"We are seeing two trends driving the increase," John Dulczewski, MAR's communications director, tells GlobeSt.com. "Renters are becoming entry-level buyers of condos, chiefly because of the limited availability of affordable detached single-family housing in some communities," he says. "In addition, Empty Nesters in the Baby Boomer segment of the population are moving into luxury condos in Boston and Cambridge and buying condos as second homes on Cape Cod." He cites Pine Hills in Plymouth, across from the Cape Cod canal, as one development that has profited from the demand for second-home condos.
"Normally, buyers tend to hibernate during the winter, but that wasn't the case this year," says MAR president Judy Moore of Lexington-based Re/Max Premier Properties. "We've seen steady demand in all price ranges over the first few months of the year."
Condo sales rose in four regions, according to MAR data. The sharpest gains occurred in the Southeastern portion of the state, which had a 38.7% rise in sales. The increase in Greater Boston was 18%, and sales in the Northeast and West regions increased between 5% and 7%. Despite success at Pine Hills, sales fell modestly in the Cape Cod, Central and South Shore regions.
The statewide median selling price for condos during first quarter was $232,740, an increase of 14.4%, compared with a median price of $203,500 for the first quarter a year ago. Meanwhile, Greater Boston is about to experience its largest apartment and condo development pipeline in recent years. According to published reports, since last August, the median selling price of condos in Greater Boston rose 6%.
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