Boston’s real estate market for condos notched a surprising spike in median sale price last month despite year-over-year sales being down by double digit margins. Boston’s median condo sale price in October jumped by +9.7% month-over-month, and is up +14.79% compared to October 2021. While the MLS data shows that prices are still up year-over-year, rising interest rates have already taken a toll on the demand for Boston condos and prices will likely begin to tumble soon.
|Month||30 Day Median Sale Price||30 Day Median Sale Price YOY Change|
Boston’s 30 day median sale price for condos was $805K last month, which was the second highest median sale price on record in Boston. Year-over-year condo median sale price did drop by a slight margin in September (-0.57%), the largest yearly decrease in median condo prices since May of last year. Still the big month-over-month increase in October was far from expected considering the sluggish sales for the Boston real estate market throughout 2022.
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Year-over-Year Condo Sales Fall For 10th Consecutive Month
Last month there were 253 condo sales in the city of Boston. That notched a -28% decrease in total condo sales compared to October 2021. That marks the 10th consecutive month that figure has dropped going back to January of this year, the longest span since the Great Recession. Even more concerning, the last 4 months saw Boston’s total year-over-year condo sales drop by a margin larger than 25%.
|Month||30 Day Sales||30 Day Sales YOY Change|
It appears like interest rates are finally catching up with demand for Boston real estate. With another 0.75% rate hike announced at the beginning of this month and likely another before the end of the year, this trend of demand destruction will likely continue. This will undoubtedly push prices downward as we enter the low-season in Boston’s condo market. Year-over-year condo prices may stay above zero through November and December but will fall into red figures during the first quarter of 2023.