We are proud to announce: Back Bay Realty Group is The Official Sponsor of Home Ownership for 2010. Our goal is to help as many people as possible get into the home of their dreams in 2010 and we’ve setup some great partnerships to make that happen. As part of our sponsorship we’ll be introducing new programs and information related to home buying and home ownership for all of our readers. In an effort to make the home buying process easier, we’ll be upgrading parts of our site, and introducing new features so that you can be more informed about the process.
Throughout the year we’ll be posting information on what’s going on in the market so future buyers are better educated on market conditions, and we’ll be doing a weekly home improvement tip. This will give you do it yourself types (myself included) a chance to make improvements to your current homes to make them more attractive in the market. Most importantly, we’ll also be posting information on how to sign up for Habitat for Humanity projects in your area, so that even if this is not the year for you to move into a new home, you can help someone else do it.
We can’t wait to see what this new year brings and we hope all of you do too!
As I mentioned in my last post there are a lot of new development condos on the market right now and some developers are getting desperate. The people behind the development at 100 Beacon, are now offering a free mini cooper with with every unit. The cheapest unit in this building has an asking price of a cool $2.1 million. I might be underestimating how the economy is going, but if you can spend $2.1 is a Mini Cooper really going to make a difference?
This is not the first time this has been tried in Boston. In 2007 the Macallen tried this same tactic, they gave away a Toyota Camry Hybrid with each condo sold. (They went with a hybrid car because it’s a green building.) I’m sure this won’t be the last attempt by a developer to do this, but let me give some advice to those who are thinking about it. Pair the car and the building! The hybrid car with the green building makes sense, a Mini Cooper says your striving to be cool with a car that’s lost some of that cachet. If I were trying to be cool I’d toss in a smart car, it’s cheaper, more rare and will turn a lot more heads especially when you park it sideways.
Scarcity! That’s the buzzword luxury retailers across the country are trying to teach to consumers this year. Last year was a very different story, retailers had more merchandise than they knew what do with. This year that certainly won’t be the case. Retailers are learning that if you simply don’t offer more, customers are will to pay full price to get what’s out there. The New York Times even did a whole article on this idea.
Luxury retailers weren’t the only ones who forgot scarcity, luxury condo developers got stuck on this same train of thought. They forgot that part of what makes a luxury condo so expensive and attractive is the scarcity of them. They decided instead, to follow the philosophy of selling luxury to the masses. The only problem with this school of thought: a luxury good is no longer considered a luxury, when everyone can have one!
The condo market in downtown Boston is now flooded with “luxury” condos: 45 Province, W Residences, The Clarendon and the Bryant Back Bay just to name a few. As a result it’s looking more and more like, “The luxury condo has become the sad knockoff Chanel purse peddled along Canal Street.” *
To continue our fashion metaphor for a moment, this overstocking by developers means that just like the retailers, they too will be forced to have massive sales. Think of the recent auctions as the Black Friday Sales. (People know ahead of time that they are coming and they set the price for the remainder of the season.) The main difference between Black Friday Sales and recent auctions, this year the retailers aren’t restocking. The condo developers aren’t as lucky. Even if they sell half the units to get sales moving, they still have hundreds of condos left to sell.
So my take on all this, it’s going to be a long time before we sell out all these luxury buildings and this year it’s best to go shopping on Black Friday!
*Before I get all sorts of angry emails, I agree that some of the units in these buildings are truly stunning and incredible places. However, one must admit not all are on the same level. A condo with a stunning view of the brick wall less than 30 ft away should not be labeled a “luxury condo” just because it’s in the same building as the incredible penthouse.
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?
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.
I read an interesting article on Boston.com over the weekend, entitled Real Estate Deadbeats. The article talks about people who were no longer paying their mortgage but not leaving the house either. The “stay don’t pay” idea is one thought that doesn’t occur to most people, since most people assume that you will be evicted as soon as you stop paying. The truth however is slightly more complicated.
The article talks about a company called You Walk Away, which helps people when they decide to stop paying their mortgage. They clue them into the fact that, even if no mortgage payments are made, a person still owns that property until the bank legally and officially takes it back through the foreclosure process or the house is sold to someone else. As one lawyer put it:
“The banks can’t force you out until they own the property. You own the property even if you are late in payments, have a notice of default filed or a notice of trustee sale. Nothing can be done until the property has been sold at auction or the banks take it back.”
The most common advice given when someone decides to do this is to save all of their mortgage money and pay off any other debts. Any extra money should be used when it comes time to rent. This brings me to a conversation I had yesterday with a bank director. When I asked him what he was seeing when people stopped paying, he said the average time it took for his bank to foreclose on a property was 12-18 months. That’s a lot of money for people to put aside for fixing their other debts. I am by no means recommending this route for those people who are underwater, in fact I would consider this an absolute last resort; but it is an interesting route that more and more people are taking.
The fall has traditionally been a good time for buyers to go out looking because of the influx of properties that come on the market. This year is no different, with over 100 new condos coming onto the market in Boston since September 3rd. The low mortgage rates of last week means that hopefully some savvy buyers out there locked when the rates dipped to 5% or lower in some cases. The downtown however, isn’t the only area that’s trying take advantage of low mortgage rates and patient but hungry buyers.
The Nouvelle at the Natick Collection is also trying to hop on the bandwagon with their auction on October 4th. The plan to auction off 42 units has drawn lots of attention from people in Boston, and with homes starting at $160,000 they are incredibly affordable. The Nouvelle isn’t alone either, Milton Village in Milton just dropped their prices as well. In effort to get buyers before the First Time Home Buyer Tax Credit closes prices have been dropped 10% in the past week. For more information on either of these properties or a free market report send us an email at contact@backbayrealtygroup.com or call 617-449-3642.
The question on everyone’s mind is when will the housing market rebound? For those in some parts of the country it already has. If you live in Boston or the Greater Boston Area, then it’s your lucky day, because you are living in one of those areas. The Case Shiller Index you see on the news every night talking about the country still having housing problems has shown Boston having modest increases in home prices for the past 3 months. We aren’t alone in our increases either, 18/20 markets that they monitor show increases in recent months.
Looking for further evidence the housing market is headed up, let’s go take a look at the data shall we? June home prices in Massachusetts were 2.6 percent above the month before and the number of single-family homes that sold statewide in July was 12 percent higher than a year ago. Even this past month Back Bay alone has seen a 26 percent increase in the average condo price compared to a year ago. If you’re interested in buying condo in Boston this fall is definitely the time to do it.
More and more people as of late are thinking about getting into the real estate investment game. The low mortgage rates right now have attracted a new crop of investors who have a little extra cash on hand. There is a shift taking place in the market right now, which can only be described as the beginning of the shift between old investors and new ones. Many of these investors have been in the market for years and they are starting to sell off parts of their portfolios and for a select few, this is an excellent opportunity. Most of these investors are quietly marketing their properties, meaning that if someone made them offer they are happy to sell, but they aren’t going out and advertising it. So why should you call a rental agent then?
The answer is should be obvious; rental agents deal with these people on a daily basis and know who might be open to selling and who will not. They are also able to give prospective investors a much better handle on what kind of income a unit might generate since they have access to a wider range of properties, than one would find in the MLS. If you are interested in investing in Boston please don’t hesitate to call us and we’ll be more than happy to help identify opportunities, which meet your requirements. Call 617-449-3642 to speak with someone about your next great investment.
Google has forever changed the way people shop for a new home and it’s getting ready to take it another step further.
The first tool Google gave to homebuyers was Google Maps. They made it instantly easy to see the where your new home was located and how far it was from everything you need. The nearest subway station…done. The coffee shop around the corner…boom instant review.
Google Earth, then took this a step further allowing you to see not just a full 360 view of your house, but the entire neighborhood. If you were looking for waterfront property you could even check to see if there was erosion taking place, stripping away your land.
The final tool, Google gave buyers was street view. If you wanted to go for a drive down your new street, suddenly you could. When they combined this with the power of Google Earth, it allowed for a perspective homebuyer to zoom in and around the entire neighborhood. They could even take a drive around it if they wanted to.
Now, Google is expanding its mapping software and adding a new feature. Google Maps, now shows properties for sale in MLS! As you scan and drag around the map the listings change and new listings are pulled. I’ve enclosed a screen shot below, take a look at what’s for sale on the map in Boston.
What is perhaps the most interesting part about this new feature, is the ability to see where the most properties for sale are located right now. The shot above would say there is a big grouping on Beacon Street throughout Back Bay, but especially near Massachusetts Ave. The other large grouping is in the North End and Waterfront area.
Here is the link for the picture above. If you would like to see any property you find, please don’t hesitate to let me know, or you can click here to search on our site for current sales listings.
Back Bay Realty Group | chris | 
January 6, 2010 1:24 am | 
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