Good to see some balance returning to the Boston market.
Housing Market More Favorable for Buyers This Fall
By Scott Van Voorhis
Boston.com Correspondent
Boston-area buyers have endured serious abuse over the past couple years, facing sometimes dozens of competing offers and cocky sellers dictating all sorts of demands.
While it is too soon to call an end to what has been an epic seller’s market, buyers are finding a less crazed atmosphere as they check out homes and visit open houses this fall.
An increase in the number of homes hitting the market across Greater Boston has meant there are more listings to choose from, brokers say. In some cases, buyers are even able to haggle over price, instead of simply asking “how high” before signing a purchase and sales agreement, notes Re Gibson, manager of Coldwell Banker Residential Brokerage’s office in Franklin.
“Get a house, period, is what you needed to do before,” she noted. “Now you have choices.”
The change has been particularly dramatic in Franklin, a growing suburb out on the 495 beltway between Boston and Providence. Last fall, there were just 40 single-family homes on the market. This year, that number has nearly doubled to 76, Gibson said.
Franklin is not alone in the number of mid-priced homes for-sale. It’s a trend seen across Boston’s suburbs.
Towns in Norfolk County, which includes Brookline and Dedham, and continues from Franklin to the Rhode Island border, have seen significant increases in the number of homes for sale. This is especially so in the $300,000-to-$350,000 range, and the $500,000-to-$600,000 range notes Alex Coon, market manager for Redfin’s Boston area office.
The western suburbs have also seen a big jump in mid-range homes, with 419 listings in the $500,000-to-$600,000 range, up from 358 last year. Days on market, or the time it takes for a house to snag a buyer, have increased to 98, up six day over last year.
With more homes to choose from, buyers are taking their time to look around instead of rushing to buy the first available house, Coon said.
“From the agents on the ground, there is definitely not as much of a sense of immediacy” on the part of buyers, Coon said. “It’s a great thing – it will allow people to have a little more of a sane approach.”
Some buyers are even able to engage in a fun activity many have come to believe no longer exists: negotiating over price.
Matt Hanson, a Redin agent who works in the Reading- Woburn-Melrose area, said homes that are in great condition and well-priced are still drawing two-to-four bids. But, if a house needs work – whether it’s a new roof or a tired kitchen – there’s room to haggle.
“I do think there is some room to negotiate when a house is not in move-in condition,” he said. Out in Franklin, Gibson says some buyers are able to talk down the price by two or three percent.
“We had a lot of multiple offer situations in the spring and summer,” she said. “We are not seeing as many now.”
Even Cambridge is not quite as crazy as it was in early summer, with homes staying on the market a week or two instead of getting snapped up in a matter of days or even hours, said Bill Aibel, a premium associate at Coldwell Banker.
“I am actually feeling a shift in the winds a little bit favoring potential buyers,” he said.
Here’s the latest installment of Bates By the Numbers, a weekly feature by Boston real estate agent David Bates that drills down into the Hub’s housing market to uncover those trends and people you would not otherwise notice.Follow him on Twitter and check out his ebook, Context: Nine Key Condo Markets, 2.0.
It’s Q4. And while Q4 is packed with holidays, let’s not forget that it’s also chock-full of home sales. Nearly 1,000 Boston condos went under agreement during the fourth quarter of 2013, and sometimes holidays and sales were linked—like last Halloween when 12 Boston condos went under agreement, what a treat. And, on Thanksgiving 2013, twoBoston condos sellers gave thanks as they signed offers with one hand and presumably held drumsticks with the other. Also, while you might have missed the real estate door-buster last Black Friday, four Boston condo buyers didn’t; they put condos under agreement that day.
Even on the night before Christmas, when all through the house, not a creature was stirring, not even a mouse… three Boston condo sellers could be heard countersigning offers. At least that’s what the MLS data shows. Then, on Christmas itself, one Boston condo seller got a present they may not soon forget. It wasn’t an ugly sweater or something to be re-gifted, it was an acceptable sales price, so they wrapped up the paperwork and went on their merry way.
Will Q4 bring joy to Boston-area real estaters in 2014. Why not? There are plenty of reasons to buy this Q4. Interest rates are low; and, for many, new babies and new jobs crank up the home-buying motivation. And let’s not forget that what we often want most in a new year is positive change. Hey, what’s more positive change than a new home? In the last week of 2013, a week where almost nothing of consequence happens for most, 45 Boston condo buyers put units under agreement, guaranteeing their new year would start off on the right foot.
Today’s buyers, who for one reason or another missed the spring market, will note that more Boston condos were available for sale on Oct. 1 than were available for sale on April 1. Additionally, it is highly likely that there will be more Boston condos available on Nov. 1 than were available on May 1. So, if you like selection, put on your condo-buying shoes. Of course, while buyers note more selection, they’ll also note fewer competitors as it’s traditionally a slower time of the sales year—even more reason to buy in Q4 2014.
While there are many reasons to buy this Q4, it would be an injustice not to point out that it can be a great time to sell as well. Last year, 865Boston condo sellers listed their homes for sale in Q4. And, although Q4 is not known for its buyer quantity, it might be remembered for its buyer quality. That’s because the median list price of a Boston condo that went under agreement in December 2013 was $449,000. Heck, the median list price of a Boston condo that went under agreement in April 2013 was only $429,900. Can there be any doubt that holiday décor and wishes for joy, peace and goodwill toward all adds to home values?
· Our Bates By the Numbers archive [Curbed Boston]
Here’s the latest installment of Bates By the Numbers, a weekly feature by Boston real estate agent David Bates.
If September was the month that you were supposed to put down the home sale and pick up the homework, then nobody told the Cambridge, Somerville and South End condominium markets. In Cambridge, the number of condominiums that went under agreement in September 2014 was 53 percent greater than did so in September 2013. In the South End, September under-agreements were up 64 percent. And versus September 2013, Somerville’s under agreements were up 18 percent and the median list price of Somerville under-agreements was up an impressive 20 percent.
These significant sales gains were in sharp contrast to the weak and somewhat flat results of many other Hub condo markets. In Back Bay, 17 percent fewer condominiums went under agreement in September 2014 than in September 2013. And, in Charlestown, September under-agreements were off 29 percent compared with the year before.
What was the leading indicator of how a market fared in 2014 versus 2013? Inventory, of course. In Cambridge, 40 percent more listings came to market this September versus last. The South End listed 20 percent more condos than it did in September 2013. In contrast, the Back Bay (-23 percent) and Charlestown (-23 percent) markets had significantly fewer condominium listings come to market than they had last September.
The increase in for-sale inventory and the advantageous market conditions combined to make this the best September for Cambridge pending sales since 2007. As well, according to MLS, data it was the best South End September for pending sales in at least as long. In Somerville, where nearly three times as many condominiums went under agreement as did in September 2011, it might have been the best ever September.
Will the uptick in pending sales continue in these key Hub markets for the rest of the year? It will depend on the amount of sale-able inventory that comes to market.
· Our Bates By the Numbers archive [Curbed Boston]
In the Far West End, from West Vine to The Moors, there are three large developments that have been going up in stages over the past few years. It has been fun to watch these substantial developments emerge from the ground, go to market, and then watch the second phase go up. These 3 developments consist of 6 condos with 6 more being built on W Vine; 17 condos total at Herring Cove village; and 9 single family home sites at Pilgrims Landing. A total of 38 units, a substantial number of quality properties and indicative of the energy and excitement of the real estate market here in our little fishing village.
(As always my caveat stating that much of the descriptive property below is direct from Cape Cod MLS so I am not responsible for spelling and grammar.)
57 West Vineis currently 6 townhouses with an additional 6 being built.
#C,$659K, 2bedroom and 3 bath, 1300 square feet. New construction townhomes in Provincetown’s west end are underway and can be purchased at pre-completion prices with the opportunity to customize some interior finishes. Constructed to the highest standards these tri-level townhouses feature: Anderson true-divided light windows, brick patios, mahogany decks, landscaped grounds, a/c, basements, laundry, and 2 parking spaces. The exteriors of each unit will be a mix of painted clapboard & gray stained shingles to give contrast to each home. The entry level is an open floor plan for kitchen, dining and living w/ gas fireplace. Each bedroom with ensuite bath is on a separate level to maximize privacy for you and your guest. Oak floors, tile/stone baths, crown molding, & 5-panel doors are just a few of the details that set these homes apart. Your new Provincetown home for summer 2013 awaits!
Phase ll at Herring Cove Village is the last phase of this successful and beautiful development on Bradford Street Ext. out at at the Moors.
#16, $1.399M, 3bedroom and 4 bath, 2,160 square feet. Introducing the brand new, top of the line, model unit for Phase II of Herring Cove Village, the West End’s most luxurious condominium, boasting countless amenities.These spacious free standing homes are built with entertaining in mind. The oversized designer chef’s kitchen is the hub of the floorplan,& features custom cabinetry, Thermador appliances, large custom center island, a contemporary gas fireplace, and conversation area. Sliders from the kitchen lead to a bluestone patio & large exclusive yard. There are beautiful dark stained maple floors and 9 foot+ ceilings throughout. The master suite has a walk in closet and a sleek double sided fireplace between the bedroom and large marble bath. The other 2 BR have ensuite baths. Enjoy water views from a 2-tiered roof deck that houses a hottub. Wired for central sound and home automation.
#12, $895K, 2 bedroom and 3 bath, 1,400 square feet. A one-of-a-kind unit at Herring Cove Village, the West End’s most luxurious condominium. This 2BR/2.5BA unit is laid out on 3 levels, and is the only unit with this size and layout in the newest section of the development. The high end kitchen & living room are on the first floor, with a gas fireplace to warm the atmosphere. Sliders from this level lead out to a blue stone patio, great for outdoor grilling and entertaining. Each of the floors above houses a private bedroom suite, with oversized living space & en-suite bath featuring custom tile work. From the third floor bedroom, continue up to a huge waterview roof deck that is plumbed and wired for a hot tub as an upgrade amenity. The unit has CAC and is wired for central sound and home automation. Shed storage and 2 parking. Under constr, Int. photos depict similar unit.
Pilgrims Landing is a 9 lot subdivision at the very beginning of Commercial Street being developed at what is know as the Murchison Estate. There are two building lots #8 and #9 on Commercial Street and 6 house lots in the gated section of the development. It looks like lot #2 is being built now and when done will be is one of the most dramatic homes in town. It is so exciting to see such a modernist home being built. Of course the Murchison house, otherwise know as the Gropius House stands atop the subdivision and is lot #7, is one of the most incredible examples of modernist architecture anywhere.
To see more of the original “Gropius House” go to Building Provincetown Blog. David Dunlap has done an incredible job over the years publishing wonderful facts about many Provincetown buildings. His blog is an absolute joy to explore.
Next I will highlight east end and downtown developments. Watch for these posts in the new year.
August in Provincetown….what a month of gorgeous weather… tons of fun, and great real estate activity. You have read posts of mine speaking to the positive energy around real estate in Provincetown. It continues!
Ten condos sold in August with an average selling price of $423K and averaging 792 square feet. Some of these condos are highlighted below. One caveat… these descriptions come directly from Cape Cod MLS… so if there are typos or issues with content or syntax , please don’t blame me.
There are currently 130 condominiums on the market with an average asking price of $481K.
163 Bradford Street sold for $220K, and is in the near East End of Provincetown. This bright, updated and spacious first floor condominium offers a master bedroom with en-suite bathroom and a second full guest bathroom. Comes with a deeded tandem parking space. Custom built- ins and electric fireplace.
57 Pleasant Street sold for $379K, and is in the neighborhood that we live in…and it is… a charming West End location, beautiful and spacious grounds and in a neighborhood of newly constructed properties. There is a large and lush fenced, exclusive backyard and patio area, as well as a good sized exclusive flagstone patio in front. There are two bedrooms, one with a sliding door that leads onto a small deck and the back lawn. The sunny living room has a gas fireplace and the galley kitchen is fully applianced with a gas stove, dishwasher and stacked washer/dryer and a door that leads out to the back. There are oak floors throughout .
11 Conant is in the near West End on a quiet side street and sold for $400K. a 2-bedroom, 1-bath penthouse is in meticulous condition with granite counter tops and kitchen island, stainless steel appliances and tiled bath and shower with glass block. Lots of charm in this renovated unit blending the old and the new with bead board walls and hand painted floors. Close to the gym and the Boatslip on a popular side street. 2-Car tandem parking, air conditioning, washer/dryer, exclusive patio plus lovely spacious common area to the side of the house.
5 Cottage is in the West End and sold for $479K. This very large one bedroom home is in a picture perfect West End location with views of Cape Cod Bay from the deck and living area! The home is completely renovated with every modern convenience and beautiful pine floors throughout. The kitchen features stainless appliances, granite counter-tops and opens to a large dining area and living room with wood stove, skylights and cathedral ceiling. There is direct access through sliders to the exclusive use mahogany deck, private yard with views of the harbor and an outdoor shower! The large bedroom has wall air conditioning, a private entrance and a tiled master bath with an over-sized shower and laundry. This turnkey home is a perfect second home and has a very strong rental history!
19 Creek Road is in the West End close to Victors restaurant and sold for $595K. This tri-level condo has two master bedroom en-suites, with additional half bath. This three unit association is currently being constructed with all the newest hurricane-force code requirements, and a fire sprinkler system. Painted clapboard and stained shingles, Anderson true-divided light windows, old brick patios and sidewalks, mahogany decks and a fully landscaped site will create an inviting exterior for each townhouse (+/- 1,174 sq.ft.). Careful attention has also been provided to the interior custom finishes and features, including oak floors, tile/stone bathrooms, crown moulding, 5-panel doors and choice kitchen cabinets and appliances and bathroom fixtures.
Six single family properties closed in August with an average sale price of $992K and of an average size of 1,562 square feet. Some of them are highlighted below. Currently there are 69 single family properties on the market with an average asking price of $1.501M.
6 Duncan Lane is down a sweet gravel lane in the East End of town and sold for $795K. This gorgeous single family home provides tranquil & private refuge, yet less than a mile to the center of town, & a little over 1 block to the beach. Built in 2009 this light-filled home features expansive sunny open plan living, with hard wood floors, gas stove & a stunning wood panel ceiling. The kitchen has recycled quartz counter tops & stainless appliances. A sliding door onto a large deck with outside shower. Den/guest bedroom & full bathroom, with subway tiled tub/shower, granite-topped vanity. The 2nd floor has cathedral ceilings, and is used as an office includes a master suite with a large en suite bathroom.
9 Arch Street is in the near East End between Bradford and Commercial near the library and sold for $800K. Renovated home located on a quiet, narrow street, 1/2 block to Commercial st. Enter the home through a secluded garden into open mud room . The first floor open plan has a spacious kitchen with center island and breakfast bar, and custom cabinetry. The dining area leads to a spacious living room with fireplace with imported tile surround. Ceilings are open beamed with original wood. Full bath with marble flooring and shower room with imported glass tile. The second floor has the 3 bedrooms with lots of light and peaks of the bay! The master has built-in cabinetry. The third bedroom serves as an office.
9 West Vine is between tremont St and Commercial in the near West End of town and sold for $1.2M. Completely renovated 5 bedroom 4 bath home located in the heart of the West End. There is a spacious living room, dining area and kitchen on the first floor which opens to a blue stone patio and fenced in yard. The kitchen features a large center island, Jenn-Air stainless appliances, granite counter-tops, a farm sink & marble back-splash. There is a master bedroom suite with a private tiled bath and separate entrance, as well as, a second bedroom and tiled bath on the first floor. The second floor features a second living or family room with gas fireplace, in addition to an office, three more bedrooms.
525 Commercial Street sold for $1.25M and was marketed and sold by our office. It is a Funky East End bay front home with multiple personalities. The original structure appears to be a marine related or mercantile structure dating from pre 1800 and is now known as the Not So Great Room with soaring 2 story ceiling and original folk art found object installation by Jackson Lambert. A 20th century addition is a large sunken living room with brick fireplace, wood floors and bay windows facing Commercial St and the bay. The most recent custodians of this gem added a contemporary solarium and deck on the bay and updated the kitchen and second floor bath a few years ago.
107 Commercial Street sold for $1.6M. There are only 15 single family waterfront homes in the west end – not since 2004 has one come to the market below $2M. The perfect beach house in the perfect location that usually exists in dreams. This charming 3-BD, 2-BA waterfront home enjoys great privacy and spectacular views. 1st floor has an open floor plan, exposed beams, wood-burning stove and fireplace (not in working order), with sliders leading to front and side yards and large waterfront deck with steps to the beach. Also on this level are a full bath and laundry. The 2nd level has 2 waterfront bedrooms with sliders to a common deck with ladder to rooftop deck. There is also a 3rd BD and BA on this level.
The properties illustrated above are all interesting in their own right. As a whole they illustrate the wide and attractive diversity of property for sale in town. My next property post will be a review of $1M properties sold and available for sale in town.
Michael Ferzoco is the principle of Eleven interiors and a contributor to my blog. The post below is a wonderful take on mixing different design elements to create soul.
I was recently asked by a client why I’m not proposing to use the same materials throughout a project. “Ugh… not again”, I thought. This question rears its ugly head more often than I care to admit. As is the case with many people, this client was afraid of mixing different wood grains and finishes on furniture, floors, built-ins etc. in any one room. I’ve had people question the use of different metal finishes on faucets and light fixtures. Many people believe that the finishes should be the same… that they should “match”. I hear things like, “But that doesn’t really match what we’re doing in the other bathroom” or “the wood on the coffee table doesn’t match the wood on the side table” or, my favorite “shouldn’t the bedside tables match?” My answer is always the same…. we never match anything. The magic is in how we mix materials and finishes together to create a space that has soul.
Yes, it’s okay to have zebra wood bedside tables next to a dark walnut headboard and platform bed all of which sits opposite a built-in cabinet that’s has a grey-wash-on-rift cut oak. Go right ahead and place a vintage chrome finished cocktail table with a glass top in the middle of your living room… the same room that has antique brass sconces on the wall and gun metal black hand-forged hardware on a credenza with a raw steel base. Of course it’s acceptable – very chic, actually – to use polished nickel faucets with bronze finish towel bars along with patina lighting fixtures in the bathroom.
Every room in your home should have a mix of various woods, various metals, glass, stone…. in some manner of combination… not that you have to use all of these elements in one space! Choose which elements are appropriate for which space and then branch out within that element and employ it in different ways. If you don’t take the risk of mixing the elements and the finishes, then you risk looking like you have no more insight to interior style than someone who purchases the 8 piece living room set (the phrase makes me cringe) at Bob’s Furniture. Trust me, I’m not wrong about this….
And when creating a successful space, it’s important to remember that you can continue to add pieces as long as you continue to edit along the way. The space will feel harmonious when the mix of furniture and accessories, in all their various finishes, are cohesively working together to create a thoughtfully orchestrated room with soul. It takes time and effort. It can be a bit of trial and error. But the results are well worth it.
I will be posting regular market reports for Provincetown and Boston on my blog. Here is the first Goode and Farmer Report for year end 2011 with an update for March 2012.
Michael Ferzoco is the principle of Eleven Interiors, the interior design firm he founded in 2005. Michael is a regular contributor to my blog adding a fabulous design component to the conversation. You can reach Michael at [email protected].
Given the “new economy” in recent years, most prospective clients considering a design project have had to tighten their belts. I’ve had my share of clients approach me with financial trepidation about starting a new project. They may have the finances, but they may want to implement the project in phases. And many, I have found, are also a bit leery of beginning a project without some kind of certainty that they’re budget will be honored. As professionals we owe it to our savvy clientele to “put it on the table”… to let them know exactly where they are financially at all times during the life of their project.
Budgets are a tricky conversation to have with a client. They often feel like they’re taking a leap of faith by telling a designer that they have a given dollar amount to put toward their project. I always insist on defining the budget. There can be that cat and mouse game where the prospective client explains what they want to do and then asks “how much do you think that will cost?” Well, it could cost a little or a lot, depending on how much they have available to spend! Yes, a kitchen can be renovated with Ikea cabinetry and basic granite countertops or it can be done in custom cabinetry with all the bells and whistles and Caesarstone countertops, or perhaps it’ll fall somewhere in between.
Every client’s project is important regardless of the budget. There are $20k clients and there are $500k clients….but to each of those respective clients, that’s a lot of green.
In an effort to “keep it all on the table”, I’ve always prepared a detailed budget and presented it to my clients at the beginning of a project. Inevitably, over time, that budget will change (the built-ins cost X instead of Y because they decided on a more, or less expensive, wood or finish; or they absolutely had to have those vintage chairs), but the client receives an update every week with the respective line item highlighted for their review and approval. That way, both of us can be assured that there won’t be any financial surprises at the end of the project. Good faith, all around. They share information with me and I share it with them. It makes the entire process so pleasant.
A client’s budget is the most important piece of information they can share with me. Of course, chances are highly likely that I’m going to spend it because that’s what they told me they had available to spend! But more than that, knowing the budget allows me to present clients with product that will work within that budget.
The buzz this past week in the market and in the office was of the extremely low inventory level of property for sale and in turn how this is effecting buyer engagement in the New Year. In stark contrast though there was lots of buyer activity this past weekend. Plenty of buyers were out at open houses, showings were plentiful for what inventory there is and from all reports buyers were excited and and motivated. The challenge for agents and buyers alike is to keep engaged in the process as we wait for the inventory level to increase.
MLSPIN shows 94 condos on the market for sale in the South End on January 13. Last year at this time there were 102. In comparison, there were 133 condos for sale in January 2010 and 134 condos for sale in January 2009 in the South End.
For context the historically highest level of inventory we have seen in the South End was 268 condos for sale in May 2009, the height of the Spring selling season, and the historically lowest level of inventory is now. Today’s inventory level is approximately 1/3rd the inventory of May 2009. Unbelievable!
What has created this low inventory level? In the last 30 days we saw 16 properties expire out of MLSPIN. 32 went under agreement and in the same 30 day period 35 sold. This sustained level of activity created a 46% decrease in inventory in the last 90 days! From 173 condos for sale in mid October to 94 today. Currently there is just 2.3 months supply of inventory in the SouthEnd with similar conditions in other neighborhoods. There is 4.6 months of available inventory in the Back Bay, 3.2 months in Beacon Hill, and 3.3 months in both Charlestown and South Boston. A normal market, at least nationally, balanced between a buyers and sellers market, is when between 6-8 months supply of inventory for sale exists.
This low inventory can usually be explained by the regularly lower inventory levels that are seen at the beginning of the year, and that is surely part of the answer, but I think there is more to it. There are many sellers who just aren’t putting their properties on the market because they see a new normal for price appreciation. On the other hand for those sellers who can see the opportunity in this rather unique historical perfect storm with lack of inventory and high demand for reasonably priced properties, there has been no better time in the last several years then now to market a property for sale. There is less inventory thus less competition, and demand is exaggerated by this lack of inventory. Interest rates are at an all time low too!
I am not playing the role of realtor cheerleader here, I am just relaying the facts. Although I may be an optimist I am a pragmatic optimist. Facts are facts and they all point to a market situation which is just begging for inventory. I will keep you posted week by week as we see how the Spring Market of 2012 evolves. It is sure to be interesting.
I love getting my hands on “hot off the presses” year-end sales results from MLSPIN, the real estate industry’s data platform. I have written in prior posts that the South End and the $1M+ markets in particular have fared well in 2011. Well, the good new continues as we look at initial year-end data.
Boston’s core downtown neighborhoods showed strength and resiliency in 2011. As a group of neighborhoods including Back Bay, Midtown, South End, Bay Village, Beacon Hill, Charlestown, Fenway, Seaport, Waterfront and the North End, the median condo sales price in 2011 was $545K, up 1% from 2010. The average condo sales price $769K, was down only 2% year over year. Total sales units were 1727 vs 1707 an increase of 1%. This is an important number as most of the year we had been up against the inflated sales numbers caused by the tax credit through spring 2010. Total core downtown neighborhood sales volume was even with 2010 at $1,329M. (That’s One Billion and three hundred twenty-nine thousand dollars in condo sales.)
When you look at all of Boston neighborhood’s*, including the core downtown neighborhoods and others from Allston/Brighton, Chinatown, South Boston, Dorchester, Roslindale, to W. Roxbury, the average median sale price for condos was $380K which was up 3%. The average sales price was $535K, up 3%.
These preliminary figures reflect a market that remains consistently strong, and resilient. We are extremely fortunate to be living in Boston, and experiencing a relatively strong market where opportunity exists whether you are buying or selling. Boston is a great place to be in 2012.
*MLSPIN groups all these neighborhoods under Boston when doing a general “Boston” search.