I would talk to a local agent and see if the time is right for you.
If you're moving elsewhere, it could be in your favor but you have to ask if there are other reasons for this move, lifestyle changes, need to be in a certain school district, quality of life concerns, in which case, you should make the move. I'm a Metrowest agent but grew up in East Boston and know it well. In fact I have family and friends who still live there. I know it's still a close knit community and many of the friends I grew up with still live there. I was in California (Taluka Lake) earlier this month and the family who I visited talked about wanting to buy (a second home) in East Boston so their kids could benefit from the colleges in this area and they could be closer to their family. So there are buyers out there for sure - I may know of one (although they were looking for a multi so they could rent out one of the levels). I do have many good realtor contacts in the area if you need one, just let me know.
Good luck with your decision.
Case-schiller index says prices have dropped about 15% nationally over the last year. So, keep that in mind when looking at comparables. And get a good real estate agent!
I calculated the absorption rate for East Boston and currently there are 6 months worth of single family inventory on the market which isn't too bad. The price range you are planning to sell in will also have an affect on the sale. For instance the majority of properties that sold in the last year were in the $200,000-$250,000 price range.
Overall it seems like an ok time to sell a single family in East Boston. Your focus should be pricing. Make sure you are very realistic and don't price it too high since properties are being discounted so much. The more aggressive you price it the lower your chances of having your property sit on the market long.
I hope that helps! Good luck!
Eastie is hot right now. One of the last essentially untapped neighborhoods of Boston. Sounds like the place is really nice. It all boils down to if what you need to get out of it is in line with what the true market value of the home is. If you get a few market analysis and/or appraisals and you can happily live with the LOWEST of the numbers you are hearing, I'd say it's a good time to sell. If you really need to max out your equity, pay very close attention to the closed comparable sales in your neighborhood. That will give you a pretty good sense of what yours will most likely sell for. This is not the market to be pricing aggressively high, even in Eastie. Price to sell. Price based on reality. If you can swing that, I'd say go for it.
AND if you are buying back into this market, remember: you will make up for any pain you feel on the sell side with your buy side. Good luck!