Boston Condos for Sale & Back Bay Real Estate
Back Bay condos for sale July 2021
Boston: Back Bay condo absorption rate
I can’t find a time when the supply was lower for Boston Back Bay condos for sale. The supply is the same as an absorption rate which we use to calculate how long it would take to sell all of the Back Bay condominiums on the market assuming no more were added. In most parts of the metro area than the number would be less than a month.
The number of back Bay condos on the market tends to go down from July to the end of August. Most of the home price gains for the year happen during the first and second quarters.
Back Bay Absorption Rate – FAQ
What is a Back Bay absorption rate?
The term absorption rate refers to a metric used in the Back Bay condo market to evaluate the rate at which available homes are sold in a specific market during a given time period. It is calculated by dividing the number of homes sold in the allotted time period by the total number of available homes
What is a good Back Bay absorption rate?
Anything over 20 percent is thought of as a good absorption rate in real estate. It signals a strong seller’s market, in which properties are moved off the market quickly. Learn how to take advantage of a seller’s market so you never miss out again.
How do you calculate a Back Bay absorption rate?
The Boston Back Bay absorption rate is calculated by dividing the number of homes that sold over the given period of time by the total number of homes still for sale. The higher the rate of absorption, the faster homes are selling.
What is considered a Back Bay cond buyers or seller’s market?
- “Boston Normal Market” conditions exist when the absorption rate is 5-7 months.
- “Boston Sellers Market” conditions exist when the absorption rate is at 1-4 months.
“Boston Buyers Market” exists when the absorption rate is higher than 7+ months.
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Boston Condos for Sale & Back Bay Real Estate
This morning, I received an email from Mira who asked me how does one calculates the absorption rate for Boston condos ( the above example is the formula that I use). The reason she asked, she is thinking of listing her Back Bay condo for sale and was interested on what the absorption rate is for the Boston Back Bay area. So using the calculation formula above I came up with these figures:
A number of Back Bay condo listings on MLS = 275. Please note I’ve included under agreement/pending sales in this number since they haven’t closed yet.
The number of Back Bay condos that sold last month was 11.
11 sales x 12 months = 132.
52 weeks in a year = 2.5 Back Bay condo sales per week.
Take the 2.5 Back Bay condos that sold each week and divide by the number of active listings (275), this equates to 110 weeks which would be the Back Bay condo absorption rate.
So what is considered a Buyers or Sellers Market in Boston’s Back Bay?:
- “Boston Normal Market” conditions exist when the absorption rate is 5-7 months.
- “Boston Sellers Market” conditions exist when the absorption rate is at 1-4 months.
“Boston Buyers Market” exists when the absorption rate is higher than 7+ months.
Boston Condos for Sale & Back Bay Real Estate
