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Compass' 3Q17 Boston Market Report

Compass is excited to announce the release of the Compass' 3Q17 Boston Market Report. This report highlights the prevailing trends shaping the market from this past quarter and provides a glimpse into the research and data analytics in which Compass prides itself.

South Boston Highlight: South Boston had the highest number of condo sales with 187 units this quarter, accounting for 14.9% of all condo sales in Boston.

Condominiums

The condo market in Metropolitan Boston saw a slight increase in listing inventory in 3Q17, compared to 3Q16, by 3.9%. The median asking price for Boston condos rose by 9.7%. The number of closed sales in 3Q17 decreased by 13.9% year-over-year. South Boston had the highest number of condo sales with 187 units this quarter, accounting for 14.9% of all condo sales in Boston. Demand for four-bedroom condos was strong, as the number of sales increased 11.7% year-over-year, while studios and 1-3 bedrooms all saw a decline in number of sales. Median sale price rose across all 1 bedroom to 3 bedrooms pricing brackets year-over-year, with the exception of the studio and 4+ bedroom segments which fell 22.9% and 2.6% year-over-year respectively. The overall median days on market for condos dropped year-over-year by 9.5% to 19 days. Negotiability, which represents the average percentage difference between the closing price and last asking price, was +1.9% for the entire condo listings, which was consistent with the 3Q16 market.

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Single Family Homes

The single family market in Metropolitan Boston experienced an increase in overall inventory and a slight decrease in the number of sales this quarter compared to 3Q16. Available listings increased by 27.2% year-over-year to 613 homes, while the number of sales declined slightly by 3.4% to 345 closed transactions. The decline in the number of sales was driven by weakened buy side demand and increased availability of listings at the higher end. Single Family median asking price for all of Metropolitan Boston increased 12.5% year-over-year to $1.33M. The median sale price reflected a 13.0% year-over-year increase to $1.30M, achieving an all-time high record. Single family overall median days on market was 20 days, down 23.1% from the third quarter of last year.

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Time on Market & Negotiability

Both single family and condo continue to exhibit shorter days on market this quarter compared to 3Q16, down 6 days and 2 days respectively, as 62.6% of all single families and 69.6% of all condos entered contracts within the first month. Only 2.0% of single family homes and 1.6% of condos spent more than 6 months on market.

Negotiability, which represents the average percentage difference between the closing price and last asking price, was +3.5% and +3.8%, respectively for single family and condo listings sold in less than 30 days. The positive negotiability interestingly indicates listings that stayed on market for a shorter time period gain premium on closing prices. While the negotiability for the rest of the longer time on market categories were all negative, meaning the listings were sold below the asking price on average.

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