Tag: South End condo sales

Categories
analytics general info

Goode and Farmer Report – Boston April 2013

 Lack of Inventory – Still the Challenge

The Big Number is 45%. Combined, all Boston neighborhoods saw a 45% decrease in inventory of condos for sale as of March 30 compared last year at this time.  This decrease in inventory didn’t seem to effect sales as the average sale price went up 10% to $611K vs. $556K and the number of condo sales increased 3% to 644 units from 624. The median sales price increased 4% to $416K from $400K in 2012. On first glance this real estate market seems very healthy but a continuing decrease in inventory levels could create a problem going forward.

The Back Bay saw a 1% increase in condo sales to 74 units from 73 in 2012 while the average price of a condo sold increased by 12% to $1.489M. The number of condos available for sale dropped 50% from 183 last year to only 92 today.

The South End saw an 8% increase in the number of condo sales to 85 condos sold year to date compared to 79 last year. The average price of a condo sold increased 18% to $763K compared with $646K last year. The inventory of condos for sale decreased 57% from a very low 130 last year to a terrifying 56 today.

South Boston saw a 4% decrease in the number of condo sold to 80 in compared with 83 in 2012. The average sales price of a condo increased by 8% to $444K compared with $410K in 2011. The inventory of condos for sale dropped 49% from 154 in 2012 to 79 condos for sale today.

This market is so resilient and so desirable that declining inventory levels have not negatively affected the steady increase in sales and prices, although these increases have slowed somewhat. Spring will tell just how resilient the market is to very low inventory.

 

Boston Q1

Categories
analytics general info

$500K In Provincetown And The South End

Provincetown waterfront or the heart of  Boston’s South End. Two great condos priced at $500K (+-).  One in a waterfront complex in Provincetown and the other a new construction one bedroom/ one bath condo on Washington Street in the South End. Zero Worcester Square #F is being marketed at $822 per square foot, and 381 Commercial #9 is being marketed at $852 per square foot. An interesting comparison….and remember my caveat…descriptive copy has been taken directly from MLS.

 

Zero Worcester Square #F, $495K, ..1/1, 602 sf. Fabulous new construction one bedroom residence with private elevator access. This is a unique opportunity to live in an elegant contemporary space surrounded by a charming nineteenth-century view! This sun-filled corner home has walls of windows, a southwestern exposure looking over the Square, private balcony and hardwood floors throughout. The beautiful kitchen has three windows, gas cooking and is fully applianced. Located just steps from the best of the South End’s restaurants and shopping!

 

 

 381 Commercial St #9,  Bull Ring Wharf. $499K, 2/2, 586 sf . A charming home filled with Cape Cod charm provides the ultimate in beachfront living. Situated in the heart of Provincetown this newly renovated 2 bedroom condo has been updated with new custom tiled bathroom, new kitchen cabinets with granite countertops, new appliances and gleaming refinished wood floors throughout the living room and bedrooms. Quite simply this condo is the perfect Provincetown getaway or rental. There are 2 expansive common decks to enjoy sun bathing and beachcombing, all just steps from your door. Parking for one car, common laundry and extra storage for owners. Pets and weekly rentals allowed. Very strong rental history! Buyer to assume remaining sewer betterment.

 

Categories
architecture general info

Zero Worcester Square In The South End. WOW!

Zero Worcester Square is another great New Boston Ventures project going up on the corner of Worcester Square and Washington Street in the South End. David Goldman and his team have yet another success on their hands after their recent success at the Modern and the Modern 2.0.  The great team at Sprogis & Neale is marketing the project which has been selling very well.

From South End Patch

Zero Worcester Square Development ‘Ahead of Schedule’

Developer David Goldman said six of the nine units have already been sold.

Construction on the new development at the corner of Washington Street and Worcester Square, the former  Hite TV and Radio building, is “ahead of schedule,” according to the site’s developer.

New Boston Ventures, which bought the property in early 2012, said the new Zero Worcester Square condominium building was scheduled to be finished in the summer of 2013, but may be done earlier.

The six story, 10,000 square foot development will house nine units, with two at the garden level, one duplex unit, four one-bedroom units, and two penthouse units, Boston Ventures prinicipal David Goldman said. Behind the main building will be a separate townhouse.

“Construction is ahead of schedule and already six of the nine condominiums are sold,” Goldman said. “Steel is being installed right now.”

One of the building’s remaining condos is listed for $695k for a 1,100 square foot, two bedroom, one and a half bath duplex. “The living/dining/kitchen is only ten steps up from the sidewalk, and the two bedrooms are below.”

Construction on the property began in August. The large Hite Radio and TV sign was donated to the South End Historical Society.

Categories
general info

Local Market Performs Counter to National Trends

Regionally, existing-home sales in the Northeast fell 6.3 percent to an annual level of 590,000 in September but are 7.3 percent above September 2011. The median price in the Northeast was $238,700, up 4.1 percent from a year ago. (see post below)

How do our hyper-local markets stack up to national and regional stats for September?

In Provincetown condo sales increased 115% month over month from 8 sales in 2011 to 22 sales in 2012! The average sale price increased by 8% to $438K, and average days on market decreased by almost half to 193 days!

In downtown Boston the condo market performed differently in September. The number of sales increased 14% month to month to 333 from 292. The average sale price for condos decreased 6% to $525K from $558K, and the median price decreased 3% to $405K. Inventory decreased by almost half to 859 properties on the market vs 1515 last year.

So locally, which for me is Boston and Provincetown, sales are way up, prices are mixed, and inventory  is way down. Quite contrary to regional and national figures.  Go figure!

One of my favorites from  AGBeat blog, Tara Steele posts her regional and national analysis below.

by  in Economy, News 

Home sales down, prices up

According to the National Association of Realtors (NAR), September existing-home sales dropped 1.7 percent as inventory levels continue to tighten, also reporting that the median home price jumped up, the first time since November 2005 to May 2006 that prices rose for seven months consecutively.

Existing home sales may have dipped slightly, but are up 11.0 percent from September 2011. The national median existing-home price hit $183,900, up 11.3 percent from September 2011.

Dr. Lawrence Yun, NAR chief economist, said the market trend is up. “Despite occasional month-to-month setbacks, we’re experiencing a genuine recovery,” he said. “More people are attempting to buy homes than are able to qualify for mortgages, and recent price increases are not deterring buyer interest. Rather, inventory shortages are limiting sales, notably in parts of the West.”

Housing inventory and distressed sales

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 3.47 percent in September from 3.60 percent in August; the rate was 4.11 percent in September 2011.

Distressed homes accounted for 24.0 percent of sales in September (13.0 percent were foreclosures and 11.0 percent were short sales), up from 22 percent in August; they were 30 percent in September 2011. Foreclosures sold for an average discount of 21 percent below market value in August, while short sales were discounted 13 percent.

Total housing inventory at the end September fell 3.3 percent, representing a 5.9-month supply at the current sales pace, down from a 6.0-month supply in August. Listed inventory is 20.0 percent below a year ago when there was an 8.1-month supply.

“The shrinkage in housing supply is supporting ongoing price growth, a pattern that could accelerate unless home builders robustly ramp up production,” Dr. Yun said.

Median time on market down 30%

The median time on market was 70 days in September, unchanged from August, but down 30.7 percent from 101 days in September 2011. Fully 32.0 percent of homes sold in September were on the market for less than a month, while 19 percent were on the market for six months or longer.

NAR President Moe Veissi said some buyers who could easily afford a mortgage can’t assume they’ll get one. “Home buyers need to be more focused on the mortgage process in the current environment where lenders and banking regulators are being risk averse,” he said, recommending that buyers shop for competitive mortgage terms.

First time buyers coming back

First-time buyers accounted for 32.0 percent of purchasers in September, compared with 31.0 percent in August; they were 32.0 percent in September 2011.

All-cash sales were at 28 percent of transactions in September, up from 27 percent in August; they were 30 percent in September 2011. Investors, who account for most cash sales, purchased 18 percent of homes in September, unchanged from August; they were 19 percent in September 2011.

Single-family home sales declined 1.9 percent to a seasonally adjusted annual rate of 4.21 million in September from 4.29 million in August, but are 10.8 percent higher than the 3.80 million-unit level in September 2011. The median existing single-family home price was $184,300 in September, up 11.4 percent from a year ago.

Existing condominium and co-op sales were unchanged at a seasonally adjusted annual rate of 540,000 in September, but are 12.5 percent above the 480,000-unit pace a year ago. The median existing condo price was $181,000 in September, which is 10.0 percent higher than September 2011.

Regional performance varied

Regionally, existing-home sales in the Northeast fell 6.3 percent to an annual level of 590,000 in September but are 7.3 percent above September 2011. The median price in the Northeast was $238,700, up 4.1 percent from a year ago.

Existing-home sales in the Midwest slipped 0.9 percent in September to a pace of 1.10 million but are 19.6 percent higher than a year ago. The median price in the Midwest was $145,200, up 7.0 percent from September 2011.

In the South, existing-home sales increased 0.5 percent to an annual level of 1.93 million in September and are 14.2 percent above September 2011. The median price in the region was $163,600, up 13.1 percent from a year ago.

Existing-home sales in the West fell 3.4 percent to an annual pace of 1.13 million in September but are 0.9 percent above a year ago. With continuing inventory shortages in the region, the median price in the West was $246,300, which is 18.4 percent higher than September 2011.

Categories
analytics general info

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.

 

 

Categories
analytics general info

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.

 

 

 

 

 

 

Categories
analytics general info

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.

 

Categories
analytics trends

Inventory Scarce in The New Year

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 South End 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.