Halfway through the year and it looks like the Downtown Boston residential real estate market could set a number of records. At this juncture all four key data point that we track are ahead of YTD 2012; Transactions are up 6%, the Average & Median Selling Prices are up 11% & 6% respectively and sales absorption is up 18% to $1,030,838,813. Yes that IS ten places to the left of the decimal point. The only two times the absorption in Downtown Boston was ove One Billion dollars was 2005 & 2007 ($1,034,627,037. and $1,038,926,166. respectively).
Based upon the current velocity we are projecting total closed dollar volume at year end to be above $2.8 Billion, exceeding the previous year end record high set in 2004 of $2,560,371,087. In addition we are expecting transaction volume of 3800 by the close of the year. In compression there were 4680 transaction at year end in 2004 which is the most in a year in the past decade. Today, with the exception of Millennium Place there are now new for sale residential projects being built in the City of Boston. In 2004 there were many including The Residences at the Ritz, The Belvidere, Atilier 505, being build and introducing hundreds of new units to the housing stock.
There continues to be strong demand and limited inventory in the Downtown Boston residential real estate market. Many properties are selling in the first week they are on the market with multiple offers, at or above asking price. Should new construction inventory currently being built as rental housing be offered for sale we could see further increases in both the transaction and total dollar volume similar to 2004.
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