at current market trends for six (6) Boston neighborhoods: Back Bay, Beacon Hill, Charlestown, Jamaica Plain, South Boston and the South End.
The data referenced herein is based on a 12-month rolling calendar from December 2008 to December 2009 for condos, multi-family homes and single-family homes. Definitions:
- Seller Advantage Market – there is currently less than a six (6) month supply of homes for sale.
- Buyer Advantage Market – there is currently more than a six (6) month supply of homes for sale.
- Balanced Market – there is exactly a six (6) month supply of inventory.
If there is no mention made of a property type within a particular price range, it is because there are no listings within this category. All data was analyzed and compiled by Keller Williams Realty, Boston-Metro from data supplied by LINK (one of two Boston MLS systems).
Back Bay: There is a Seller Advantage Market for condos priced at or below $699K, and a Buyer Advantage Market for condos priced at $700K and higher. A Seller Advantage Market for multi-family homes priced up to $999K converts to a Buyer Advantage Market for those priced at or above $1M. With respect to single-family homes priced between $750K and $999K, this is a Seller Advantage Market. while those priced above $4M fall under the Buyer Advantage Market category.
Beacon Hill: All condos priced at or under $999K are in a Seller Advantage Market. Condos priced at or above $1M are in a Buyer Advantage Market. Multi-family homes priced at or above $1M are in a Buyer Advantage Market. With respect to single-family homes, those priced above $1M are in a Buyer Advantage Market, the exception being single-family homes priced between $1.5M and $1.749M for which there is a Seller Advantage Market.
Charlestown: Condos priced between $250K and $499K, and between $600K and $699K find themselves in a Seller Advantage Market; all other price ranges are in a Buyer Advantage Market. Multifamily homes are in a Seller Advantage Market. Single-family homes under $749K are in a Seller Advantage Market, while those priced between $750K and $999K and between $1.25M and $1.499M are in a Buyer Advantage Market.
Jamaica Plain: All condos, except those priced between $700K and $999K are in a Buyer Advantage Market. Multi-family homes are in a Seller Advantage Market, with the exception of those priced between $500K and $999K, which are in a Balanced Market with exactly a 6-month supply. Single-family homes are layered a bit more multifariously: those priced at or under $499K and between $1.5M and $1.749M are in a Buyer Advantage Market, those priced between $750K and $999K are in a Balanced Market, and those priced at or above $1.75M are in a Seller Advantage Market.
South Boston: All condos priced at or under $499K, are in a Seller Advantage Market, whereas all other condos are in a Buyer Advantage Market. All multi-families are in a Seller Advantage Market, as are single-family homes priced under $499K. Single-family homes priced between $500K and $749K are in a Buyer Advantage Market
South End: Overall, there is a Seller Advantage Market for condos, multi-family homes and single-family homes. The exception is single-family homes priced between $1.75M and $3M, which remains a Buyer Advantage Market.
So what does all of this mean? Statistics represent aggregated data, and should not be narrowly interpreted to mean that there are no exceptions for specific properties on the market. For example, in a Seller Advantage Market, a particular owner may be flexible on price if there are mitigating circumstances such as a pending relocation, or the pre-purchase of another home. Similarly, in a Buyer Advantage Market there are always going to be sellers who are unrealistically inflexible on their price because they are in no hurry to sell, or still unrealistically believe that their home is worth far more than it actually is. Hiring a good Marketing Agent (see Hiring a Marketing Agent to Sell Your Home) or Buyer’s Agent (see Accredited Buyer Representative (ABR) Basics) is the best way to understand these individual circumstances within the larger context of any neighborhood’s market conditions.
Keith Munsell 
