The Jamaica Plain condo market ended 2019 with sale prices 2% lower than the 2018 sale average. Why the dip? Approximately 20% of the condos that went under contract last year still haven’t closed. 2019 brought a new kind of condo inventory to JP: new construction lifestyle buildings. Of the three new buildings, two are set to begin closings in 1Q 2020. Once the sales of VITA and 45 Burnett record sales, we will see record-breaking numbers that will make 2020 a year of new highs for the JP condo market. As these two buildings plus the new Tempo condominiums continue to sell their remaining inventory, a new bar has been set for JP condos which will continue to elevate sale prices throughout the neighborhood. Currently there are 35 JP condos listed for sale and the average list price is $746,409, which is 5% higher than the average inventory list price at this same time last year.
The JP condo market is driven by several factors, but two of the most significant are high rent rates and the overall Boston condo market. Real estate news journal Curbed recently reported Boston’s apartment market for 2020 will be “as landlord-friendly as ever heading into 2020” and says Boston is “among the priciest handful of major U.S. cities to lease an apartment.” The high rent rates combined with low interest rates for purchase mortgages encourage renters to become buyers. However, the high entry price of Downtown Boston* condos is driving more and more buyers farther outside the city center. Condo markets such as JP offer better affordability close to transit options such as bike paths, subway stations, and commuter rail options.