By Rick Winterson

According to Jackie Rooney of Rooney Real Estate, the residential real estate market in South Boston is quite strong in all three key areas – sale prices, number of residential sales, and current housing stock up for sale.

In an interview with Jackie Rooney of Rooney Real Estate, he expressed confidence in the South Boston residential real estate market.  First, he presented a few facts: 

The median selling price for homes in South Boston (single-family, multi-family, and condo units) rose to $380,000 last year.  That’s a 5% increase over the 2006 median of $360,000, and it’s the same as the 2005 median – also $380,000.  The price drop of two years ago has – on average – been erased.

The number of sales has recovered also.  In 2007, 959 residences were sold, compared to 883 the year before, which is a substantial increase of almost 9%.  Even though the number of sales isn’t as high as it was in 2005 (990) or 2004 (1,216), the market remains solid.

Another important real estate indicator is known as “housing stock” or “inventory”.  When housing stock is low or scarce, it indicates that houses are selling quickly and that asking prices will hold strong.  At the end of 2007, condo stock in South Boston was 194 units, compared to more than 400 two years ago - a key sign of residential market strength.

South Boston Online reviewed the local real estate market five months ago (October 11, 2007; page one).  We used figures provided by Rooney Real Estate, and interviewed Rich Costa, Senior Vice President of Mt. Washington Bank.  Costa stated then, “Mortgage money is readily available for home buyers with verifiable income and assets, i.e., most W-2 wage/salary earners.”  At that time, he also said that sources of mortgage money are available for other buyers, such as store owners or independent businesspeople.  He welcomed inquiries about mortgages from prospective home buyers.  We have heard through other media that current interest rates for 30-year fixed mortgages are just below 6%.

There is some softness on the market for single-family houses.  The number of sales is holding up well.  It has averaged a bit over 70 units for the past ten years, and was 72 last year.  However, the price for single-families dropped 2.7% last year to $359,000.  That is approximately 10% below the single-family peak prices that occurred in 2005.  Families are moving the suburbs these days; young, childless urbanites are choosing the convenience of condo living.

These numbers are not “easy reading”, but in Rooney’s opinion, they are certainly good news.  They prove that things in South Boston are fairly steady.  The nationwide gloom-and-doom seen in other media simply does not apply to South Boston.

Why is this?

There are several reasons:  South Boston is a marvelous urban neighborhood, which is not as crowded as others.  It is a safe place, and it’s relatively quiet; it’s still affordable for many.  South Boston is “just across the Jim Kelly Bridge” from the center of Boston (either by car or “T”), and it is the site of one of the most vibrant waterfronts in the country.  Finally, South Boston possesses unmatched beaches and other amenities.

During this interview with Jackie Rooney, he said, “South Boston’s median housing prices are as high as ever.  In addition, the 2007 volume of sales is the third highest in South Boston’s history, and the inventory of housing is very low.”  Rooney concluded, “I expect the South Boston residential market to continue solid throughout 2008.”

(For the 20th consecutive year, Jackie Rooney is South Boston’s top residential real estate agent.  He can be reached at Rooney Real Estate, (617)269-1000, 700 East Broadway.)