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* Neighborhoods
covered: Back Bay, Bay Village, Beacon Hill, Charlestown, Chinatown,
Fenway, Leather Dist., Midtown, N. End,
Seaport, S. End, S. Bos, Theater District, Waterfront, W. End.
5/5/2009-
As you can see, the downtown neighborhoods as a group are doing a lot better than a couple of
months ago. The number of properties in our market area that are
going under agreement is way up and median prices seem to be more or
less holding steady. Click the buttons on the left to see
individual neighborhood results.
Why is activity
up? Even though this is traditionally the time of year that most
real estate gets transacted in Boston, it looked for a while that it
was going to be a very slow season season, and indeed, much of the
first quarter was a good deal less active.
Obviously,
extremely low interest rates have helped. A $500,000 mortgage at
6% yields the approximately the same monthly payment as a $555,000
mortgage at 5%.
The $8,000 first time homebuyer tax credit has helped, as
have somewhat lower prices.
Click for FAQ on the tax credit.
There may also
be a consumer confidence factor at work here as well: I
think that there is more of an expectation now that the economy may
stabilize in the not too distant future.
Additionally, while we have certainly suffered
increased unemployment here, it has not approached the levels seen in
many other parts of the country. Because of the variety of
industries located here, we will likely continue to outperform most
of the rest of the country.
This has actually become a very good homebuying
opportunity, and to my
experience, it is being perceived as such by the potential buyers
that I am helping and speaking with.
Why have prices not gone lower than they have? Here in
Boston, as I've discussed before, the supply is limited. While other
regions were overbuilding, that hasn't happened here, and indeed
it is just not possible to that extent here in the
downtown Boston neighborhoods. Right now, supply is tight to moderate,
and the buyer "pool", at least for now, is absorbing it--not
as well as in the previous few years, but still acceptably
well.
One niche that is
not performing well includes most properties in the full service hi-rise towers. Sales there have
been slumping. There however, appears to still be enough buyers for the
the creme de la creme units with the best views, highest floors,
most desirable layouts, etc. Our supply of those units here in
Boston is quite limited compared to, for example, New York.
Is the local
real estate market steadying out? That obviously depends to a
large extent on the national economy, and there's plenty of room for
differing opinions on that account. But it's apparent that downtown Boston
is one of the most stable places to be right now.
_____________________________________________________________
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. 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 |
