The Greater Boston housing market continues to struggle with an inventory crunch across the single-family, condominium, and multi-family markets. Fewer listings have meant fewer sales, with properties trading at higher prices.
Sellers of single-family homes were able to capture an average of 3% above their asking price in Q1. Bidding wars were common in the most active price points in the market, which led to many properties trading for hundreds of thousands of dollars over asking price.
Even with homes in the $2 million to $3 million range, buyers were, on average, willing to pay full asking price or above. The average sales price for a single-family home in Greater Boston in Q1 was approximately $807,000, and the median home price (a better reflection of the price point at which most sales are happening) was $625,000. Both average and median prices were up approximately 9% year over year.
The condo market saw similar trends, with 12% fewer condos listed compared to the first quarter of 2021. Average sales price was just over $700,000 (up 14%), while median sales price was at $530,000 (up 6%).
With record-breaking absorption rates persisting in both the single-family and condo markets, prices are highly unlikely to level off in the next quarter, despite rising interest rates.
As has been the case for many months, buyers in the Greater Boston market must be prepared, both financially and emotionally, to make strong offers on properties of interest and to jump on bidding opportunities quickly. That said, before making a “big” offer, buyers should keep in mind that the primary goal should not be to satisfy a temporary desire to “beat out” other buyers in this extremely competitive environment. Rather, it should be to make decisions that are truly best for themselves and their families over the long term.
For a more extensive review of how the housing market did this past quarter and in comparison to last year, please click below to access the full report. If you have any questions, wish to get information on a town not listed..OR are considering buying or selling a property, give us call and we'd be happy to help you.