In our primary markets, we have seen a breathtaking upswing in pricing so far this year, fueled by a serious lack of inventory and an almost frenzied atmosphere among buyers competing for properties.
Let’s look at the Brookline condo market this year. Looking at average sale prices, the last two quarters of 2015, the average sale price for Brookline condos was $792k. Jumping forward, the YTD average is $902k. That’s an increase of 14%!
To look at this another way, real estate professionals use “Absorption Rate” to understand where we are on the spectrum of “seller’s market” vs. “buyer’s market”. Absorption Rate is the number of months required to sell all properties on market. As of writing, there are 70 condos on market in Brookline, and 43 condos sold last month, so the rate is 1.6.
Will this rapid appreciation continue? I have no idea. What I do know is that even in severe market corrections, many of our key local markets experience only slight downturns.