Tag: Boston condominium market

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analytics general info

The Goode and Farmer Report – Boston Q2 Update

The Big Number is 16%. That’s the increase in condo sales in Boston as of June 30. Combined, all Boston neighborhoods saw a 16% increase in the number of condo sales year to date, a 2% increase in the average price of a condominium sold, and a 5% increase in the median sales price. Put together all this good news is more evidence that while not necessarily out of the woods, this real estate market is healthier than most. The one downside to this exceptional sales activity is that inventory levels of available condo’s for sale have fallen 38% to 1,177 properties for sale versus 1,903 at th is time last year.

Boston’s most expensive neighborhood the Back Bay,  saw a 30% increase in sales while the average price  of a condo sold dropped by 11% to $1.162M. The inventory level of properties for sale dropped 31% to 168 condos for sale vs 242 last year.

The South End saw a 24% increase in the number of condo sales to 264 properties and  the average price of a condo sold increased 1% to $684K. The inventory of condos for sale decreased 45% from 208 to 114. Unless this condition corrects itself this will be a factor in market performance going forward.

South Boston, the darling of the my last market report moderated somewhat with a 4% increase in the average sales price to $408K and a 12% increase in sales to 235 properties sold through the second quarter. South Boston has the largest drop in inventory of all downtown n’hoods down 56% from 225 properties for sale last year to 99 available for sale today.

Every downtown neighborhood has it’s own story and most are positive excepting the inventory numbers. Total Boston numbers highlight the good news. Sales volume is up 19% to $1.080B… One Billion, 80 million dollars! Average days on market are down 12% and the inventory of properties for sale is down 38%.  These numbers highlight incredible short term performance but portend serious issues going forward.

 

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analytics general info

Low Inventory Pushing Prices Up In Boston?

Scott Van Voorhis  did a great post on declining inventory levels finally driving up prices in Boston.  I have excerpted the post below. The numbers are staggering in many of the markets shown.

Boston has landed near the top of a list of major metro markets across the country where low inventory appears to finally driving up home prices.

Boston comes in No. 11 on the report, having seen the number of homes on the market drop 37 percent over the past year, as of June 19, according to a new report by Movoto Real Estate. (Movoto is an national on-line brokerage whom I am certainly not endorsing but who did an interesting report). During the same period prices of homes on the market in the Hub have risen 11 percent to nearly $300,000.

Here’s an excerpt from Movoto’s report.

We are seeing a gradual increase in the prices of homes in areas that have been most affected by low inventory. This could be an indicator the housing market has finally pulled out of its slump. We’d like to think so.

Here are the two relevant sets of stats taken from the Movoto report. The first shows declining inventory levels in Boston and other major metro markets across country.

  • Las Vegas, down 66 percent
  • San Francisco, down 65 percent
  • Miami, down 62 percent
  • Fresno, down 52 percent
  • Oakland, down 50 percent
  • Long Beach, down 49 percent
  • Seattle, down 42 percent
  • Mesa, down 41 percent
  • Phoenix, down 41 percent
  • Portland, down 41 percent
  • Boston, down 37 percent

The second set of stats, also from Movoto, shows the rise in list prices in these same cities.

  • Las Vegas, up 52 percent
  • Phoenix, up 30 percent
  • Mesa, up 25 percent
  • Miami, up 23 percent
  • San Francisco, up 23 percent
  • Austin, up 22 percent
  • Oakland, up 17 percent
  • Seattle, up 14 percent
  • Fresno, up 13 percent
  • Long Beach, up 12 percent
  • Boston, up 11 percent

Combine more buyers with fewer sellers and prices start to go up.

That tried and true  economic law of supply and demand is always the reason why prices go up or down. As I say repeatedly… Empirical data does not lie.

 

 

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architecture general info

Highest Condo Sale In South End!

32 Rutland St #3L, the penthouse, is not only the most expensive condominium sold in the South End this year, but it is one of the most incredible penthouses ever built in our wonderful neighborhood.  This condo was one of six units built in the recent renovation of the old “Project Place” at 32 Rutland St, which was a homeless and low income assistance program (which is a great cause and still exists).

The project was marketed beautifully by Mary Kelleher and her team at Sothebys International Realty and sold by Briggs Johnson in the South End office of Coldwell Banker Residential Brokerage. Two of the best!

                 

This particular penthouse duplex is 1 of 6 units that has about everything that you could Imagine: Direct Elevator Access, 2 Fireplaces, Enormous Master Suite, Surround Sound throughout, 3.5 bedrooms, garage parking, modern metal and wood railings, 2 decks (with 1 being 1100sf with outdoor kitchen and grill and a 6 person hot tub, with tv). The Master bath is in a class of it’s own. It boasts a whirlpool tub with a tv built in, and the master shower has the Kohler 12 jet digital shower system which is just just crazy , oh, and a TV in the shower too. It has 3,145 square feet and sold for $2.6M which comes out to $827 per square foot.

                 

So far, 5 of 6 have been sold with the largest and priciest one left which can be seen here This unit is a large lower duplex with even more bells and whistles, so check out this listing.

Compare this property to the “Best on the Beach” Waterfront property I posted about a few weeks ago. An interesting comparison as to what close to $3M buys you in the South End vs Provincetown.

 

 

Categories
analytics

Boston South End Price Per Square Foot – Consistent

We all love price per square foot charts.  I think its because it is such an easy measurement to use to quickly determine a “baseline” value for a property. When analyzing property value in Boston most of us go to price per square foot (ppsf) first. In Provincetown price per square foot is not nearly as important in property valuation other than to compare and contrast property values with those in downtown Boston. Here in Provincetown the wide swings in valuation are caused by the huge variety of inventory including… Waterfront, East End, West End, renovated, “charming”, new construction, or weathered antique. The value of Cape Cod charm varies widely, but on average the price per square foot of condos sold is in the high $400’s to high $500’s. More on this in a later post.

Back to the chart. This South End ppsf chart shows a consistency over the last four years which is both surprising and reassuring.  This is evidence that the South End market is relatively consistent and stable relative to other markets both locally and nationally.

Below are examples of two South End sold properties and one on Beacon Hill showing price per square foot.

                           

Left t right: 470 Massachusetts Ave , in the South End, a 3 bedroom 3 bathroom Penthouse, 1,574 square feet, sold for $849K, $539 per square foot. Marketed by John O,Conner of Keller Williams and sold by Mike O’Hagan of Coldwell Banker Residential Brokerage.

40 Dwight St, in the South End, a 715 square feet parlor 1 bedroom, sold for $429, $715 per square foot. Marketed by Linda Ciborowski, Coldwell Banker Residential Brokerage.

10 Bowdoin St #202,  on Beacon Hill, a 706 square foot 1 bedroom, sold for $525K, $706 per square foot. Marketed by Paul Whaley of Coldwell Banker Residential Brokerage.

_________________________

In the last 4 years the lowest average quarterly ppsf of condos sold in the South End was $530 and the highest average per quarter was $629, a moderate swing of only 16%… and in the current quarter the average price per square foot of sold condos in the South End s $618 a strong number just off the 4 year high.

This is great news for buyers and sellers. The solid ppsf anchors the South End market near the high, and hopefully will prompt sellers to sell and buyers to see the potential investment potential and quality of life available to them in the South End.

Thanks to Joe Wolvek of Sothebys and his web site BostonRealtyWeb  for this chart. Joe used to work in my office in Boston and I always look forward to his analysis.

Average $ per square Foot Quarterly  Boston South End from LINK. 

Closed 1st quarter as of 3/31/2012: $618/SF
Closed so far 2nd quarter as of 5/19/2012: $602/SF
Top $/SF for 2011:   $1265/sf Atelier 505 #1001. 2529 SF 3 bed 2.5 ba for $3.2m

South End Boston real estate market average $ per square foot quarterly
Categories
analytics

Goode and Farmer Report – Boston April 2012

April… what a month for real estate in Boston! There was the national news story about the return of multiple offers in many markets, including Boston; The unprecedented lack of inventory for sale… down 35% and more in some downtown neighborhoods, and the core strength of the market in spite of these conditions.

For all Boston neighborhoods combined condo sales were up 10% YTD over 2011 to 948 condos sold vs 863 last year. The average sales price for a condo in Boston was $563K vs $549K last year, a 3% increase. Days on market were even down 10% to 113 for many reasons including the lack of inventory.

In the Back Bay the number of condos sold was up 19% to 115 versus 97 sold in 2011. The average sold price for condos was down slightly by 2% to $1.299M. On Beacon Hill the number of condo properties sold was down 7% to 40 versus 43 in 2011. The average sales price for condos on Beacon Hill was up 8% to $836K versus $777 last year.

In Boston’s favorite neighborhood, the South End, the number of condos sold through April was up 22% compared to 101 in 2011. The average sales price for those condos sold was down a modest 3% to $659K vs $682K last year.

In what has become one of the most active markets in the city, South Boston, all the news is good. The average price of condos sold YTD was up 5% to $414K, from $393K last year. The number of condos sold was up 17% to 123 from 105 last year, and average days on market was down 30% to 102 days vs 145 days last year. South Boston is happening! And with 143 condos on the market vs 254 last year, a 43% decrease this neighborhood is bound to remain hot!

 

 

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style trends

Mix Metal and Wood Species To Create Soul

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.

Categories
analytics

Boston Condo Inventory Down 32%

The supply and demand dynamic is firmly in place in downtown neighborhoods with not enough property for sale relative to buyer demand. Taking all Boston neighborhoods together, condominium inventory is down 32% from the same time last year – from 2,010 properties for sale last year to 1,360 today. In the South End there are 129 condos for sale versus 205 on the market last year at this time,  a 37% decrease.

Linda Ciborowski, a top South End agent with Coldwell Banker Residential Brokerage, sees two very interesting developments as a result of these depressed inventory levels.  Linda says, “Anything that shows well, is in good condition and in a desirable location sells with amazing speed. I’ve noticed two interesting things that make it even more important to be working with a good broker.”

“Brokers who don’t know the market are pricing properties too low based on old comps or too high based on false expectations. Initial pricing just seems more important than ever.”

 “Appraisals have become very difficult since the properties that have closed in the past 6 months don’t reflect the prices that new listings are going under agreement for due to prices being driven up by low inventory.”

In the Back Bay today there are 171 condos on the market compared with 240 last year. That’s a 29% decrease. In South Boston 145 condos are listed for sale compared with 232 last year, a 37% decrease. Reports are that there are not a lot of listings in the pipeline. Hopefully, we will see a surge in listing activity through the end of April and into May.

This low level of inventory poses a few issues for the strengthening real estate market downtown. The first being that inventory is needed to sustain the strong beginning to the spring market. The second is that high demand and low inventory creates what some may consider “irrational exuberance.” I don’t believe it is irrational. These conditions “on the street” have created this excitement… and the excitement is real!  Just ask any buyer who has missed out on a property or talk to any agent who has dealt with 40 people at each of their Sunday open house. It is exciting… and we will keep our eye on the market as we move into May.

Categories
analytics trends

Stable and Consistent! – The Over $1M South End Condominium Market

The over $1,000,000 high-end market gets all the attention. We all love talking about these fantastic properties! And interestingly enough, this market for all its glamour, has remained very stable and solid over the last two years in downtown Boston and specifically in the South End.

Year-to-date – as of 12.15.11 – 60 condominiums sold for over $1M in the South End vs. 64 last year. Broken down, 44 properties selling from $1M to $1.5M closed this year vs. 48 last year. Of those properties sold for $1.5M+, 16 were sold this year – the same number as last year.

Average price per square foot in this category is approximately $720 this year and last year it was approximately $702 per square foot. Very stable. The median price for properties sold for over $1M this year is around $1,575K vs. $1,525K last year. Again, very stable.

The average days on market (DOM) for properties above $1M was 140 days this year vs. 165 days last year. DOM is an excellent marker of market demand. The fact that DOM went down 15% this year means these properties are selling a bit faster than last year. This is a great sign of market strength.

The strong and consistent performance in the luxury market in the South End is excellent news for the market in general. These sales get all the glory, but they support the entire market as it instills confidence citywide. For those looking to buy or sell in any price point in the South End these encouraging figures should add an additional level of comfort for both buyers and sellers.

What is the prognosis for the above $1M market for 2012? I will post an update in the New Year with finalized year-end figures along with my thoughts on what I think the market might look like next year. I will also post the opinions of others talking about where they think the luxury market will take us in 2012. Stay tuned.

NOTE
All sales data are from MLSPIN
All price per square foot data are from LINK