The Cutter Report – Boston Real Estate Trends: July Update
It’s July 2014 and this is the Cutter Report. With the end of June came the mid-point of the year, and the numbers are off the charts for high-end condo sales in Boston. The record pace for 2014 shows no signs of slowing down. There were 90 $1 million plus transactions in June, the most of any month YTD. Sales in this sector have accounted for 23% of all condo sales in Boston through the end of June. Compare that to last year, where that figure was just 19%.
And we aren’t just seeing more transactions…we’re seeing them at record high values as well. The average price per square foot for million dollar condos is more than $1000 YTD, up 7% over last year and 19% since 2009.
Continuing to lead the charge in the high-end space are resales at the Ritz-Carlton Towers. 9 more units changed hands in June, helping to push the YTD average gross price over the 2 million dollar mark. That’s up 7% from last year’s record setting average, and a staggering 60% since 2009.
The Ritz-Carlton Towers aren’t the only full service buildings in demand in this tight market. New sales in the full service sector doubled from May to June. One fourth of all the transaction dollars in the downtown market were spent in the full service sector so far this year (a $4.9 million penthouse sale at One Charles in June added heftily to that total). With only 33 available units in the full service sector as of this posting, I expect this trend to intensify through the summer, as prices will continue to climb. As supply dwindles, however, we may see the percentage of sales full service units comprise level off, at least until Millennium Tower Boston residences hit the market this autumn.
Those new Millennium Tower Boston residences are sure to be well received. Full service downtown units are the closest thing to a can’t miss in this market. Downtown has exceeded Back Bay in highest average and median gross price points and taken the market lead in number of sales more than $1000 per square foot. Developers can’t get units into the market fast enough. Buyers have decided 2014 is the year to move, and into the city is where they are headed in Boston.