The real estate market in Fort Hill has come to a grinding halt over the past few months. Total 90 day sales for Fort Hill real estate have flatlined to zero as rising interest rates have choked demand for properties. This marks the first time since the housing crash of 2008 that Fort Hill failed to register a single residential property transaction over a 3 month period.
Fort Hill is not a large market, and it typically only averages 2-3 sales per month. Still, recording 0 real estate sales for 3 straight months is unusual and a sign that the housing market is stalled and possibly retracting. This issue is not unique to Fort Hill, as sales for Boston real estate have fallen off by 44% over the same time period.
Fort Hill Median Sale Price
The 90 day median sale price in Fort Hill for all residential real estate transactions was $585K last month. That marks a 33.03% drop from the previous year. Interestingly, the price per square foot in Fort Hill ($598) has increased by +38.75% over the same time period and is currently at an all-time high. This seems counterintuitive, but can be explained by the fact that Fort Hill recorded more condo sales over the past 90 days while a year ago, several large multifamily sales inflated the median sale price but also reduced the average cost per square foot.
Fort Hill Real Estate Market Predictions
Looking at the last few months of MLS data, it looks like the real estate market is stalled and could be facing a correction in 2023. Perhaps the poor national energy policy that helped produce runaway inflation is starting to take hold. Despite having zero real estate sales in the past 3 months, there are only 4 residential properties currently for sale in Fort Hill while the median days on market closed has more than tripled over the past 3 months.
This stalled market could be a very real sign that demand for properties is waning in Fort Hill amidst rising interest rates. However, with difficult construction costs due to high fuel and material costs coupled with supply chain issues driving up carrying costs for developers – it could be a long slow decline or flatline prices due to lack of new inventory. The Fort Hill and surrounding real estate market is going to go through some turbulence for sure and it is unclear which direction the market will gravitate towards. This unstable economic period is unlikely to change anytime soon as the most recent CPI figures are still above 6%. Interest rates could continue to rise at least through the first half of 2023. This could further diminish demand for real estate in Fort Hill. We’re seeing the same basic trend in several of Boston’s real estate market as a whole.
We mostly expect median prices stay flat in Fort Hill over the first half of 2023 in several asset classes and range of sizes. If inflation is brought under control and the local economy stays strong, we could see the market rebound during the latter half of 2023. That being said, a great specific piece of real estate is just that – and if you see one, grab it. We have lots of real estate agents with decades of experience in the Fort Hill market than can often show you properties not found through traditional sources. If you are looking for great on-and-off market deals – we are happy to help. We can take down your specific real estate investment criteria and happily contact you as they surface. Our team will continue to cover these local real estate trends as they develop.
Published February 6, 2023
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 130k people finding their housing through his services. Demetrios is an avid real estate developer, peak performance trainer, educator, guest lecturer and motivational speaker.