Posted on Feb. 10th, 2015
Boston’s real estate market may have experienced a bit of inconsistency in the housing department. But even with this dilemma experienced last year, its condo market remained very strong. In fact, this part of Boston’s real estate market is not just going strong. It keeps soaring as well. This is the primary reason why 2014 became a record-setting year in the area’s condo market despite the contradictions in the housing market. This data is proved on a report created showing the record-breaking sales the condo market achieved last year.
The report showed that Boston’s condominium median selling price increased in up to $619,000 last year. That report stated that this increase is about 12% from 2013’s $555,000. These same figures were provided by LINK, which is a real estate tracking firm. The market also experienced a 35% increase in the units sold above its asking price.
The condo sales tracked by LINK took place within 11 neighborhoods in Central Boston. These neighborhoods were Back Bay, Charleston and downtown Fenway. LINK did not track the sales that occurred within the lower-income neighborhoods in the city.
It was also reported that there are leading reasons that caused this record breaking sales within Boston real estate market’s condo aspect. These reasons were specifically mentioned by Carlos Xu, top real estate agent from Keller Williams. He said that it became possible because of the strong economy, walkable neighborhoods and leading universities in the area.
Xu even emphasized that last year was not only better. It was a great year for the Boston real estate market. Because of this, the city now became an international global city from being a huge New England city only. It is true that there were only low sales of luxury condos in 2014. But the news is, the median price of these high end homes also increased from 13% to one a half million dollars.
One of the primary reasons why this happened is the growing population of the city and the tight supply of condominium in the area. But LINK’s president, Debra Blair, expects that both the prices and sales in 2015 will climb at a slower pace this time. This is what she expects to happen as the property’s inventory remains low. The good news is, there is a big possibility for the current market’s inventory to be added with more units. Right now, there are already a lot of building projects that are expected to be pursued this year. These projects are also expected to keep the buzz going in the market for the next 3 years.
Just early this week, developers started breaking the ground on the condominium development and Four Seasons Hotel. This project only can already provide a new 180 luxury condominiums in the market once it is completed. There’s also the Millennium Tower Boston project, which will be opened in summer 2016.
For some added news concerning Massachusetts real estate market, Massachusetts Association of Realtors stated that e median price of the single family homes in the state experienced an increase in price. This figure only indicates that there will be more sales activity to be expected in the future. Although the low inventory of homes that are offered for sale dampened the market’s confidence for this year, they still believe that they will still see some improvements.