Today’s market is complex, but vice president at Gibson Sotheby's International Realty Ryan J. Glass says the answers are in the data.
Welcome to Real Talk Boston, a three-part series wherein luxury agent Ryan J. Glass pulls back the curtain on the city’s real estate, sharing his insights into one of the nation’s most competitive markets. In Part Two, Glass dives into the market data. And don’t miss Part One to learn everything you need to know about relocating to and within Boston.
In today’s real estate climate, buyers and sellers alike struggle to understand the complexity of the housing market—buyers feel no urgency to purchase, and sellers struggle with pricing their property correctly. This is especially true in Boston, where the data seems contradicting.
“In 2023, condo sales citywide were down about 39% compared to 2021, the last full year of record low interest rates,” says Ryan J. Glass, vice president at Gibson Sotheby's International Realty. “One assumes prices are declining, yet the average condo sales price is up 18% in the same period. Buyers and sellers need an expert to understand today’s intricate market.”
Glass guides his clients to make smart financial decisions by educating them on the market’s performance at both macro and micro levels. He gave us a glimpse into his process and what the current market data means for Bostonians looking to buy or sell in 2024.
Easing Buyer Concerns
Glass’s first step is providing buyers with appreciation tables comparing different neighborhoods. “This shows an area's past performance and how well it holds value,” he says. “Selling is expensive, so understanding a location's historical performance can help buyers plan better for their future.”
Next, Glass provides key metrics such as the median sales price, average days to offer and total number of sales by price bracket—educating buyers on the market at a glance, while comparing and contrasting their areas of interest.
For example, in 2023, South End condos sold for 99% of their original asking price, while condos in Back Bay sold for 96% of their asking price. The reason? Inventory levels: “Since 2021, Back Bay has seen a decrease of only 6.1% in the total number of condos for sale, while South End inventory has declined by over 30%,” Glass explains. “Information like this helps buyers understand their search experience will vary by area.”
Glass also uses past sales data to quantify a buyer’s chance of success. In Back Bay, for instance, only 17% of three-bedroom properties sold in 2023 were under $2.5 million. “Sharing statistics specific to a buyer’s search criteria helps them have realistic expectations about pricing and competitiveness,” Glass says. “While value is somewhat subjective, the data is consistent and tells a story of what a home is worth, and why.”
Glass recently listed this two-bedroom, two-and-a-half-bathroom property at Atelier 505 in the South End. It measures 1595 square feet, includes garage parking, and is asking $2.295 million. See more at 505tremontunit310.com.
Empowering Sellers
Sellers receive the same neighborhood market data from Glass, and comparable sales specific to the property they’re selling. “We are in a market where it is easy to overprice right now,” Glass says. “I provide sellers with three pricing options: the number to create a bidding war, listing at actual value, or testing the market by pushing for maximum value.”
Glass shares the raw data sources so clients understand his pricing strategy. “Data doesn’t lie. I give my honest opinion of a home’s value,” he says. “Too many agents tell sellers a higher number to get the listing. It creates a false expectation, leaving the seller disappointed and frustrated when it doesn’t sell.”
The current slower-moving market is beneficial for sellers trying to sell and buy simultaneously, as it increases the likelihood of them having a home sale contingency accepted on their purchase. “Properties are often only receiving one offer, making it easier to get contingencies accepted,” Glass says.
Looking Ahead
Although interest rates remain higher, many sellers are tired of waiting. Glass forecasts that this will lead to a slow rise in inventory levels and prices throughout Boston in 2024. A significant rate drop would catalyze the market, Glass notes, spurring buyers and sellers alike, leading to more aggressive price growth. “There’s pent-up demand,” he says. “Too many buyers and sellers have been watching on the sidelines.”
For more insights Glass can be reached at 617-721-2143 or [email protected]. Stay tuned for Part Three in March, where Glass explores the importance of marketing.
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