2020 MID YEAR
Market Report
Letter From Our Owners These are unprecedented times. Our world continues to battle a global pandemic, with some of the economic impacts being felt by our neighbors and friends. We have experienced losses this year that have both broken our hearts and brought us closer together. Our thoughts remain with all who have been gravely impacted during this difficult time. It would be difficult to count how many ways we have had to adapt how we work. Our agents and our staff have gone above and beyond in their efforts to offer the highest level of service this year. We continue to lean on and improve our digital offerings to provide a convenient, fast, and touchless portfolio of services to our clients. For that we are incredibly grateful to and proud of our team. We are also grateful that our housing market continues to outperform early expectations, as you will see in the following reports. As of the writing of this letter, our company has sold and put under contract over $2 billion in real estate in 2020. We find ourselves in the very lucky position of being in a region that has performed well in past economic shifts and, so far, this remains to be true for the challenges we are facing today. We are a locally owned and operated business. Our agents and employees are family to us. Our communities are extensions of that family. We look forward to a time when the pandemic is behind us and we can return to a sense of normalcy. Until then, we wish you and your loved ones health and happiness. Yours Truly,
Larry Rideout
Paul McGann
Boston’s Performance in Economic Shifts The onset of Covid-19 has brought substantial changes to all areas of our lives, including the current state of the real estate industry. So much of Massachusetts’ economy and real estate market is tied to Boston. Therefore, we took a look at how Boston has weathered challenges in the last two decades. LINK, Boston’s longtime MLS service, recently shared a historical view of Boston’s price recovery from the last two downturns; the 2002 DotCom Bust and the 2008 Financial Recession. In both cases, the price dips were both short and shallow. This gives local experts reason to believe that this crisis will also have a short recovery time.
400
300
200
100 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20
Citywide Twenty Year Price Index (Appreciation Rate) Source: MLSpin
2020 MID YEAR MARKET REPORT
Greater Boston The Greater Boston market has soldiered through the Covid-19 pandemic thus far. While the state was under lockdown, fewer properties went on the market and, therefore, fewer properties sold. Prices dropped for two months, but have already begun to rebound, and the average Days on Market (DOM) have remained low. The urban condo markets in Boston and Cambridge, particularly large buildings, have experienced the greatest impact and are experiencing longer Days on Market. Condominiums, in general, have not seen the kinds of gains in demand that single family homes have seen. Anecdotal reports are that buyers would like more interior and exterior space than most condos have to offer. However, the available condo inventory is below 3 months in Cambridge and below 5 months in Boston. Also, the percentage of asking price for sold property remains above 101% in Cambridge and 99% in Boston.
Source: MLSpin For the purpose of this report, Greater Boston includes Arlington, Belmont, Boston, Brookline, Cambridge, Concord, Lexington, Milton, Newton, Somerville, and Watertown.
Average Sale Price $1,200,000
$900,000
2019
$600,000
2020
$300,000
$0 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
Number of Transactions JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
2019
582
520
727
880
1,223
1,366
1,326
1,035
2020
709
557
742
748
628
822
1,185
936
Under Agreement JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
2019
748
853
1,198
1,541
1,643
1,443
1,075
849
2020
782
947
1,041
578
1,041
1,469
1,309
1,065
Number of Listings Taken JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
2019
1,075
1,049
1,534
1,918
2,168
1,696
1,174
799
2020
961
1,184
1,304
815
1,492
2,093
1,855
1,463
2020 MID YEAR MARKET REPORT
MetroWest The MetroWest communities have seen a significant increase in Average Sale Price this year. These communities tend to have many more single family homes, as opposed to condominiums. With spiking demand for amenities like home offices and outdoor spaces, there have been a higher percentage of properties going Under Agreement compared to the number of Listings Taken.
Source: MLSpin For the purpose of this report, MetroWest includes Ashland, Dover, Framingham, Holliston, Hopkinton, Medfield, Medway, Millis, Natick, Needham, Sherborn, Sudbury, Wellesley, Weston.
Average Sale Price $1,000,000
$750,000
2019
$500,000
2020
$250,000
$0 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
Number of Transactions JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
2019
206
201
215
276
402
462
469
396
2020
234
176
249
290
295
367
459
383
Under Agreement JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
2019
252
299
437
503
588
472
385
326
2020
295
338
449
273
420
607
470
443
Number of Listings Taken JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
2019
350
368
557
598
800
529
347
306
2020
321
469
497
277
502
541
473
404
2020 MID YEAR MARKET REPORT
North Shore The North Shore has had fewer sales each month in 2020. However, the Average Sales Price has been higher each month than the prior year. The North Shore has seen a number of buyers moving from smaller Greater Boston properties to larger homes on the North Shore, with an emphasis on home offices and yards.
Source: MLSpin For the purpose of this report, the North Shore includes Amesbury, Beverly, Boxford, Danvers, Essex, Georgetown, Gloucester, Groveland, Hamilton, Haverhill, Ipswich, Lynn, Lynnfield, Manchester, Marblehead, Merrimac, Middleton, Nahant, Newbury, Newburyport, Peabody, Rockport, Rowley, Salem, Salisbury, Saugus, Swampscott, Topsfield, Wenham, and West Newbury.
Average Sale Price $600,000
$450,000
2019
$300,000
2020
$150,000
$0 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
Number of Transactions JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
2019
456
400
520
556
725
831
862
707
2020
448
361
494
438
467
622
807
686
Under Agreement JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
2019
596
554
780
912
1,058
1,011
915
787
2020
535
584
687
443
766
1,062
1,008
884
Number of Listings Taken JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
2019
569
611
828
1,096
1,290
1,061
864
767
2020
528
621
759
490
834
1,026
925
837
2020 MID YEAR MARKET REPORT
South Shore The South Shore communities have seen a marked increase in Average Sale Price in recent months. As with the other suburban markets, there are far more single family homes than condominiums in these communities. And the homes here have many of the qualities that buyers are seeking, like home offices and outdoor space.
Source: MLSpin For the purpose of this report, South Shore includes Abington, Braintree, Carver, Cohasset, Duxbury, Halifax, Hanover, Hanson, Hingham, Hull, Kingston, Marshfield, Norwell, Pembroke, Plymouth, Plympton, Rockland, Scituate, Weymouth, Whitman.
Average Sale Price $700,000
$525,000
2019
$350,000
2020
$175,000
$0 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
Number of Transactions JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
2019
330
257
454
431
590
728
677
585
2020
361
308
418
418
377
524
662
551
Under Agreement JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
2019
421
477
683
790
839
761
728
587
2020
459
574
603
372
718
898
859
736
Number of Listings Taken JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
2019
515
542
793
964
1,072
866
735
660
2020
476
658
653
451
789
808
814
674
2020 MID YEAR MARKET REPORT
Cape Cod Cape Cod’s Average Sale Price was declining at the start of the year. However, the needs of buyers shifted and many started seeking exactly what the Cape has to offer: outdoor space, proximity to natural wonders, and a more casual lifestyle. As domestic and international travel have been curtailed for the near future, many buyers looked for vacation spots within a reasonable drive from their primary homes. Some buyers were also looking for what has been dubbed a “second primary home”, as many were now working from home and children were attending school remotely. The demand for Cape Cod continues to be incredibly strong.
Source: MLSpin For the purpose of this report, Cape Cod includes all Cape Cod Towns.
Average Sale Price $800,000
$600,000
2019
$400,000
2020
$200,000
$0 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
Number of Transactions JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
2019
296
259
373
446
571
552
460
513
2020
368
246
437
344
437
547
735
607
Under Agreement JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
2019
294
349
468
493
609
489
533
499
2020
291
408
407
271
407
825
819
778
Number of Listings Taken JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
2019
477
543
734
881
851
716
651
717
2020
522
593
641
380
641
723
735
680
OUR OFFICES
Arlington
Dennis
Savin Hill
1010 Massachusetts Avenue Arlington, MA 02476 781.648.3500
563 Route 6A Dennis, MA 02638 508.385.4944
119 Savin Hill Avenue Boston, MA 02125 617.825.0800
Back Bay
Harwich Port
277 Dartmouth Street, 2nd Floor Boston, MA 02116 617.375.6900
587 Route 28 Harwich Port, MA 02646 508.432.6100
Brewster 2404 Main Street Brewster, MA 02631 508.896.5000
Cambridge 1008 Massachusetts Avenue Cambridge, MA 02138 617.945.9161 1762 Massachusetts Avenue Cambridge, MA 02140 617.864.9779
Charlestown 20 City Square Charlestown, MA 02129 617.242.4222
South Boston 141 Dorchester Avenue, #R102 Boston, MA 02127 617.482.9200
Hingham 15 Shipyard Drive 1A Hingham, MA 02043 781.749.8833
Manchester-by-the-Sea 21 Central Street Manchester, MA 01944 987.526.0243
Needham 936 Great Plain Avenue Needham, MA 02492 781.444.8383
North End | Waterfront 2 Baldwin Place Boston, MA 02109 617.227.1000
South End 556 Tremont Street Boston, MA 02118 617.426.6900
Sudbury 420A Boston Post Road Sudbury, MA 01776 978.443.8484
Wellesley 54 Central Street Wellesley, MA 02482 781.237.8181
Weston
Chatham
Orleans
409 Main Street Chatham, MA 02633 508.945.000
6 RT 6A Orleans, MA 02653 508.255.6000
Cohasset
Provincetown
Westwood
1 South Main Street Cohasset, MA 02025 781.383.8835
168 Commercial Street Provincetown, MA 02657 508.487.2430
745 High Street Westwood, MA 02090 781.329.8008
544 Boston Post Road Weston, MA 02493 781.894.8282
Local KN OWLEDGE. Gl obal NETWO R K. Kyle Kaagan Team Kyle.Kaagan@GibsonSIR.com 617.519.9481