Understanding the current state of the South End condominium sales market --a market where properties are attracting multiple offers --starts by understanding the current state of the South End condominium inventory.
To get an idea, I took a historical look at the condominium inventory for the same date. On March 25, 2010, MLSPIN, the listing service local brokers use most, showed 220 South End condos were being actively marketed. A year later, on March 25, 2011, 178 South End condos were actively marketed. On March 25, 2012, 125 condos. On March 25, 2013, just 61.... Somebody better call Houston, because it looks like we have a problem.
Obviously, 61 is a really, really low number of condominiums to have available to buy in one of Boston’s most important neighborhoods… but even that low, low number doesn’t accurately reflect how low the current inventory goes. That’ s because when we take out “Active Status” properties, properties which have accepted an offer but which are still being marketed as “Active,” there are really only 30 condos currently available to buy in the South End. Thirty? Thirty!!! Uh, oh.
When I hear that the South End has only thirty condos available to buy, I know I get a similar feeling when I am in my car and I look down at a gas gauge showing below “E.” It’s not long before I start hoping that the car’s momentum and a few prayers will be enough to get me to the next station to fill up. Is it the same in real estate? Could our community somehow get a chance to fill the condo inventory back up before it is completely depleted? To see if this is a possibility, all we need to do is determine the sales pace.
MLS reports show that in a very recent one month period, 68 South End condos went under agreement.
Using the number of condos available to buy as “supply” and the number of “under agreements” in this recent one month period as demand, it means the South End currently has about 13 day supply of condominium inventory. In real estate, anything under a 90-day supply of inventory is often considered a seller’s market. The South End has a 13 day supply. 13 days! I don’t want to sound panicked, but does anyone know the condominium inventory 911 number?