Time to buy that oceanfront property?
Both the stock market and Boston condos have enjoyed a great run in prices in the last few years, in part due to the policy of keeping interest rates extremely low. One area that has not participated in the recent upturn, however, has been oceanfront property on the North Shore. Maybe Boston condo owners should be asking whether now is time to buy that oceanfront property.
The Stock Market
The Dow Jones peaked at almost 14,000 in late 2007 before dropping almost 50% to 7,000 in early 2009. The 2007 peak was exceeded in 2013 and even after the recent pull back the Index is still some 18% above that earlier peak.
Property prices did not fall as far as the stock market, but Boston condo prices have still shown a sharp increase – of some 40% – since the Great Recession ended.
There has, inevitably, been a boom in building new condos in Boston, particularly at the higher end, with the result that the high end market is cooling off according to the Boston Globe. While the article refers to the rental market, it is the first time I have read any cautionary article about the seemingly endless boom in the Boston condo market.
Oceanfront property on the North Shore
The sample size is too small to be able to discuss median prices, but there is no doubt that prices at the top end have not (yet) moved up with the rest of the market. The small number of properties available, however, only highlights the potential impact if a few Boston condo owners do decide to cash in their profits. A condo owner could go from this
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.
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
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