Is the Charlestown Real Estate Market Doing Better Than Last Year?

By
Real Estate Agent with Keller Williams Boston

How is the Charlestown real estate market doing? With the interest rate at its lowest in 40 years, the Boston Charlestown real estate market has shown dramatic improvement since 2011. Here is a comparison of 1st quarter single-family home and condominium sales in 2011 v. 2012, and highlights will follow.

Is the Charlestown Real Estate Market Doing Better Than Last Year?
Highlights:

1.     Sales have either stayed steady or declined, which makes sense since low interest rates make sellers more likely to hold on to their inventories.

2.     Inventory has decreased. Single-family homes have dropped by more than a quarter, and condos by almost 17%. This also reflects hesitance in sellers to sell under such low interest rates.

3.     The number of days that condos stay on the market has decreased significantly. Condos are selling quicker, and I offer 2 possible explanations:

i.     People who used to rent apartments (e.g., students, young professionals, working couples) now find it more appealing to buy instead of rent. Even if they move away in the future, the steady supply of renters in Boston and the central location of Charlestown make investing in condos a sound idea, now more than ever.

ii.     People who would otherwise buy single-family homes now find it more reasonable to buy condos instead. While the average price for condos increased by almost 10%, the average price for single-family homes jumped almost 25%. It’s an increase of approximately $220,000, which was almost half the price of a condo in 2011.

4.     What does this all mean? It’s good news to sellers AND buyers, because

i.     It’s a great time to be a buyer. With the interest rate at an all-time low in 4 decades, buyers can afford the most right now. If the interest rate rises by even 1%, that translates to a 10% loss in what the buyers could afford. Now is an excellent time to buy.

ii.     It’s a great time to be a seller. The lower inventory means there is less competition among sellers, and decreased supply raises prices. In addition, buyers are giddy over the low interest rates, and increased demand also raises prices.

That is what I call good news.  If you are thinking of buying or selling real estate please call Chris Remmes at 617-861-3645 or visit chrisremmes.com

 

 

 

 

 

First Quarter 2012 Single Family Sales in Charlestown

 

 

Address

DOM

SALE PRICE

ORIG PRICE

Closed

BR

SQ FT

7

Adams Street

358

2193750

2495000

3/15/2012

5

5000

10

Lexington Ave

154

300000

365000

1/4/2012

2

1100

7

Charles Street

68

700000

725000

1/18/2012

3

2064

6

Wall Street

87

700000

729000

3/30/2012

3

1952

9

Hill St

31

495000

529000

1/5/2012

3

1700

33

Monument Ave

133

950000

950000

3/22/2012

3

2308

23

Wall St

91

1025000

1200000

3/30/2012

4

4200

447

Main St.

6

810000

829000

2/29/2012

3

2760

                 

 

·      Source is MLSPIN

 

 

 

The information in this blog post was gathered from third party sources including the internet and public records.  The author disclaima any and all representations or warranties as to the accuracy of this information. 

 

Comments (1)

United Inspection
United Inspection Service - Framingham, MA

Charlestown MA is a great neighborhood of Boston MA.   I expect that a home in Charlestown MA is on the list of many home buyers.

Jul 19, 2012 12:48 AM