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.
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.
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.
Sunday turned out to be a better day than most of the TV weather reporters were predicting. The morning started bright, sunny and afternoon wasn’t too bad either. So why are we talking about the weather on a real estate blog? This beautiful Sunday would set the scene for a large open house day, 58 open houses in Back Bay alone. So on this beautiful day why were all the open houses empty? Every open house I visited I was told by the agent I was the first person to stop by. So where were all the buyers?
Interest rates are currently hovering at or below 4%, (depending on the circumstance) and yet with financing so affordable one would think that buyers would be looking to take advantage. So again I ask why were the open houses so empty? Tomorrow we’ll go over our thoughts on the open houses we visited and give you a wrap up.
313 Commonwealth Ave is the latest in a growing trend of taking single family brownstone homes in Back Bay and converting them in to luxury condos. The former single family home, has been converted into 3 luxury condos that are expected to be completed for move in this December. What makes this project more unique than some of the others in recent memory, is that each home is coming complete with all of the most requested features. Among a litany of other features, each residence will come with deeded parking and outdoor space. Few other projects in Back Bay offer both of these much requested features to every unit. The kitchens will feature Marble counters and state of the art stainless steel appliances, and each unit has at least 1 gas fire place with granite surround as well as direct elevator access.
The penthouse duplex looks to set itself apart from other units in the neighborhood by offering 3 private decks, including a nearly 500 sq. ft. roof deck. This, combined with the deeded parking is sure to make it an attractive home to potential buyers.
For more information on the building check it out here on on our Luxury Building page. If you would like a private tour of the homes please give us a call at 617-449-3642.
Luxury condo sales in Back Bay Boston are on track to be ahead of last year. While the overall market is slightly down from last year, sales of condos costing 1 million or more are actually up slightly from last year. Sales between the first of the year and September 1st in the overall market are off 3% from last year during the same time period. As we being the fall sales market it will be interesting to see if both numbers continue along their current paths or if we’ll see changes big changes in volume estimates.
So if you saw our post about the Bradley Mansion you know what a great condo development it is, especially for those looking for a renovated home in Back Bay. It seems we weren’t alone in our assessment of the property. A full year before completion the development is already over 30% sold out. (45 Province do you hear that?) Is this yet another sign that the luxury housing market is steaming towards a recovery? I’ll let you be the judge but it’s definitely a good sign!
We wanted to be the first to introduce you to the Bradley Mansion Condos in Back Bay. These 12 stunning residences on Commonwealth Ave, are set to open in spring of 2012. Comprised of 3 townhouses and producing an astounding 86 feet of frontage on Commonwealth Ave, these wide Park Avenue style floorplans are sure to attract a lot of attention from buyers. Each unit will come with heated garage parking, concierge services, state of the art kitchen and bath finishes and incredible detailing that you don’t find in todays new construction homes. These fine luxury residences range in size from 2100 sq.ft. to over 4600 sq. ft. . Currently, prices range from $2.6 Million to $3.899 million. If you are interested in learning more about these spectacular luxury homes in Back Bay, you can call our office at 617-449-3642.
Back Bay Condos, Boston Real Estate Market, Financials | Chris Dunn | 
January 23, 2012 3:50 pm | 
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