The first-quarter Metrostudy data for the Boston housing market shows a strong first-quarter for new-home sales. Existing home sales fell slightly from 10,196 to 9,844 year-over-year from 1Q13 to 1Q14. The market had significant spike in existing home sales during the second and third quarters with sales peaking over 18,000 closings. A harsh winter likely played a significant role in decreased home sales during the first quarters of this and last year. New-home sales, however, increased year-over-year from 433 to 589 new-home closings in 1Q14. This is also beneath the peak 685 in the second-quarter of 2013.
Median home prices in the Boston market show an affordability squeeze for the new and entry-level homebuyer. The median price for existing homes hit $331,900 in the first-quarter, up year-over-year from $297,900. Despite the continued rise in prices, the first-quarter median price for existing homes is still lower than three quarters preceding it in which prices spike up to a median $353,600 in the third-quarter. New sales have also experienced price appreciation year-over-year, but not nearly as significant as the new-home market. Median new-home price hit $434,200 in the first-quarter up, up from $432,500 in 1Q13 and down quarter-over-quarter from $451,300.
The median price per square foot in the Boston market is also rising for existing homes, with an increase for existing homes year-over-year from $187 to $213. This is down from the peak of $228 in 3Q13. The median price per square foot for new homes, however, has fallen significantly year-over-year as well as quarter-over-quarter. The median price per square foot hit $208 in the first-quarter, the lowest price in the last year. This is down from $253 in 1Q13 and $221 in 4Q13.
With housing starts increasing in the second and third-quarter and with new-home sales holding strong the Boston market can look up to increased home sales in following quarters.
Learn more about markets featured in this article: Boston, MA.