Gibson Sotheby's International Realty 2020 Mid Year Market Report

2020 MID YEAR

Market Report

Letter From Our Owners These are unprecedented times. Our world continues to battle a global pandemic, with some of the economic impacts being felt by our neighbors and friends. We have experienced losses this year that have both broken our hearts and brought us closer together. Our thoughts remain with all who have been gravely impacted during this difficult time.

It would be difficult to count how many ways we have had to adapt how we work.

Our agents and our staff have gone above and beyond in their efforts to offer the highest level of service this year. We continue to lean on and improve our digital offerings to provide a convenient, fast, and touchless portfolio of services to our clients. For that we are incredibly grateful to and proud of our team. We are also grateful that our housing market continues to outperform early expectations, as you will see in the following reports. As of the writing of this letter, our company has sold and put under contract over $2 billion in real estate in 2020. We find ourselves in the very lucky position of being in a region that has performed well in past economic shifts and, so far, this remains to be true for the challenges we are facing today.

We are a locally owned and operated business. Our agents and employees are family to us. Our communities are extensions of that family. We look forward to a time when the pandemic is behind us and we can return to a sense of normalcy. Until then, we wish you and your loved ones health and happiness.

Yours Truly,

Larry Rideout

Paul McGann

Boston’s Performance in Economic Shifts The onset of Covid-19 has brought substantial changes to all areas of our lives, including the current state of the real estate industry. So much of Massachusetts’ economy and real estate market is tied to Boston. Therefore, we took a look at how Boston has weathered challenges in the last two decades.

LINK, Boston’s longtime MLS service, recently shared a historical view of Boston’s price recovery from the last two downturns; the 2002 DotCom Bust and the 2008 Financial Recession. In both cases, the price dips were both short and shallow. This gives local experts reason to believe that this crisis will also have a short recovery time.

400

300

200

100 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20

Citywide Twenty Year Price Index (Appreciation Rate) Source: MLSpin

2020 MID YEAR MARKET REPORT

Greater Boston The Greater Boston market has soldiered through the Covid-19 pandemic thus far. While the state was under lockdown, fewer properties went on the market and, therefore, fewer properties sold. Prices dropped for two months, but have already begun to rebound, and the average Days on Market (DOM) have remained low.

The urban condo markets in Boston and Cambridge, particularly large buildings, have experienced the greatest impact and are experiencing longer Days on Market. Condominiums, in general, have not seen the kinds of gains in demand that single family homes have seen. Anecdotal reports are that buyers would like more interior and exterior space than most condos have to offer. However, the available condo inventory is below 3 months in Cambridge and below 5 months in Boston. Also, the percentage of asking price for sold property remains above 101% in Cambridge and 99% in Boston.

Source: MLSpin For the purpose of this report, Greater Boston includes Arlington, Belmont, Boston, Brookline, Cambridge, Concord, Lexington, Milton, Newton, Somerville, and Watertown.

Average Sale Price $1,200,000

$900,000

2019

$600,000

2020

$300,000

$0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

Number of Transactions JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

2019

582

520

727

880

1,223

1,366

1,326

1,035

2020

709

557

742

748

628

822

1,185

936

Under Agreement JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

2019

748

853

1,198

1,541

1,643

1,443

1,075

849

2020

782

947

1,041

578

1,041

1,469

1,309

1,065

Number of Listings Taken JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

2019

1,075

1,049

1,534

1,918

2,168

1,696

1,174

799

2020

961

1,184

1,304

815

1,492

2,093

1,855

1,463

2020 MID YEAR MARKET REPORT

MetroWest The MetroWest communities have seen a significant increase in Average Sale Price this year. These communities tend to have many more single family homes, as opposed to condominiums. With spiking demand for amenities like home offices and outdoor spaces, there have been a higher percentage of properties going Under Agreement compared to the number of Listings Taken.

Source: MLSpin For the purpose of this report, MetroWest includes Ashland, Dover, Framingham, Holliston, Hopkinton, Medfield, Medway, Millis, Natick, Needham, Sherborn, Sudbury, Wellesley, Weston.

Average Sale Price $1,000,000

$750,000

2019

$500,000

2020

$250,000

$0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

Number of Transactions JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

2019

206

201

215

276

402

462

469

396

2020

234

176

249

290

295

367

459

383

Under Agreement JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

2019

252

299

437

503

588

472

385

326

2020

295

338

449

273

420

607

470

443

Number of Listings Taken JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

2019

350

368

557

598

800

529

347

306

2020

321

469

497

277

502

541

473

404

2020 MID YEAR MARKET REPORT

North Shore The North Shore has had fewer sales each month in 2020. However, the Average Sales Price has been higher each month than the prior year. The North Shore has seen a number of buyers moving from smaller Greater Boston properties to larger homes on the North Shore, with an emphasis on home offices and yards.

Source: MLSpin For the purpose of this report, the North Shore includes Amesbury, Beverly, Boxford, Danvers, Essex, Georgetown, Gloucester, Groveland, Hamilton, Haverhill, Ipswich, Lynn, Lynnfield, Manchester, Marblehead, Merrimac, Middleton, Nahant, Newbury, Newburyport, Peabody, Rockport, Rowley, Salem, Salisbury, Saugus, Swampscott, Topsfield, Wenham, and West Newbury.

Average Sale Price $600,000

$450,000

2019

$300,000

2020

$150,000

$0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

Number of Transactions JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

2019

456

400

520

556

725

831

862

707

2020

448

361

494

438

467

622

807

686

Under Agreement JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

2019

596

554

780

912

1,058

1,011

915

787

2020

535

584

687

443

766

1,062

1,008

884

Number of Listings Taken JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

2019

569

611

828

1,096

1,290

1,061

864

767

2020

528

621

759

490

834

1,026

925

837

2020 MID YEAR MARKET REPORT

South Shore The South Shore communities have seen a marked increase in Average Sale Price in recent months. As with the other suburban markets, there are far more single family homes than condominiums in these communities. And the homes here have many of the qualities that buyers are seeking, like home offices and outdoor space.

Source: MLSpin For the purpose of this report, South Shore includes Abington, Braintree, Carver, Cohasset, Duxbury, Halifax, Hanover, Hanson, Hingham, Hull, Kingston, Marshfield, Norwell, Pembroke, Plymouth, Plympton, Rockland, Scituate, Weymouth, Whitman.

Average Sale Price $700,000

$525,000

2019

$350,000

2020

$175,000

$0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

Number of Transactions JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

2019

330

257

454

431

590

728

677

585

2020

361

308

418

418

377

524

662

551

Under Agreement JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

2019

421

477

683

790

839

761

728

587

2020

459

574

603

372

718

898

859

736

Number of Listings Taken JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

2019

515

542

793

964

1,072

866

735

660

2020

476

658

653

451

789

808

814

674

2020 MID YEAR MARKET REPORT

Cape Cod Cape Cod’s Average Sale Price was declining at the start of the year. However, the needs of buyers shifted and many started seeking exactly what the Cape has to offer: outdoor space, proximity to natural wonders, and a more casual lifestyle.

As domestic and international travel have been curtailed for the near future, many buyers looked for vacation spots within a reasonable drive from their primary homes. Some buyers were also looking for what has been dubbed a “second primary home”, as many were now working from home and children were attending school remotely.

The demand for Cape Cod continues to be incredibly strong.

Source: MLSpin For the purpose of this report, Cape Cod includes all Cape Cod Towns.

Average Sale Price $800,000

$600,000

2019

$400,000

2020

$200,000

$0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

Number of Transactions JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

2019

296

259

373

446

571

552

460

513

2020

368

246

437

344

437

547

735

607

Under Agreement JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

2019

294

349

468

493

609

489

533

499

2020

291

408

407

271

407

825

819

778

Number of Listings Taken JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

2019

477

543

734

881

851

716

651

717

2020

522

593

641

380

641

723

735

680

OUR OFFICES

Arlington

Dennis

Savin Hill

1010 Massachusetts Avenue Arlington, MA 02476 781.648.3500

563 Route 6A Dennis, MA 02638 508.385.4944

119 Savin Hill Avenue Boston, MA 02125 617.825.0800

Back Bay

Harwich Port

277 Dartmouth Street, 2nd Floor Boston, MA 02116 617.375.6900

587 Route 28 Harwich Port, MA 02646 508.432.6100

Brewster 2404 Main Street Brewster, MA 02631 508.896.5000

Cambridge 1008 Massachusetts Avenue Cambridge, MA 02138 617.945.9161 1762 Massachusetts Avenue Cambridge, MA 02140 617.864.9779

Charlestown 20 City Square Charlestown, MA 02129 617.242.4222

South Boston 141 Dorchester Avenue, #R102 Boston, MA 02127 617.482.9200

Hingham 15 Shipyard Drive 1A Hingham, MA 02043 781.749.8833

Manchester-by-the-Sea 21 Central Street Manchester, MA 01944 987.526.0243

Needham 936 Great Plain Avenue Needham, MA 02492 781.444.8383

North End | Waterfront 2 Baldwin Place Boston, MA 02109 617.227.1000

South End 556 Tremont Street Boston, MA 02118 617.426.6900

Sudbury 420A Boston Post Road Sudbury, MA 01776 978.443.8484

Wellesley 54 Central Street Wellesley, MA 02482 781.237.8181

Weston

Chatham

Orleans

409 Main Street Chatham, MA 02633 508.945.000

6 RT 6A Orleans, MA 02653 508.255.6000

Cohasset

Provincetown

Westwood

1 South Main Street Cohasset, MA 02025 781.383.8835

168 Commercial Street Provincetown, MA 02657 508.487.2430

745 High Street Westwood, MA 02090 781.329.8008

544 Boston Post Road Weston, MA 02493 781.894.8282

Local KN OWLEDGE. Gl obal NETWO R K.