Buying is still cheaper than renting in Boston
After all the reports of sky-rocketing condo prices in Boston it may come as a surprise to read that buying is still cheaper than renting in Boston, but that is the statistically-based claim made in the Buy vs Rent Index produced by Florida Atlantic University and Florida International University.
Here is the chart for Boston:
Jeopardy answer: Boston 117 Marblehead 3
And the question is: “what is the number of condos in Boston that sold for more than $3 million in 2015 compared with the number of houses that sold in Marblehead over $3 million?”
Following my $20 million condos? post earlier this week, I read with interest this Record number of Boston condos sold for over $3 million in 2015 article on boston.com about condo sales in Boston in 2015. Oh, by the way, overall 286 condos (vs 191 in 2014) sold for more than $2 million and 822 (690 in 2014) for more than $1 million.
I think of real estate as being like a large pond: a pebble dropped in the middle creates ripples which reach out wider and wider with time. Boston is the middle of the Massachusetts pond, but the ripple effect is being seen as more and more buyers from Boston appear to be taking advantage of high prices there to sell and buy further out in the pond.
Here is a list of sales over $3 million for Boston and MA counties in 2015, followed by a breakdown by town. No real surprises – most of the higher end sales were in or near Boston, or on the Cape and Islands (my numbers exclude Nantucket as brokers there use a different MLS service).
Counties (and of course Boston)
Source: MLSPIN, Oliver Reports
Towns
Source: MLSPIN, Oliver Reports
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or Andrew.Oliver@SothebysRealty.com.
Read Which broker will find the buyer for my house?
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
You can REGISTER to receive email alerts of new posts on the right hand side of the home page at www.OliverReports.com.
@OliverReports
$20 million Boston condos? Bring’em on!
Just a couple of days after posting Tiny house with great views for $40,000, I read this Why Boston can’t build ultra luxury condos fast enough article on Boston.com.
According to the article: “the new Four Seasons tower ( One Dalton) has opened sales office, with its 180 ultra high-end condos, some of which have the potential to break the $20 million mark, expected to go fast as well.”
By my calculation, the $20 million for one of these condos would buy 500 tiny houses, or 70 non-Boston condos at the 2015 Massachusetts median price of $285,000, or 5 oceanfront estates in Marblehead.
While the flood of new millionaires from technology and start-ups of various hues might make it less true today than it used to be that real estate was the most common way for people to become millionaires, there seems little doubt that the wealthy from around the world are investing that wealth in real estate in cities such as Boston, New York and London as both a safe haven and an asset play in an era of close to zero interest rates. (more…)
Massachusetts 2015 Condo Market Review
This Massachusetts 2015 Condo Market review shows that sales in 2015 were steady, while prices overall rose 3%. But – and it’s a big but – the inclusion of Boston in numbers for all 353 cities and towns in the State distort the result. In this report I break out Boston and show how the rest of the State fared in 2015.
Sales
Condo sales in Massachusetts have been steady for the last three years, but are still sharply down from the 2005 peak.
Source: MLS, Oliver Reports
Median Price
It may appear surprising, at first blush, that the median price of a condo in Massachusetts should show a 20% increase over the 2005 level. There is a one word explanation: Boston.
The first chart shows just the overall condo market, while the second breaks out Boston and shows Massachusetts ex Boston. Removing Boston from the calculation reduces the increase since 2005 to 10%, while the median price in Boston has increased more than 50% in the same period.
Source: MLS, Oliver Reports
Summary
The inclusion of Boston condos – the main market in the city – distorts the numbers for the State overall. Nevertheless, it is encouraging that the median condo price, excluding Boston, still reached a new paek level in 2015.
The Massachusetts economy remains strong – GE’s decision to relocate to Boston will only help – and mortgage rates are once again close to all-time lows.
Barring geopolitical disasters, the outlook for 2016 is for a gently improving market in Massachusetts.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or Andrew.Oliver@SothebysRealty.com.
Read Which broker should I hire to sell my home?
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
You can REGISTER to receive email alerts of new posts on the right hand side of the home page at www.OliverReports.com.
@OliverReports
GE is coming: beat the rush
Last weekend, after the announcement that GE is moving its corporate HQ to Boston, the first GE executives were spotted house-hunting in Marblehead.
For the real estate market in and around Boston the significance is not just the arrival of 800 GE employees but also the fact that GE is expected to be a draw for other technology companies, particularly those in the “Internet of Things”.
Why is GE moving to Boston?
“GE aspires to be the most competitive company in the world,” said GE Chairman and CEO Jeff Immelt. “We want to be at the center of an ecosystem that shares our aspirations. Greater Boston is home to 55 colleges and universities. Massachusetts spends more on research & development than any other region in the world, and Boston attracts a diverse, technologically-fluent workforce focused on solving challenges for the world. We are excited to bring our headquarters to this dynamic and creative city.” (more…)
GE to move to Boston
As has by now been widely reported GE is moving its corporate offices from Fairfield, CT to BOSTON. This is great news for the city, as GE’s move will likely attract other businesses, as explained in the Boston Globe’s GE has selected Boston article.
And, of course, the move will only serve to add demand to the real estate market, both in Boston and nearby towns with ready access to the city. Just to remind GE execs, you can get to the Seaport district – reportedly where GE is looking – from the North via the Ted Williams Tunnel…. (more…)
Lies, damned lies and statistics in Cambridge
Frustrated by the inaccuracies of so many real estate “statistics”, the first article I wrote for the Marblehead Reporter in 2008 was Lies, damned lies and statistics. My goal in Oliver Reports is both to report on numbers in real estate and explain their significance – or not. There is nothing I find more frustrating than seeing a number reported without context and without understanding from the writer. Which takes me to Lies, Damned Lies and Statistics in Cambridge. (more…)
Seaport condos see cash buyers dominate
22 Liberty is a luxury development of 104 condos in the Seaport neighborhood in Boston and The Bates Real Estate Report has analyzed the First sales at 22 Liberty. Perhaps the most interesting fact in this analysis is that about 60% of the transactions had no mortgage involved – in other words cash buyers.
In addition to the analysis by David Bates, I have calculated that the average price paid to date is just over $3 million and the average price per sq.ft. is $1,568.
Naturally, I then looked at sales over $3 million in 2015 on the North Shore. There have been just 10 sales this year (with 3 of those in Marblehead) of Single Family Homes with an average price per sq.ft. of $685, or well under half the Seaport average. And all of these were on or overlooking the ocean.
And if you want a condo, two 2,000 plus sq.ft. oceanfront condos in Swampscott sold for an average of $575 per sq.ft.
Different markets, different buyers, but it does seem to me that there is some extraordinary value on offer on the North Shore today. (more…)
Where retirees want to live: Boston?
The National Association of Realtors has released a report listing the 10 markets which are expected to see the most retiree buying activity in 2016. And where do retirees want to live? Boston.
The NAR expects people aged 65 to 74 to make up the third largest home-buying segment in 2016 and says that “unlike first-time buyers overwhelmed by options, they know what they want: new construction and the ability to customize their home to get what they want.”
Then the NAR looked for “senior-friendly” markets based upon the median household income for 65-74 year old head of housholds.
The number 1 pick? Boston, where according to the NAR the median household income for 65-74 year old head of households is $56,000 and the maximum affordable home price is $236,000.
$236,000 for new construction in Boston? Really? What is this, 1960? The NAR report identified one property in “Boston”. Actually, it is in West Roxbury, a condo of 845 sf in a 1963 building.
New construction? Boston? Um, I wonder who else is on the list.
Read Here’s where retirees will want to live in 2016 to find out.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or Andrew.Oliver@SothebysRealty.com.
Read How should I choose the broker to sell my house?
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
You can REGISTER to receive email alerts of new posts on the right hand side of the home page at www.OliverReports.com.
@OliverReports
Why Boston is better than San Francisco
While Boston.com’s Why Boston is better than San Francisco for software engineers refers to software engineers, it helps to explain the influx of such people into the Boston area: “Boston is a really interesting market. Some markets have a lot of great companies, but not enough talent or vice versus. Boston has a vibrant community of both.”
Earlier this year the job site Glassdoor wrote: “It’s clear Boston is home to a very vibrant job market right now with many thriving industries, spanning education, healthcare, tech, and more. Job seekers should know that Boston is a great city to find a variety of jobs and new opportunities.”
The influx of people is, of course, a major factor in driving up both rents and home prices. (more…)
Time to think outside Marblehead Neck
You would like to buy a house on the water, but you have noticed the amount of traffic on the Neck and are concerned with exposure to storms.
So what to do?
The answer is: think outside the Neck.
Read Marblehead’s Unknown Oceanfromt properties and you may be surprised to learn that between Preston Beach and Beach Street there are 32 homes (and likely a few more when the FY2016 assessments are announced in December as this area is appreciating) with an Assessed Value over $2 million.
Two of these properties are currently for sale and details can be seen by clicking on 11 Crown Way and 2-4 Coolidge Road.
Crown Way has an Open House today 1-3 and both house will be open next Sunday (if not sold before then).
Boston condos still selling over list price
According to the Boston Business Journal Greater Boston condos sold over list price for the fourth consecutive month in July. (more…)
Can Dukakis and Weld bring the North Shore respect?
I get fed up reading articles about real estate in Eastern Massachusetts which routinely ignore the North Shore and Essex County, so I was intrigued to read Build the North-South rail link in this week’s Boston Globe, a coherent and logical argument in favor of connecting Boston’s North and South stations by rail. (more…)
Who is John Kerry’s new neighbor?
A couple of weeks ago I posted John Kerry or a 6 car heated garage? comparing two nearby Beacon Hill properties: one had a 6 car heated indoor motor court, the other no garage but John Kerry as a neighbor.
Which would attract a buyer first?
Well the verdict is in and the winner is….John Kerry.
“Who did you say is my new neighbor?”
Well we know the Russians have been buying up real estate in major cities, but I just can’t imagine Vl-d-m-r P-t-n hoping to become best buds while strolling round the square. (more…)
How quickly are homes selling in Boston?
According to a recent report from Redfin, homes in the Boston area (see map below) sold at record speed in May: (more…)
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