Strong demand and limited supply are the hallmarks of 2012 market data, influencing the median price, sales volume and other sales trends. Downtown Boston condominium sales, up 30% in transactions (2925 YTD) and 31% ($1,940,128,748) in dollar volume year-to-date and sales continue to be lead by three neighborhoods; Back Bay, South End and South Boston.
Total Transactions (% of total market) Total Dollar Volume (% of total market)
1) South Boston 581 (+20%) Back Bay $515,872,497 (+27%)
2) South End 535 (+18%) South End $370,935,011 (+19%)
3) Back Bay 464 (+16%) South Boston $240,414,621 (+13%)
Fairly predictable numbers as, year in-year out, those three neighborhoods have consistently registered the highest dollar volume and highest transaction totals for the Downtown Boston market. With inventory tight all over the city, it is interesting to see which neighborhoods have shown the greatest gains, year over year, in transactions and dollar volume as buyers explore neighborhoods outside the aforementioned “top three”. East Cambridge, Seaport and the Leather District had the largest Year-Over-Year gains although they account for only 15% of the transactions in 2012 YTD.
Total Transactions Total Dollar Volume
% gain Year-Over-Year % gain Year-Over-Year
1) East Cambridge 70% Seaport 82%
2) Seaport 67% East Cambridge 73%
3) Leather District 57% Leather District 63%
The current market conditions are similar to 2001-2002 and 2002-2003 when there was a 28% and 33% increase in transactions Year-To-Date. The economy is in a rebound from a recession and interest rates are at historic lows. One notable exception to the market similarities is that during the years 2000-2003 there were no less than five large condominium projects* being introduced to the market. Today there is one new project under construction; Millennium Place, the first full-service luxury condominium building to be developed in the city since the introduction of 45 Province, the Clarendon, the W, and the Intercontinental and Battery Wharf. Of those five the latter two are sold out and the former three are 55%, 90% & 70% sold out, respectively. Millennium Place will not be able to close sales until early 2014 at best so the market will remain tight with upward pressure on prices for the foreseeable future and buyers looking for options in all the neighborhoods of Downtown Boston.
Clients of Otis & Ahearn can request a copy of this week’s market watch HERE.
*Building Year Number of Units
1) Trinity Place 2000 104
2) Belvidere 2000 61
3) Ritz Towers 1 & 2 2001 304
4) Wilkes Passage 2002 155
5) Rollins Square 2003 182
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