Boston Condo Market Report

Boston Condo Market Report

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.

Month30 Day Median Sale Price30 Day Median Sale Price YOY Change
Oct 2022$804,75914.79%
Sep 2022$733,660-0.57%
Aug 2022$759,44711.03%
Jul 2022$779,28214.95%
Jun 2022$771,2537.04%
May 2022$763,9044.23%
Apr 2022$825,39919.92%
Mar 2022$728,6803.58%
Feb 2022$734,23210.41%
Jan 2022$681,3495.48%
Dec 2021$710,8345.09%
Nov 2021$708,7729.60%
Oct 2021$701,0887.72%

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.

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%.

Month30 Day Sales30 Day Sales YOY Change
Nov 2022253-27.92%
Oct 2022328-40.69%
Sep 2022325-43.48%
Aug 2022447-25.13%
Jul 2022576-13.51%
Jun 2022536-17.03%
May 2022486-5.08%
Apr 2022356-16.24%
Mar 2022276-3.16%
Feb 2022315-4.55%
Jan 202244520.60%
Dec 20213584.07%
Nov 202135117.79%

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.