Otis& Ahearn released its 2007 Year End Downtown Boston Condominium Projection - Download it here.
Kevin Ahearn, President Otis & Ahearn, is known for his expert market analysis and his recent reports predict that at the end of the year, we see that 2007 was a strong year overall, with the total number of transactions higher than 2006 and slightly less than in 2005.
Total absorption is also very strong, continuing a pace we saw in 2005, and up from 2006.
Also of note is the projected increase in Average Sales Prices from 2006 - up approximately 8.5% to $634,407
This in in part due to the fact that in Boston, we notice a gradual trend with the purchases under 500,000. This segment of the market has decreased in number and in overall percentage of total Downtown transactions and we see them buying instead in the Urban Emerging Markets.
See the details in the 2007 Mid-Year Report where Year To Date we noted this segment was down +/- 30 transactions vs. YTD 2006 and 109 less than in 2005.
The 1M+ segment YTD is at an all time high in total units (330) and percentage of total (11.08%).
The 2M+ segment is dramatically higher YTD vs. 2005 & 2006: 2007 (82) 2006 (50) 2005 (67).
Also of note is the number of transactions that exceeded $1000 per square foot prices. Year To Date in 2007 we saw 67 sales in this category which has surpassed YTD 2005 (64) and is 49% above YTD 2006.
