Tag: Boston real estate

Categories
analytics

Massachusetts July Home Sales Hit 7 Year High

Boston Business Journal by Lisa van der Pool, Broadcast/Social Media Editor

Date: Wednesday, August 29, 2012, 2:07pm EDT
Broadcast/Social Media Editor-Boston Business Journal

Massachusetts single-family home sales rose nearly 27 percent on a year-over-year basis in July, according to The Warren Group.

A total of 4,979 single-family homes were sold in the state in July, up from 3,922 during the same month last year, marking the highest level of sales volume in July since 2005.

Between Jan. 1 and July 31, 26,596 homes were sold in Massachusetts, a 24.8 percent increase over the same period in 2011.

“There are a lot of good signs pointing toward a real estate recovery,” said Cory S. Hopkins, editorial director of the Warren Group. “But we are comparing sales to a very depressed market last summer, so it’s important to step back and realign expectations.”

Condo sales also increased in July, rising 34 percent over the same month last year. A total of 1,994 condos were sold in July, up from 1,487 from July 2011, the Warren Group reported.

Categories
analytics

Call It A Comeback?

Tara Steele is the News Director at AgentGenius, a terrific real estate blog, covering real estate news, technology news and everything in between. Below are excerpts of  one of her recent posts asking the questions:  Are lowering inventory levels good or bad for housing? Are reduced sales a good sign or not? Is housing recovering, or are these just signs of life? I have posted about the shrinking inventory levels and how this is pushing up demand and prices. It’s a great question to ask. While it is a positive development that inventory is being absorbed, especially foreclosures, the lack of good inventory which is required to to fuel a recovery is an issue.

Is it time to call it a comeback?

Housing has had some recent signs of health, causing a frenzy in traditional media outlets who are calling a comeback for housing, but is it too soon? When a coma patient who has been nearly beat to death opens one eye, no doctor would call the patient recovered, rather showing signs of hope for a potential recovery some day. As housing has been beaten to a pulp and opens one eye and two or three indicators show improvement, many are desperate to cling to hope that everything is recovered, but that just is not the case, and pushing that idea that everything has recovered is unhealthy for those looking for the recovery. Let’s just say that the moment anything backslides, the overly enthusiastic commentators and their following will feel slighted.

At AG, we are not calling it a comeback, in fact, you’ll see with the positive reports coming out of housing recently, we say as much in the first few lines, so that when good news is delivered, there is a huge “but” on the delivery.

Economist, Dr. Kolko weighs in

We have noted that while some economists are allowing themselves to get worked up by tiny signs of life, Dr. Jed Kolko, Chief Economist at Trulia.com agrees with us that the good news should be taken as part of the whole picture, not independently as a sign of recovery.

Yesterday, the National Association of Realtors (NAR) reported that home prices have risen, but inventory is tight, explaining the lowered sales numbers.

Dr. Kolko agreed that the sales data reflects the tightening inventory, as it fell 24.4 percent year-over-year, telling AGBeat that “Although sales increased year-over-year, they’re only 35% of the way back to normal. The June sales level of 4.37m is much closer to the worst of the recession (3.77m in Nov 2008) than to its long-term normal level (5.5m).”

“The shrinking supply of foreclosed homes drives the drop in inventory and sales,” added Dr. Kolko. “The share of distressed-home sales fell from 30% one year ago to 25% in June. Sales of homes priced under $100,000 in the West – which includes lots of distressed homes — fell 36% year-over-year.”

Low inventory levels: good or bad?

Dr. Kolko notes that while inventory feels tight when compared to recent years, “it’s actually only slightly below normal levels. ‘Normal’ inventory is 2.5m, which is roughly 5-6 months of supply when sales are at their normal rate of 5.5m. Now, inventory is 2.39m, which is very near ‘normal’ but way below the elevated level of the past few years.”

Many are enthusiastic about inventory levels, but who does it benefit, and does it hurt anyone? Dr. Kolko said, “Tight inventory is good for some and bad for others. Tight inventory hurts buyers, helps sellers, and hurts real estate agents and others in the industry who depend on sales for their income.”

“Tight inventory is a necessary step on the road to recovery,” said Dr. Kolko. “As prices start to rise, buyers get impatient but sellers want to hold off. Longer-term, rising prices will encourage new construction and lift homeowners above water, both of which will bring more homes onto the market and increase inventory. But inventory has to shrink first before it expands.”

Categories
analytics general info

Boston Condo Prices Set Record… And A Scarcity Of Units Ensues!

Yesterdays Boston Globe article follows for those who didn’t see it. It is all the buzz!… and for good reason.

Globe Staff / July 24, 2012
Condominium values in Boston’s core reached a record high during the second quarter of this year as eager buyers drove up sales, according to data­ scheduled to be released Tuesday.
The median price in a dozen downtown neighborhoods — they include Beacon Hill, the Fenway, the North End, and South Boston — climbed to $515,000 during the three months that ended June 30, according to LINK, meaning half sold for more than that price and half for less. That topped the previous peak of $498,500 in 2008, just prior to the nation’s financial crisis. LINK, a Boston company, tracks the downtown condominium market.
The increase adds to mounting evidence that the state’s housing market is on the mend, housing specialists said.

“The feeling out there is prices are not going to soften anymore,” said Barry ­Bluestone, the director of the Dukakis Center for Urban and Regional Policy at Northeastern University. “We are seeing the real signs of a recovery in the housing market.”

Even during the worst years of the real estate industry’s decline, condominium prices in some of Boston’s more desirable areas fell only modestly, putting the local market in a better position to rebound. Prices and sales were propped up by higher-income homeowners who were hurt less during the recession, as well as by the increasing popularity of urban living coupled with limited inventory, housing specialists said.

“The city attracts young and old by providing fun and beauty, art and restaurants, all without needing a car,” said a Harvard University economist, Edward­ Glaeser, author of the book “Triumph of the City.”

Trisha Collins McCarthy, president of the Massachusetts Association of Realtors, said many condominium buyers like the idea of trading long, congested commutes for city conveniences. “We have more of a population that has said, ‘I want to be near the train,’ ’’ she said.

After dropping for a couple of years, downtown condo prices started to climb in 2010. This year, that growth has been bolstered by continued low interest rates and improving consumer confidence, according to housing specialists.

Condominium sales volume was up sharply during the second quarter of this year, to 1,051, or nearly 36 percent more than during the same three months of last year.

The median sale price of condominiums in luxury buildings — those that offer amenities such as concierge and valet services — also climbed.

The $779,000 median closing price for the luxury condos was 7.8 percent higher than during the second quarter of 2011, LINK said, compared with 7.5 percent higher for the all of the Boston neighborhoods measured by the company.

The number of luxury condo sales during the past three months increased by 22.2 percent to 198, the company said.

Statewide, single-family home values remained essentially flat in June, at $331,000, compared with June 2011, while the number of sales increased by 18 percent to 5,099, according to William Raveis Real Estate, Mortgage & Insurance. It is based in Shelton, Conn., but also does business in Massachusetts.

Even though more people are signaling they are ready to buy a condominium in Boston, real estate agents say they struggle to find enough units to show. Only 531 properties were available in the downtown area on the last day of June, about half the number up for sale on that day in 2011, LINK reported.

Eddy Foley, 45, said he has spent six months looking for a South End condominium priced in the $500,000 range. He found one he wanted, but lost out when someone else bid $34,000 over the asking price.

“It’s torture out there,” Foley said. “There’s really nothing available.”

Carmela Laurella, president of the Boston-based real estate company CL Waterfront Properties LLC, said condominiums priced reasonably are selling quickly.

Indeed, sales on the Boston waterfront jumped by 72.7 percent in the second quarter, compared with the second quarter of 2011. The median price for a waterfront condominium increased by 21.2 percent, to $827,000, LINK found.

“We have more demand than we have property to sell,’’ Laurella said. “We can barely list anything without it going under [a purchase agreement] within a couple of weeks.”

John Ranco, a senior sales associate with Hammond Residential Real Estate in the South End, said times have changed so drastically that real estate agents are now searching to locate interested sellers rather than wary buyers.

“The supply side is really hurting,” Ranco said. “There is a tremendous amount of pent-up demand.”

Jenifer B. McKim can be reached at [email protected]. 

Categories
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.

 

Categories
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.

 

 

Categories
analytics

We All Knew It – Home Sales Are Back

The comeback in home sales that many of us have been seeing hints of is now backed up with solid numbers. All reports are showing sales increases as well as declining inventory levels. Second quarter sales reports will show terrific numbers especially in downtown Boston neighborhoods. Sales of single-family homes in Massachusetts have bounced back to levels not seen since the Great Recession sent an already declining market into a tailspin. The Massachusetts Association of Realtors reported this week that May home sales were up more than 27 percent over the same month last year, while  The Warren Group pegs the jump at 35 percent.

The best news is that after hints of recovery for months, and most importantly our experience on the streets, the long-suffering real estate market finally appears to be living up to expectations and is finally in a recovery and coming out of the the deep trough it plunged into after the near global economic collapse of September 2008.

The 4,445 homes sold in May surpassed both May 2007 and May 2006 as well, when 3,884 and 4,200 homes were sold, respectively, in those months, according to a comparison of numbers from past monthly reports on the MAR website.

Look for articles and reports touting these terrific results and for the resulting positive effect on buyer and seller confidence.

Categories
analytics

Amazing Year-To-Date Sales In Boston

Stunning figures. In all Boston neighborhoods combined, year-to-date as of May 31, the average selling price for condominiums is up 12% to $542K. The number of condo sales is up 19% to 1,443. Total dollar volume is up 20% to $782,000,000. The number of condos available for sale is down an amazing 65% from the same time last year, from 2,132  to 1,293 condos for sale today.

The story continues to be inventory, yet the number of sales in downtown Boston neighborhoods is up markedly or at least even with last year, except in Dorchester where the number of sales was down 17% and where inventory was down 36%.

2 Commonwealth Ave $1.43M

 

In Back Bay the number of condominium sales is up 27% to 166 sales against 131 last year. The average sales price is down 7% to $1,154K and inventory is down 34% to only 174 condos on the market as compared to 264 last year. The total dollar volume of condominium sales year to date in the Back Bay is $191M.

 

 

 

 

40 Worcester St, 1B/1B, $439K

 

In the most popular Boston neighborhood, the South End, the number of sales is up 25% to 186 against 149 last year. The average sales price for a condo year to date is equal to last year at $678K. The unbelievable story in the South End is that the inventory of properties for sale is down 49% to 122 from 241 last year.

The pressure on existing inventory is acute. The fact that we are seeing both a substantial increase in sales units and a substantial decrease in inventory for sale has created an uncomfortable balance between buyer engagement and frustration.

 

 

 

26 Danforth St., 3B/1B, $380K

 

Jamiaca Plain is experiencing the same dynamic as the South End. The average condominium sale price year to date is $363K, a 4% increase from $348K last year. The number of sales has increased 33% to 120 from 90 in 2011. The number of available condominium properties for sale is 96, a 41% decrease from 162 available last year.

 

 

 

 

529 E 8th St, 2B/2B, $463K

South  Boston, our “other” hot neighborhood saw a 27% increase in the number of sold properties to 183 versus 144 sold last year. The average selling price for a condominium year to date increased 3% to $412K from $399K last year. The number of available condos for sale decreased 57% to 112 against 261 last year at this time.

In most downtown neighborhoods the sustainability of high sales numbers in light of the huge decreases in inventory levels poses a real challenge for market balance. As always market forces will come into play. We have begun to see this in the increases in sales prices. Barring a substantial increase in inventory this trend will continue.

 

 

Categories
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

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!

 

 

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.