On November 12, the Beacon Hill garage parking space whose price became the object local and national attention last week came back to market some time yesterday. This time, 70 Brimmer Street Unit #236 has a list price of $500,000, significantly less than the $650,000 it originally listed for. Sure, it’s still a lot to pay for parking, but instead of creating headlines, hopefully this time the price will provoke a sale.
Beacon Hill has been named one of the best places in the US for Halloween, so visited Louisburg Square to see what they had in store for Halloween this year. They did not disappoint. The street that is home to Kennedy and Kerry has animatronic bugs in the park. The first one that made a movement, made me jump.It’s an impressive celebration and it should really get going between six and eight.
This chart compares the median condo price in the first seven months of 2005 to the median condo price in the first seven months of 2013.
Clearly, the biggest gainer is Midtown and Midtown can thank Millennium Place for the impressive increase.
Boston, it’s time to admit you have an inventory problem. For a long time you denied it. You said that your inventory challenges were no big deal, that they were temporary, but have you considered that maybe you’re living in denial? Have you considered that this might be a long-term problem and that you need to do something about it?
Take a look around, Boston. Your “for-sale condo inventory” has been shrinking for about as long as my seven-year-old daughter has been alive. On April 1, 2006, you had 2,853 condos on the market. Now, that’s the type of inventory I would expect from a City of Champions.
But a few years later, when your April 1 inventory barely broke 2,000, theexcuses started. Back then, you told me that listings were light because of the economic crisis. Boston, I love you, I believed you wholeheartedly, but isn’t it funny how when the real estate market turned around, you had even fewer listings, barely over 1,000? And isn’t it funny as well that as we see some record pricing this year, your April 1 inventory is down to 475 units on the market?
Just 475 condos on market. That type of public display is embarrassing, Boston. I suppose you’re going to tell me that people just don’t want record prices for their real estate anymore, that record pricing isn’t much of a motivator anymore.
I know you say that there’s nowhere to build, Boston, but, please, we’ve heard it all before. Admit it, there are lots of places to build. Really, how much land do you need to build condos? I recently heard that on the site of just one garage a developer is planning to put up six buildings ranging in height from six to 60 stories. And, guess what, he’s keeping half the garage intact. Yeah, Boston, how many garages do you have that could be put to better use? How many parking lots do you have that could fit buildings? What’s more important:housing cars or housing people? You have to make a decision and the sooner you make it, the better it will be for everybody.
Boston, have you noticed the impact your lack of inventory has had on the people and places around you? A few years back, Charlestown had 161 condos on the market. You know what it had on April 1 this year? Fifteen. That kind of explains why Charlestown’s median asking price went from $469K to $899K over the last couple of years, doesn’t it? For crying out loud, Boston, Charlestown’s median ask is approaching Beacon Hill’s ($947K on April 1). If that doesn’t convince you to get some inventory, what will?
Really, Boston, it’s time to take a sober look at your neighborhoods and the communities around them and acknowledge that they have only one-fourth or one-fifth or one-tenth of the inventory that they used to have and that it didn’t happen overnight. It’s time to take a look at the median prices in these areas, before the median hits infinity—and still gets four offers—and realize the ridiculously high medians that you are seeing in 2014 are a direct result of your lack of inventory.
And, really, it’s time to work day-by-day to do something about it. Boston, you know I’m only telling you this because I care about you.
My recent post concerned the precipitous decline of modestly priced condos in the Hub.
Check out these graphs (below) that chart the amount of modestly priced inventory in a variety of Hub neighborhoods over the last eight years. This timeline covers part of one of the greatest run up in values in local real estate history, the housing market crash, and the Boston real estate rebound. Yet, you will quickly notice that the charts I made look like repeated and feeble attempts to draw ski slopes.
My December column for Banker and Tradesman focused on the challenges of buying a small Greater Boston multifamily building for investment.
For starters, two to four unit buildings rarely come up in the most valuable Boston neighborhoods. Back Bay sold only two small multi families in the first 10 months of 2013. And Beacon Hill hasn’t sold any MLS listed small multi families since March 17, 2011.
In a number of other Greater Boston neighborhoods where small multies are available, despite significant adverse changes in lending and a previous glut of short sales and foreclosures, sales prices have been surging.
In Dorchester, which makes up around 40% of Boston’s small multi sales, the median sales price has gone from $300,000 to $400,000 in just two years.
Even in Everett, as many as 60 potential buyers would come to the first open house of a newly listed small multi.
To learn more about the small multi market appreciation, click here or email me for the whole Banker and Tradesman story.
This short–to the point–ebook is an excellent reference for Greater Boston condominium buyers and sellers. Not only do the neighborhood profiles found in CONTEXT make it easy to see how a specific condominium compares to other condominiums typically sold in a neighborhood, CONTEXT also clearly shows how nine of the most important and most valuable Greater Boston condominium neighborhoods compare on 17 different metrics. If you want to know how a condo or neighborhood compares in median sales price, median price paid per square foot, average condo fee, as well as the likelihood of finding renovated condos, condos with a view, a deck or parking, and much more, then get CONTEXT.
The neighborhoods included in CONTEXT are Back Bay, Beacon Hill, Brookline, Cambridge, Charlestown, Jamaica Plain, Somerville, South Boston and the South End,
Lots of visuals and short paragraphs make this ebook extremely light reading, on par with reading the Metro newspaper.
Don’t make a mistake: Get CONTEXT before you buy or sell.