Mid-Year Market Review 2023
This report analyzes key trends for single-family homes in Brookline, MA and Newton, MA, during the first half of 2023 in comparison to the same period in 2022, including changes in median home prices, inventory levels, days on market, and buyer preferences. I have also included a historical trend overview as of June 30 for the years 2019-2023 which show developments in our markets when it comes to median prices, inventory levels, and median days on market.
Our local real estate market has seen continued demand albeit with some adjustments, reflecting the broader real estate landscape. As our region navigates evolving economic conditions and lifestyle preferences, understanding these trends is crucial for both buyers and sellers. These charts provide a comprehensive overview of key market indicators that reflect market performance, including sales volume, median prices, inventory levels and other relevant data.
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Brookline SF homes highlights and analysis
Sales volume
The Brookline single-family homes market exhibited robust sales activity with a total of 52 closed sales. This represents a decline of 16% from the first half of 2022. Demand remains strong and despite economic uncertainty, especially regarding mortgage interest rates, our market remains resilient and attractive to buyers. Sellers still have the upper hand in negotiations; however, buyers are well educated about the market given the time they typically spend searching for their new home. This, in combination with the continuously increasing price points in the market, affordability has placed Brookline out of reach for more and more buyers.
Median sale price
The median sale price for a single-family home in Brookline grew by 15.2% year-over-year, to $2,880,000. This appreciation suggests sustained interest from high-end buyers and a strong real estate market. Other factors contributing to the increase in prices are lack of buildable land, zoning limitations, overall desirability of Brookline due to proximity to Boston, access to public transportation and amenities, a highly rated public school system and well regarded private schools.
Price trends
The median sold price per square foot of $692 as of June 30, 2023, is down 11.2% from the same time in 2022. With median total sale price up over 15% for same period, the lower per square foot price might be an indication of the relative age and size of homes currently on the market. The combination of higher prices and many larger, historic homes requiring extensive renovations, buyers are factoring this into their offers.
Inventory levels
As of June 30, 2023 there were 37 single-family homes on the market, up 85% from a year ago. This represents 3.9 months of supply, which is up by 129% since 2022, but still is indicative of a strong sellers’ market as we would need to see 6-7 months of supply for a balanced market. If no new homes came on the market, it would take 3.9 months to sell our current inventory, which is exceptionally fast especially given the high median price point in the market. The increased inventory may also be indicative of the impact of higher interest rates and lack of affordability.
Worth noting is also that of the 37 homes on the market, 4 were listed over $8,000,000, 9 were listed above $5,000,000, and only 3 listings were below $2,000,000. The low inventory levels represent a competitive market where buyers are acting quickly to secure desirable properties. The limited supply keeps contributing to the upward pressure on prices.
Days on market
The median days on market for single-family homes in Brookline remained relatively stable in the two periods under review. In the first half of 2023, the median days on market was 14 compared to 15 in 2022. This stability suggests that buyers and sellers are finding common ground more efficiently, possibly due to accurate pricing and strong demand.
Market outlook
The Brookline single-family homes market is strong, and is expected to sustain a positive trajectory throughout the remainder of 2023. Factors such as Brookline’s desirable location, excellent schools, access to amenities and public transportation continue to attract homebuyers. However, potential buyers should be mindful of the competitive nature of the markets and the possibility of further price appreciation.
Conclusion
The Brookline market is resilient and characterized by rising median sale prices, limited inventory and high buyer demand. These trends reflect the enduring appeal of the Brookline area to buyers seeking premium properties in premium locations. As demand remains strong, the market is likely to continue its upward trajectory for the remainder of the year, with potential challenges stemming from supply constraints. Homebuyers and sellers alike should closely monitor the evolving market dynamics to make informed decisions.
Newton SF homes highlights and analysis
Sales volume
Compared to Brookline, the Newton single-family homes market is geographically much larger with a broader variety of single-family homes with respect to size, age, style and neighborhood locations. For the first half of 2023, there were 208 closed sales in Newton compared to 259 for the same period in 2022. This represents a decline of 19.7%. Demand remains strong and despite economic uncertainty, especially regarding mortgage interest rates, our market remains resilient and attractive to buyers. Sellers still have the upper hand in negotiations, however, buyers are well educated about the market given the time they typically spend searching for their new home.
Median sale price
The median sale price for a single-family home in Newton rose by 5.9% year-over-year, to $1,747,500. Lack of inventory and buildable land, zoning limitations, geographic proximity to Boston, well regarded public and private schools, public transportation and amenities are all factors that contribute to continued price appreciation in the Newton market. For now, Newton remains a more affordable option relative to Brookline and buyer demand stays strong relative to availability of homes for sale.
Price trends
The median sold price per square foot of $573 as of June 30, 2023, is down 2.5% since same time in 2022. With median sale price up over 5% for same period, the lower per square foot price might be an indication of the relative age and size of homes in our market. The combination of higher prices and many larger, historic homes requiring extensive renovations, buyers are factoring this into their offers. Smaller, newly renovated homes fetch higher prices per square foot than larger, older homes that have not been updated.
Inventory levels
As of June 30, 2023 there were 78 single-family homes on the market, down 3.7% from a year ago. This represents 1.9 months of supply, which is up 3 months from 2022, but still is indicative of a strong sellers’ market as we would need to see 6-7 months of supply for a balanced market. If no new homes came on the market, it would take 1.9 months to sell our current inventory, which is an exceptionally fast especially fast-acting market. The scarcity of available properties has kept competition among buyers high, often leading to multiple offer situations and potentially influencing the upward pressure on home prices.
Days on market
The median days on market for single-family homes in Newton was up 28.5% in the two periods under review. In the first half of 2023, the median days on market was 18 compared to 14 in 2022. The median days to offer stayed the same at 6 days. This stability suggests that buyers and sellers are finding common ground efficiently, possibly due to accurate pricing and strong demand. It also means that buyers are making quick decisions when putting offers in on home and are confident about the price they are willing to offer. Well-priced homes in desirable neighborhoods tended to attract swift attention, underlining the desirability of the local market.
Market outlook
The Newton single-family homes market is strong, and is expected to sustain a positive trajectory throughout the remainder of 2023. Factors such as desirable location, excellent schools, access to amenities and public transportation continue to attract homebuyers. However, potential buyers should be mindful of the competitive nature of the markets and the possibility of further price appreciation. Looking ahead, the Newton single-family homes market is expected to maintain its positive momentum throughout the remainder of 2023. Demand is likely to persist due to the region’s strong economy, proximity to Boston, and attractive suburban lifestyle. However, factors as mortgage rate fluctuations and broader economic conditions could influence the pace of growth. Seller should remain cautious of overpricing, while buyers might continue to face competitive conditions due to limited inventory.
Conclusion
The Newton market is resilient and characterized by rising median sale prices, limited inventory and high buyer demand. These trends reflect the enduring appeal of the Newton area to buyers seeking premium properties in premium locations. As demand remains strong, the market is likely to continue its upward trajectory for the remainder of the year, with potential challenges stemming from supply constraints. Homebuyers and sellers alike should closely monitor the evolving market dynamics to make informed decisions.
The real estate market for single-family homes in Newton during the first half of 2023 showed resilience and adaptability. Despite some external challenges, the market demonstrated consistent demand, leading to moderate price increases, low days on market, and evolving buyers preferences. As the year progresses, staying attuned to these trends will be crucial for both buyers and sellers to make informed decisions in a dynamic market landscape.
