Skip to content

2023 Boston Real Estate Sales Market Report

Posted By: Demetrios Salpoglou |  Feb 8

Boston’s real estate market saw total property sales crater during the final quarter of 2022 amidst rising interest rates and a sluggish economy. The city’s 30 day median sales price took a nosedive in December as a result, dropping $67.5K compared to November 2022.  With inflation still high, incoherent energy policies, tech layoffs and more rate hikes forthcoming; it appears like Boston’s real estate market maybe sliding towards a period of challenging times.

Total Real Estate Sales in December Down 43% YOY In Boston

Total sales for Boston real estate in December (347) marked a -43.76% drop compared to December 2022. Total sales for January 2022 fell ever further to 321.  Even worse, Boston recorded 1,099 total real estate sales in MLS during Q4 2022 for all property types, which was the lowest Q4 total in the past 5 years.  Without a doubt, the Fed raising interest rates 7 times last year put a damper on demand for real estate in Boston.

The Federal Reserve again rose interest rates last week and will likely do so again when they reconvene in March as long as the CPI is above their target of 2%.  As a result, the MBA purchase index which measures the number of nationwide home loan applications hit a 5 year low last month and is hovering around 2010 levels.

Boston’s Median Sale Price Drops Sharply

Boston’s median sale price for all property types dropped to $738,876 in December, a -3.16% decrease compared to December 2021.  That marked the first time Boston’s YOY median sale price fell into red figures since May 2021.  The December median sale price is down $67.5K compared to November and down $137,215 from its all-time high of $876K set in April of 2021.  January’s median sale price finished at $794K, up slightly (+4.18%) from January 2022.

Boston Single Family Market Report

Boston’s 30 day median sale price for single family homes stayed below $760K throughout Q4 2022, which is the first time that has happened since Q3 2020.  Total sales for single family homes fell short of 200 during the final quarter, the lowest Q4 sales total in the last 5 years by far in Boston. Price per square foot for single family homes in Boston also fell by double digit margins (-11.82%).  

Month Total Listings Total 30 Day Sales 30 Day Median Sale Price 30 Day Price per Sq. Ft. Median Days on Market Closed
Jan 2023 117 45 $821,022 $521 38
Dec 2022 115 63 $755,937 $485 38
Nov 2022 167 68 $715,735 $485 31
Oct 2022 209 67 $759,254 $460 28
Sep 2022 203 78 $943,013 $538 25
Aug 2022 161 79 $776,025 $472 25
Jul 2022 166 109 $913,633 $584 23
Jun 2022 206 137 $843,358 $534 19
May 2022 170 100 $919,530 $560 17
Apr 2022 164 68 $976,441 $586 15
Mar 2022 114 58 $832,947 $513 17
Feb 2022 79 56 $772,875 $517 20
Jan 2022 89 71 $816,923 $472 22

January single-family home sales slipped even further to 45 to start 2023, another 5-year low for January.  Median sale price did increase to $821K surprisingly for single-family homes.  However, median days on market is also nearing a 5-year high for single family properties (38 days) in Boston, which points to demand destruction.

Boston Condo Market Report

Total condo sales also hit a 5 year low in Boston in Q4 of 2022.  754 Boston condos were sold in Q4 2022, down from 1,154 in Q4 2021, 1,011 in Q4 2020, and 982 in Q4 2019.  As a result, the median sale price for Boston condos fell $116K through Q4, down from $805K in October 2022 to $689K by December.  The price per square foot for condos in Boston also fell below the $800 mark for the first time since September 2021.

Month Total Listings Total 30 Day Sales 30 Day Median Sale Price 30 Day Price per Sq. Ft. Median Days on Market Closed
Jan 2023 720 243 $770,612 $897 30
Dec 2022 676 245 $688,829 $792 32
Nov 2022 974 256 $756,352 $864 28
Oct 2022 1,071 253 $804,759 $824 24
Sep 2022 706 328 $733,660 $835 23
Aug 2022 953 325 $759,447 $827 25
Jul 2022 1,147 447 $779,282 $845 22
Jun 2022 1,195 576 $771,253 $882 19
May 2022 1,116 536 $763,904 $887 18
Apr 2022 1,037 486 $825,399 $843 18
Mar 2022 963 356 $728,680 $828 18
Feb 2022 798 276 $734,232 $831 20
Jan 2022 697 315 $681,349 $1,413 32

January numbers for multi-family were not too promising.  Total sales fell to their lowest level since May and June of 2020 and median sale price fell under the $1M level.  Median days on market are also at a 5 year high (43 days) for multi-family properties in Boston.

Boston Multi-family Q4 2022 Market Report 

There were 149 multifamily sales during the final quarter of 2022, which was also a 5 year low in Boston.  While prices for Boston multi-family homes have remained steady amidst a shortage of available multifamily properties, look for prices to cool off in 2023.  Price per square foot for multifamily properties hovered around $400 throughout most of the past 12 months, but also trended downwards during Q4 in Boston.

Month Total Listings Total 30 Day Sales 30 Day Median Sale Price 30 Day Price per Sq. Ft. Median Days on Market Closed
Jan 2023 143 33 $936,667 $370 43
Dec 2022 161 39 $1,025,718 $390 38
Nov 2022 210 59 $1,110,119 $405 31
Oct 2022 214 49 $996,347 $406 30
Sep 2022 225 49 $1,084,234 $451 37
Aug 2022 208 72 $1,012,222 $379 34
Jul 2022 244 57 $1,147,684 $434 28
Jun 2022 228 78 $1,042,564 $409 25
May 2022 194 69 $1,149,272 $436 21
Apr 2022 183 57 $1,188,596 $417 20
Mar 2022 158 54 $1,008,796 $381 21
Feb 2022 137 42 $998,071 $379 24
Jan 2022 136 55 $1,122,909 $420 29

January numbers for multi-family were not too promising.  Total sales fell to their lowest level since May and June of 2020 and median sale price fell under the $1M level.  Median days on market are also at a 5 year high (43 days) for multi-family properties in Boston.

2023 Boston Real Estate Market Predictions

Based on the current market and economic conditions, look for real estate prices to either flatline or fall slightly in many Greater Boston neighborhoods during the first half of 2023.  There will be several neighborhoods that could remain resilient to stagnant prices and we will dive further into that conversation in a subsequent article.  Overall, It is really difficult to increase property prices with the Fed continuing it’s relentless crusade to bring runaway inflation under control.  While we have seen a little bit of an improvement in mortgage applications and inflation numbers in January, that could be short lived.  The strong jobs report may cause the policy makers to continue to raise rates which could further weaken the footing of the overall real estate market.  Higher interest rates nearly always pushmore potential buyers away from purchasing in the real estate market unless we see significant price corrections.

It’s also likely that the eventual price reductions we see for Boston real estate will probably be less than what we see at a national level.  Given the extremely tight supply of for sale properties in metro Boston, prices will likely not drop as severely as in other markets. Overall volume of transactions are going to be down unless significant break out patterns occur in labor market and or financial uncertainty due to inflation cause selling through necessity.  From an emotional stand point, it is very difficult for many home owners to leave 3-4% interest rates and go buy another property with a much higher rate unless they are downsizing.

Inflation and how the Fed determines how to combat it will be a major player in home prices and volume of sales in 2023.  The latest CPI figures from December show that inflation is easing compared to previous months.  However, the inflation rate is still well above the 2% target suggesting that more rate hikes are in our future.  If CPI continues to fall closer to that 2% level through the first half of 2023, we could see prices continue to trend back upwards during the second half of the year.   This real estate year will be a nail biter to see if break out patterns start to develop.  As always we will be here to deliver you the data to make your own empowering decisions.  If you are a homeowner or real estate investor seeking advice on a specific neighborhood or asset class – we are here for you.   Please feel free to reach out to us directly for advice.


Demetrios Salpoglou
Demetrios Salpoglou Posted date:February 8, 2023
Demetrios Salpoglou is the CEO of bostonpads.com which is an information and technology based services company that provides cutting edge resources to real estate companies. Demetrios has developed over 90 real estate related websites and owns hundreds of domain names. Demetrios also owns and operates six leading real estate offices with over 140 agents.

Demetrios has pulled together the largest apartment leasing team in the Greater Boston Area and is responsible for procuring more apartment rentals than anyone in New England – with over 120k people finding their housing through his services. Demetrios is an avid real estate developer, peak performance trainer, educator, guest lecturer and motivational speaker.

Tags:

Leave a Reply

Your email address will not be published. Required fields are marked *

Apartments for Rent in Nearby Neighborhoods and Towns