South Boston has been the single most active neighborhood in the city of Boston's real estate market for several years now and the current market is no different. As developers continue to pump Southie with new complexes and renovations the question that many have had is whether the neighborhood’s condo market has hit a saturation point yet. With construction everywhere you look it would seem completely plausible that we'd have finally hit a tipping point where supply may outweigh demand in the short term. However, even with new developments dropping units onto the market in bunches the numbers suggest that going forward things still remain very bullish in South Boston.
Currently Southie’s condo market consists of 94 active listings which range from the low end of $228,758, to a high of $2,875,000 for a penthouse unit in the Macallen building. Comparing these numbers to the available condo inventory of a year ago we saw a total of 2 fewer active listings then, and a lower price range of $149,000 to $1,799,000. The currently active condos boast an average list price of $566,535, an impressive number for a neighborhood that is regularly seeing prices once thought of as impossible. This increase can be attributed to many causes including the overall increase in the real estate market citywide and the influx of new developments with high end finishes in Southie. These factors have have helped boost the percentage of active condo listings with prices above $500,000 to 52.5%, up from 34.7% last year. Going back slightly further with this metric we see that of the 477 condos sold in South Boston in 2009, only 13.4% were listed above the half million dollar mark when they went under agreement. In just 4 years time we've seen a Southie market that featured an inventory with only 1 of 8 condos over $500,000 shift to a market with slight over 50% coming in north of $500k today!
Moving to closed condo transactions from the previous 60 days (07/19/13 – 09/18/13) we saw 191 condo sales in the neighborhood, up from 149 sales over the prior 60 day period. Average sale prices over the same period fell slightly by 1.1% and currently sit at $478,772. Prices overall, however, are up 6.8% over last year's figures. Condo listings in Southie continue to speed off the market with a median days on market of only 15 in the past 2 months, down from 19 in the previous 60 day sample. Lastly, list-to-sale ratios remain at historic highs, sitting slightly above full asking price, further solidifying South Boston’s continued overall strength.
The increasing inventory numbers do signal that we may be at the beginning of a slight slowing in the South Boston market. Should the inventory continue to slowly pile up we will see things start to become slightly better for buyers going forward with multiple offer bidding wars becoming slightly less pervasive.