The Greater Boston Association of Realtors (GBAR) released its September numbers for the Beantown housing market this morning, and as usual, the association’s analysis revealed many eye-catching details about the marketplace.
Below, we have spotlighted five of the most noteworthy:
1. A Home-Sales Divide – Although home sales in Greater Boston’s single-family market fell 6 percent year-over-year to 1,145 closings, sales activity was quite strong in the condo market, where sales rose 4.4 percent to 983. Year-to-date, both market segments remain positive, with sales up 3.2 percent for single family and 5.2 percent for condos.
2. Home Prices to the Moon – As notable as the divide was in home sales, it was far more pronounced in home prices. While single-family median sales prices were positive in September – rising 3.3 percent yearly to $508,000 and 4.2 percent year-to-date to $544,300 – condo prices took flight, rising 19.2 percent yearly to $507,000 and 8.7 percent year-to-date to $489,000. It appears that new construction in Boston, which has brought a new level of luxury to the condo market, is beginning to push up prices.
3. Times a Wastin’ – Days on market has steadily fallen in 2016 for all Greater Boston listings, but the declines have been much steeper in the condo market. So while single-family market time is down 8.8 percent to 52 days, condo market time is down 20 percent to just 40 days.
4. An Affordability Decline –The good news is that single-family affordability did not decline in September, with GBAR’s affordability index unchanged from a year ago. The bad news is that the condo market’s index has fallen 13.9 percent year-over-year, and at a rating of 87, it is now as low as the single-family rating – and with condo prices rising so aggressively, affordability may fall further.
5. Subterranean Inventory Blues – One area where the single-family and condo markets were synchronized was housing inventory, as both saw supply drop by double digits. For single-family homes, inventory declined 25.7 percent to a 2.6-month supply, while for condos, it fell 20.8 percent to a 1.9-months supply.
Is this the top? Or will markets stretch further? No one rings a bell when the top is reached; we only learn about the top months or years later. It will be interesting to watch!
It sure will, Barry! The two things we’re looking at are construction spending and prices; so far, both continue to rise, but we’ll keep an eye on them as the market turns the corner into 2017.