This is the third straight month in four months that single-family home sales have declined. And that's not even the biggest news story of the day, as February figures also shed some light on what seems to be an anomaly: Boston condominiums, it seems, are nearing the same values as single-family homes. But before we dive deep into that, let's take a look at Boston properties' overall February performance.
Compared to the same period in 2013, Greater Boston closed a total of 2,078 properties, falling 88 properties short of February 2013's total of 2,166. Though it seems like a gloomy picture, it has been industry standard and expectation for the winter months to have far less sales than anytime of the year. This year however, has been more brutal since we're dealing with improved home values, alongside a limited supply of listings which makes it even more challenging looking for the "right one". However, things should be improving soon, as more and more listings come to the market.
Continuing on to our big story, it seems like Boston condos are inching their way up to the single-family home value boundary. The median price of a single-family home for February was $285,500, whereas a condo units' price tag is pegged narrowly at $281,000, making it only $4,500 less than that of an actual home. That's an increase of 12.4% from last year's median price of $250,000.
Further, where single-family home sales have declined, condo sales are way up, and in fact is in its eight consecutive month of climbing. A total of 947 units were sold in February 2014, up by a total of 58 units compared to 2013's total of 889 for the same period, representing an increase of 6.5%. It seems that the low supply and high demand for properties have continued to create pressure to the public, driving prices up and even luring them towards the condo market in search of affordable investment alternatives. The 18.4 percent increase in condo median prices so far this year is an indicator that condominiums are increasingly popular and we have a strong mix of luxury condos in the sales totals. Empty-nesters are ready for a change in lifestyle and have the net worth to take the plunge and downsize.
Let's not forget, too, that the ever-growing list of luxury condominium developments help bolster condo sales more than single-family homes as the latter's inventory takes longer to replenish. Condo developments, on the other hand, deliver by the volume once a project is completed. Check out which condos still have worthwhile units to see by clicking here.