High Demand, Not Enough Listings: Most Expensive Cities in 2014
Cambridge, downtown Boston, and Brookline bucked state-wide trends and saw chart-topping price increases.
Massachusetts home prices cooled in 2014, rising modestly after double-digit gains the year before.
But Cambridge, downtown Boston, and a handful of other coveted cities and suburbs have bucked the state trend, posting chart-topping price increases again this year due to steady demand from eager buyers and a dearth of listings.
2015 could very well prove to be repeat for some of these real estate hot spots, says Alex Coon, market manager for brokerage firm Redfin’s Boston-area office. “I would be surprised if there wasn’t double-digit growth,’’ he said. “The formula that makes up Cambridge and Somerville is so unique.’’
City Chart Toppers
Cambridge, downtown Boston, and Brookline saw the biggest home price gains in the state by far in 2014, with the latest stats taking us through Nov. 30. (The numbers for December, typically one of the sleepiest months of the year for real estate, isn’t likely to move the needle much either way.)
The median price of a single-family home in Cambridge jumped 37 percent, hitting $1,181,100, according to The Warren Group, publisher of Banker & Tradesman.
Home prices in downtown Boston – which includes the Back Bay, South End, Beacon Hill, and other upscale neighborhoods – soared past the $3 million mark after a 40 percent gain.
Beyond downtown, Roxbury saw the biggest price gains of Boston’s sprawling residential neighborhoods, with the median price surging 30 percent, to $437,000.
Brookline saw its median rising to nearly $1.5 million after a not-so-measly 18 percent gain.
Still, the big gains were likely driven in part by a dearth of listings in Greater Boston’s red hot urban core, with sales dropping 21 percent in downtown Boston and 16 percent in Cambridge.
By contrast, Massachusetts home prices in general eked out a modest, 2.2 percent gain during the same period, with the median sale price rising to $330,000.
Condo prices followed a similar pattern.
The median Cambridge condo price hit $567,000 after a nearly 14 percent gain, while downtown Boston saw an 11 percent jump, to a $705,000.
Brookline notched a 17 percent gain, boosting the median condo price to $619,500. Both Cambridge and Brookline saw double-digit plunges in condo sales, with downtown Boston posting a more modest 9 percent decline.
Somerville proved to be the exception. The median condo price hit $472,500 after a 15 percent jump, while sales rose by a strong 12.6 percent.
Condo prices across the state as a whole rose 4.4 percent, to $310,000, over 2014 through Nov. 30.
Suburban Stars
Outside of Boston and Cambridge, a few western suburbs posted the biggest gains. It was mostly the same story though, one of rising prices driven by scarce inventory and falling sales.
Concord home prices jumped 15 percent, hitting $923,000, only to be passed by Lexington, where the median hit $950,000 after a 16 percent gain. Both towns saw big drops in sales, with Concord falling 19 percent and Lexington 10 percent.
Southborough saw prices rise 19 percent, to $577,500, even as sales plunged 23 percent.
Nor was it just the upscale towns that saw upward pressure on pricing.
Gloucester saw prices rise 14 percent, to $365,000 and Shirley posted a 17 percent rise to $315,000, with sales falling 11 and 26 percent, respectively.
Still, a few burbs saw more well-rounded growth, with solid gains in pricing and at most modest declines in sales.
Prices rose 15 percent in Carlisle, to $769,000, while Arlington saw home prices go up 12 percent, to $612,250. Both towns saw sales fall 5 percent or less.
Franklin saw its median price rise to nearly $400,000 after a 13 percent jump, with sales off just 3.6 percent.
And on the Cape, Chatham actually saw both sales and prices rise 12 percent, hitting $582,500.
Some suburbs, in turn, are likely to see big gains in 2015 as well, notes Sam Schneiderman, principal broker of the Greater Boston Home Team and president of the Massachusetts Association of Buyer Brokers.
“Among the suburbs, communities with the most desirable school systems will continue to see the biggest gains in appreciation,’’ he said.
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