Advisors Living presents the Residential Market Reports for Q2 2023. This comprehensive study includes Greater Boston and many prominent nearby suburbs. The Advisors Living dedicated research team used data that we deem reliable from sources such as MLS PIN, LINK, MAR, NAR and public sales records through the Registry of Deeds.
Citywide, Boston sellers have continued to enjoy conditions mostly in their favor. With inventory down 16% overall across the city, sellers are finding less competition while buyers are finding less housing product. Median selling prices rose 3% to a citywide median of $770,000, a sign that in spite of rising interest rates prices are holding strong. On average it’s taking 30 days for a home to receive an accepted offer, a week slower than this time a year ago, sugesting that while overall conditions are favoring sellers, buyers are finding themselves with increased leverage on the terms of the sale.
Many suburban cities and towns across Massachusetts are still experiencing near record low inventory, leading prices to continue rising steadily. Price appreciation seemed to relax at the beginning of the second quarter but then surged in June, recording a healthy 4% increase statewide over June 2022. Homeowners who currently enjoy favorable interest rates have lost some incentive to sell since rates increased a year ago, contributing to a 33% decline in new listing activity. The resulting lack of inventory, combined with higher borrowing costs, led to a 23% decrease in the number of single-family homes sold. On average, sellers are still capturing 104% of asking price, down from an unprecedented 107% last year. The residential luxury market remains strong with a record 103 homes selling for more than $4,000,000 so far this year.
Quarter 2 brought the sellout of Stratus Residences in Brighton in May of 2023 with the last unit closing mid-July. Sales in existing new development buildings as well as those that began actively closing units in quarter 2 (Candence on Leo, 30 Penn, Raffles and Winthrop Center to name a few) continue to have a significant increase in average sale price as well as average price per square foot. While many ultra-luxury developments including Winthrop Center, St. Regis, Raffles, and One Dalton continued to be marketed in the second quarter, they will be further challenged by the addition of new luxury projects expected to actively start selling the 2nd half of 2023 (South Station, 1515 Commonwealth). Many additional smaller developments are expected to debut later this year, including the first net zero building in Somerville.
