Condo prices in the city leap 7%

Downtown Boston's condominium market continues to outshine the suburban housing sector.

Prices for condominiums in the city jumped 7 percent in the first quarter of this year, compared to the same period in 2006, to a median $489,800, according to preliminary market figures compiled by Otis & Ahearn, a Boston real estate brokerage and marketing firm. In contrast, prices for single-family homes in Massachusetts fell 5.7 percent in the same period, according to Global Insight, a Waltham economic and consulting firm.

The downtown condo market "is cooking," said Kevin Ahearn, Otis & Ahearn's president. "There's very aggressive buying" in all price ranges, he said.

Sales figures, though preliminary, also indicate a good quarter. In the first quarter, 760 condo sales have been posted to date, for a total value of $512 million. That compares to 759 sales in the first quarter of 2006, for a total of $446 million. Here, home sales compare more favorably: The number of single-family properties sold so far this year is up some, according to the most recent available data.

But Ahearn predicted that when the final condo sales figures are in, the recent quarter's performance may even surpass the first-quarter record set in 2005: 784 units sold.

Indeed, Jon Goode, office manager for Coldwell Banker Residential Brokerage's office in the South End, said his office's sales are exceeding last year's pace "by a good amount." He attributed that to a combination of fewer condo projects coming on the market, which will keep supplies limited, and slightly softer prices, which have sparked new interest among buyers.

"The market's feeling very strong," Goode said. "We're pleasantly surprised at the health of the marketplace."

Ahearn based his tallies on sales posted to date at Listing Information Network Inc., or Link, which tracks downtown sales, and on the Multiple Listing Service Property Information Network, the central database for real estate agents. Ahearn said first-quarter data are not yet final, because some listings reported in the state's registries may not yet be recorded by Link and MLS.

Ahearn said the strong gains indicate that condos in all price ranges are selling well. He has also said that a strong stock market early this year drove sales by professionals working in Boston's financial sector.

Driving the price gains "are big increases in prices over a broad number of units and great activity at the very top of the market," he said.

Kimberly Blanton can be reached at blanton@globe.com.