Boston Real Estate

Boston, located in Suffolk County, in northeastern United States, is one of the largest cities and capital of the Commonwealth of Massachusetts.

The city of Boston boasts of an integrated culture and diverse areas including very expensive and elite areas to the most affordable. Boston proper is made up of 21 neighborhoods including well-known areas such as Back Bay, Beacon Hill, Jamaica Plain, Roslindale and West Roxbury.

Boston Real Estate Market

Tracing the history of the real estate market in Boston by five years, in the year 2005, an increase in interest rates led to average sales price increasing by 5% as against a 13% increase in 2004. According to Freddie Mac, the average 30-year fixed rate was 5.87% with 0.6 points, a plunge from the 16%-17% interest rates in the eighties. Low interest rates have led more and more people to buy homes, hence supporting the rising prices in the Boston real estate market. This also coupled with the low unemployment rates have further fuelled the over active Boston real estate market. In the year 2005 moderate average price increased by 5%, median sales price saw a small increase of 1%. The average price per square foot increased by 7%. According to LINK, a listing information network condo sales in Boston real estate market increased by 36% in 2005.

The Back Bay area in the year 2005 saw an increase in the average price square foot by 12% from 2004 and a 24% increase since 2003. Average sales price increased by 16% from the 2004 average and median sales price jumped by 21% from the 2004 average and a 35% increase from 2003. Condos sold 17% more than in 2004 averaging 73 days on the market than the 88 days in 2004. 62 Studios were sold in 2005 with a 1% increase from 2004. 235 one bedroom flats were sold with an increase of 10% in the average sales price since 2004. 270 two bedroom flats were sold in 2005 and the average sales price crossed the 1 million mark marking an 11% increase since 2004. 87 three bedroom flats were sold.

Beacon Hill area in 2005 showed a real estate market slowdown as the average sales price dropped by 2% from 2004. 35 studios sold in 2005. 123 one bedroom units were sold marking an increase of 1% in the average sales price since 2004. 67 two bedroom units and 29 three bedroom units were sold in 2005.

South End saw a moderate decrease in the average sales price of 1, 2, 3 bedroom units.

Downtown the average sales price increased18% from 2004, median sales price increased by 17%, average price per square foot climbed by 17%.

Business 2.0 magazine, during the housing market crisis named Boston as a bubble proof market, in its November 2006 issue. The sluggish market saw the average sales price decrease by 8% in 2006 from the 2005 average, the average price per square foot decreased by 3%. Condos sold but the sales decreased by 41%.......More