What Were 2017 Quarter 4 Real Estate Market Trends?
4Q 2017 Market Report
We are excited to announce the release of the Compass' 4Q17 Boston Market Report. This report highlights the prevailing trends shaping the market from this past quarter and provides a glimpse into the research and data analytics in which Compass prides itself.
Condominiums
The condo market in Metropolitan Boston saw a 19.6% increase in listing inventory in 4Q17, compared to 4Q16. The median asking price for Boston condos rose by 13.5%. The number of closed sales in 4Q17 increased slightly by 3.5% year-over-year. Cambridge had the highest number of condo sales with 153 units this quarter. Demand for four-bedroom condos was strong, as the number of sales increased 25.5% year-over-year, while studios and 1 bedrooms saw a decline in number of sales. Median sale price rose across all 1 to 4+ bedrooms pricing brackets year-over-year, with the exception of the studio segment which fell 4% year-over-year respectively. Negotiability, which represents the average percentage difference between the closing price and last asking price, was -0.6% for all condo listings vs. +0.7% in 4Q16. Although the negotiability went negative this quarter, median sale price experienced a healthy year-over-year increase, indicating sellers’ willingness to negotiate on the premise of still gaining price appreciations.
Single Family Homes
The single family market in Metropolitan Boston experienced an increase in overall inventory and number of sales this quarter compared to 4Q16. Available listings increased by 33.7% year-over-year to 456 homes and the number of sales increased 6.3% to 268 closed transactions. Single Family median asking price for all of Metropolitan Boston increased 6.5% year-over-year to $1.28M. The median sale price reflected a 5.3% year-over-year increase to $1.10M. Single family overall median days on market was 20 days, down 4.8% from the fourth quarter of last year. Negotiability, which represents the average percentage difference between the closing price and last asking price, was +0.3% in 4Q17 vs. -0.1% in 4Q16.
Time on Market and Negotiability
Negotiability, which represents the average percentage difference between the closing price and last asking price, was +2.7% and +3.8% respectively for single family and condo listings sold in less than 30 days. As the only positive negotiability in their respective property type, the stats interestingly indicate listings that stayed on market for a shorter time period gain premium on closing prices. While the negotiability for the rest of the longer time on market categories were all negative, meaning the properties were sold below the asking price on average.
Q1 2018 Update
January Q1 has been extremely busy. Essentially, what we have known as the "Spring Market" has already started. We are seeing 10+ offers on South End Single Families and in Greater Boston suburbs, multiple offers on condos from South Boston to South End. Buyers who have been looking last year are ready to purchase before the Spring competition + savvy buyers are deciding to buy now before the buyer competition increases. If you are planning on selling during the "Spring Market," now is the time. If you are planning on buying, contact us to learn how we have had four offers accepted this month in multiple-offer situations.
If you are interested in a certain area of Greater Boston, be sure to see how our numbers are broken out by neighborhood in the full 4Q 2017 Report. For real time data, download the Compass Markets App.
For access to off market homes or property specific Valuation, contact our team at Compass.
Thank you,
The Penney + Gould Team
