Boston’s real estate market saw total property sales crater during the final quarter of 2022 amidst rising interest rates and a sluggish economy. The city’s 30 day median sales price took a nosedive in December as a result, dropping $67.5K compared to November 2022. With inflation still high, incoherent energy policies, tech layoffs and more rate hikes forthcoming; it appears like Boston’s real estate market maybe sliding towards a period of challenging times.
Total Real Estate Sales in December Down 43% YOY In Boston
Total sales for in December (347) marked a -43.76% drop compared to December 2022. Total sales for January 2022 fell ever further to 321. Even worse, Boston recorded 1,099 total real estate sales in MLS during Q4 2022 for all property types, which was the lowest Q4 total in the past 5 years. Without a doubt, the Fed raising interest rates 7 times last year put a damper on demand for real estate in Boston.
The Federal Reserve again rose interest rates last week and will likely do so again when they reconvene in March as long as the CPI is above their target of 2%. As a result, the MBA purchase index which measures the number of nationwide home loan applications hit a 5 year low last month and is hovering around 2010 levels.
Boston’s Median Sale Price Drops Sharply
Boston’s median sale price for all property types dropped to $738,876 in December, a -3.16% decrease compared to December 2021. That marked the first time Boston’s YOY median sale price fell into red figures since May 2021. The December median sale price is down $67.5K compared to November and down $137,215 from its all-time high of $876K set in April of 2021. January’s median sale price finished at $794K, up slightly (+4.18%) from January 2022.
Boston Single Family Market Report
Boston’s 30 day median sale price for single family homes stayed below $760K throughout Q4 2022, which is the first time that has happened since Q3…