Over the last few years, drastic turnarounds have occurred in the Condo Living lead by a boom in the metro Boston market. This trend is now showing up in markets in Eastern, MA and Rhode Island. Traditionally a single family home has appreciated at a better rate then a condo but in 2016 that trend has changed. For the first time ever in the state of Massachusetts the median sale price of condos in the state was $320,000 last month, compared to $289,900 a year earlier. The median for single-families was $315,000, a slight decrease from $318,000 a year earlier. Inventories are low, foreclosures are rapidly declining and we are seeing trends that could very soon lead to sharp increases in planning and development of condo projects.
The condo market has been stimulated by a number of factors which have slowly evolved over a number of years. A condo is a common first step for first time home buyers and a natural progression for Baby Boomers who are downsizing in their later years and less enthusiastic about home maintenance. Condo prices are climbing faster than the region’s overall housing stock, driven by empty-nesters trading suburban single-family houses for a perch in the city and wealthy international buyers shopping for a home in Boston. Developers are gradually shifting to meet that market, planning more condos after a several-year run of building apartments all over town. In the first nine months of 2015, according to city figures, 28 percent of new housing permitted in Boston was for condos, up from 26 percent in 2014 and 17 percent in 2013. In the last three months, more than 40 percent of permitted units were condos.
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