Back Bay condominium prices rise Sept – Oct 2009 vs. Sept – Oct 2008

According to an analysis of sales data for the months of September and October, average sales price, median sales price, and price-per-square foot all rose between 2008 and 2009.

Meanwhile, the volume of condo sales remained almost exactly constant, with 54 closings during the two months in 2008 and 57 closings in 2009.

Included in this analysis were only condominium resales data, meaning sales of existing condos, not sales of condos in new developments or condos being put on the market for the first time since renovation. (Zero Marlborough closings, for example, were not included in the 2008 totals.)

2008
Number of resales: 54
Average sales price: $791,972
Median sales price: $508,000
Average days on market: 86
Average $ per square foot: $753.04

2009
Number of resales: 57
Average sales price: $892,963
Median sales price: $570,000
Average days on market: 111
Average $ per square foot: $790.47

Average days on market increased by 25 days or almost one full month. The patience of sellers apparently paid off.

Condo sizes did not differ much between the two years. In 2008, the average size of a condo sold was 1,052 square feet; in 2009, the average size of a condo sold was 1,130 square feet. (The extra 78 square feet @ $750 per square foot equals $58,000.)

The difference in 2009 was that fewer low-priced units sold and there were a greater number of +$1 million units sold.

In 2008, there were ten units sold for under $300,000; in 2009 there was only one (for $155,000 – a fixer-upper).

In 2008, there were eight condos selling for more than $1 million and a $4.5 million and $5.425 million sale while seven condos sold for greater than $1 million in 2009, three for greater than $2 million, and three for greater than $3 million.

High-end buyers returned to the market in 2009. We would expect (and hope) that sales volume improved for high-end properties since it was during fall 2008 that we had the collapse of Lehman Brothers and the subsequent melt-down in the financial markets and world economy. The return of the high-end buyer in 2009 is also encouraging because these are buyers who were most likely not able to take advantage of the first-time homebuyers’ tax credit and were more likely to encounter tightened lending practices, making mortgage loans more expensive.

Photo courtesy Wikipedia, in the public domain

Related posts:

1. South End condominium prices rise Sept – Oct 2009 vs. Sept – Oct 2008
2. Boston condo and real estate sales report, December 12, 2009
3. Boston condo and real estate sales report, November 28, 2009
4. Boston condo and real estate sales report, November 21, 2009
5. Boston condo sales report 2000-2009 released; prices up