What a year 2021 was for the Boston real estate market. Unprecedented times have created a unique national and local market.
Let’s recap. An ideal blend of incredibly low interest rates, employees still working from home, lack of inventory in the market, and a shortage in both labor and raw materials, have led to rapidly increasing housing prices.
Nationally, as of June 2021, the median sale price jumped 24.4% from the previous year. It’s now hit a record high of $386,000. At this point, listed properties were down by 23%. June being one of the hottest selling markets, the nation typically has about 1.8 million homes listed, but this year there were just under 1.4 million.
What About Our Local Market?
Boston didn’t experience the same level of growth as many other areas of the country. In Boston, we operate in a mature real estate environment, meaning that our prices aren’t quite as impacted by the recent macro-economic changes as other markets. In fact, citywide the average selling price of residential properties – being both condos and single-family homes – actually saw a slight dip. At the end of 2021, the average selling price was sitting at $1,181,190, a drop of 2%. Interestingly, the average price per square foot increased, leading us to conclude that this drop is actually the result of smaller properties being sold, not necessarily a downturn in the market.
Citywide, Boston may not have experienced the same level of price growth as the rest of the country, but some pockets of the city have. Charlestown has proven to be one of the most stable markets in the Boston area, with the average selling price increasing steadily throughout the pandemic.
By the end of 2021, the average selling price in Charleston climbed to $854,211, reaching a record high. Because of the area’s rich history, charming streets, excellent amenities, and proximity to the city center, it’s become one of the hottest spots to live for young professionals and families.
Properties aren’t staying on the market long here. The number of sales reached a record high, being up 18% from 2020. Despite so many sales, inventory numbers have remained low.
The South End
The South End is another local area that saw some record-breaking figures. Sale numbers jumped by 54% and the price per square foot increased by 4%, reaching a high of $1,099. High prices don’t come as a surprise to buyers in this area, as the South End has long been one of Boston’s most expensive areas.
While Boston’s real estate market may not have followed national trends and had unprecedented growth, some neighborhoods saw strong performance. Individuals considering selling their property should push to take advantage of current market conditions, as we are still in a seller’s market!
If you have any questions about real estate opportunities or current market conditions in the Boston area, contact Remmes & Company today. We're happy to share our expertise with you.