Boston Condo Sales Decline in September, Single-Family Homes Remain Strong

As someone who has closely followed the Boston real estate market for years, the trends we’re seeing in September 2024 reflect a dynamic shift in buyer preferences.

According to the Greater Boston Association of Realtors (GBAR), the Boston housing market is currently seeing a divergence between different property types. Condo sales are down, while single-family homes and multi-family properties remain strong. Let's break down what these numbers mean for buyers and sellers in the Boston area.

Condominium Market: A Cooling Trend

Condominium sales in Boston took a hit this past September, with sales declining compared to the same period in 2023. The median condo price also dropped by 1.1%, bringing the new median to $695,000.

While a 1.1% decrease may not seem like much, it’s a sign of the downward pressure that condos are facing in Boston right now.

Several factors could be at play here. Rising interest rates, combined with a preference shift toward single-family homes and multi-family properties, could be influencing the slowdown in condo sales. It’s important for condo sellers to keep this in mind when pricing their properties, as competitive pricing may be needed to attract buyers in this market.

Single-Family Homes: Steady as Ever

In contrast to the condo market, single-family homes are continuing to perform well. The median sale price for single-family homes increased by 5.6%, bringing it up to $832,000. This price growth is a clear sign that demand for single-family homes remains strong, even though the number of homes sold has decreased by 3.8%.

From my experience, buyers are still drawn to the stability and long-term investment potential of single-family homes, especially in suburban neighborhoods. Despite higher mortgage rates, buyers looking for more space, privacy, and the ability to build equity are keeping the market competitive. This is great news for homeowners who are considering selling, as they can likely still command strong prices.

Multi-Family Homes: A Hot Market

The multi-family home market is also showing strength, with the median sale price jumping by 13.2% year-over-year to $827,000. Sales are also up, albeit slightly, with a 0.4% increase in transactions. Multi-family homes continue to be a popular investment, especially among buyers looking for income-generating properties.

As rental demand remains high in Boston, multi-family properties are particularly appealing to investors. If you’re considering getting into the rental market, now could be an excellent time to explore multi-family homes. With prices rising and interest in this segment growing, it’s a hot market to watch.

What Does This Mean for the Boston Real Estate Market?

Overall, the Boston real estate market presents a mixed picture. Condo sales may be slowing down, but the single-family and multi-family markets remain strong. Jeffrey Chubb, a fellow real estate agent here in Massachusetts, noted that while we are seeing some downward pressure on pricing, the market is still competitive. He expects that interest rates may come down in the coming months, which could benefit sellers who are holding out for better market conditions.

Personally, I agree with this sentiment. If interest rates do decrease, it could bring more buyers into the market, potentially reversing the slowdown we’re seeing in condos and adding even more strength to the single-family and multi-family sectors.

However, I always advise my clients to base decisions on current market conditions rather than trying to predict the future too much. With the market being as dynamic as it is, you need to stay informed and flexible.

My Advice for Buyers and Sellers

• For sellers of condos: If you’re trying to sell in this cooling condo market, it’s crucial to price your property competitively. Consider offering incentives, such as covering some closing costs or lowering the asking price to attract buyers in a market that’s seeing fewer sales.
• For single-family home sellers: The market is in your favor, with rising prices and strong demand. While sales have slowed slightly, you can still achieve a great price, especially if your home is in a desirable neighborhood.
• For multi-family home buyers and sellers: Whether you're looking to invest in or sell a multi-family home, now is a great time. With a growing interest in rental properties, both buyers and sellers can benefit from this segment's strength.
• For buyers in general: Stay patient but ready. While some may be waiting for interest rates to drop, the key is being prepared to act when the right opportunity arises. Whether you're looking at a condo, single-family home, or multi-family property, have your financing ready, and work closely with your real estate agent to stay informed about market shifts.

Conclusion

Boston’s real estate market is evolving, with different sectors performing in unique ways. Condo sales are slowing, while single-family and multi-family properties continue to see strong demand and price growth. For both buyers and sellers, staying informed and responsive to market conditions is key to success.

At Digital Realty US, I’m always available to help you navigate this market. Whether you’re looking to buy, sell, or invest, having a clear understanding of the latest trends will give you an edge. Feel free to reach out to discuss your real estate needs and strategy!