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5/1/08-- Please click on the buttons to the left to get
specific info about
individual neighborhoods. In
comparing the first quarter this year with last year in terms of
sales activity and prices as reflected by $ per square foot, some
neighborhoods were down, but there were also some that were up.
I try to
avoid giving spin in these reports, so take a look at the graphs on
the linked pages. The numbers come straight from the multilisting
services. These will give you an almost up-to-the-minute picture of
what's going on.
Price is obviously determined by supply and demand. For the
neighborhoods in which I work, supply both this year and last was down
from the elevated inventory levels of 2006. The wildcard is now
demand. It's actually been relatively strong around here, and
the recession that we may or may not be having has not effected us
here in Boston, at least not to a significant degree. The tightening
supply of mortgage money has definitely effected certain
transactions. The rules are getting stricter with regard to both
borrowers (credit rating, income vs. debt, etc.) and properties
(condo owner occupancy, reserves, presence of a commercial entity in
the building, appraisal). The brighter side of the mortgage business
is that rates are still low.
Also, in comparing
this data, please bear in mind that the recordings of sales through
the end of March are not all available yet for me to slice and dice,
and it'll probably be a couple of weeks until they are. I will send
out a final first quarter report when I have all the data available,
but I wanted to get you started with this so we can at least begin
taking a look at some of the trends.
As we move
farther into the
spring real estate season, we shall see what happens. So far, so
good. As usual, I'll provide the most recent data I can, and let you
draw your own conclusions, As I've said before, to paraphrase Mark
Twain (I thought it was WC Fields), reports of the demise
of the real estate market are premature. It's not the disaster that
the media is telling us it is. As usual, the truth lies somewhere in
between.
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The trick for buyers is to find and buy a
place you like at a price that reflects good value, and to get the
best possible price on it. This is no longer a market where buyers
have no options but to pay the asking price on a less than desirable
property.
There are now plenty of options as well as a good amount of choice. There's
still good demand, but there's more supply (read choice)
than in '04-'05, and this is being reflected in the days on market
numbers of many units that are not ready for prime time. (See
Buyer Services)
The trick for
sellers is to position, price, and market your property correctly
from the outset. Your property will attract the most
buyers within the first 14-21 days. After that, you've burned the best,
most motivated buyers. And when you change the price, fewer people
will be listening.
Used to be
that if I put an aggressively priced listing on in February,
by May, prices had risen to the point that that property was now
reasonably priced, and it was sold, usually with multiple
offers. Not so, now. We're not sure if prices will decline, but
we're pretty darn sure they're not going up. You want to get the
best price you can (l assume that's the case), so you don't want
to be playing catch-up with a potentially declining market.
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Price it correctly from the outset-I'll give
you hard data.
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Make sure it shows the absolute best it
can-I can help with that.
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Hit all the web venues hard-I've got that
all set up and ready to go.
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Best quality marketing, pix, virtual tours,
etc-
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See Seller
Services.
I hear a lot of my
broker colleagues who are listing overpriced
properties complaining, "Where are all the buyers?" And I tell them
that they're out there, but they're busy buying properties that are
priced right.
Neighborhood asking/selling differentials in most neighborhoods are
still in the 93-100%+(compared to last asking price) although that has moved
down a bit in many neighborhoods.
Buyers are still willing to pay for actual
value with regard to size, condition, finishes, location, etc.
But any unit on the market now must be in good condition,
show well, have the best possible marketing, and be priced well in
order to attract buyers to it. This is the only way to maximize the
price you get.
The market does not behave as a whole, in
unison. It is divided into geographic and financial segments, which
are all behaving differently.
The pages linked to the buttons on the left will
give you a great deal of info about market behavior. This
includes $/SF, asking-selling differential, as well as lots of other
stuff.
Both buyers and sellers should be aware of the
market conditions in the particular segment they're involved with.
Working with an experienced and knowledgeable agent can give you a
big edge. Now, more than ever, it is important for buyers to get
experienced help in executing a positive and comprehensive plan in
order to make the right decisions, in sorting out the worthwhile
properties, and getting help in negotiation and the transaction
itself. And now more than ever, it is necessary for sellers to
take advantage of the extensive marketing exposure, as well as
market positioning, and negotiating experience that I bring to the
table. I've been doing this for 15 years. If you would like more detailed info,
or help purchasing or selling your property, please
contact me.
And as always, if you'd like to search the
current inventory, click on the "Search Listings"
tab above.
Anyway, as I'm sure you
know, I stand ready to help you in either
searching for and purchasing property, or marketing and selling your
property.
And feel free to
contact me even if you just have some questions, or want to say hi.
Regards,
Joe |
