This quarter we are seeing the effects of higher mortgage interest rates in sales volume, but not necessarily in sales price. 

The city of Boston saw record sales prices in multiple neighborhoods. 

Charlestown saw a record median sales price ($920,000, a 9% increase), record average price per square foot ($841 up 1%), and record median price per square foot ($842 up 2%).

The North End saw record average selling price ($940,726 up 9%), record median selling price ($850,000 up 19%), record average price per square foot ($1,034 up 1%), and record median price per square foot ($997 up 1%). 

Prices throughout the city have otherwise remained fairly stable with only a few neighborhoods seeing a decrease in average selling price Q3 of this year compared to last (Luxe, Beacon Hill, East Boston, Seaport, and the Waterfront). Even with the decreases in average price, even these neighborhoods saw increases in average price per square foot (excluding Luxe, East Boston, and the Seaport). 

With only 24 transactions in the Seaport this quarter, it’s likely these numbers have been affected by the lack of transactions, with sales down 61% compared to last year. Both East Boston and the Luxury market have seen a decrease in transactions of over 40%, also affecting the ability to compare pricing year-over-year. 

Average days on market have trended down in Q3 compared to 2021, reflecting the extraordinary lack of inventory this year compared to last. Across the board, sales are down in every Boston neighborhood this year compared to last, and citywide inventory is down 31% compared to this time last year. 

In 2008, during the weakest housing market, retroactive data shows that the city of Boston held consistent in value, not experiencing the same dip that many other cities faced across the nation.

As I like to say, I have no crystal ball, but even in this uncertain market, I am feeling very bullish on the Greater Boston real estate market. It seems most would-be sellers feel the same as they continue to hold off, keeping inventory levels low.

Check out the full market report in the link below:

Boston 2022 Third Quarter Market Report