As we enter the final quarter of 2022, it appears like the decade-long period of growth for Boston’s real estate market is grinding to a halt. The most recent MLS data shows that rising interest rates have effectively suffocated demand for in Q3. Total 30 day sales from September are down -37.24% compared to a year ago. Meanwhile, the total number of sales listings are up 25.10% over the same period.
As a result, Boston’s 30-day median sale price has been slipping from the record high of $876,091 set in May of this year. Last month’s 30-day median sale price of $807,303 is still up by a slim margin (+3.64%) compared to September 2021, but current data trends show that year-over-year price growth will soon be in the red in Boston. Let’s take a look at the trends driving Boston’s real estate market.
Demand For Boston Real Estate Waning
In September, the City of Boston recorded 455 residential real estate transactions across all property types. That marked a -37.24% drop in total sales from September 2021 and was the lowest recorded September sales total of the past 5 years.
| Month | 30 Day Sales | 30 Day Sales YOY Change |
| Sep 2022 | 455 | -37.24% |
| Aug 2022 | 476 | -38.26% |
| Jul 2022 | 613 | -24.23% |
| Jun 2022 | 791 | -6.50% |
| May 2022 | 705 | -12.42% |
| Apr 2022 | 611 | -4.53% |
| Mar 2022 | 468 | -11.03% |
| Feb 2022 | 374 | -2.35% |
| Jan 2022 | 441 | -6.17% |
Total monthly property sales in Boston have remained below 2021 levels throughout 2022, but that margin increased significantly over the past quarter. This rapid decline in demand coincided with of 75 basis points announced by the Fed in June, July, and in September of this year. As a result, prices have been trending downward during the same time span.
Median Sales Prices Trending Downwards in Boston
Boston’s 30 day median sales price for all residential property types in September was $807,303. While that is still slightly higher (+3.64%) compared to September 2021,…