Since 2011, Charlestown’s average condo price during peak buying season (April to August) has increased by 50 percent. The average condo sales price during that period in 2011 was $438,559. In 2015 it was $657,501.
Just in the past year, the jump in Charlestown condo prices was 12 percent, according to Jane Reitz, principal at Reitz Realty Group. And she doesn’t think that’s going to slow down anytime soon.
Of course, condos are getting more expensive in a lot of places. In the South End, they went up 23 percent between 2014 and 2015. South Boston fell right behind the South End with a 16 percent increase, the North End had a 15 percent increase, and Back Bay prices increased by 10 percent.
Reitz’s data is based off her new Charlestown Real Estate Market report and Massachusetts Listing Service data.
The difference between Charlestown and those other neighborhoods, is that the rest of them are quickly sprouting new residential building that promise to bring condo supply closer to demand.
In a recent Boston Globe article about Boston’s development boom, Charlestown was down at the bottom of the list of happening neighborhoods, with four projects in progress and $74 million worth of construction.
For comparison, the South Boston waterfront, Downtown, and Back Bay all have over a billion dollars each in development projects. (Yes, a billion. Each.)
Reitz says that difference is unlikely to ever change.
“Unlike Southie, which had warehouses to develop, we are very dense,’’ Reitz said. “There is limited quantity [here].’’
Even when that limited quantity of condos sees a spike in turnover, like the 30 percent increase in condos for sale between 2014 and 2015, prices still continue to rise.
“Usually with more supply prices will go down,’’ Reitz said. “But we still have a price increase even with an increase in inventory.’’
Related: See how much Seaport/Fort Point has changed