By Stephen McCarthy
PPSF is a method to compare properties values. “What is the PPSF of a property?” Is a fairly typical question in real estate.
Keep in it is just one metric to gauge the value of any property and it is important to always compare “apples to apples” for purposes of valuing property.
It is possible to make a general statement that the average asking PPSF in South Boston today is aprox $800 PSF. This is accurate and good for a quick look but not really helpful when trying to be precise.
Take a look if the current 92 listings on MLS are separated by condo, single family and multi family properties.
As of March 4, 2024 Per MLS
Average asking price of a SB condo is $1,163,634 with an average PPSF of $854
Average asking price SB single family is $1,308,737 with an average PPSF of $717
Average asking price SB Multi Fam is $2,544,669 with an average PPSF of $834
Consider single families and multi family properties are measured outside the foundation and above grade to determine living area square footage.
Condominiums are measured on the interior “walls in”
So a condo listed at 1,200 sq ft is going to feel different from a single family listed at 1,200 sq ft.
Still the average asking price per square foot of a South Boston condo is $854 is only a starting point.
You still need to keep comparing “apples to apples” and compare one bedrooms to one bedrooms, 2 bedrooms to 2 bedrooms, etc. Other segments might also be considered like parking, new construction, neighborhood, outside space, etc.
Your starting point is the property you are evaluating. If the subject property is a one bedroom with a parking space. Then for a fair comparison pull other one bedroom condos with parking to develop a more accurate PPSF estimate.
Looking at condo sales for the past six months I found 129 closed sales on MLS.
Average Sale Price $930K Avg PPSF $807
One Bedroom Avg Sale Price $630K Avg PPSF $905
Two Bedroom Avg Sale Price $868K Avg PPSF $805
Three Bedroom Avg Sale Price $1.3M Avg PPSF $725
Lowest PPSF was an affordable 2 bed 2 bath which sold for $531K or $466 PPSF
Highest PPSF was a one bedroom at 472 West Broadway which sold for $575K or $1,167 PPSF
The Median Sale was 519 E 2nd St unit 402 which sold for $1,170,000 or $805 PPSF
Most important when using PPSF as an estimate of value compare be sure to compare “apples to apples” and understand PPSF is only one metric to help you determine market value.
William Raveis has an excellent statistical tool you can access for Boston and areas throughout Massachusetts, CT and parts of Florida. Check it out here:
