January 2010 Review

January has come and gone, now it’s time to look back  and see what happened in Back Bay and Beacon Hill sales. It’s looking pretty positive for the most part, but certainly looking better for Back Bay owners than Beacon Hill owners if you need to get your home sold.

Back Bay 2010
23 Condos Sold
Avg. Sale Price: $1,196,326
Avg. Price/ft: $960

Back Bay 2009
10 Condos Sold
Avg. Sale Price: $1,245,050
Avg. Price/ft: $871

Beacon Hill 2010
4 Condos Sold
Avg. Sale Price: $1,358,125
Avg. Price/ft: $1035

Beacon Hill 2009
6 Condos Sold
Avg. Sale Price: $280,500
Avg. Price/ft: $654

The First 10 Days of Twenty Ten

Since it’s now 2010 or Twenty Ten, I thought it would be a good idea to see what happened in Boston condo market in the first 10 days of the new decade.

Back Bay Condos:
6 New Listings with (4/6 under $550k)
5 Under Agreement (3/5 over $1 Million)
6 Sold (3/6 under $400k 2/6 over 1.3 Million)

Beacon Hill Condos:
0 New Listings
3 Under Agreement (List Prices from $339k-$1.25 Million)
1 Sold ($827,500)

South End Condos:
2 New Listings ($335k and $699k)
3 Under Agreement (List Prices from $300k to $750k)
1 Sold ($300k)

My Take: Back Bay continues to be where the action is. It’s where the highest number of new homes on the market are located and where the highest priced sales are happening. There are higher priced homes on Beacon Hill than in Back Bay but more of them seem to be selling in Back Bay.

Is the Bachelor Pad Dead?

That’s the question this article from the New York times asked over the weekend. In New York the Bachelor Pad maybe dead but in Boston I’d say it’s just down with the flu. (Not everyone everyone has it, but some people do and it’s not that bad.) I certainly have quite a few clients who updated their bachelor pads this year and some that just stayed put. A couple quit the lifestyle and moved in with their girlfriend, but even then they didn’t sacrifice like those in New York. The Clarendon, one of the most expensive rental buildings in Back Bay is currently out of 1 bed units and my guess is quite a few of those have been rented by single men. Still, I’ll put question out there, Bachelors of Boston are you downsizing this year?

Real Estate Wars: Brady Vs. Bundchen

The big news of the past week has been that Tom Brady has put his Back Bay condo up for sale. Rumor has it, he and Gisele are looking to move to Brookline now that they have a baby on the way. The stunning home that he used as his Boston residence is now on the market for $10.9 million. What’s so interesting about this, is that it’s the same list price his wife put her New York pad on for originally, only to sell it later on for a measly $4.5 million. The question is, which city will win this Real Estate War?

My money is on Boston! Tom has done well in the sale of his other units in this building and I’m betting he can find someone willing to pay at least the $4.6 million needed for the win. I won’t ignore the fact that many homes in this price range in Boston have had a hard time selling lately, but to own a piece of New England history I’m sure someone is willing to pay.

Let’s review what $10.9 million gets you by taking a look at the specs:

3 Bedrooms
3.5 Baths
5 Fireplaces
4 Garage Parking Spaces
1 Outdoor Space
The description reads: In an American Renaissance mansion, this contemporary PH is the pinnacle of 21st century living boasting unobstructed views of the Charles River and city skyline. This 5,000+ sq sf Duplex has 3+ beds, 3+ baths, 5 fireplaces, a stunning great room opening to the gourmet kitchen. Magnificent south facing living room, ultra-hi-tech media room, & master suite w/ an oversized his/her dressing room & a luxurious en-suite bath. Gym, 2 landscaped Private Decks, Doorman, Garage Parking for 4 cars & 1 outdoor space!

If you’re interested in buyers representation to view this property feel free to give us a call at 617-449-3642.

What’s happening in Back Bay Sales

Two weeks ago I told everyone the  fall buying season had begun, and now it’s time to see how we’re  doing. In the past two weeks 10 condos sold and 17 were put under agreement in Back Bay. How does this compare to last year? Let’s take a look at the numbers!

September 13-27th 2009
Total Units Sold/under agreement: 27
Average List Price: $927,352
Average Price per sq. ft.: $866
Average Days on Market: 114

September 13-27 2008
Total Units Sold/under agreement: 19
Average List Price: $1,264,200
Average Price per sq. ft.: $1,052
Average Days on Market: 86

Now on the surface you might say prices are down and headed in the wrong direction, but the devil is in the details. If you remove the 1 penthouse sale at Zero Marlborough ($8.5 million) from the data in 2008, you find the average list price is really $840,000. This changes the picture a fair amount. Yes, it maybe taking longer to sell homes now but the truth of the matter is that the average place in Back Bay is currently selling for more than it would have last year. We’ll have to wait a few more days to get the full picture of September.

10 Reasons Why You Should Help Your Kid Buy a House this Year

Here are the top 10 reasons to help your kid buy a home this year.

1. How else could you take advantage of the low down payment possibility that FHA offers?

One of the things that’s so great about FHA financing is that it only requires a down payment of 3.5%. This is great news for both you and your kid, incase neither one of you has a lot of extra cash on hand. Obviously, the more money you can put down the better, but it’s not necessary with this kind of financing.

2. Low fixed rates on old fashion 30-year mortgages.

Mortgage rates have climbed from their record lows a few months ago, but many remain in the mid to low 5%. Parents, do you remember what your first mortgage rate was? Rates this low make home ownership a reality for many people who are simply throwing away money by renting a place.

3. FHA financing finally has limits high enough that you can get your kid a nice starter property.

It’s important to keep in mind that this is a starter home; it doesn’t need to be Tom Brady’s Mansion. The current FHA loan limit for Suffolk County is $465,000. This means that you can look at homes for roughly up to $490,000. For those of you doing the math right now that means you give roughly a 95% offer on a $490,000 and still fall within the loan limit. In today’s real estate market, I know many sellers that would be quite happy to receive that kind of offer.

4. First Time Homebuyers Tax Credit of $8,000 is good through the end of the year.

The credit is available to those who are first time homebuyers between January 1, 2009 and December 1, 2009. The tax credit is just the beginning of the tax advantages to buying a home this year. To lower your taxes further, you can also deduct the interest you pay on your FHA loan.

5. You can gift the down payment to your kid and not pay any taxes on the money.

Parents can gift their children up to $12,000 each, without paying any taxes on the gift. The father can give $12,000 and the mother can give $12,000. This means that you can give your kids $24,000 to put towards the down payment which is well above the 3.5% minimum that’s required by FHA loans.

6. You can ask for closing costs as part of the offer!

Closing costs can sometimes be a huge expense and one that many people often forget about at first. FHA loans allow for the seller to pay up to 6% of the closing costs related to transaction. This is usually enough to cover all costs associated with the purchase of the home.

7. You can take advantage of dropping interest rates even after you’ve closed.

FHA loans have the ability to easily be re-written if rates drop. This means you never have to worry about being locked into a higher rate if interest rates ever drop down further.

8. There are plenty of properties to choose from! The current market is filled with properties that fall within FHA pricing guidelines.

A quick search of just 3 Boston neighborhoods currently show almost 200 properties that fall under the $490,000 price point. When you expand the search to include a few more neighborhoods, the number of homes increases to well over 300.

9. For recent college grads, you can use your school as a previous employer.

One of the most difficult parts of getting a mortgage for recent college grads is the 2 year work requirement. Many are just starting their careers, but with an FHA loan you can use your school to fill the 2 year work requirement.

10. Real Estate has always been a path to creating wealth, so why not start your kids early?

Every financial guru out there will tell you that the creation of long lasting wealth starts with real estate. Over a long period of time it’s one the most stable and in some cases profitable places to invest your money. My favorite quote on the matter: “Buy land, it’s the one thing they aren’t making any more of. A prime example of this is the parking space in Back Bay that recently sold for $300,000. This undeveloped 8′ x 17′ piece of land that years ago was worth nothing, has now set a record in Boston.

For more information on FHA loans or for help looking for a property that meets these guidelines, feel free to contact me via email.

Back Bay Condo Prices Increase

The average sales price of condos in Back Bay continues to rise. This may sound shocking to many readers who constantly see the news about prices falling all over the city, but numbers don’t lie.

Average sales prices in Back Bay per square foot:
1/1/08-6/15/08 $778.00
1/1/09-6/15/09 $779.00

Now this may not seem like much, but let’s compare it to Beacon Hill in the same time frame.

1/1/08-6/15/08 $745.00
1/1/09-6/15/09 $704.00

Now that increase seems much bigger doesn’t it? My take on this, is that as Back Bay continues to increase in popularity among people of all ages, it’s driving prices higher. The number of renovated homes in Back Bay is also higher than in Beacon Hill which helps further inflate prices.