Advisors Living presents the Residential Market Reports for Q4 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.
In the city nearly every neighborhood has seen a decrease in units coming on the market resulting in higher selling prices and therefore longer market times. Interestingly the city’s two most expensive areas, Seaport and Back Bay, have seen increases in inventory of 22% and 72% respectively. The completion of über luxury hotel chain Raffles, with their first foray into North America and their largest condominium venture to date, saw the close of 30 units in the past year, representing 9% of the neighborhood’s closings. With an average selling price of $6.6 million, Raffles bumped up the Back Bay’s median selling price by 6%. In the Seaport, over 2/3 of the closings were units that were completed within the past five years, with Echelon Seaport representing 38% of the area’s closings.
Suffolk County, home to desirable Boston, Cambridge and Brookline, has seen an increase in average sale price over the past 5 years of 20% for Condominiums and 27% for Single Family Homes. Boston’s nearest neighboring counties including Essex, Middlesex, and Plymouth have all enjoyed a remarkable increase in sale prices ranging from 40% to 48% over the same 5-year period (per MLS PIN).
Nationally, home prices once again reached new record highs, which was good news for homeowners realizing growth in both equity and wealth. Meanwhile, higher prices coupled with rising interest rates drove many buyers out of the market due to lack of affordability. The spike in interest rates motivated many sellers enjoying low mortgage rates to stay on the sidelines rather than move on to their next home. Historically high prices and low inventory led to a 19% drop in the number of homes sold compared to 2022, resulting in the lowest number of home sales in 28 years.
We are beginning 2024 with a sense of optimism thanks to slightly lower interest rates and the promise of further cuts by the Fed, leading many Economists to forecast an increase in the number of home sales in 2024 and the beginning of a return to a more balanced market. Sellers should expect continued strong buyer demand while inventory remains low.
Our team of respected advisors and our leadership team look forward to collaborating and advising you on all your real estate needs in 2024.
