|Brookline Luxury Condo Market Prices Drop in September and October: Volume Up, Prices Down for $1+ Million Units|
BROOKLINE, MA – Average selling prices for luxury condos and townhouses in Brookline over $1 million declined 4.6% for the combined months of September and October 2016 versus the same period last year.
A new study by Jonathan Slater, President of Castles Luxury Properties, indicates that prices for $1+ million units dropped to an average of $1.54 million and $608 per square foot this September and October as compared with $1.61 million and $635 per square foot for the same two months last year. The drop in selling prices per square foot amounted to 3.6%.
Other Weaknesses Shown
In addition, Slater notes that the average number of “Days to Offer” – the number of days a property is on the market before an offer is accepted – more than doubled from 14.4 days last year to 30.5 days this year. Slater also adds that the ratio of selling to listing prices went from a premium of 1% in the 2015 period to a discount of 2.5% for the same months this year.
“Clearly, the Brookline luxury condo market has softened as compared with last year: gross selling prices, prices per square foot, days to offer, and the ratio of selling to listing prices all deteriorated for this September and October versus 2015,” says Slater. “However, the volume of units sold increased from 8 to 22 properties, so demand remains strong for appropriately priced properties,” he adds.
Slater notes that data for transactions which were closed in September and October reflects accepted offers over the prior 1-2 months, basically late summer and early fall.
Sub-Luxury Market Shows Increases
The sub-luxury market below $1 million, however, tells a different story where selling prices increased to $686,022 and $625 per square foot this September and October as compared with $674,922 and $602 per square foot for the same two months last year. This activity reflects increases of 1.6% and 3.8%, respectively. On the other hand, the volume of units sold declined 19% from 59 to 48 and Days to Offer increased 13% from 19.2 to 21.8 days.
Aggregate Market Data Misleading
Slater cautions that the results for the aggregate market, which show that average selling prices were up 21.3%, can be misleading because the substantially greater number of luxury units sold this year versus last year significantly distorts the aggregate data. “For example, prices per square foot were only up 2.5% in aggregate, and all of that growth came from the sub-luxury sector,” he notes.
“Interpreting the data and understanding currents within different sectors of the market is essential to properly pricing a listing on the sell side or not over-paying on the buy side,” notes Slater.
Castles’ study is based on an analysis by Slater of data sourced from MLS Property Information Network, Inc. (“MLS”).
For the full study and raw data go to: