The Boston real estate market has continued to evolve in 2024, reflecting shifting economic conditions, interest rate changes, and ongoing demand for high-end properties. The 2024 Boston Annual Market Update for Gibson Sotheby’s Back Bay provides valuable insights into market trends, price fluctuations, and sales performance across some of the city’s most desirable neighborhoods.
Boston Market Overview: 2024 vs. 2023
Boston’s real estate market has shown a mix of growth and adjustments. Here are some of the key statistics:
- Total Sales: 2,608 transactions (↑3% from 2023)
- Average Selling Price: $1,370,078 (↓8%)
- Median Selling Price: $920,750 (↓2%)
- Average Price per Sq. Ft.: $1,096 (↓4%)
- Median Price per Sq. Ft.: $986 (↓2%)
One of the most notable trends in 2024 is that most purchases were made by cash buyers rather than mortgage-dependent buyers. With higher interest rates making financing less attractive, well-capitalized buyers took advantage of the market by securing properties with all-cash offers.
Additionally, while luxury buildings saw transactions, the actual volume of purchases happened in traditional, non-luxury buildings. Buyers prioritized value and practicality over high-end amenities, a shift that reflects current economic conditions and changing buyer preferences.
Boston’s Future: Resales Take Center Stage
As we look ahead, one of the most striking factors in the Boston real estate market is the lack of new development in the pipeline. Unlike past years when high-rise condominiums and new luxury projects dominated the market, new construction has slowed down significantly.
Instead, the future of Boston real estate will be driven by resales—many of which have already performed exceptionally well.
🏢 Boston Buildings with Strong Resale Performance:
Some of the best-performing resales in 2024 include:
The Carlton House – One of the highest resale appreciation rates, averaging 36.2% annually.
Raffles Boston – A newer luxury residence with a 34.9% appreciation rate.
The Commonwealth – Established in 1997, averaging 18.08% annual appreciation.
The Riverside – Showing strong resale values with 15.4% appreciation.
50 Liberty – A waterfront favorite, appreciating at 15.49% annually.
The Bryant Back Bay – Averaging 9.09% appreciation since its first sales in 2009.
Millennium Place – A large-scale luxury development that continues to attract strong resale demand, appreciating at 7.92% per year.
With fewer new developments coming to market, resales will dominate future inventory. Buyers and investors should watch these high-performing buildings where resale values continue to climb.
Neighborhood Highlights: Where Prices are Rising and Falling
While some areas experienced price appreciation, others saw slight declines. Here’s a look at how Boston’s key neighborhoods performed:
📈 Price Increases
- Beacon Hill: $1,303 per sq. ft. (↑8%)
- East Boston: $681 per sq. ft. (↑5%)
- North End: $1,030 per sq. ft. (↑5%)
- Fenway: $1,023 per sq. ft. (↑3%)
- South End: $1,176 per sq. ft. (↑2%)
- Charlestown: $887 per sq. ft. (↑1%)
📉 Price Declines
- Back Bay: $1,355 per sq. ft. (↓4%)
- Seaport: $1,529 per sq. ft. (↓8%)
- Waterfront: $1,055 per sq. ft. (↓3%)
- West End: $668 per sq. ft. (↓3%)
💰 Flat Pricing
- South Boston: $795 per sq. ft.
Despite economic fluctuations, luxury markets like Beacon Hill and North End remain strong, while newer development-heavy areas like the Seaport saw some price declines.
Luxury Condo Market: Who’s Buying & Where?
Boston’s luxury condo market remains active, but most buyers gravitated toward traditional, non-luxury buildings rather than high-end residences.
🏙️ Luxury Buildings With Sales
- One Dalton Four Seasons
- Raffles Boston
- St. Regis Residences
- The Quinn
- The Sudbury
- Winthrop Center
💎 Luxury Market Trends
- Total Luxury Sales: 467 transactions (↓23% from 2023)
- Average Selling Price: $2,715,919 (↓2%)
- Median Selling Price: $1,900,000 (↑3%)
- Average Price per Sq. Ft.: $1,670 (↓4%)
- Median Price per Sq. Ft.: $1,492 (↓3%)
While luxury buildings saw activity, the most significant movement was in traditional, non-luxury condos. Buyers prioritized square footage, location, and value over high-end amenities like concierge services and private lounges. This shift suggests that Boston buyers in 2024 are making practical choices rather than investing purely in prestige properties.
What’s Driving These Trends?
Several factors are influencing Boston’s real estate market:
📉 Interest Rate Adjustments – Higher interest rates have discouraged mortgage-based buyers, making all-cash transactions more prevalent.
📊 Inventory Shifts – With fewer new developments, existing properties are becoming the dominant supply.
🏗️ Slowdown in New Construction – Unlike previous years, Boston has limited new developments in the pipeline, making resale properties even more valuable.
🏡 Changing Buyer Preferences – More buyers choose traditional buildings over luxury condos, prioritizing affordability over amenities.
💰 Cash Buyers Taking Over – Increased cash transactions have made the market more competitive for financed buyers, especially in high-demand areas.
Looking Ahead: What to Expect in Boston’s Real Estate Market
As 2024 unfolds, here’s what buyers, sellers, and investors should watch for:
- Sellers: If you own property in a high-performing resale building, now may be a great time to sell, as demand is shifting toward existing inventory.
- Buyers: Expect less new development and more competition for resales—acting fast on well-priced properties is crucial.
- Investors: With appreciation rates still strong, resale properties are becoming an increasingly valuable investment opportunity.
Boston remains one of the strongest real estate markets in the country, but to navigate the changing landscape, it’s essential to stay informed and work with a knowledgeable agent.
Contact me for expert guidance in buying, selling, or investing in Boston real estate. Please also check out my monthly Sales Report Every Monday on Instagram, Facebook, and YouTube
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