Major news out of Congress. Today, the House voted 403-12 in favor
of extending and expanding the $8000 first time buyer tax credit after the Senate did the same yesterday by a vote of 98-0. The president is scheduled to sign the bill (which also includes provisions to extend unemployment benefits) tomorrow morning to officially make it law. (Update Nov 6: It was signed by President Obama today, officially making it law).
Initially scheduled to expire on December 1, 2009, the credit will now be extended to May 1, 2010 (and even a few month further if a property is under contract by May 1). There are also some significant changes to this new tax credit that should allow many more buyers to qualify for it. Key elements of the extension:
- Credit available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.
- Credit remains at $8000 for first-time purchasers. No change to definition of first-time purchaser.
- New $6500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.
- Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
- New anti-fraud limitations are imposed.
Besides than the dates of eligibility being extended, there are some major changes to the $8,000 homebuyer tax credit that could have a large impact on the Massachusetts and Boston real estate market.
First of which, and most relevant to the Boston area given our higher home prices, is the increase in income limits to qualify for the credit. Previous limits were $75,000 (single) and $150,000 (married). The new limits are now increased by more than 50% to $125,000 (single) and $225,000 (married).
Second, a new $6,500 tax credit is available to so called "move-up" buyers. Not just first time buyers are eligible for the tax credit, now those buyers who have owned and lived in their current home for more than 5 consecutive years (out of the past 8 years) are eligible if they move and buy a new home.
These two huge provisions open up the homebuyer tax credit to hundreds of thousands of potential buyers in the Boston real estate market. We've seen the MAJOR effects of the first time home buyer tax credit throughout the country, especially in less expensive areas where you can actually buy most homes on $75,000 annual income (unlike Boston). I suspect we'll see a much larger impact in the Boston real estate market from this new credit expansion than we saw with the original version.
How does the new tax credit differ from the old?
From the National Association of Realtors,
here is a direct comparison chart highlighting the changes in the
new homebuyer tax credit compared to the previous version:
If you have any questions, don't hesistate to contact me or comment below!
[This is a guest post from Todd Mikelonis. Contact Todd with any questions.]
With
all the news recently about the Bryant Back Bay condos, you may have heard that an auction took place - the first for luxury real estate in Boston. The auction results were interesting in that some are declaring it a failure while some are saying it's a success. Since the developer is the only one who could say for sure whether it is was a success for them or not, I'm not going to write platitudes on that. But what I will say is that 10 luxury condo units (they intended to sell 10, no more that day) were sold quickly that day for an average price of $1,375,000 ($675 per sq. ft) which was about 30% off the previous asking prices. Definitely lower than most luxury properties have been selling for (or should I say not selling for) and probably not a great sign for the rest of the Boston new development inventory sitting out there.
But how does the Bryant Back Bay stack up against Boston's other luxury condos? Does it compare favorably to Boston luxury condo buildings like Atelier 505 in the South End, One Charles in the Back Bay, 45 Province downtown, Penny Savings Bank in the South End, or any other? Let's find out!
Boston Real Estate Throwdown:
It just so happens that I had the opportunity to do a little "comparison shopping" yesterday. I got out to look at a number of condos in many of Boston’s full service buildings with a buyer client. We mainly looked at two and three bedroom condos in the $995,000 - $1,685,000 range. After looking at 12 condos in a day, an overwhelmed buyer will often ask my opinion. So here it is - my brief summary of thoughts on each unit and my take on how they stack up against one another:
The Bryant Back Bay - 303 Columbus Ave (we looked at two developer condos)
$1,350,000-$1,500,000 (those were the post-auction prices they verbally mentioned, not necessarily the public "list prices")
2000-2250+- Sq Ft ($600 - $750 per sq ft)
3 Bed | 3 Bath
1 garage parking
I have kept an eye on this building since they broke ground, and for some reason has been a favorite of mine. Just off the auction Saturday, I was excited to get in to see what the new pricing would be. Admittedly,
I hadn’t been in the building since going to the model when it was under
construction so it was nice to see the finished product. Some of the things I liked were the direct elevator access to the units, the large master bath, and large living room. But, if
you are on a lower floor and closer to the Clarendon side of the
building the master bedroom can be very dark and right up against neighboring buildings - which is reflective of the new pricing. That said, the condo we saw on
the 7th floor is a great value at the
$1,500,000 price quoted today.
1 Charles #1202 (individual seller)
$1,499,000
1651+- square feet ($907 per sq ft)
2 Bed plus Den | 2.5 Baths
2 garage parking
This condo is actually two one bedroom condos that were combined into one unit. This
particular unit was not my taste as the buyer made a lot of specific
modifications to the unit – including a lot of bold paint and wallpaper. All
of this could be easily altered, but based on the price and view (western
exposure), it was not to my buyer client's taste either. It also felt chopped up and more of a collection of rooms lacking flow.
1 Charles #9H (individual seller)
$1,397,000
1571+- Sq Ft ($889 per sq ft)
2 Bed | 2 Bath
1 garage parking
This unit is in the North Tower, which tends to be a bit more private than the South Tower at One Charles. This condo was less customized than some we had seen in the building and was more suitable my client's taste. The
views of the Park Plaza and Back Bay were nice and the condo was
high enough up to get a lot of light for any exposure. In my opinion it is a well priced condo compared to others on the market in the building, but nothing jumped out about it.
1 Charles #906 (individual seller)
$1,685,000
1554+- sq ft ($1,084 per sq ft)
2 Bed | 2 Bath
2 garage parking
The price difference on this one is the exposure, being a corner unit, and the huge balcony. The balcony really makes this condo. The living area is all windows with southern and eastern exposure…and it is reflected in the price. By
far, this is the best of the three we had seen in the building for the
day, and that's why it is asking a premium price 10% higher than the other two condos we
looked in the building.
45 Province - Downtown (we looked at three developer condos)
$1,100,000-$1,450,000
1300-1600+- t ($846 - $906 per sq ft)
2 Bed | 2 Baths
1 garage parking
I really like the concept and location of 45 Province. The building offered the BEST city views for the same if not lower price
than some of the others we saw, but the location is more “Downtown”
and isolated from the core neighborhoods. I am excited to see Downtown Crossing go through a transformation, which will greatly benefit 45 Province down the road, but its not quite there yet. I also really liked that the building offers about 120 different floor plans out of 138 units! I
think this is a great idea for a large building and will
help when owners sell in the future to be offering unique products. From
the spa services offered by Exhale to the overall vibrant and chic feel of
the building, there was a different vibe than the Back Bay buildings. I
don’t think the location will work for my buyer - location will
be the largest objection for most buyers but there is a lot of potential because the condos are priced competitively to get people to buy into the
neighborhood and building.
| 
|
South End Atelier 505 - 505 Tremont Street #202
$1,585,000 (was reduced to $1,499,000 just after our showing)
1692+- sq ft ($936 per sq ft)
2 Bed plus Den | 2.5 baths
1 garage parking
In my opinion this building is THE building in the South End. Since opening in 2003, I have been a fan of this building and how it has helped transform this block of the South End. The unit is huge. Actually, it felt like it was the largest of what we saw today, but was about 400-500 square feet smaller. We were a little nervous going into see this condo as it is on the 2nd floor and we thought it may have been dark. To our surprise the ceilings were high and it offered large windows. The
unit faces Warren Ave which is both quiet and is a wide street at that
point for the South End, so it allows for a lot of light given the
floor height.
D4 South End - 7 Warren Ave #1 (individual seller)
$1,285,000
1660+- square feet ($774 per sq ft)
3 Bed | 2 Baths
1 garage parking
This large three bedroom condo with private entrance had probably the most “brownstone” feel of the selection. The building offers a lot of character as well as the unit. This particular unit is just above street level so it offered less light and did not have any views to speak of. I liked the idea of a private entrance, and the space was great for the price compared to the condo at Atelier. I wasn’t a fan of the security/concierge setup in the lobby and a=some of the finishes in the condo.
Penny Savings Bank - 30 Union Park St #301 (individual seller)
$999,000
1265+- square feet ($789 per sq ft)
2 bedrooms | 2 baths
2 garage parking (for an additional $100,000)
I had followed the press on this building since 2007 but only recently had the opportunity to get into the building. I really LOVE the location and exterior feel of the building. This
unit is a great value in my opinion as the sellers really customized
this condo which offers a lot of “toys” for any potential buyer. Three things buyers want – Light, parking, and outdoor space. This condo has it, and is on the lower end of what we saw today.
The Carillon - 183-185 Massachusetts Ave #803 (individual seller)
$995,000
1220+- sq ft ($815 per sq ft)
2 Bed | 2 Bath
1 garage parking
Large spacious two bedroom condo location in a quite boutique Back Bay building on Massachusetts Ave. The Carillon is a 32 unit building located on Massachusetts Ave close to the intersection of Boylston Street. One
of the partners at Charlesgate has often been quotes as saying “Mass
Ave is it’s own market” and I think this holds true to this
building/condo. The interior of the condo felt a
bit dark, the outdoor space with the unit was very minimal and not
functional, and some of the finishes were not the quality of the other
building we had seen. BUT – this is the least expensive condo we saw today so I must keep that in mind. The up side is that there could be some minor cosmetic changes that could really brighten up and add value to this condo. One red flag to me was the high condo fee of $920 in a building which there was no concierge or doorman. The
listing agent did not have much of an explanation for the high condo
fee – I will need to investigate further if our client wants to further
pursue this condo!
And the winner is......
The winner is…505 Tremont #202 – Atelier. I really am a huge fan of this condo and building overall. The location, amenities, high ceilings, and layout of this condo stand out among the various condos we looked at today.
If you have an questions about these Boston condos or another other luxury real estate, I'd be happy to answer them - just contact me!
[This is a guest post from Jessica Later, a skilled
buyer agent on my team here at Charlesgate Realty. If you have any questions, contact Jessica].
If there is one question I get most from my first time home buyer clients, it's this: "How long does it take to buy a home?"
Unfortunately there is not necessarily a hard and fast answer I can give that applies to all buyers. The home buying process in Boston can vary so much person to person and home to home, so there are few purchases, if any, that follow the exact same time frame. At Charlesgate Realty, we had one client start their search and be moved into their brand new home all within 3 weeks and we've had another that took 3 years of pretty consistent home hunting before closing on a new home. And, of course, we've had everything in between as well.
That being said, there is a process to buying a home. There are steps along the way, some can happen simultaneously, while others must follow in progression. These steps are detailed in the Home Buying Timeline document pictured to the right (download it by clicking the graphic).
The biggest variable in terms of the home buying timeline is how long you to search in order to identify the home you want to buy. According the the National Association of Realtors Home Buyer Survey in 2008, the average buyer actively searched for 10 weeks prior to identifying a property to buy, and viewed an average of 10 homes total over that period (and that's usually after a while of searching for homes online). There is a lot of variability in that, of course. For example, we worked with a couple relocating to Boston, who were visiting for a few days and needed to locate a home that would be ready to move into when they came back for their job start date. After a whirlwind tour of 25 homes over a long weekend, they had an offer drafted minutes before they boarded their flight at the airport! The bottom line is that there is no rush if you want to take it slow but we can also move the process along as fast as possible if you're under the gun for some reason (like relocation).
Generally speaking, after the search phase, from the point when you identify a property you would like to buy, it is about a 6 week process to buy. During that time there are 4 main steps:
1. The Negotiation
Typically taking 1-3 days (although these days given conditions in the Boston real estate market, extended negotiations seem to be the norm!), you submit your offer to purchase and negotiate with the sellers all the nitty gritty contract details. (In case you're wondering about negotiating tactics, start with these 5 questions).
2. Due Diligence
Once negotiations are complete, things kick into overdrive for a period of about 10 to 14 days. During this time, you'll have your home inspection, review the financial and legal records of the association (if you're buying a condo), communicate with your lawyer about the full purchase contract (P&S agreement) details, and start the next step....
3. Obtaining the Mortgage
By this point you would have already been preapproved for a mortgage, but now you'll be completing the full loan application, providing your mortgage rep with all necessary verification documents (tax returns, etc), and officially deciding which loan program to go with. The bank will review your documents, have an appraisal on the property completed, and finally approve your loan (hopefully!) in about 2-3 weeks.
4. The Closing
The closing is scheduled at the convenience of both parties - the buyer and the seller - and is part of the negotiation process at the beginning to decide on an acceptable date. Generally 4 weeks or so after the purchase contract is signed, which gives give the bank enough time to approve and fund your home loan, and gives the closing attorney enough time to verify clear title for the property.
That brings you to about 6 weeks from the initial offer, plus the search time prior to that, in total to purchase your new home or condo.
Buying a home can be a long and complex process with a lot of steps along the way - but it doesn't have to be difficult or stressful! Hopefully this info explained the basics of the process and gave a ballpark time frame to purchase. Part of my job as a buyer's agent is to fully educate my clients on the home buying process in Boston and on the Boston real estate market conditions to protect them from potential pitfalls and delays along the way. If you are thinking of buying a home or condo in Boston, I'd be happy to answer any questions you may have. Just contact me or comment below!
And don't forget to download the Boston home buyer timeline!
I know posting has been a bit slow around these parts lately (sorry!) but I'm working on a few new website enhancements for this site and also for our Boston Apartments site that have been keeping me busy. I'm planning to get back to a more regular writing schedule over the next few weeks, but in the meantime I'll try to try to keep you updated on the Boston real estate market the best I can - it's a strange market out there right now! Anyway, here's a quick statistical update for the past month's data:
Boston condo market statistics for September 2009
315 Boston condos in total were sold in September 2009 for a total value of $142,587,900 and here's a summary of the market statistics from MLS
(with August 2009 stats in italics and September 2008 in parenthesis as comparison):
Number Sold: 315 456 (311)
Average list price: $477,502 $498,642 ($550,437)
Average sale price: $452,660 $476,203 ($525,300)
Average discount ratio: 5.2% 4.5% (4.6%)
Average days on market: 105 106 (98)
Average price per square foot: $453 $484 ($526)
Total market $ volume: $142,587,900 $217,148,568 ($163,368,300)
Notable Boston condo sales from September 2009
Here
are the 5 lowest and highest priced Boston condos sold in September. I have included a
photo, quick specs, and the first line of the description from MLS to
provide a little background.
Top 5 Least Expensive Boston condos sold
5 Creston Pk - Unit 3 | Dorchester
3 Bed | 1 Bath
Sale Price: $30,000
Subject to Third Party Approval. Sold "as is". No utilities are on at present time.
14 Lyndhurst St - Unit 1F | Dorchester
1 Bed | 0 Bath
Sale Price: $44,900
Fannie Mae owned. This unit is under construction. There is no kitchen and no bathroom. This property will not qualify for financing.
138 Ballou - Unit 3 | Dorchester
2 Bed | 1 Bath
Sale Price: $50,000
Please be advised that this property is listed post-foreclosure, and therefore caution should be exercised by brokers and their clients during any entry and inspection of the premises.
69 Moreland St - Unit U:2
3 Bed | 1 Bath
Sale Price: $58,000
Good sized condo, renovated within the last few years. Own for less than renting!
800 Washington St - Unit 3 | Boston
3 Bed | 1 Bath
Sale Price: $59,900
Third floor condo. Unit is in fair shape but there is NO CONDO ASSOCIATION = NO 6D = CASH DEALS.BANK SALE. SOLD AS IS.
Top 5 Most Expensive Boston condos sold
404 Beacon Street - Unit 4 | Back Bay
3 Bed | 2 Bath
Sale Price: 2,085,000
Luxurious 3bd, 2113 sqft Condo. Entire 4th Floor of a Converted 19th Century Corner Mansion w/Commanding River & City Views.
134 Beacon - Unit 102 | Back Bay
3 Bed | 3 Bath
Sale Price: $2,500,000
Height of elegance.Superb 2,427 sf parlor duplex (5 unit 2009 renovation) on prime waterside Beacon/Berkeley.
185 Marlborough - Unit 1 | Back Bay
3 Bed | 3.5 Bath
Sale Price: $2,500,000
Spectacular New Renovation on sunny side Marlborough Street.
196 Beacon St - Unit 3 | Back Bay
3 Bed | 3 Bath
Sale Price: $3,000,000
Located in a meticulously renovated 3unit waterside Beacon Bldg centrally located in Back Bay at Clarendon St.
220 Boylston Street - Unit 1220 | Back Bay
3 Bed | 3 Bath
Sale Price: $3,500,000
At Four Seasons Place. Very rare, front-facing, corner 3 bedroom unit with magnificent views of the Public Garden, down Boylston St and beyond.
[Here is a guest post from Jessica Later, one of the skilled buyer agents on my team here at Charlesgate Realty Group. Please enjoy her post about foreclosures, and if you have any questions, please comment below or contact Jessica].Banks all work differently when trying to sell their REO (bank-owned foreclosures) property, but they all have the same end goal: To sell the property quickly and try to get the best
price they can. Like normal sellers, banks are not just going to give away money, they
need to recoup their costs as well. That being said, when they bring a property to market, it is often after many months of holding and maintaining the property through the foreclosure process so they often prefer to get the property sold very quickly - which is why many foreclosures sell for a discounted price and can present opportunities to savvy buyers.
As an example of a foreclosure in the Boston area being listed at a discount to the market, we are just about to list a bank owned property at the Regatta Riverview Residences in Cambridge that literally has had a $110,000 price
drop! It was last listed pre-foreclosure for $539,000 and the bank just gave us their new listing price of $430,000. Whatever the motivation is for them to get this property off their balance sheet, apparently the bank truly wants to "unload" this condo.
Although there have been a handful, we don't see a lot of foreclosures in high rise or full service buildings like this (most foreclosures in the Boston area are in neighborhoods concentrated with multifamily homes). In this case, Regatta Riverview offers a
concierge, movie room, office room, pool, gym, and
valet parking - definitely full service. The condo itself is a 1040 square foot corner unit which includes two large
bedrooms, two sizable bathrooms, and a renovated kitchen w/breakfast
bar. One valet parking spot is also included.
All other two bedrooms currently listed in building range from $499K-700K, so there's probably some solid value here.
There are certainly some issues to be aware of when making an offer on a bank owned foreclosure, generally speaking the process works similar to a typical sale process. Negotiating with a bank can be a little more cut and dry than with an individual owner and foreclosures are sold "as-is" so don't expect to get any repair work (if needed) done by a bank. It also can take a bit longer to get an answer to your offer - they work banker's hours, after all!
We're finalizing some of the marketing collateral and details but in the meantime, to inquire about this property or discuss the foreclosure purchase process in general please contact Jessica Later at
857.383.3122.
With Labor Day coming up Monday (too soon dammit!), which usually leads to the end of the typical summer slowdown in the Boston real estate market, what surprises can we expect for the fall market?
Here are the key factors in the Boston real estate market right now:
- Inventory of properties for sale is limited. For example there are now 697 downtown Boston condos for sale (versus 960 at the beginning of the summer). At the current sales pace, that is equal to 4.5 months of supply of condos on the market now. In certain neighborhoods, the inventory is even tighter - there are only 2.7 months of supply of South End condos for example.
- Sellers waiting for the fall. Anecdotally, I've heard stories of many sellers holding off putting their property on the market until the end of summer, after vacation season to expose their home to more buyers. This has led to the decline in inventory over the summer, and I suspect
will lead to an increase soon, offering buyers more selection. Since many buyers have been waiting for a better selection to choose from, we could see some increased activity to satisfy that demand once the right condos become available.
- Price corrections. Over the summer, the prices of 376 downtown
Boston condos were dropped by an average of about 5%. Seems like
sellers are a bit more realistic on pricing and are willing to come
down a bit to offer value to buyers.
- The end of the $8000 first time home buyer tax credit. Ending on November 30, 2009, this has been spurring buyers (mostly in the sub $450K market since there are income limits to claim the credit) to act now to make sure they get the "free money" from Uncle Sam. I suspect this activity may pick up over the next couple months before receding over the winter once the program ends (although there has been some talk of extending the program into next year).
- Boston luxury real estate market. 72 one million dollar+ condos in Boston went under agreement over the past 3 months (versus 42 in Q1 and 70 in Q2, which is traditionally a busier time of year). And that's only down 20% versus the same period a year ago. Yes, still clearly down, but by a much smaller gap than Q1 and Q2 were compared to a year ago (58% and 38%, respectively). Maybe some signs of life for the high end market.
So what's in store for the Boston real estate market?
The low end of the market ought to be very active in a rush to claim the tax credit, the high end is showing signs of life, and the economy is improving overall. I expect we'll see healthy activity pre-Thanksgiving in the Boston real estate market with mortgage rates still at extremely low levels and consumer confidence improving recently. After Thanksgiving, I certainly think we'll see a slowdown in the market (a combination of typical winter slowdown and the end of the tax credit). Heading into 2010, all eyes will be on the economy and whether or not jobs are being created by early 2010, which I think will be the key to the real estate market recovery next year. There will still be some bumps ahead for sure, but signs are looking much better that we'll see a recovery in the near future.
Enjoy the last weekend of the summer!
I just wanted to let you know that I will be holding a first time Boston condo buyer class at my office on September 9 from 6-8pm. Class is probably not the right word, since it will be a fairly small, interactive presentation (actually more of a discussion and Q&A, I hope), but that's what we're calling it I guess! We'll have food (and beer!) and just talk about the market conditions and the buying process.
The information presented will be specific to the condo buyer looking to purchase a condo in Boston or in the nearby surrounding towns. We'll dig a little deeper than the standard "how's the market doing right now?" questions and discuss topics like:
• Renting vs. Buying: Whether it even makes sense
for you to buy right now
• Homebuying process and timeline: How long it
actually takes to buy
• Working with a buyer agent: How it works and whether
or not you really need one
• What mortgages are still available for condos and how much
cash you need to buy
• Using neighborhood level data (like discount
ratios and real time trend graphs) to value properties
• Negotiating: How to craft your offer to drive
a hard bargain
• Top 10 online resources to aid your home search
Click for more info or to RSVP
Hope to see you there!
Similar to how I wrote about the Boston real estate market in April and May (sorry - I skipped June), here are the Top 5 highest and lowest priced Boston condos sold in July.
The price range is always astounding to me - this month the highest priced condo in Boston sold for 100 times more than the lowest priced condo. And these two properties are only a hair over 2 miles away from each other - easily walkable. Two miles and 100x the price. Amazing. And this is even a smaller price range difference than in either May or April!
Boston condo market statistics for July 2009
Before I get to the most and least expensive properties,
464 Boston condos in total were sold in July 2009 for a total value of $200,795,740 and here's a quick summary of the market statistics from MLS
(with June stats in parenthesis as comparison):
Number Sold: 464 (411)
Average list price: $449,546 ($486,463)
Average sale price: $432,749 ($464,784)
Average discount ratio: 3.7% (4.5%)
Average days on market: 95 (89)
Average price per square foot: $444 ($465)
Total market $ volume: $200,795,740 ($191,026,021)
Top 5 Least Expensive Boston condos sold in July 2009
Here
are the 5 lowest price condos sold in Boston in May. I have included a
photo, quick specs, and the first line of the description from MLS to
provide a little background.
37-39 Folsom St - Unit 6
Dorchester
3 Bed | 1 Bath
Sale Price: $29,000
Bank Owned condominium. Investor Alert. Building in need of extensive repairs. No Condo Association.
247 WASHINGTON ST - Unit 1
Dorchester
1 Bed | 1 Bath
Sale Price: $30,000
This cozy first floor level unit is located on the bus line with easy access to shopping and so much more, bring your offer.
15 Boyden St - Unit 4
Boston
2 Bed | 1 Bath
Sale Price: $35,000
Please be advised that this property is listed post-foreclosure, and therefore caution should be exercised by brokers and their clients during any entry and inspection of the premises.
21 Bicknell St - Unit 1
Dorchester
3 Bed | 1 Bath
Sale Price: $37,900
Good Location near public transportation. Offer, pre-approval and/or proof of funds copy of earnest money deposit check, name, email and contact information for the buyers, buyers broker, buyers attorney and mortgage broker on the over cover sheet.
37-39 Folsom - Unit 5
Dorchester
2 Bed | 1 Bath
Sale Price: $39,000
Please be advised that this property is listed post-foreclosure, and therefore caution should be exercised by brokers and their clients during any entry and inspection of the premises.
Top 5 Most Expensive Boston condos sold in July 2009
228 West Canton St - Unit 1
Boston: South End Condo
3 Bed | 3.5 Bath
Sale Price: $1,875,000
Dramatic Parlor, Street and Garden Triplex offers 3+ bedrooms, 3.5 baths, deck off kitchen, private rear patio and 2 direct access deeded parking spaces.
776 Boylston Street - Unit E11E
Boston: Back Bay Condo
2 Bed | 2.5 Bath
Sale Price: $2,500,000
Five star living at the Mandarin Oriental w/full hotel services incl resident access to a lavish spa, wellness center, yoga/meditation, & Middle Eastern inspired Hammam.
96 Beacon Street - Unit 2
Boston: Beacon Hill Condo
3 Bed | 3.5 Bath
Sale Price: $2,650,000
Recently completed! Exceptional 3 bedroom duplex with private terrace and courtyard.
68 Beacon Street - Unit 7W
Boston: Beacon Hill Condo
3 Bed | 3 Bath
Sale Price: $2,695,000
Elegant, sun filled, seventh floor cooperative apartment in a distinctive corner, doorman building.
303 Columbus Ave - Unit PH1001
Boston: South End Condo
3 Bed | 2 Bath
Sale Price: $2,975,000
The Bryant on Columbus, an intimate enclave of 50 homes in a fabulous location, between Clarendon & Dartmouth Sts.
That's it for this month's edition of "perspective" on the Boston real estate market. As usual, amazing variation in Boston condos over just a few miles. If you have any questions about the market, just contact me and ask away!
What do you think of the difference in Boston condo prices? Comment below!
If you like what you're reading don't forget to subscribe by email or by RSS feed.
Looking for Boston condos or other property? Use our new map based search to search all Boston real estate for sale
Now that full July market data for the national, Massachusetts, and Greater Boston real estate markets has been released (plus I reported here about the downtown Boston condo market), we are seeing more and more positive signs in the real estate market. Some of the recent news coverage on both the state and national level has been very interesting:
- Home prices in major US cities rise for a second month (Wall Street Journal - need subscription)
- A strong gain in new-home sales in July (NY Times)
- Mass housing market shows signs of perking up (Boston Globe)
- July home sales climb 12 percent in Mass, price declines smallest in over a year (Banker & Tradesman - need subscription)
- Home prices, sales on rise in Boston area (Boston Globe)
So is it all good news? Is now definitively the "right time to buy"?
For the first question - Not yet. While we are seeing a lot of good news, it is not all good news. Prices in Massachusetts are still falling year over year (but at a slower rate for sure). Although the 2nd quarter Boston real estate statistics shown below do not include the improving July data, you can see this clearly. Signs have been pointing more positive each month and are signaling a bottom, but we aren't quite at the bottom just yet (price-wise). As sales rise and the market reaches an equilibrium, we'll see where prices finally level out. I would guess we are pretty close now, and typically you can't recognize an exact bottom until after it already occurs anyway.
A potential concern is the expiration of the $8,000 first time homebuyer tax credit on November 30th, which has been driving a lot of sales around the country in the sub $400K market segment. In the Boston real estate market we haven't seen as much of an impact as other parts of the country because prices are higher and many buyers make too much money to qualify, so we probably won't have as much of a "drop-off" effect. Plus there have been talks about extending the credit for another year, so the credit may continue into 2010 anyway.
Here are the stats mentioned above...
Greater Boston Single Family Home Statistics in Q2 2009 (by town):
Greater Boston Condo Statistics in Q2 2009 (by town): 
Overall, seeing signs that the real estate market and economy are improving (even
though unemployment is worrisome, we are very close to being officially
out of the recession as GDP growth turns positive) is very welcome. Now that we are at, or close to the bottom, brings me to my second question...
"Is now a good time to buy?"
To that question, I would say "probably", if your personal and family circumstances are leading you to buy. I'll always maintain that buying a home is a personal decision that can be right for some people and wrong for some people based on personal circumstances at the time. A home is first and foremost just that - a home. Can it also be a good investment? Yes, but the first criteria should always be selecting a good place for you and your family to live. That being said, if you have been watching the market and waiting for the "right time" to buy, this could be it. The Boston real estate market is more affordable to get into than in a long time, mortgage rates are at historically low levels, the opportunity for the $8000 tax credit is expiring, and trends are looking more and more like we'll be bottoming out and heading up soon (although I suspect we'll be looking at a long gradual recovery without any large price increases for a while). All of those things equal good opportunity.
If you have any questions about the market or whether or not its right for YOU to buy a home or condo in Boston, I am happy to chat. Just contact me and ask away!
What do you think of the market? Comment below!
If you like what you're reading don't forget to subscribe by email or by RSS feed.
Looking for Boston condos or other property? Use our new map based search to search all Boston real estate for sale
Although not all good, there's been a more steady beat of positive national economic and real estate news lately (see here, here, here, and here plus the economist survey from the Wall Street Journal below for some examples). Has this carried over yet into the local Boston real estate market, specifically the downtown Boston condo market?
To answer that, here are the sales numbers from July 2009 (compared to 2008 and 2007) for the downtown* Boston condo market:
JULY
| 2009
| 2008 | 2007
| Change from '08
| Change from '07 |
# sales
| 213
| 220
| 193
| -3.2%
| 10.4%
|
Avg $
| $635,040 | $698,114
| $644,994 | -9.0%
| -1.5%
|
Med $
| $520,000
| $535,000
| $508,200 | -2.8%
| 2.3%
|
| Avg $/ft | $639 | $648
| $656
| -1.4%
| -2.6%
|
| DOM | 101
| 89
| 92
| 13.5%
| 9.8%
|
*downtown is made up of the Back Bay, Beacon Hill/West End, South End & Bay Village, Fenway/Kenmore, Midtown, and North End & Waterfront neighborhoods.
As you can see from the numbers, the market is down slightly price wise from 2007 and 2008, but not by a huge margin. And, better still, the number of condo sales is about even with 2008 and actually up substantially from 2007. As we've been continually seeing, the prices in the Boston real estate market have been holding remarkably steady throughout the recession. But now in July we have transactions coming back - July is the first month in a long time where year over year transaction numbers have been comparable to the numbers of the past couple of years.
I don't know if this is the start of a trend in terms of the number of sales or just an anomaly, but as we start to turn a corner with the economy towards recovery, I suspect we'll begin to see more of a pickup in real estate market activity in Boston - similar to what's been going on in many other parts of the country for a few months now.
Do you have thoughts or questions? Make a comment below!
If you like what you're reading don't forget to subscribe by email or by RSS feed.
Looking for Boston condos or other property? Use our new map based search to Search all Boston real estate for sale