Boston’s real estate market for single family homes took a big hit last month. Total single family sales in October were down by -14% year over year in Boston after the Fed raised interest rates in September by 0.75%. That was the third increase of 75 basis points in four months and 5th rate hike of 2022 up until that point. As a result, median sale prices for single family homes took a big hit in November and are trending downward.
Boston Single Family Median Price Hits Lowest Point Since November 2021
Last month, Boston’s median sale price for single family homes was $759K. While still up +7.09% year over year, it was the lowest median sale price recorded for the City of Boston since October 2021. It was also a steep drop from the $943,013 single family median sale price recorded just a month earlier in September.
|Month||30 Day Median Sale Price||30 Day Median Sale Price YOY Change|
Last month’s median price per square foot was $460 for single family homes in Boston. That figure is down by -8.37% year over year. This shows that while median home prices are still high, buyers are getting more Boston real estate for their dollar.
Total Sales Hit Their Lowest November Levels in Last 5 Years
As a result of rising interest rates, total 30 day sales for single family homes hit their lowest November level of the past 5 years. Last month’s 67 single family home sales marked a -14.10% drop year-over-year and have been down by double digit margins for 4 straight months. This trend affected all property types, as Boston’s real estate market saw sales drop by over 35% in September and August.
|Month||30 Day Sales||30 Day Sales YOY Change|
With another 0.75% rate hike occurring at the beginning of November and another likely before the end of the year, look for property sales to drop even lower as we enter the slow season in early 2023.