It’s no secret that The Clarendon is out front when it comes to sales out of the group of new full service buildings. In 2011 though, perhaps the best kept secret was the W Boston. The W has been through a lot in the past year including a bankruptcy, but in spite of this, the W still sold an impressive number of homes. According to MLS records The Clarendon sold 32 Homes in 2011 while the W sold 30. Now, W sales team will tell you the numbers are actually a difference of 1, but nevertheless it’s still impressive. So a tip of my cap to Dinny and her staff and we wish them continued success in 2012.
Over the past few years the number of people who have decided to rent our their condos in Boston rather than sell them has certainly increased, and in some cases dramatically so. The side of effect of all this renting is just beginning to show it’s face. We’ve already talked about how rentals are now priced sky high, (see here) but there is now a second side that is starting to show it’s face.
Owner Occupancy Rates
Most people have never really focused on this little used metric when buying a home, but it’s incredibly important. The most important use of this statistic is when it comes to getting a mortgage. Most mortgage companies want to see minimally 50% owner occupancy and most would like to see more than 60%. For many condo buildings in Boston this has never been a problem but with the increase in de-facto landlords many buildings are now flirting with this number. The result, it’s become another obstacle for many buyers to overcome, not just from a mental standpoint but from a closing standpoint.
The mental aspect is that buildings with high owner occupancy rates are generally better maintained, since the people living there have a vested interest in how the property looks. Since so many owners have now become de-facto landlords however, this type of thinking might need to shift. It needs to be recognized that some of these people will not be landlords much longer as the market improves.
If you have questions about Owner Occupancy Rates or other questions related to buying a home, contact our office at 617-449-3642.
So Boston has been on a big kick lately to make the city more green in any way it can. While I applaud the city and it’s residents for their efforts, there are times when you have to be honest and say, “Ok now you’re taking it just too far.” The best example, bicycle movers. Yes, Gentle Giant the moving company with the big purple trucks that are a common sighting over the summer months, is introducing a new service. The offering is called Bike Moves. The idea behind the program is that for Boston residents who are moving just around town, this will cut down on costs related to parking permits and dealing with all the trucks on Boston’s sometimes narrow streets.
Currently, the company has 3 pedal powered bikes in its fleet, each with a custom built trailer made out of aluminum that is capable of carrying up to 300 pounds. This means it will still be able to carry a couch or a dresser. The rates for this program are as follows: $40/hour for one guy with 1 bike and $105/hour for 3 guys and all 3 bikes currently in the fleet.
If I can leave you with only two thoughts on this, I guess it would be these two. One who wants to see these guys do a move from the top of Mission Hill to the top of say Mount Vernon Street or vice-versa. Two, who wants to see these guys compete against the pedicab drivers in some sort of load hauling challenge? Come up with a challenge leave it in the comments and we’ll pitch it to both companies.
So our last home on the water was a big hit and now we have another for you to consider. This home comes not from Seattle, but rather Sweden home of Ikea. The owners, a couple who live in Stockholm, decided they were done with land living and decided to move aboard. As a boating enthusiast, I read about how people are doing this all the time, but not many go to the lengths they did. Their custom home is stunning from Bow to Stern. The kitchen is fantastic with it’s butcher block counters and gas range. They even managed to sneak in a full size dishwasher. The living room has a wood burning fireplace, which is not something that you see too commonly on a boat. The master bath features what appears to be a teak soaking tub that is gorgeous. Even the hardwood floors that run throughout the boat catch your eye and make you go wow. Anyone else ready to move right in?
Ok, so this post really isn’t about Boston Real Estate, but more of a what if? A retired couple in Seattle didn’t like anything that they were finding on the market, so when it came time to find their new home they decided to build. What they built however, was not like anything else out there. The home floats off the shores of Lake Union. This 1200 sq.ft. home, although industrial in it’s design, feels warm and homey with some interior finishes closer to those you’d find on a yacht. So my thought for everyone is, what if this existed over in the Charlestown Navy Yard or perhaps the Seaport would anyone want it? Let us know in the comments.
It’s inevitable that as we begin the new year, we look back and see in full review what happened last year. This will be the first in that series but it’s important to take note as we look ahead to 2012.
So what part of the market was the most active in 2011? Across the city the best performing price range in 2011 was the $1-2 million range. The sales volume for condos in this price range was up just slightly over last year. To drill down further though, you’d find that the truly best performing market was Back Bay condos under $500,000. The sales of condos in this price range, in this neighborhood were up 18%. This large jump, when many sections of the the market saw a decrease in sales volume is most certainly a result of increased rental rates. As rental rates around the city increase more and more people are looking to purchase their first home. For many people this number is right around $500,000. This segment of the market we believe will continue to be strong this coming year as more people continue to face rental increases.
The photo above is of a new sub $500,000 condo on Commonwealth Ave in Back Bay. For more information on this home check it out here.
This past week mortgage rates tied their all time lows with the national average on a 30 year fixed rate reaching 3.94%. Low rates have pushed up first time buyer sales in Back Bay, where the number of properties sold under $500,000 is up 20% from last year. This should come as no surprise given the dramatic rise in rental prices in the neighborhood over the past year. More and more people are starting to realize that owning in the city can be cheaper than renting especially during a housing market like this. The numbers are also helped by parents of young professionals, who are in some cases, providing the down payment for the children to purchase that first home.
If you are interested in buying a home for the first time or have questions about buying your first home contact us and we’ll be happy to walk you through the process and answer all of your questions.
More and more parents are helping their kids buy their first home. Wealthy boomer parents with cash, are using the money to provide a down payment for their child’s first home instead of putting the money into the stock market. Many of these parents, are hoping to help their children take advantage of the low-interest rates and in some areas of the country, depressed real estate prices.
This national trend can be seen around Boston as some parents look at the high cost of rent as a fruitless expense and would much rather see their children put the money towards the purchase of a home. The gift of a down payment makes it entirely possible for a child to be able to make the monthly payments while they build up equity in a property they actually own.
For more information on gifting a down payment to your child contact Pat Tobin at MetLife. If you’re interested in discussing options for your child give us a call at 617-449-3642.
You only get one chance to make a first impression, it’s the same for houses as it is for people. Some statistics say as people we make a decision about whether we like someone in the fist 5 seconds of meeting them. This is generally based on facial expressions, body language, what they are wearing and perhaps some of the first words out of their mouths. Houses just like people make quick first impressions too. There’s curb appeal, the feeling you get when you’re inside, the way it’s decorated and kept up/cleaned. The major difference though, is price. You have to remember you’re paying for the home, so price is a key component of that first impression.
Pricing a home is just as much art as it is science, but it’s important to get it right the first time. Homes that aren’t priced correctly tend to stay on the market longer and potentially have multiple price drops before they finally sell. Recent Back Bay sales data shows what a difference pricing your home correctly the first time can make. Homes that are priced right the first time generally sell in the first 100 days and sell for 6% more than their counterparts that are on the market over 100 days. The big difference though is that homes that sell in under 100 days are 4 times more likely to be sold for asking price or better.
If you’re interested in finding what your home is worth contact our office at 617-449-3642. Our knowledgeable and experienced agents will help you determine the best price for your home.
Luxury Buildings, New Developments | Chris Dunn | 
January 26, 2012 12:55 pm | 
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