Where does the downtown Boston real estate market stand in the housing cycle?
In every bust-to-boom cycle in real estate, you can safely state that there are predictable motions that a real estate market goes through, including the downtown Boston real estate market. Some of the stages in the real estate cycle can be skipped and often do.
Let’s view them looking backward and moving forward
AFTER A REAL ESTATE BUST: the early recovery phase of the cycle begins. Despite Boston being one of the largest downtown condo markets in the country, In this phase new home construction will struggle to take off. Builders must execute perfectly on price, location, product, and schools to achieve success. Boston downtown condo builders will worry about state and local fiscal issues and population loss and employment issues, as a result gaining full momentum.
Downtown Boston, especially the Boston Seaport District and Boston Midtown/downtown are well past this phase of the real estate cycle.
So let’s move on.
In the early expansion phase: Metro area warmed up and are exhibiting more normalized sales and pricing conditions. We upgraded many of these markets from Slow to Normal the real estate recovery finally stabilized and gained traction. The large new Boston Seaport condo price keeps the sales pace moderate for builders.
I would say we’re past the “Ripen recovery cycle”
BIG VOLUME MARKET ACCELERATION.
These big volume markets recovered very slowly, partially because construction is such a big part of their economies. Newly constructed Boston condos for sale have accelerated at a very fast clip—rising over 12% YOY in several downtown Boston real estate neighborhoods. Most of the markets in this group experience Normal market conditions, with Back Bay…