In today's video we're taking a look at a recap of the South Boston condo market this summer. Between July 1st and August 26th we saw 161 closed transactions in the South Boston neighborhood. Of these 161 sales an eye popping 118 of them were 2 bedroom condos. The reason for this is two-fold: the classic three decker buildings we see a lot around South Boston and Dorchester lend to a 2 bedroom layout1 with a large open entertaining space. Secondly, new developments focus on 2 bedroom units to maximize the amount of units they can squeeze into new complexes, while still appealing to the largest part of the young buying demographic. Essentially, anything more than 2 bedrooms becomes too expensive, and is typically unnecessary for a large section of the buying public. Anything under 2 bedrooms eliminates the utility needed for many of today's young professionals.
The neighborhood saw 1 studio sold during the summer thus far on and a total of 29 single bedroom units changing hands as well. Not surprisingly the most expensive of the 1 bedroom sales resides in the Macallen Building at 141 Dorchester Ave. The building alone saw a total of 7 units sold during the time period, ranging from $567,000 to $1,945,000, further establishing the complex as the highest priced address in the 02127 zip code.
In terms of days on market, we've seen the current seller's market continue. Since the beginning of July the average days on market across all condos is an amazing 24.01 days. 1 bedroom units have sold in the fastest average time this summer in South Boston, due to the relative value they offer for those trying to enter the pricey neighborhood market. Two bedroom units remain strong as well, going under agreement in under 30 days on average.
Of the more amazing stats to come from this sample of sales in South Boston is the amount of sales which sold for over asking price. There is, in my humble opinion, no better illustration of the strength of a neighborhood's real estate market than the percentage of sales which go over asking. This figure is directly tied to every main indicator of market activity, including days on market, number of offers received per property, and most importantly the consumer's feelings toward the market going forward. Since July 1st, out of the 161 sales in South Boston we've seen 69 sell for over asking. That equates to 42.8% of all sales! By any measure this is impressive, especially so when we consider that with a well established seller's market we see higher initial list prices, as sellers attempt to squeeze every drop out of their asset. Simply amazing.
This video and article are brought to you by Justin Rollo of Re/Max Realty Plus in South Boston. You can find out more about Justin and view listings at his website, www.propertiesinthehub.com.
1. You'll see a lot of rental units in these buildings eliminate the open living area and opt for a 3rd bedroom as to optimize rental income. These are typically converted back to a 2 bedroom floorplan when renovated or sold.↩