First 10 Days of May Market Report

This month’s market data shows  a return to the spring market and an improvement over last year’s crazy decline. The improvements in every neighborhood are a positive sign for the market but it will be more interesting to see what happens with the full month of data.

Back Bay 2010
11 Condo’s sold
Avg. Sale Price: $2,680,013
Avg. Price/Ft: $909.43

Back Bay 2009
9 Condo’s Sold
Avg. Sale Price: $1,514,778
Avg. Price/Ft: $919.01

Beacon Hill 2010
3 Condo’s Sold
Avg. Sale Price: $793,333
Avg. Price/Ft: $758.40

Beacon Hill 2009
1 Condo’s Sold
Avg. Sale Price: $637,500
Avg. Price/Ft: $671.05

South End 2010
13 Condo’s Sold
Avg. Sale Price: $604,962
Avg. Price/ft: $623.8

South End 2009
7 Condo’s Sold
Avg. Sale Price: $563,286
Avg. Price/ft: $609.80

Boston Rental Market: Tough on Renters

For those of you that are looking to rent an apartment in the 12 months hopefully you’ve read this article on boston.com or read it in the paper. The article goes on to describe a story that any broker who’s worked in the Boston rental market can tell you.

First, if you think you’re going to get a steal on a place because you’ve heard in the news rents are going down keep dreaming. The article in the paper wisely points out that a minimum you’ll pay for a unit in downtown is $1400. Is this a hard and fast rule, no are there places less than $1400 sure, but they are few and far between and they are smaller than some single dorm rooms. Despite some vacancies landlords are holding out for their price and not willing to compromise. In one case I heard a landlord tell someone about their offer “I’d rather use the unit for storage!”

Second, if you have a pet especially a dog or are a family with small children who need a lead-free apartment it’s a very small market. Rental brokers have been telling people for years that if you have a dog it’s a very small market, very few owners and buildings for that matter take dogs. Unfortunately there are double standards in some buildings which can confuse people even further. At the Ritz and One Charles, owners are allowed to have dogs but anyone renting one of the condos cannot. Renters with small children often find themselves in similar situations due to the fact that the buildings in Boston are so old and so few people have renovated to the standards necessary. This leaves this group with few options depending on what they are looking for and not something they are always pleased with.

Finally, yes the sad fact is that due to previous market conditions most private landlords don’t want to pay the broker’s fee, for the tenant. The market had previously been that people we’re willing to pay to get into that place they saw and loved, but that’s no longer the case. The apartments have gotten older in many cases and more are sitting empty; but few landlords are willing to break the psychological barrier of paying the brokers fee. This surely hurts some landlords as their properties sit vacant for months at a time and others are just dealing with it. There is no right or wrong decision on this one it’s all about what the market will decide and it’s something that both sides should be aware of.

First 10 Days of April Market Report

The market data makes some interesting points this month. If you live in the Back Bay or South End, you’re seeing a sizable jump in the price/ft. but in Beacon Hill there was a large decrease. So if you were thinking about selling last year but were scared, don’t wait this one out because there are buyers out there and willing to pay more!

Back Bay 2010
3 Condo’s sold
Avg. Sale Price: $2,588,000
Avg. Price/Ft: $985.07

Back Bay 2009
5 Condo’s Sold
Avg. Sale Price: $1,345,900
Avg. Price/Ft: $836.83

Beacon Hill 2010
3 Condo’s Sold
Avg. Sale Price: $1,133,592
Avg. Price/Ft: $697.45

Beacon Hill 2009
3 Condo’s Sold
Avg. Sale Price: $3,483,333
Avg. Price/Ft: 1009.20

South End 2010
9 Condo’s Sold
Avg. Sale Price: $ $668,239
Avg. Price/ft: $618.63

South End 2009
7 Condo’s Sold
Avg. Sale Price: $564,143
Avg. Price/ft: $570.03

The First 10 days of March Market Report

The market data speaks for itself here. Condos in Boston’s top neighborhoods are moving and they are moving for more than last year. If you were thinking about selling last year but were scared, don’t wait this one out because there are buyers out there!

Back Bay 2010
15 Condo’s sold
Avg. Sale Price: $1,979,553
Avg. Price/Ft: $1137

Back Bay 2009
7 Condo’s Sold
Avg. Sale Price: $1,255,929
Avg. Price/Ft: $946

Beacon Hill 2010
4 Condo’s Sold
Avg. Sale Price: $453,000
Avg. Price/Ft: $694

Beacon Hill 2009
0 Condo’s Sold

South End 2010
12 Condo’s Sold
Avg. Sale Price: $542,042
Avg. Price/ft: $596

South End 2009
2 Condo’s Sold
Avg. Sale Price: $370,000
Avg. Price/ft: $523

Tax Credit Running Out: 51 Days Left

There are only 51 days left until the First Time Home Buyer Tax Credit runs out. The extended tax credit deadline means you have to have your P&S signed by April 30th. So far out of top 7 Boston neighborhoods 190 condos have been sold under $500k (a typical threshold for first time buyers). If you’re interested in taking advantage of this tax credit before time runs call me this week to get started! 617-449-3642

The First 10 Days of February

First 10 days of February 2010 market data:

Back Bay 2010
11 Listings Sold
Avg. Sale Price: $1,705,818
Avg. Price/ft: $1,010

Back Bay 2009
3 Listings Sold
Avg. Sale Price: $1,804,632
Avg. Price/ft: $1,115

Beacon Hill 2010
2 Listings Sold
Avg. Sale Price: $393,500
Avg. Price/ft: $766

Beacon Hill 2009
0 Listings Sold
Avg. Sale Price:
Avg. Price/ft:

It would seem that buyers are looking sooner this year than last year. Prices might be down slightly but inventory is moving.

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.

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.