As we enter the second half of 2023, Boston’s real estate market has slowed significantly. Total residential real estate sales are down -27.94% in the first 6 months of 2023 compared to last year for all property types. Amazingly, despite the drop in demand for Boston real estate, median sale prices remain high thanks to a shortage of properties for sale. Here are the main trends influencing the Boston real estate market.
Total Real Estate Sales Down in Boston, Prices Remain High
There were 2,443 total residential real estate transactions in Boston through the first half of 2023, compared to 3,390 over the same time span in 2022. Total sales historically peak in June in Boston’s real estate market. Boston recorded 607 total real estate sales last month in June, which was the lowest total for June in the past 5 years, even lower than the 610 total sales recorded in 2020 during the height of COVID.
Despite the significant drop in total sales, Boston’s 30 day median sale price remains high. Last month’s median sale price for all residential property types hit $827K, up slightly (+2.09%) from a year ago.
This can be attributed to the drop in total listings from 1,629 in June 2022 to 1,327 in June 2023, a -18.54% decrease in total real estate inventory. So while high interest rates have taken a toll on real estate demand, the lack of real estate listings has kept home prices from tumbling.
Single Family Home Sales Down in Boston
Demand for single family homes has dropped more than any other property type in Boston. There were 86 single family home sales in Boston last month, down from 137 in June 2022. Total listings for single family properties dropped are down -38.83% over the same time span showing that both supply and demand for single family homes have cratered since a year ago.
Due to the shortage of properties, median sale prices for single family homes are actually up +3.35% year-over-year despite the drop in demand. Price per…