Boston's condominium market is booming
Real estate in Boston, MA, had another positive month in June 2012 with condominium values in many of downtown's prestigious neighborhoods reaching a record high. In neighborhoods like Beacon Hills, the Fenway, the North End and South Boston, the median price climbed to $515,000 during the three months that ended June 30, according to The Boston Globe.
The previous condominium value peak was met in 2008 when prices increased to $498,500, but shortly after reaching the plateau, the nation went through a financial crisis and values fell.
The most recent increase adds to evidence that Boston's housing marketing is in the process of recovering, and continuous signs may indicate growth is imminent. The Warren Group, an independent publisher of real estate data, said sales of single-family homes also hit a new high in June 2012. There were approximately 26 percent more home closings last month than June 2011, which marks a two-year high in the Hub.
"The feeling out there is prices are not going to soften anymore," Barry Bluestone, the director of the Dukakis Center for Urban and Regional Policy at Northeastern University, said to the news source. "We are seeing the real signs of a recovery in the housing market."
However, Boston was marginally spared from the bulk of the housing pitfalls seen in many other metro areas, especially in the condominium sector. Even in the thick of the decline and crisis, condominium prices in some of Boston's areas fell only slightly, according to The Boston Globe. In areas like Beacon Hill and the North End, higher-income homeowners who weren't as affected by the recession kept values afloat, which prevented the city from spiraling out of control.
According to LINK data, there were only 531 properties available in the downtown areas of Boston on the last day of June 2012, and many of the condominiums that did sell went through bidding wars.
"We have more demand than we have property to sell," Carmela Laurella, a local real estate expert, said to the Globe. "We can barely list anything without it going under [a purchase agreement] within a couple of weeks."
Homebuyers who plan to relocate to Boston may want to plan well in advance if they want to claim one of the in-demand properties selling quickly in the Hub.