As of this writing there are currently 5 active listings in Boston’s Charlestown neighborhood, one of which needs extensive renovations, and another which has sat for approximately 6 months due to issues with pricing and condition. This means amongst the entire neighborhood there are only 3 single family properties without significant drawbacks in price or condition. As a neighborhood that has seen many its older homes turned into condos over the years, this inventory shortage is likely not going anywhere; however, with rising prices and aggressive bidding wars becoming normal it is surprising that more long term residents aren't cashing in.
In addition to the 5 single family homes currently listed there are 11 homes currently under agreement, including the amazing home at 21 Monument Square. At almost 6,000 square feet it waited over two years to find the right buyer and just recently went under agreement with a list price of $2,750,000. Upon closing this will be the highest list price of a sold single family home in Charlestown ever on MLSPIN.
Only one year ago at this time an inventory of 13 single families in Charlestown existed: over two times the amount we currently see. This time last year saw a total of 62 single family homes sold, thus far in 2013 there have only been 55 such sales. The combination of this reduced inventory and the overall increase in desire amongst buyers to purchase in Charlestown has created a distinct seller’s market.
Due in large part to this increased demand and reduced supply we’re continuing to see properties sell in record times, some of which are under agreement before their first weekend due to receiving ‘Godfather offers’ which the sellers simply couldn’t refuse. The terms ‘no contingencies’ and ‘cash offers’ have become norms in the neighborhood and prices have soared. The average sale price of a single family home in Charlestown climbed $74,259 since last year, up to $791,394. In lock step with this increase the neighborhood’s price per square foot has risen sharply as well, from $374 in 2012 to $419 in 2013. Lastly, listings are also averaging a list-to-sale ratio over 100% over the 55 sales in 2013, a sign of the bidding wars we continue to see each week.