Charlestown Real Estate Market Prices, Trends, and Forecast 2023

Boston is a large city full of bustling, lively neighborhoods that offer unique benefits for every resident. Beacon Hill has its collection of timeless brownstones and near-immediate access to the Boston Common. The North End gives you front-row access to incredible food and Italian-American culture. Those looking for an enmeshment of visible history, waterfront properties, and a close-knit community will find Charlestown checks off all their boxes.

This neighborhood has plenty of local attractions, like Warren Tavern, the very first bar in Massachusetts, and the USS Constitution, the nation’s oldest commissioned warship. No matter if you’re attracted to the charming gaslights that frame the exterior of Charlestown homes, the waterfront views, or the proximity to Cambridge, Somerville, and downtown Boston, this neighborhood is great for those looking to settle down in a piece of American history. Below, you’ll find the latest data for the Charlestown real estate market so you can decide if living in this Boston neighborhood is right for you.

In Charlestown, the median sale price of homes on the market is $1.62 million, which is $620,000 higher than the median sales price of homes in Boston. Condominiums tend to generate a median sale price of $1.05 million, while single-family homes sell for $1.86 million. Charlestown has coveted real estate that is neither cheap nor easy to come by. However, the price per square foot tends to be lower in comparison to other coveted areas in Boston, coming in a $668 per square foot for a single-family and $791 for a condominium. Attracted to the stunning architecture and impeccable location, renters can expect to pay around $2,700 for a one-bedroom apartment in Charlestown.

The value of homes in Charlestown is on the rise, with single-family homes experiencing a sharp increase in value from January to April 2023, while the price of condominiums is increasing at a more steady rate. Compared to last year, the sale price of a single-family home has increased by 12.3%. Condominiums, on the other hand, saw an increase of 60.32%.

Homes in Charlestown are getting swept up rather quickly, spending less than two weeks on the market before getting sold. This is due to the lack of available homes on the market. Residents understand how valuable their property is and know not many perfect Charlestown homes hit the market every year.

In comparison to the Boston housing market as a whole, condominiums in Charlestown tend to go for $278,570 (26%) more, and this is because the inventory isn’t as diverse. Many people are looking for architectural charm and proximity to the city, but much of the condominium real estate on the Charlestown market today consists of new builds or units in luxury complexes, which tend to have a high property value. Due to the lack of diverse inventory, Charlestown’s market is on the colder side, so buyers can feel free to take their time and peruse other neighborhoods to determine what fits their needs.

In April 2023, mortgage rates declined from the year-high rate of 7.08%, settling at 6.35%. Many finance experts project that this downward trend will continue throughout the rest of 2023, but as recently as May 2023, interest rates experienced a slight uptick, coming in at 6.57%, which is a 0.45% increase from the six-month low of 6.12% in February. Though rates have increased by 0.22% between April and May, this does not mean that rates will continue to rise as we make our way to the end of the year. Experts claim the recent increase is partially attributed to the Federal Reserve’s attempts to offset inflation by increasing interest rates.

As of April 2023, the median sales price of a single-family home in Boston has decreased by 7.3%, with the year-to-date price currently at $725,000. Condominiums, however, have experienced a slight increase (1.8%) in their median sales price and are about $4,900 more expensive than single-family homes due to demand, availability, and location. There are significantly fewer single-family homes (133) on the market than condominiums (950) at the moment, with single-family home inventory decreasing 31.8% since last year and condominium inventory decreasing 19%.

Condominiums are an ever-popular real estate choice for buyers looking to settle down in Boston, as single-family homes are more difficult to come by the closer you get to the city’s heart. From this data, we can conclude that people aren’t looking to relocate out of Boston and would like to continue financing their homes at their current interest rate rather than selling and taking on a new mortgage at the 6.57% interest rate.

Though many homes are not being sold in Boston compared to 2022, this doesn’t mean you will not be able to find your ideal home in Charlestown. The right real estate agent can conjure up some magic in the housing market, and beginning your homebuying process now will allow you to benefit from the lowering interest rates as 2023 progresses.

Considering the market data, purchasing Charlestown real estate is a sound investment. Though single-family homes can be hard to come by in the area, the newly constructed condominiums offer investors and homebuyers an opportunity to secure a space in the neighborhood, as many current residents are reluctant to give up their historic buildings. Since Charlestown is so close to Cambridge and downtown Boston, two prominent education hubs, you can count on students and professionals to be regularly interested in renting out your property, should you be interested in the opportunity.

Though Charlestown real estate will prove to be a profitable investment opportunity in the long run, living in Charlestown opens you up to years of a rather quaint, family-oriented lifestyle that can often be hard to maintain in other Boston neighborhoods. Once you set your sights on a home in Charlestown, you’ll likely never let it go.

Tracy Shea wants to help you secure your forever home in this highly desirable neighborhood, and she has intuitive knowledge of the Boston real estate market and years of experience behind her to do so. Contact Tracy for more information on the Boston and Charlestown real estate market today!