SOUTH BOSTON MARKET

RECAP - FEBRUARY 2020

By: Rooney Real Estate

As we did in the January recap, we will focus on the

condominium sales and listing data as the sample

sizes for both single-family and multi-family are too

small to gather any trends. Also, the source of the

data was exclusively from MLS, which we find to be

more comprehensive, especially on the listing side,

and timely as we can complete these monthly

reports in the first week of the following month.

Please note that the Covid-19 state of emergencies

had not taken place in February, so the virus had

little effect on the real estate market in February. We

certainly anticipate the virus effect in the March and

April Recaps.

Our overall conclusion for February 2020 is that the

South Boston residential real estate market was

heating up and had a considerable amount of

energy and activity that is reflected in the Sale

Pending, Days on Market, and Current Listings graphs

below. Although both the number sales and the

median sale price was down from January 2020 and

down year over year from February 2019, both

lagging indicators, all other indicators were trending

up.

The term Real Buyers means sold

units or closed transactions. The

amount of sold condominiums in

February (23) was similar to

January's number (24). This was

expected as the activity level did

not pick up until the first week in

January . This increase in activity,

given the 45-60 day lag-time from

offer to closing, will be reflected in

the March Real Buyer numbers.

We listed our specific comments, as of February 29th,

below each graph.

Here’s another graph that’s interesting but don’t put much stock in It. It will have more

value when the quarterly and yearly numbers are input. The median price for all sales (23) is

February was $755,000.

I hesitated using this graph for the monthly recap because the sample sizes across each

price band are too small. Typically, units that have a smaller living area fetch more per

square foot than larger units. In other words, it's easier to sell a 500 SF unit for $500K ($1,000

per SF) than sell a 2,500 SF unit for $2,500,000 ($1,000 per SF). It is challenging, but not

impossible, to sustain a very high price per square over very large units. This graph will have

more meaning in a half-year or a yearly recap. The price per SF changes for each square

footed range and location in the building.

The median living area graph refers to closed sales. As you can see, two of

the price bands had no sales in February.

The number of Sale Pending units increased sharply in February (54) as

compared to the 35 in January, 2020 , a 54% increase and a 170% increase

from February of 2019. Again, this was expected as activity levels (showings

and open attendance) jumped significantly in early January.

Days on Market (DOM) is a measurement of the age of the listing in MLS and can be used

as a gauge to test relative strength and direction of a market. In our market, DOM tends to

increase after July and decrease after the holidays in January. The DOM for February is

quite low especially for the lower price bands. This was expected as the inventory is very

low. (See Month's Supply graph and the Current Listings graph)

The 87 Condominiums that are on the market represent 1.8 month's inventory based on the

condominium absorption rate over the previous 12 months. Note that half the current

listings (43) are asking above a 1 million, 5 of which are asking above 2 million dollars. These

listings are all in 02127 as the SB Seaport inventory was not included in this market

recap...Things have certainly changed around here!

Month's Supply is based on the number of current listings, for each price band, divided by

the average monthly absorption from the previous 12 months for each respective price

band. The overall Month's supply is 1.8 months and is considered to be low for our industry

as a healthy, stable market has 4-6 months inventory.

CONTACT US

For More Detail:

Contact Person: Jackie Rooney

Phone: 617-203-6462

Email: jackie@rooney-re.com

Website: https://www.rooney-re.com

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