Tag: Boston real estate

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The Goode and Farmer Report – Boston Q1 Update

Excellent news for Boston is that condominium sales rose in the first quarter when compared with last year. All Boston neighborhoods combined saw an 8% increase in sales from 572 last year to 616 this year. Increased sales meant increased dollar volume in most neighborhoods. South Boston leads the way  in percentage increase with a 32% increase from last year to $33M in sales volume. . All Boston neighborhoods combined saw a 5% increase in sales volume from $321M to $338M.

The average sales price for a condo in Back Bay decreased 4% to $1,263K but the number of units sold increased 6% to 72.

On Beacon Hill the average sales price for a condo decreased 10% to $860K but the number of condos sold increased wildly by 30% to 30. Interestingly total days on market decreased by 37% to 114 days versus 180 days last year.

In the South End the number of units sold increased by 21% to 78 condo properties, also a very strong but not surprising increase, given the demand we are seeing in the neighborhood.

As mentioned South Boston saw a 32% increase in sales volume representing 19% increase in sale units. The average sales price increased 8% to $410K from $379K last year. If this were a competition, South Boston takes first place with these numbers… and average days on market decreased by 30% which is yet another indication of the demand for South Boston properties.

In general with sales up everywhere, and inventory still very low, the supply and demand dynamic is firmly in place. We are in the key Spring selling season and inventory is needed to maintain the strong sales pace we have seen so far.

 

 

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Real Estate This Week. Buyers Jump In!

The first full week of March. Continued low inventory and strong demand has created a dynamic where inventory is selling very quickly, many with multiple offers. Pending home sales increased  last month by 44% from last February as per the Massachusetts Association of Realtors. We usually start seeing an increase of market activity in early March culminating in May but this early activity is similar to what we see in a very busy mid spring market. Crazy for the first week in March.

Open houses on the last two Sundays were literally mobbed with 25 – 40 visitors at every open house. Very rarely have we seen 20 parties waiting to get into an open house on Sunday yet this scene was repeated in almost every neighborhood this past weekend.

While new proprieties are coming on the market they are selling just as quickly . The South End has 21% less condominiums available for sale than at the same time last year. Back Bay has 12% less.  Beacon Hill has 41% less. South Boston has 31% less condos for sale then at this time last year.

 

Our office put 11 properties under agreement in the last 10 days with a volume of $11M, and listed just 10. This is happening all over the city and does not allow for any appreciable and normal build up of inventory heading into the key spring Market. Those properties that went under agreement this weekend were 524 Massachusetts Ave #3, 94 Waltham St # 6 and 343 Commonwealth Ave.

 

There will be several new properties listed this week that were mentioned “around the table” in my sales meeting yesterday. This activity looks promising and hopefully will begin to build some listing momentum. All are very attractive, well priced properties with prices from $499K and up. Will they stick around long? I will let you know next week.

 

 

 

 

 

 

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Boston Up 1.4% From Low

The Standard & Poor’s Case-Shiller Index released this week shows that Boston real estate prices are up 1.4% from  our low in September 2005. Most parts of the country seemed to bottom out in the summer of 2009 and from there began a slow recovery. Many markets have now fallen below that 2009 “bottom” too, but not Boston.  The Case Shiller composite of cities index shows prices decreasing 1.8% since that composite “bottom” in 2009. Hmm…so that really wasn’t the bottom in many markets.

As we fortunate folks in Boston know, we fared much better than most. Atlanta has declined another 17.2% from its low in July 2007. Las Vegas has declined another 19.3% from its ow in August 2006. On the other end of the spectrum San Francisco has increased 8.7% since its low in in May 2006.

Here is some interesting context as we try to make sense of all this analysis and what it means  to us in our  specific neighborhoods. At 2005 year end, which was near Boston’s historic low, the average sales price for a condo in the South End was $527K. At year end 2011 the average sales price of a condo was $656K, an increase of 14.6%. At 2005 year end the average price of a Back Bay condo was $1,038K.  At year end in 2011 it was $1,045K, a .07% increase.

As you can imagine the 1.4% increase in prices from the low in Boston in 2005 represents an average of all neighborhoods.  This composite average price increase is a result of the incredible variety of prices, inventory type, location, condition, and of course supply dynamics in Boston, and drives home the huge variety of buying and selling opportunities that exists today.

 

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Real Estate This Week. Two Words. Multiple offers!

The first full week of February. Still no snow! Still no inventory.

Once again the story around the table at our business meeting was the 92 condos on the market in the South End.  A 22% decrease from last year at the same time. As I have said before, historically inventory is usually at its lowest level in mid winter, but this is  a new low.  In the $400K price range in the South End there are 15 properties for sale, only  1.75 months supply!

Many of our under agreements were products of  multiple offers. Properties that are priced well are selling quickly. Properties that have been on the market for a while are getting a second looks and selling. This is the view from the street.

The real estate outlook is running parallel to the bigger economic picture.  There is some momentum to the market, but it needs inventory to  fuel a strong spring selling season. The general economic picture is looking a bit more positive too.  A few more months of decent employment numbers and we just might be on a roll.

So far this week  (it is Thursday) 6 under agreements have come in. Three in the South End, one in South Boston, one in Concord and one in the Leather District, with list prices from $459K to $1,285K.  Agents are busy with buyers and sellers, and with temps in the high 40’s and low 50’s this weekend, we should see some great activity. I will give you an update next week.

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Real Estate Week In Review

Its February and you wouldn’t know it. There is no snow! Even better than that, the market is interestingly active.

The South End office had 7 under agreements this week. Our under agreements ranged from a property listed at $277K to one listed at $1,599K. Two under agreements over a million, 3 between $500K and $1M, and 2 under $500K.  This excites me more than anything. There is activity in all price ranges, and from what I hear around the office there are very serious buyers out there in all these price ranges just waiting for some good inventory.

 

The talk remains about the lack of inventory in all downtown neighborhoods. Available inventory is at an all time low of 2.23 months in the South End, and in certain price bands there is even less. The lack of inventory and strong buyer activity is creating many multiple offer situations. This is not mentioned to gin up excitement by any means but in order to maintain this early and healthy level of activity we do need additional inventory.

Some agents are even wondering if that winter vacation is such a good idea, as there is so much going on! I say go! Engage your coverage options and take a break as this early activity is boding well for a decent and busy Spring.

We had a great “robust” office meeting talking about the need to focus on a business plan and the need to utilize all the resources available in order to execute the plan, and of course the lack of snow and inventory. We had a fun agent and friends networking night out at Game On in the Fenway on Groundhog Day. I saw a post on fb this morning saying that Puxatony Phil is not a meteorologist and what the hell does he know anyway? 6 more weeks of winter? Hope not!

That’s it from here.

 

 

 

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Buyers Best Practices

Preparing to jump into the buyer pool in 2012? Below are Ilyce Glink’s tried and true steps. Ilyce is the home Equity Blogger from CBS Money Watch. Her advice is spot on. Steps 1-3 are just good financial practices. I think number 4 is the most important, and not because I am a realtor, but because the team you chose to surround yourself with to advise you in the biggest purchase of your life is paramount to a successful and profitable transaction.  Oy!..I could tell you stories about mismatched home buyer teams, and I probably will.

1. Pull a copy of your credit history and credit score. Mortgage lenders have become extremely conservative and restrictive in deciding which mortgages will get funded. Lenders will pull credit scores from each of the three credit reporting bureaus (Equifax, Experian and Trans-Union) and then use the middle score to determine your loans interest rate and terms. You need to know that information ahead of time. Go to AnnualCreditReport.com and receive a free copy of your credit history and then pay for your credit score (about $9). You can also go to each credit reporting bureau or MyFico.com and purchase a copy of your credit history and score, if you’ve already used up your freebies.

2. Practice good credit behavior. Lenders regard borrowers with credit scores above 780 as their best customers. Unless your credit score is above that level, you should work on eliminating any errors, and practicing good credit behavior so that your credit score rises. The best thing you can do? Pay your bills on time and in full each month. The next-best thing you can do is maintain four open and active lines of credit. Each credit reporting bureau offers good credit behavior tips for free on its website, or you can go to MyFico.com. (Full disclosure: I contribute real estate posts to the Equifax Finance Blog, where Equifax’s credit experts blog about credit trends and information.)

3. Shop around for the best loan. Even though the federal government is backing more than 90 percent of all the loans through Fannie Mae, Freddie Mac, FHA, VA and USDA, it pays to shop around. Make sure you talk to at least four or five lenders before you sign your application, including a “big box” lender, a small local lender, a credit union, a mortgage broker and an online lender. Use the information you glean from each lender to negotiate a great deal for yourself. Yes, you are allowed to negotiate with lenders and ask them to give you a better deal.

4. Create a great home buying team. Whether you’re buying investment property or a home to live in, you’ll want to create a team of real estate professionals who can help you find the right property, at the right price, on the right terms, without any headaches. The team should include a great real estate agent, mortgage lender, real estate attorney, tax preparer (with experience in investment real estate if you plan on buying real estate as an investment) and real estate inspector to start. Residential real estate investors will want to add a 1031 exchange professional and commercial inspector (if appropriate) to the mix.

Having the right team in place will go a long way toward making your dream of homeownership come true.

by Ilyce Glink, RE journalist, home equity blogger @ CBS Money Watch