July 2014 Market Update: Days on Market Increased?!

Boston MultifamilyThe multifamily market in Boston has seen a huge uptick this year in the pricing of multifamily housing sold as evidenced by July’s multifamily sales data.  The data for 3-family sales for July showed the exact same number of closed transactions at 29 closed sales in 2013. What is striking, however, is the dollar volume increase of 17% with a median sale price of $515,000  in the city of Boston as a whole.

What is interesting about this data is that the days on market has increased to 45 days this year versus 25 days last year.  The question is why has days on market increased so much?

Our theory is that, as prices have increased so significantly over the two years, and buyers have bought ferociously, listing prices have finally caught up with real values and the days of properties hitting the market at a low price creating bidding wars due to lack of comps have come to an end.  To prove this theory to be true we will be closely watching the data from the next several months to see if the trend continues.

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