Boston Real Estate and Condo Blog:

Congress passes $8000 home buyer tax credit extension & expands income limits

Michael DiMella — Thu, 05 Nov 2009 13:58:00 GMT

Major news out of Congress. Today, the House voted 403-12 in favor of extending and expanding the $8000 first time buyer tax credit after the Senate did the same yesterday by a vote of 98-0. The president is scheduled to sign the bill (which also includes provisions to extend unemployment benefits) tomorrow morning to officially make it law. (Update Nov 6: It was signed by President Obama today, officially making it law).

Initially scheduled to expire on December 1, 2009, the credit will now be extended to May 1, 2010 (and even a few month further if a property is under contract by May 1). There are also some significant changes to this new tax credit that should allow many more buyers to qualify for it. Key elements of the extension:

Credit available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.
Credit remains at $8000 for first-time purchasers. No change to definition of first-time purchaser.
New $6500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.
Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
New anti-fraud limitations are imposed.

Besides than the dates of eligibility being extended, there are some major changes to the $8,000 homebuyer tax credit that could have a large impact on the Massachusetts and Boston real estate market.

First of which, and most relevant to the Boston area given our higher home prices, is the increase in income limits to qualify for the credit. Previous limits were $75,000 (single) and $150,000 (married). The new limits are now increased by more than 50% to $125,000 (single) and $225,000 (married).

Second, a new $6,500 tax credit is available to so called "move-up" buyers. Not just first time buyers are eligible for the tax credit, now those buyers who have owned and lived in their current home for more than 5 consecutive years (out of the past 8 years) are eligible if they move and buy a new home.

These two huge provisions open up the homebuyer tax credit to hundreds of thousands of potential buyers in the Boston real estate market. We've seen the MAJOR effects of the first time home buyer tax credit throughout the country, especially in less expensive areas where you can actually buy most homes on $75,000 annual income (unlike Boston). I suspect we'll see a much larger impact in the Boston real estate market from this new credit expansion than we saw with the original version.

How does the new tax credit differ from the old?

From the National Association of Realtors, here is a direct comparison chart highlighting the changes in the new homebuyer tax credit compared to the previous version:

If you have any questions, don't hesistate to contact me or comment below!

Boston Condo Throwdown: Bryant Back Bay (post-auction) vs. 45 Province and more...

Michael DiMella — Wed, 21 Oct 2009 14:45:00 GMT

[This is a guest post from Todd Mikelonis. Contact Todd with any questions.]

With all the news recently about the Bryant Back Bay condos, you may have heard that an auction took place - the first for luxury real estate in Boston. The auction results were interesting in that some are declaring it a failure while some are saying it's a success. Since the developer is the only one who could say for sure whether it is was a success for them or not, I'm not going to write platitudes on that. But what I will say is that 10 luxury condo units (they intended to sell 10, no more that day) were sold quickly that day for an average price of $1,375,000 ($675 per sq. ft) which was about 30% off the previous asking prices. Definitely lower than most luxury properties have been selling for (or should I say not selling for) and probably not a great sign for the rest of the Boston new development inventory sitting out there.

But how does the Bryant Back Bay stack up against Boston's other luxury condos? Does it compare favorably to Boston luxury condo buildings like Atelier 505 in the South End, One Charles in the Back Bay, 45 Province downtown, Penny Savings Bank in the South End, or any other? Let's find out!

Boston Real Estate Throwdown:

It just so happens that I had the opportunity to do a little "comparison shopping" yesterday. I got out to look at a number of condos in many of Boston’s full service buildings with a buyer client. We mainly looked at two and three bedroom condos in the $995,000 - $1,685,000 range. After looking at 12 condos in a day, an overwhelmed buyer will often ask my opinion. So here it is - my brief summary of thoughts on each unit and my take on how they stack up against one another:

The Bryant Back Bay - 303 Columbus Ave (we looked at two developer condos)
$1,350,000-$1,500,000 (those were the post-auction prices they verbally mentioned, not necessarily the public "list prices")
2000-2250+- Sq Ft ($600 - $750 per sq ft)
3 Bed | 3 Bath
1 garage parking

I have kept an eye on this building since they broke ground, and for some reason has been a favorite of mine. Just off the auction Saturday, I was excited to get in to see what the new pricing would be. Admittedly, I hadn’t been in the building since going to the model when it was under construction so it was nice to see the finished product. Some of the things I liked were the direct elevator access to the units, the large master bath, and large living room. But, if you are on a lower floor and closer to the Clarendon side of the building the master bedroom can be very dark and right up against neighboring buildings - which is reflective of the new pricing. That said, the condo we saw on the 7th floor is a great value at the $1,500,000 price quoted today.

1 Charles #1202 (individual seller)
$1,499,000
1651+- square feet ($907 per sq ft)
2 Bed plus Den | 2.5 Baths
2 garage parking

This condo is actually two one bedroom condos that were combined into one unit. This particular unit was not my taste as the buyer made a lot of specific modifications to the unit – including a lot of bold paint and wallpaper. All of this could be easily altered, but based on the price and view (western exposure), it was not to my buyer client's taste either. It also felt chopped up and more of a collection of rooms lacking flow.

1 Charles #9H (individual seller)
$1,397,000
1571+- Sq Ft ($889 per sq ft)
2 Bed | 2 Bath
1 garage parking

This unit is in the North Tower, which tends to be a bit more private than the South Tower at One Charles. This condo was less customized than some we had seen in the building and was more suitable my client's taste. The views of the Park Plaza and Back Bay were nice and the condo was high enough up to get a lot of light for any exposure. In my opinion it is a well priced condo compared to others on the market in the building, but nothing jumped out about it.

1 Charles #906 (individual seller)
$1,685,000
1554+- sq ft ($1,084 per sq ft)
2 Bed | 2 Bath
2 garage parking

The price difference on this one is the exposure, being a corner unit, and the huge balcony. The balcony really makes this condo. The living area is all windows with southern and eastern exposure…and it is reflected in the price. By far, this is the best of the three we had seen in the building for the day, and that's why it is asking a premium price 10% higher than the other two condos we looked in the building.

45 Province - Downtown (we looked at three developer condos)
$1,100,000-$1,450,000
1300-1600+- t ($846 - $906 per sq ft)
2 Bed | 2 Baths
1 garage parking

I really like the concept and location of 45 Province. The building offered the BEST city views for the same if not lower price than some of the others we saw, but the location is more “Downtown” and isolated from the core neighborhoods. I am excited to see Downtown Crossing go through a transformation, which will greatly benefit 45 Province down the road, but its not quite there yet. I also really liked that the building offers about 120 different floor plans out of 138 units! I think this is a great idea for a large building and will help when owners sell in the future to be offering unique products. From the spa services offered by Exhale to the overall vibrant and chic feel of the building, there was a different vibe than the Back Bay buildings. I don’t think the location will work for my buyer - location will be the largest objection for most buyers but there is a lot of potential because the condos are priced competitively to get people to buy into the neighborhood and building.

South End Atelier 505 - 505 Tremont Street #202
$1,585,000 (was reduced to $1,499,000 just after our showing)
1692+- sq ft ($936 per sq ft)
2 Bed plus Den | 2.5 baths
1 garage parking

In my opinion this building is THE building in the South End. Since opening in 2003, I have been a fan of this building and how it has helped transform this block of the South End. The unit is huge. Actually, it felt like it was the largest of what we saw today, but was about 400-500 square feet smaller. We were a little nervous going into see this condo as it is on the 2nd floor and we thought it may have been dark. To our surprise the ceilings were high and it offered large windows. The unit faces Warren Ave which is both quiet and is a wide street at that point for the South End, so it allows for a lot of light given the floor height.

D4 South End - 7 Warren Ave #1 (individual seller)
$1,285,000
1660+- square feet ($774 per sq ft)
3 Bed | 2 Baths
1 garage parking

This large three bedroom condo with private entrance had probably the most “brownstone” feel of the selection. The building offers a lot of character as well as the unit. This particular unit is just above street level so it offered less light and did not have any views to speak of. I liked the idea of a private entrance, and the space was great for the price compared to the condo at Atelier. I wasn’t a fan of the security/concierge setup in the lobby and a=some of the finishes in the condo.

Penny Savings Bank - 30 Union Park St #301 (individual seller)
$999,000
1265+- square feet ($789 per sq ft)
2 bedrooms | 2 baths
2 garage parking (for an additional $100,000)

I had followed the press on this building since 2007 but only recently had the opportunity to get into the building. I really LOVE the location and exterior feel of the building. This unit is a great value in my opinion as the sellers really customized this condo which offers a lot of “toys” for any potential buyer. Three things buyers want – Light, parking, and outdoor space. This condo has it, and is on the lower end of what we saw today.

The Carillon - 183-185 Massachusetts Ave #803 (individual seller)
$995,000
1220+- sq ft ($815 per sq ft)
2 Bed | 2 Bath
1 garage parking

Large spacious two bedroom condo location in a quite boutique Back Bay building on Massachusetts Ave. The Carillon is a 32 unit building located on Massachusetts Ave close to the intersection of Boylston Street. One of the partners at Charlesgate has often been quotes as saying “Mass Ave is it’s own market” and I think this holds true to this building/condo. The interior of the condo felt a bit dark, the outdoor space with the unit was very minimal and not functional, and some of the finishes were not the quality of the other building we had seen. BUT – this is the least expensive condo we saw today so I must keep that in mind. The up side is that there could be some minor cosmetic changes that could really brighten up and add value to this condo. One red flag to me was the high condo fee of $920 in a building which there was no concierge or doorman. The listing agent did not have much of an explanation for the high condo fee – I will need to investigate further if our client wants to further pursue this condo!

And the winner is......

The winner is…505 Tremont #202 – Atelier. I really am a huge fan of this condo and building overall. The location, amenities, high ceilings, and layout of this condo stand out among the various condos we looked at today.

If you have an questions about these Boston condos or another other luxury real estate, I'd be happy to answer them - just contact me!

Boston real estate home buying timeline

Michael DiMella — Fri, 16 Oct 2009 15:14:00 GMT

[This is a guest post from Jessica Later, a skilled buyer agent on my team here at Charlesgate Realty. If you have any questions, contact Jessica].

If there is one question I get most from my first time home buyer clients, it's this: "How long does it take to buy a home?"

Unfortunately there is not necessarily a hard and fast answer I can give that applies to all buyers. The home buying process in Boston can vary so much person to person and home to home, so there are few purchases, if any, that follow the exact same time frame. At Charlesgate Realty, we had one client start their search and be moved into their brand new home all within 3 weeks and we've had another that took 3 years of pretty consistent home hunting before closing on a new home. And, of course, we've had everything in between as well.

That being said, there is a process to buying a home. There are steps along the way, some can happen simultaneously, while others must follow in progression. These steps are detailed in the Home Buying Timeline document pictured to the right (download it by clicking the graphic).

The biggest variable in terms of the home buying timeline is how long you to search in order to identify the home you want to buy. According the the National Association of Realtors Home Buyer Survey in 2008, the average buyer actively searched for 10 weeks prior to identifying a property to buy, and viewed an average of 10 homes total over that period (and that's usually after a while of searching for homes online). There is a lot of variability in that, of course. For example, we worked with a couple relocating to Boston, who were visiting for a few days and needed to locate a home that would be ready to move into when they came back for their job start date. After a whirlwind tour of 25 homes over a long weekend, they had an offer drafted minutes before they boarded their flight at the airport! The bottom line is that there is no rush if you want to take it slow but we can also move the process along as fast as possible if you're under the gun for some reason (like relocation).

Generally speaking, after the search phase, from the point when you identify a property you would like to buy, it is about a 6 week process to buy. During that time there are 4 main steps:

1. The Negotiation

Typically taking 1-3 days (although these days given conditions in the Boston real estate market, extended negotiations seem to be the norm!), you submit your offer to purchase and negotiate with the sellers all the nitty gritty contract details. (In case you're wondering about negotiating tactics, start with these 5 questions).

2. Due Diligence

Once negotiations are complete, things kick into overdrive for a period of about 10 to 14 days. During this time, you'll have your home inspection, review the financial and legal records of the association (if you're buying a condo), communicate with your lawyer about the full purchase contract (P&S agreement) details, and start the next step....

3. Obtaining the Mortgage

By this point you would have already been preapproved for a mortgage, but now you'll be completing the full loan application, providing your mortgage rep with all necessary verification documents (tax returns, etc), and officially deciding which loan program to go with. The bank will review your documents, have an appraisal on the property completed, and finally approve your loan (hopefully!) in about 2-3 weeks.

4. The Closing

The closing is scheduled at the convenience of both parties - the buyer and the seller - and is part of the negotiation process at the beginning to decide on an acceptable date. Generally 4 weeks or so after the purchase contract is signed, which gives give the bank enough time to approve and fund your home loan, and gives the closing attorney enough time to verify clear title for the property.

That brings you to about 6 weeks from the initial offer, plus the search time prior to that, in total to purchase your new home or condo.

Buying a home can be a long and complex process with a lot of steps along the way - but it doesn't have to be difficult or stressful! Hopefully this info explained the basics of the process and gave a ballpark time frame to purchase. Part of my job as a buyer's agent is to fully educate my clients on the home buying process in Boston and on the Boston real estate market conditions to protect them from potential pitfalls and delays along the way. If you are thinking of buying a home or condo in Boston, I'd be happy to answer any questions you may have. Just contact me or comment below!

And don't forget to download the Boston home buyer timeline!

Boston condo market update (with highest and lowest sales for September)

Michael DiMella — Thu, 15 Oct 2009 16:15:00 GMT

I know posting has been a bit slow around these parts lately (sorry!) but I'm working on a few new website enhancements for this site and also for our Boston Apartments site that have been keeping me busy. I'm planning to get back to a more regular writing schedule over the next few weeks, but in the meantime I'll try to try to keep you updated on the Boston real estate market the best I can - it's a strange market out there right now! Anyway, here's a quick statistical update for the past month's data:

Boston condo market statistics for September 2009

315 Boston condos in total were sold in September 2009 for a total value of $142,587,900 and here's a summary of the market statistics from MLS (with August 2009 stats in italics and September 2008 in parenthesis as comparison):

Number Sold: 315 456 (311)

Average list price: $477,502 $498,642 ($550,437)

Average sale price: $452,660 $476,203 ($525,300)

Average discount ratio: 5.2% 4.5% (4.6%)

Average days on market: 105 106 (98)

Average price per square foot: $453 $484 ($526)

Total market $ volume: $142,587,900 $217,148,568 ($163,368,300)

Notable Boston condo sales from September 2009

Here are the 5 lowest and highest priced Boston condos sold in September. I have included a photo, quick specs, and the first line of the description from MLS to provide a little background.

Top 5 Least Expensive Boston condos sold

5 Creston Pk - Unit 3 | Dorchester
3 Bed | 1 Bath

Sale Price: $30,000

Subject to Third Party Approval. Sold "as is". No utilities are on at present time.

14 Lyndhurst St - Unit 1F | Dorchester
1 Bed | 0 Bath

Sale Price: $44,900

Fannie Mae owned. This unit is under construction. There is no kitchen and no bathroom. This property will not qualify for financing.

138 Ballou - Unit 3 | Dorchester
2 Bed | 1 Bath
Sale Price: $50,000

Please be advised that this property is listed post-foreclosure, and therefore caution should be exercised by brokers and their clients during any entry and inspection of the premises.

69 Moreland St - Unit U:2
3 Bed | 1 Bath
Sale Price: $58,000

Good sized condo, renovated within the last few years. Own for less than renting!

800 Washington St - Unit 3 | Boston
3 Bed | 1 Bath
Sale Price: $59,900

Third floor condo. Unit is in fair shape but there is NO CONDO ASSOCIATION = NO 6D = CASH DEALS.BANK SALE. SOLD AS IS.

Top 5 Most Expensive Boston condos sold

404 Beacon Street - Unit 4 | Back Bay
3 Bed | 2 Bath
Sale Price: 2,085,000

Luxurious 3bd, 2113 sqft Condo. Entire 4th Floor of a Converted 19th Century Corner Mansion w/Commanding River & City Views.

134 Beacon - Unit 102 | Back Bay
3 Bed | 3 Bath
Sale Price: $2,500,000

Height of elegance.Superb 2,427 sf parlor duplex (5 unit 2009 renovation) on prime waterside Beacon/Berkeley.

185 Marlborough - Unit 1 | Back Bay
3 Bed | 3.5 Bath
Sale Price: $2,500,000

Spectacular New Renovation on sunny side Marlborough Street.

196 Beacon St - Unit 3 | Back Bay
3 Bed | 3 Bath
Sale Price: $3,000,000

Located in a meticulously renovated 3unit waterside Beacon Bldg centrally located in Back Bay at Clarendon St.

220 Boylston Street - Unit 1220 | Back Bay
3 Bed | 3 Bath
Sale Price: $3,500,000

At Four Seasons Place. Very rare, front-facing, corner 3 bedroom unit with magnificent views of the Public Garden, down Boylston St and beyond.

Foreclosure in Regatta Riverview hits the market at $110K less than last asking [del.icio.us]

mdimella — Fri, 09 Oct 2009 08:54:02 PDT

Foreclosure in Regatta Riverview hits the market at $110K less than last asking price

Michael DiMella — Wed, 07 Oct 2009 12:49:00 GMT

[Here is a guest post from Jessica Later, one of the skilled buyer agents on my team here at Charlesgate Realty Group. Please enjoy her post about foreclosures, and if you have any questions, please comment below or contact Jessica].

Banks all work differently when trying to sell their REO (bank-owned foreclosures) property, but they all have the same end goal: To sell the property quickly and try to get the best price they can. Like normal sellers, banks are not just going to give away money, they need to recoup their costs as well. That being said, when they bring a property to market, it is often after many months of holding and maintaining the property through the foreclosure process so they often prefer to get the property sold very quickly - which is why many foreclosures sell for a discounted price and can present opportunities to savvy buyers.

As an example of a foreclosure in the Boston area being listed at a discount to the market, we are just about to list a bank owned property at the Regatta Riverview Residences in Cambridge that literally has had a $110,000 price drop! It was last listed pre-foreclosure for $539,000 and the bank just gave us their new listing price of $430,000. Whatever the motivation is for them to get this property off their balance sheet, apparently the bank truly wants to "unload" this condo.

Although there have been a handful, we don't see a lot of foreclosures in high rise or full service buildings like this (most foreclosures in the Boston area are in neighborhoods concentrated with multifamily homes). In this case, Regatta Riverview offers a concierge, movie room, office room, pool, gym, and valet parking - definitely full service. The condo itself is a 1040 square foot corner unit which includes two large bedrooms, two sizable bathrooms, and a renovated kitchen w/breakfast bar. One valet parking spot is also included.

All other two bedrooms currently listed in building range from $499K-700K, so there's probably some solid value here.

There are certainly some issues to be aware of when making an offer on a bank owned foreclosure, generally speaking the process works similar to a typical sale process. Negotiating with a bank can be a little more cut and dry than with an individual owner and foreclosures are sold "as-is" so don't expect to get any repair work (if needed) done by a bank. It also can take a bit longer to get an answer to your offer - they work banker's hours, after all!

We're finalizing some of the marketing collateral and details but in the meantime, to inquire about this property or discuss the foreclosure purchase process in general please contact Jessica Later at 857.383.3122.

Labor Day surprises for the Boston real estate market?

Michael DiMella — Fri, 04 Sep 2009 10:23:00 GMT

With Labor Day coming up Monday (too soon dammit!), which usually leads to the end of the typical summer slowdown in the Boston real estate market, what surprises can we expect for the fall market?

Here are the key factors in the Boston real estate market right now:

Inventory of properties for sale is limited. For example there are now 697 downtown Boston condos for sale (versus 960 at the beginning of the summer). At the current sales pace, that is equal to 4.5 months of supply of condos on the market now. In certain neighborhoods, the inventory is even tighter - there are only 2.7 months of supply of South End condos for example.
Sellers waiting for the fall. Anecdotally, I've heard stories of many sellers holding off putting their property on the market until the end of summer, after vacation season to expose their home to more buyers. This has led to the decline in inventory over the summer, and I suspect will lead to an increase soon, offering buyers more selection. Since many buyers have been waiting for a better selection to choose from, we could see some increased activity to satisfy that demand once the right condos become available.
Price corrections. Over the summer, the prices of 376 downtown Boston condos were dropped by an average of about 5%. Seems like sellers are a bit more realistic on pricing and are willing to come down a bit to offer value to buyers.
The end of the $8000 first time home buyer tax credit. Ending on November 30, 2009, this has been spurring buyers (mostly in the sub $450K market since there are income limits to claim the credit) to act now to make sure they get the "free money" from Uncle Sam. I suspect this activity may pick up over the next couple months before receding over the winter once the program ends (although there has been some talk of extending the program into next year).
Boston luxury real estate market. 72 one million dollar+ condos in Boston went under agreement over the past 3 months (versus 42 in Q1 and 70 in Q2, which is traditionally a busier time of year). And that's only down 20% versus the same period a year ago. Yes, still clearly down, but by a much smaller gap than Q1 and Q2 were compared to a year ago (58% and 38%, respectively). Maybe some signs of life for the high end market.

So what's in store for the Boston real estate market?

The low end of the market ought to be very active in a rush to claim the tax credit, the high end is showing signs of life, and the economy is improving overall. I expect we'll see healthy activity pre-Thanksgiving in the Boston real estate market with mortgage rates still at extremely low levels and consumer confidence improving recently. After Thanksgiving, I certainly think we'll see a slowdown in the market (a combination of typical winter slowdown and the end of the tax credit). Heading into 2010, all eyes will be on the economy and whether or not jobs are being created by early 2010, which I think will be the key to the real estate market recovery next year. There will still be some bumps ahead for sure, but signs are looking much better that we'll see a recovery in the near future.

Enjoy the last weekend of the summer!

First time homebuyer class offered for Boston condo buyers

Michael DiMella — Mon, 31 Aug 2009 10:10:00 GMT

I just wanted to let you know that I will be holding a first time Boston condo buyer class at my office on September 9 from 6-8pm. Class is probably not the right word, since it will be a fairly small, interactive presentation (actually more of a discussion and Q&A, I hope), but that's what we're calling it I guess! We'll have food (and beer!) and just talk about the market conditions and the buying process.

The information presented will be specific to the condo buyer looking to purchase a condo in Boston or in the nearby surrounding towns. We'll dig a little deeper than the standard "how's the market doing right now?" questions and discuss topics like:

• Renting vs. Buying: Whether it even makes sense for you to buy right now

• Homebuying process and timeline: How long it actually takes to buy
• Working with a buyer agent: How it works and whether or not you really need one
• What mortgages are still available for condos and how much cash you need to buy
• Using neighborhood level data (like discount ratios and real time trend graphs) to value properties
• Negotiating: How to craft your offer to drive a hard bargain
• Top 10 online resources to aid your home search

Click for more info or to RSVP

Hope to see you there!

Top 5 highest and lowest priced Boston condos sold this month

Michael DiMella — Fri, 28 Aug 2009 05:51:00 GMT

Similar to how I wrote about the Boston real estate market in April and May (sorry - I skipped June), here are the Top 5 highest and lowest priced Boston condos sold in July.

The price range is always astounding to me - this month the highest priced condo in Boston sold for 100 times more than the lowest priced condo. And these two properties are only a hair over 2 miles away from each other - easily walkable. Two miles and 100x the price. Amazing. And this is even a smaller price range difference than in either May or April!

Boston condo market statistics for July 2009

Before I get to the most and least expensive properties, 464 Boston condos in total were sold in July 2009 for a total value of $200,795,740 and here's a quick summary of the market statistics from MLS (with June stats in parenthesis as comparison):

Number Sold: 464 (411)

Average list price: $449,546 ($486,463)

Average sale price: $432,749 ($464,784)

Average discount ratio: 3.7% (4.5%)

Average days on market: 95 (89)

Average price per square foot: $444 ($465)

Total market $ volume: $200,795,740 ($191,026,021)

Top 5 Least Expensive Boston condos sold in July 2009

Here are the 5 lowest price condos sold in Boston in May. I have included a photo, quick specs, and the first line of the description from MLS to provide a little background.

37-39 Folsom St - Unit 6
Dorchester
3 Bed | 1 Bath
Sale Price: $29,000

Bank Owned condominium. Investor Alert. Building in need of extensive repairs. No Condo Association.

247 WASHINGTON ST - Unit 1
Dorchester
1 Bed | 1 Bath
Sale Price: $30,000

This cozy first floor level unit is located on the bus line with easy access to shopping and so much more, bring your offer.

15 Boyden St - Unit 4
Boston
2 Bed | 1 Bath
Sale Price: $35,000

Please be advised that this property is listed post-foreclosure, and therefore caution should be exercised by brokers and their clients during any entry and inspection of the premises.

21 Bicknell St - Unit 1
Dorchester
3 Bed | 1 Bath
Sale Price: $37,900

Good Location near public transportation. Offer, pre-approval and/or proof of funds copy of earnest money deposit check, name, email and contact information for the buyers, buyers broker, buyers attorney and mortgage broker on the over cover sheet.

37-39 Folsom - Unit 5
Dorchester
2 Bed | 1 Bath
Sale Price: $39,000

Please be advised that this property is listed post-foreclosure, and therefore caution should be exercised by brokers and their clients during any entry and inspection of the premises.

Top 5 Most Expensive Boston condos sold in July 2009

228 West Canton St - Unit 1
Boston: South End Condo
3 Bed | 3.5 Bath
Sale Price: $1,875,000

Dramatic Parlor, Street and Garden Triplex offers 3+ bedrooms, 3.5 baths, deck off kitchen, private rear patio and 2 direct access deeded parking spaces.

776 Boylston Street - Unit E11E
Boston: Back Bay Condo
2 Bed | 2.5 Bath
Sale Price: $2,500,000

Five star living at the Mandarin Oriental w/full hotel services incl resident access to a lavish spa, wellness center, yoga/meditation, & Middle Eastern inspired Hammam.

96 Beacon Street - Unit 2
Boston: Beacon Hill Condo
3 Bed | 3.5 Bath
Sale Price: $2,650,000

Recently completed! Exceptional 3 bedroom duplex with private terrace and courtyard.

68 Beacon Street - Unit 7W
Boston: Beacon Hill Condo
3 Bed | 3 Bath
Sale Price: $2,695,000

Elegant, sun filled, seventh floor cooperative apartment in a distinctive corner, doorman building.

303 Columbus Ave - Unit PH1001
Boston: South End Condo
3 Bed | 2 Bath
Sale Price: $2,975,000

The Bryant on Columbus, an intimate enclave of 50 homes in a fabulous location, between Clarendon & Dartmouth Sts.

That's it for this month's edition of "perspective" on the Boston real estate market. As usual, amazing variation in Boston condos over just a few miles. If you have any questions about the market, just contact me and ask away!

What do you think of the difference in Boston condo prices? Comment below!

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Boston real estate market finally turning a corner?

Michael DiMella — Wed, 26 Aug 2009 10:37:00 GMT

Now that full July market data for the national, Massachusetts, and Greater Boston real estate markets has been released (plus I reported here about the downtown Boston condo market), we are seeing more and more positive signs in the real estate market. Some of the recent news coverage on both the state and national level has been very interesting:

Home prices in major US cities rise for a second month (Wall Street Journal - need subscription)
A strong gain in new-home sales in July (NY Times)
Mass housing market shows signs of perking up (Boston Globe)
July home sales climb 12 percent in Mass, price declines smallest in over a year (Banker & Tradesman - need subscription)
Home prices, sales on rise in Boston area (Boston Globe)

So is it all good news? Is now definitively the "right time to buy"?

For the first question - Not yet. While we are seeing a lot of good news, it is not all good news. Prices in Massachusetts are still falling year over year (but at a slower rate for sure). Although the 2nd quarter Boston real estate statistics shown below do not include the improving July data, you can see this clearly. Signs have been pointing more positive each month and are signaling a bottom, but we aren't quite at the bottom just yet (price-wise). As sales rise and the market reaches an equilibrium, we'll see where prices finally level out. I would guess we are pretty close now, and typically you can't recognize an exact bottom until after it already occurs anyway.

A potential concern is the expiration of the $8,000 first time homebuyer tax credit on November 30th, which has been driving a lot of sales around the country in the sub $400K market segment. In the Boston real estate market we haven't seen as much of an impact as other parts of the country because prices are higher and many buyers make too much money to qualify, so we probably won't have as much of a "drop-off" effect. Plus there have been talks about extending the credit for another year, so the credit may continue into 2010 anyway.

Here are the stats mentioned above...

Greater Boston Single Family Home Statistics in Q2 2009 (by town):

Greater Boston Condo Statistics in Q2 2009 (by town):

Overall, seeing signs that the real estate market and economy are improving (even though unemployment is worrisome, we are very close to being officially out of the recession as GDP growth turns positive) is very welcome. Now that we are at, or close to the bottom, brings me to my second question...

"Is now a good time to buy?"

To that question, I would say "probably", if your personal and family circumstances are leading you to buy. I'll always maintain that buying a home is a personal decision that can be right for some people and wrong for some people based on personal circumstances at the time. A home is first and foremost just that - a home. Can it also be a good investment? Yes, but the first criteria should always be selecting a good place for you and your family to live. That being said, if you have been watching the market and waiting for the "right time" to buy, this could be it. The Boston real estate market is more affordable to get into than in a long time, mortgage rates are at historically low levels, the opportunity for the $8000 tax credit is expiring, and trends are looking more and more like we'll be bottoming out and heading up soon (although I suspect we'll be looking at a long gradual recovery without any large price increases for a while). All of those things equal good opportunity.

If you have any questions about the market or whether or not its right for YOU to buy a home or condo in Boston, I am happy to chat. Just contact me and ask away!

What do you think of the market? Comment below!

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July market report for downtown Boston condos

Michael DiMella — Thu, 13 Aug 2009 12:47:00 GMT

Although not all good, there's been a more steady beat of positive national economic and real estate news lately (see here, here, here, and here plus the economist survey from the Wall Street Journal below for some examples). Has this carried over yet into the local Boston real estate market, specifically the downtown Boston condo market?

To answer that, here are the sales numbers from July 2009 (compared to 2008 and 2007) for the downtown* Boston condo market:

JULY	2009	2008	2007	Change from '08	Change from '07
# sales	213	220	193	-3.2%	10.4%
Avg $	$635,040	$698,114	$644,994	-9.0%	-1.5%
Med $	$520,000	$535,000	$508,200	-2.8%	2.3%
Avg $/ft	$639	$648	$656	-1.4%	-2.6%
DOM	101	89	92	13.5%	9.8%

*downtown is made up of the Back Bay, Beacon Hill/West End, South End & Bay Village, Fenway/Kenmore, Midtown, and North End & Waterfront neighborhoods.

As you can see from the numbers, the market is down slightly price wise from 2007 and 2008, but not by a huge margin. And, better still, the number of condo sales is about even with 2008 and actually up substantially from 2007. As we've been continually seeing, the prices in the Boston real estate market have been holding remarkably steady throughout the recession. But now in July we have transactions coming back - July is the first month in a long time where year over year transaction numbers have been comparable to the numbers of the past couple of years.

I don't know if this is the start of a trend in terms of the number of sales or just an anomaly, but as we start to turn a corner with the economy towards recovery, I suspect we'll begin to see more of a pickup in real estate market activity in Boston - similar to what's been going on in many other parts of the country for a few months now.

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What you can get for the money: Beacon Hill Condos under $600,000

Michael DiMella — Thu, 06 Aug 2009 15:31:00 GMT

I wrote about the Back Bay condo market and what $600,000 could buy you there a few weeks ago, so I figured it would be an interesting proposition to now look at the Beacon Hill condo market (another one of the most expensive neighborhoods for Boston condos). Beacon Hill is slightly less expensive on average than the Back Bay (median condo prices in Beacon Hill are $527,000 vs nearly $608,000 in the Back Bay over the past 3 months). Still not cheap! I guess being one of the most historic and desirable neighborhoods in one of the most expensive cities in the country doesn't exactly equal cheap....but you be the judge as to where you want to live! See below what $600,000 will buy you for a Beacon Hill condo. You can also read more about Beacon Hill in our new neighborhood section of this site.

Beacon Hill Condos (under $600,000):

For a quick overview, here are some key stats before we take a look at a few choice properties for under $600K below.

Currently Active

34 condos on market

117 days on market average

$438,000 average list price

$702 average list price per sq ft

Sold (in last 3 months)

31 condos*

62 days on market average

$394,000 average sale price

$691 average sale price per sq ft

*in the sub $600K price range, there is currently only a 3 month supply of condos in Beacon Hill (a very tight market)

A sample of Beacon Hill condos listed for under $600,000:

Here are a few properties (with photo and description from MLS) I've selected to give you a sample of what $600,000 will buy you in the Back Bay condo market:

Beacon Hill Condo: 30 Temple Street - Unit 2

$599,000 (2 bed, 1.5 bath - 730 sq ft)

This lovely Beacon Hill home with one bedroom plus den is recently renovated. Floor to ceiling windows windows provide an abundance of light. Hardwood floors, built-in bookcases, a marble fireplace & mantle add charm and elegance. Chef's kitchen with gas cooking, cherry cabinets & stainless appliances. Huge Master Bedroom with walk-in custom closet. Ensuite bathroom has Steam shower, Jacuzzi,& washer/dryer. Large deck off the Master Bedroom is your oasis to relax, garden and dine in the City! (Description courtesy of Linda Barrett of Otis & Ahearn)

Beacon Hill Condo: 88 Mt Vernon - Unit 10

$585,000 (1 bed, 1 bath - 599 sq ft)

Picture perfect one bedroom directly across from Louisburg Square. This wonderful home offers a spacious dining/living room with coffered ceiling, built ins and wood fireplace all with direct view to Louisburg Square. The galley kitchen has custom cabinetry, honed granite, Sub Zero and gas cooking with a sweet window looking out to Willow St. The generous queen bedroom has double window exposures and continues with the great ceiling height offered in this home. A true gem! (Description courtesy of Joan Cucchiara of Otis & Ahearn).

Beacon Hill Condo: 35 Revere - Unit 4

$569,000 (3 bed, 1 bath-764 sq ft)

Well priced, beautiful, sunny, front facing three bedroom condo on the hill. Updated kitchen with stainless steel appliances and granite counter tops, updated marble bath, washer/dryer in unit, and private storage. Enjoy the panoramic views of downtown Boston, Cambridge and the Charles River from the common roof deck just a few steps away. Very efficient attractive floor plan. (Image and description courtesy of Robert A. Fortin of Charles River Residential Brokerage, Inc).

Beacon Hill Condo: 106 Myrtle St - Unit 8

$559,000 (2 bed, 1 bath-780 sq ft)

Sunny, renovated 2BR/1BTH floor-thru is just steps from Charles Street, MGH, and Government Center. Boasting a spacious living room, new granite eat-in kitchen, new common roof deck, full tiled bathroom, and an excellent association with high owner occupancy. Lots of windows with great light and views. Professionally managed, no dogs. (Images and description by Paul Odelson of Coldwell Banker Residential Brokerage).

Beacon Hill Condo: 34 Myrtle St - Unit 1

$558,000 (2 bed, 1 bath-851 sq ft)

Large first floor two bedroom condo with separate dining and family room, updated stainless steel appliances with granite counters and cherry cabinets. Large closet space for each bedroom, extra storage in the basement, private courtyard and a common roof deck. Close to Boston Common, Capital, Charles Street, Medical Center. (Image and description are by David Sampson from Hammond Residential).

Anything you like?

I hope you enjoyed this peak at the Beacon Hill real estate market. Although inventory is limited, there are some interesting choices and solid options for buyers in Beacon Hill.

Contact me if you'd like more info on any of those properties or about the market in general. And if you're not in the $600,000 price range, you can also search our terrific google powered multiple listing search engine to find all available Boston condos.

Questions? Thoughts? Comment below!

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$8,000 First time homebuyer tax credit to expire on November 30, 2009

Michael DiMella — Tue, 04 Aug 2009 13:52:00 GMT

UPDATE (NOV. 5, 2009): Read this for information about the newly extended and expanded $8,000 home buyer tax credit which is is open to more than first time homebuyers and extended to May 1, 2010.

With more positive signs in the economy and the Boston real estate market being reported in the news lately, you may now be giving more serious thought to buying a new home or condo in Boston this year. Since you may be eligible for the $8,000 first timehome buyer tax credit, I just wanted to make sure you had all the facts about it with a quick post (there's been some confusion lately specifically with the expiration date). To clarify:

In order to take advantage of the $8,000 first time home buyer tax credit, you must CLOSE and take ownership of your new home by November 30, 2009 (not December 31st as many people think).

Since it typically takes 45-60 days to close on a new Boston condo or home from the point when you identify a property to buy, I suggest getting started in your search soon to give you adequate time to search for the right home. Unless you're a last minute type like me who really likes to rush things, of course!

For full details of the tax credit (including eligibility requirements), please see How the First Time Home Buyer Credit Works

You can contact me directly with any questions by email or by commenting below.

Boston real estate: Soft Second loan program offers lower costs to borrowers

Michael DiMella — Tue, 28 Jul 2009 10:19:00 GMT

[Here is a guest post from Jessica Later, one of the skilled buyer agents on my team here at Charlesgate Realty Group. Please enjoy her post, and if you have any questions, please comment below or contact Jessica].

We all know Boston real estate prices are among the highest in the country, which makes it difficult for for many people to buy a home or condo in the Boston area. But many people are unaware of some of the financing options (often backed by the government) that make it a bit easier to own your own piece of the Boston real estate market. The government (and private sector for that matter) has a vested interest in keeping people of all economic backgrounds in the state, and some of the loan programs available help do just that by making it a little bit easier to buy a home and set down roots in Massachusetts communities.

I would like to share with moderate-income home buyers some information on one of those programs that can potentially save thousands in financing costs and use less cash for a down payment. It is called the Soft Second Loan Program. Recently, a buyer client of mine took advantage of this program and it will saving her almost $300/month! This loan program has actually been around since 1991 has helped close to 13,000 families buy their first home. This program is now available in every community in Massachusetts.

Highlights of the Soft Second Loan Program:

Homebuyer Support: The are pre and post-purchase educational courses that are in place to help guide first time home buyers in the right direction. You more or less have your own support team throughout the entire process. These classes will educate you on the process of buying a home, introduce you to home inspectors and real estate attorneys, and help you keep up on your payments.

Low Fixed Interest Rates: The participating lenders that offer this program offer rates that are as low as one percent below market rate on a 30 year fixed rate. My buyer locked in at 4.25% when the going rate is currently 5.5%!!

No Points: This program will not ask you to pay any "points" which are fees banks sometimes ask buyers to pay to keep their rates low.

No PMI: Usually, if you are putting less than 20% down you are required to get Private Mortgage Insurance which can cost roughly $125-250/month. In this loan you only have to put 3% down and you still do not have to PMI.

Low Down Payment: Although most programs require minimum 10% down in this market, the Soft Second only asks 3% down from you...some of which can even be a gift or grant!

Great History: In all the years this program has been in effect, there has only been a .35% foreclosure rate. This is actually less than the prime mortgage default rate!

What's the catch? There are income requirements (you can't make more than the area median income for your community) and not all buyers will qualify, but the Soft Second loan program is definitely worth a look if you are looking into buying Boston real estate in the near future.

Please contact me if you have any questions!

You can also find out more here.

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Did you know you can save $1400 on your Boston real estate taxes?

Michael DiMella — Tue, 21 Jul 2009 15:42:00 GMT

In this economy, we are all looking for a little savings...so how about saving close to $1400/year on your taxes?

Well, if you own Boston real estate and reside in it as your primary residence, you can! It's called a "residential exemption" and the $1400 comes right off your Boston property tax bill!

The reason why I bring this up is that I've had quite a few clients recently who were surprised by this tax exemption offered by the city of Boston (and, if you don't live in Boston, a similar type exemption is also offered in 12 other Massachusetts cities: Barnstable, Brookline, Cambridge, Chelsea, Malden, Marlborough, Nantucket, Somerset, Somerville, Tisbury, Waltham, and Watertown). Since I don't want anyone to miss out on a free $1375 or so (to be exact this year - it adjusts slightly each year), I wanted to write about it here.

What is a residential exemption?

The City of Boston offers a residential exemption on Boston real estate that serves as a property owner's principal residence. To be eligible for Fiscal year 2010 (beginning July 1, 2009) the owner must occupy their property as their principal residence on January 1, 2009. For the purpose of this exemption, the principal residence is the address from which your Massachusetts income tax return is filed.

It's basically a strategy that Boston uses to encourage more Boston real estate owners to live in their homes or condos in Boston rather than rent them out as investment property. If you haven't yet...make sure to take advantage!

How to apply for the residential exemption:

In person: You can pick up an application form at the Assessing Department, Room 301, City Hall (map) or at the Taxpayer Referral & Assistance Center (TRAC),
Room M5, City Hall. The TRAC is open Monday through Friday from 9am - 5pm.

Online: The Residential Exemption application will also be available online
(January 1, 2010 - March 31, 2010 ONLY) at: http://www.cityofboston.gov/assessing/resexempt.asp

Then fill out and return the completed application to:

Assessing Department - Room 301
City Hall, Boston, MA 02201

Note: The filing deadline is March 31, 2010

For more information please see: Residential exemption information (pdf) or visit the City of Boston website.

I hope you find that helpful and can save yourself a few bucks! Please contact me if you have any questions!

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Back Bay condos: What you get for $600,000

Michael DiMella — Fri, 10 Jul 2009 16:07:00 GMT

If you read which neighborhood has the most expensive condos in Boston, then you know the Back Bay condo market is the most expensive in the city with median prices well above $700,000! For most of us, that's a pretty hefty price and still only gets you to the middle of the market. Ahhh....life in Boston! But say you can get close in price and you are looking for a decent condo in the Back Bay for around $600,000, what does that get you?

Back Bay Condos (under $600,000):

For a quick overview, here are some key stats before we take a look at a few choice properties for under $600K below.

Currently Active

85 condos on market

101 days on market average

$429,000 average list price

$693 average list price per sq ft

Sold (in last 3 months)

31 condos*

89 days on market average

$439,000 average sale price

$659 average sale price per sq ft

*in the sub $600K price range, there is currently a 8.25 month supply of condos in the Back Bay

A sample of Back Bay condos listed for under $600,000:

Here are a few properties (with photo and description from MLS) I've selected to give you a sample of what $600,000 will buy you in the Back Bay condo market:

Back Bay Condo: 103 Marlborough Street - Unit 6

$529,000 (1 bed, 1 bath-615 sq ft)

Charming one bedroom located near Clarendon on Marlborough St. Indian shutters in bay windowed LR with tall ceilings, tall wainscot ting, Delft tile Fireplace surrounded by glass cabinetry. 2005 kitchen, renovated bath with combo washer dryer. Lovely wood floors in bedroom and living room. Self managed building 6-8 Owner occ. New roof. Direct access full parking space included in price! Additional storage and common laundry in basement. (Description and image provided by Maureen Ohara of Coldwell Banker Residential Brokerage).

Back Bay Condo: 159 Saint Botolph St - Unit 1

$600,000 (2 bed, 1.5 bath-1110 sq ft)

Renovated 2 bed/1.5 bath garden floor-thru with private patio and full deeded parking space. This unit has high ceilings, moldings, & hardwood floors throughout.Open layout has separate living & dining rooms,large kitchen with breakfast bar.2 ample sized bedrooms,good closet space,marble bath with whirlpool tub.Central A/C,in unit laundry & marble entryway.Ideally situated on tree lined St. Botolph Street steps to both Back Bay & South End shops & restaurants. (Description and image provided by Charlesgate Realty Group, actually - this is one of our listings!).

Back Bay Condo: 90 Marlborough St - Unit 2

$599,000 (2 bed, 2 bath-1036 sq ft)

LOCATION! On prestigious Marlborough by Clarendon. Just 2 blocks to Public Garden. Gorgeously renovated, spacious 2 Bed / 2 Bath home. All within elegant Back Bay townhouse with grand proportions and elevator. Open kitchen w/ cherry cabinets, granite counters, stainless appliances and gas cooking. Open to separate dining. Entertainment-size living w/ fireplace. Luxuriously renovated baths. Central air. Gas heat. W/D. Hardwoods. (Description and image provided by Lucas Garofalo at Keller Williams Realty).

Back Bay Condo: 23 Bay State Rd* - Unit 2

$589,000 (1 bed, 1 bath-825 sq ft)

Gorgeous totally renovated front facing second floor one bedroom with beautiful original detail. Large sunny living room with fireplace, bow window, built-in's, and separate dining area. Renovated cook's kitchen with granite counters, and SS appliances. Spacious bedroom with pretty arched window. Fantastic closet space throughout with bonus customized walk-in. Elegant full bath. Pristine hardwood floors and original moldings throughout, w/d in unit, and direct access tandem parking. (Image and description provided by Judy Pagano at Gibson Sotheby's International Realty).

*and for you nit pickers, yes, Bay State Rd. is technically "Back Bay West" so it counts!

Back Bay Condo: 416 Commonwealth Ave - Unit 508

$589,000 (1 bed, 1.5 bath-953 sq ft)

Totally renovated one bed/one and a half bath in full service building with grand common areas. Great Master Suite, with walk in closet. Next to Storrow Drive and Newbury Street. (Description and image provided by Hugh Geiger at First Boston Realty Group).

Anything you like?

Not a bad selection for under $600,000 in the Back Bay, huh? There are some solid options there. I hope you enjoyed this "window into the Back Bay real estate market".

Questions? Thoughts? Comment below!

Boston jumping on the iphone bandwagon with new "complaint" app

Michael DiMella — Tue, 07 Jul 2009 08:45:00 GMT

Make your complaint heard with the City of Boston with an innovative new iphone app! At least that's the message the city is pushing with "Citizen Connect", the iphone app soon to be available from the app store for free. Boston will be the first city on the nation to offer an app like this. Ok fine, so City Hall still has no voicemail system, but now who can say we're old school?

The Boston Globe wrote about it yesterday:

City officials will soon debut Boston’s first official iPhone application, which will allow residents to snap photos of neighborhood nuisances - nasty potholes, graffiti-stained walls, blown street lights - and e-mail them to City Hall to be fixed.

The application, which will be free to download from Apple, will allow residents to use the global positioning system function on their iPhones to pinpoint the precise location of the problem for City Hall. After submitting a complaint, users will get a tracking number, so they can pester city officials if the problem persists.

Nice! I know what my first complaint will be: umm, how about putting freakin' street signs on every street?

Seems like the city is looking for complaints about potholes, street lights blown out, graffiti, etc, but there are so many more fun complaints you could send.....there are literally thousands of things to complain about! Some could even lead to iphone vigilantes and neighborhood fights...terrific! What's going to be your first complaint?

Has your neighbor been illegally dumping trash in your dumpster? Pull up your iphone and snap a photo...complain!
Neighbor working on the condo without a permit? Complain!
Somebody stealing your newspaper in the morning? You got it....complain!
Just simply don't like your neighbor? Photoshop him in a scandalous picture and complain!

Actually - this app could be a really great and precedent setting idea if the city really acts on the complaints. Hopefully the city takes the input from residents seriously and will get working on the potholes, the street signs, the graffiti, and whatever other serious issues come up that need to be fixed. I'm looking forward to the app's launch soon - gathering community input through new technology allows for more communication and quicker follow up in a more efficient manner (I hope). Of course, in the meantime, you can always go old school and call the 24 hour hotline at 617-635-4500 if you have an issue (or really annoying neighbor)....

Do you have thoughts or questions? Make a comment below!

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Boston real estate and condo market mid-year report

Michael DiMella — Thu, 02 Jul 2009 06:44:00 GMT

Hard to believe we are mid-way through the 2009 given the horrible weather we've had in Boston lately, but the calendar says July, so here we are. Time for my mid year 2009 Boston real estate market report. Unfortunately given the approximately 463 straight days of clouds and rain, I was caught off guard and unaware that it is summer, so the report isn't ready yet (but it will be soon). In the meantime, here is a quick look at the summary stats for the core Boston condo market:


Core* Boston Condos	Q1 2008	Q2 2008	Q1 2009	Q2 2009
# of Sales	373	729	209	413
Avg Price	$774,824	$792,595	$735,302	$710,861
Med Price	$525,000	$565,000	$495,000	$505,000
$/Sq Ft	$627	$686	$611	$654
D.O.M.	99	81	132	99
Total Volume	$289,009.352	$577,801,755	$153,678,118	$293,585,593

*core neighborhoods of Back Bay, Beacon Hill, Fenway/Kenmore, Midtown, North End, South End, West End, and Waterfront

Looks like there have been some declines in 2009. No shock there - I already reported some of this (see: Boston luxury real estate market slowdown and 1st quarter 2009 Boston condo market data). But definitely stay tuned as I dig a little deeper into specific neighborhoods and price ranges over the next couple weeks to give us all a really solid understanding of the dynamics of the Boston real estate and condo market.

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Can you get a bargain by buying a bank owned foreclosure in Boston?

Michael DiMella — Mon, 29 Jun 2009 10:50:00 GMT

[Here is a guest post from Josh Muncey, one of the skilled buyer agents on my team here at Charlesgate Realty Group. Please enjoy his take on foreclosures, and if you have any questions, please comment below or contact Josh.]

I'm sure you've read all about the continued struggles of the Boston real estate market (especially in areas of heavy foreclosures). Maybe you're even looking for ways to capitalize on this foreclosure crisis that you hear about in the news every day? Are you wondering if you can buy a foreclosure in Boston for 50 cents on the dollar?

Well - I haven't seen properties selling for half of their market value, but with a little research and effort, I do think you can get about 80 to 90 cents on the dollar - possibly more in rare circumstances. There certainly are some good deals out there for a savvy buyer but there are some inconveniences associated with purchasing bank owned real estate in Boston that you may need to endure in order to make it happen:

The property might be missing appliances. Appliances have a mysterious way of disappearing from foreclosed homes (unfortunately). And don't be surprised to see missing copper pipes and electrical wiring in some homes. Whether theft or vandalism, those are some things to look out for that could cost you money to fix or replace up front.
You may need to remove the contingencies from your offer in order to be the winning bid. It's not just all about price. Banks are looking for "secure" deals without lots of contingencies. Banks look more favorably on offers without inspection contingencies and you may be able to get a property for tens of thousands cheaper if you have no mortgage contingency on your offer as well. They want these properties off the books quickly! However, even if you don’t put an inspection contingency in your offer you can still have one for informational purposes (which I would certainly advise doing). It may even be a good idea to bring a contractor or inspector by the house prior to making an offer.
REO properties are sold “As is”. Be prepared to make repairs, and have some cash set aside for maintenance - you'll probably need it. Factor this in to your offer to make sure you're really getting the deal you expect.
You need to act quickly and be prepared for a bidding situation. Foreclosures are a hot commodity for investors right now. The best foreclosures in Boston (value wise) typically sell very quickly and often stir up bidding wars. Typically, banks require homes to stay on the market 5 days prior to reviewing offers (to give potential buyers enough time to view the home). At that point, if the property is a great value, there will be multiple offers in and the bank will ask prospective buyers to submit their best and final offer before a certain deadline. Do your homework, know your bottom line, and be prepared to put your best foot forward.
You will not be able to make adjustments to the purchase and sale agreement. The bank will use a boiler plate purchase and sale agreement with their addendum attached. Even if you have a real estate attorney that wants to make edits to the contract protecting your interests it is very unlikely the bank will allow that. You need to be ready to deal with that to get to the closing table.

If these issues don’t bother you and you can look beyond a messy property that probably needs a little bit of repair work, then you may be able to find a great investment. You are ready to explore the REO market in Boston for exciting opportunities.

Here are some REOs that have been on the market recently:

• 19 Adelaide Street #3 – $195,000 Jamaica Plain

A second floor 741 square foot condo with deeded parking and storage on a great street. Comparable properties in this building have sold for $240k and up! Granted the appliances are missing and the floors could use a good sanding, I would think that you would definitely recoup those costs in an investment if this were purchased and rehabbed.

• 11 Telegraph Street #1 – $203,900 South Boston

This 2 bed 1 bath on the East Side features 858 square feet, granite countertops, and hardwood floors. Typical renovated 2 beds on the east side of Southie are selling between $300-350k.

• 193 West Canton Street #4 - $394,900 South End

A rare REO property to come on market in one of the downtown Boston neighborhoods, this 700 square foot renovated penthouse is located on a centrally located South End Street with laundry in unit, working fireplace, granite/stainless kitchen and private roof deck overlooking the whole city! I had a client who bid on this property, so I saw the bidding war here first hand!

If you're thinking of buying a foreclosure, please begin by doing your homework first. Learn the neighborhoods and the streets where you want to buy, get great local advice on home values, and look at as many homes as possible to find the best value. I am happy to chat with you about foreclosures in Boston, and share the pipeline of properties in the pre-foreclosure process that may be coming on the market in the near future. Just contact me and let me know how I can help!

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How the Boston Globe gets the Boston apartment market totally wrong

Michael DiMella — Fri, 19 Jun 2009 13:32:00 GMT

Another fine example of poor journalism when it comes to business reporting was just printed in the Boston Globe today in the article "Advantage, renters". Here's my take (from my Boston Apartments Blog):

There's a simple reason why newspapers like the Boston Globe are struggling to find readership. They have completely lost the trust of readers by too often not telling a complete and accurate story with facts to back it up. I'm not trying to be all Pollyanna here - reporters have tight deadlines, article size constraints, and now threats of job losses and pay cuts. I understand all that. But one thing that is so frustrating to me is not providing all sides of a story and, too often, a lack of working knowledge about their subject.

Case in point:

Meg Woolhouse wrote this story in the Globe today about the Boston rental market. She actually interviewed me on Wednesday for the article so I went out of my way to help her paint an accurate picture of the market. I gave her a number of well reasoned facts about the Boston apartment market. Then I had one of my leasing associates, Jillian Padgett, speak with her for more "boots on the ground" rental market info, and we even gave her the contact info for one of our customers to talk to (Justin McGuffee, who even allowed a Globe photographer into his apartment to take the photo seen in the article). After all that, the reporter chose only to cherry pick what she wanted to fit neatly into her idea of what the story should be. Now, correct me if I'm wrong, but I thought the job of a reporter was to find out the facts then create a story, not create a story then find facts to fit....

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Jim Cramer on Mad Money: Real estate market has officially hit bottom

Michael DiMella — Thu, 18 Jun 2009 11:35:00 GMT

Jim Cramer, never at a loss of words (or spastic arm waving for that matter), says we have officially hit the housing market bottom. At least nationally. As for the Boston real estate market, I'm not so sure (which I'll get into below). But first, here's Cramer at his best. Couched in his usual hyperactivity, he does offer some reasonable analysis to back up his claims, which makes this video worth the watch (if you can't see the video below, click here):

Interesting take, and a lot of it makes sense for the national market, but I just don't know that we are there yet for the Boston real estate market (and a few other local areas around the country - Jim specifically mentions New York as well). Plus, Cramer really only discusses the supply side of the real estate market (inventory of homes for sale, new defaults, REO inventory, new housing starts, etc), and I think he avoids some of the other factors that play into real estate market demand, such as rising interest rates, the probable end of the $8000 first time home buyer credit this year, and the substantial slowdown in the luxury segment in many cities (including the luxury Boston real estate market).

All in all, as economic recovery looks more promising, which should increase demand naturally for housing (and there are some signs of life in the pricier segments), I think we are closer to a national - and Boston real estate - market bottom than ever before, but not quite there yet.

What do you think? Make a comment!

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Recession...what recession? Back Bay parking space sells for $300K

Michael DiMella — Mon, 15 Jun 2009 12:44:00 GMT

Gotta love disposable income (in the middle of a recession)....Do I even need to write more?

Here's what all the brouhaha is about - would you pay $300,000 for this?:

View Larger Map

Since there are more than enough comments by readers on the Boston Globe and Boston Herald sites trying to answer that question (most of them idiotic as usual so take a look if you're in the mood for a chuckle), you probably don't need my opinion on it, so I'll keep it brief and take a slightly different approach. As for the personal decision to spend $300K on a parking space (uncovered, by the way) behind 48 Commonwealth Ave, well, let's just say this is still America and if you've got the money, who am I to tell you what to spend it on? I can probably think of other things to blow $300K on, but if parking is what you're into, enjoy!

But from an economic perspective, does this purchase make any sense?

First, if the spot was 20' x 10' (a very nice sized parking space), then this buyer just paid $1,500 per sq foot for land! That equals the price per foot of a handful of exclusive Boston luxury condo buildings!

I assume the buyer paid cash for the spot, but let's use a typical investment property cash flow example....if you put 25% down on this purchase, you're looking at a loan amount $225,000. Even at today's low mortgage rates, you're looking at a monthly payment of $1,250 or so. This spot could typically rent for $300-$350 per month, so in this scenario you are looking at a loss of $900 per month! Nothing like praying for appreciation I guess.

Then what could a buyer count on for appreciation? To give us an idea, here are average prices for parking spaces in the Back Bay since 2004 (according to the LINK multiple listing service):

2004 - $65,000

2005 - $63,000

2006 - $130,000

2007 - $105,000

2008 - $111,000

2009 - $146,000 (not counting this $300K sale)

Although not steadily upward each year, over the 5 year period, that's a whopping 125% increase in average price for parking spaces!

Parking prices have clearly risen very fast in the Back Bay, and haven't show much sign of slowing down (bubble, anyone?). We are talking about prices more than doubling in the past 5 years even with the recession. But I find it almost an impossibility that this trend will continue over the next five years. I really can't imagine a scenario where this spot will be worth $600K in 2015. But who am I to say?

If prices do continue to rise at this rate, the buyer is looking at a sizable return on investment of maybe 25% per year. But if this turns out to be a parking space "bubble"....well....we've seen how that ends before.

What are your thoughts? Comment below!

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The Top 5 highest and lowest priced Boston condos sold in May

Michael DiMella — Thu, 11 Jun 2009 11:04:00 GMT

Since my post on the top 5 highest and lowest priced Boston condos sold in April that I wrote last month was so popular, I think I'll make it a recurring post (at least until I get bored with it, which if you know me, happens pretty frequently - variety is the spice of life as they say! - but I'll try).

The range from top to bottom is nearly as remarkable in May as it was in April, and I also included summary statistics of the monthly Boston condo sales (compared to April) for your reference:

Number Sold: 303 (216)

Average list price: $484,113 ($453,668)

Average sale price: $461,457 ($435,240)

Average discount ratio: 4.7% (4.1%)

Average days on market: 106 (126)

Average price per square foot: $458 ($408)

Top 5 Least Expensive Boston condos sold in May 2009

Here are the 5 lowest price condos sold in Boston in May. I have included a photo, quick specs, and the first line of the description from MLS to provide a little background (and entertainment apparently!).

8 Beethoven St #2R

2 Bed - 1 Bath in Roxbury
Sale Price: $23,000

Small condo in need of updating, reflective in price.

10 Esmond St - Unit 3

2 Bed - 1 Bath in Dorchester
Sale Price- $30,000

Small condo in need of some TLC, which is reflective in price.

800 Washington Street - Unit 1

3 Bed - 1 Bath in Dorchester
Sale Price- $35,000

Well priced condominium unit in 3 family. Perfect for investor or owner occupant.

116 Whitfield Street - Unit 1

3 Bed - 1 Bath in Dorchester
Sale Price- $40,000

!!!Needs Owner!!! Needs Owner!!!!Great Condo Close to Parks,Schools And MBTA Systems, Hospitals and Expressway

10 Esmond Street - Unit 4

2 Bed - 1 Bath in Dorchester
Sale Price- $40,000

Lower level unit, 2 bedrooms, separate entrance being sold in as is condition.

Top 5 Most Expensive Boston Condos sold in May 2009

157-159 Newbury Street - Unit 3

3 Bed - 4.5 Bath, Back Bay condo Sale Price-$1,950,000

The DuBarry. Built in 1888as luxury apartments, this distinctive three bedroom, four and one half bathroom home offers superbly designed one floor living with over 2100 square feet of elegant appointments.

505 Tremont Street - Unit 609

2 Bed - 2.5 Bath, South End condo Sale Price- $2,050,000

Spectacular two plus bedroom residence in the South End's premier concierge building "The Atelier 505" offering all of the amenities and conveniences for the most discriminating Buyer.

259 Marlborough Street- Unit PH

4 Bed - 3.5 Bed, Back Bay condo Sale Price- $2,750,000

Magnificent four bedroom penthouse on sunny-side Marlborough Street.

255 Marlborough Street - Unit 2

3 Bed - 2.5 Bath, Back Bay Condo
Sale Price- $3,100,000

New construction –sunny side of Marlboro Street! This beautiful brownstone is being converted to 3 duplex units.

100 Beacon Street - Unit PHA
3 Bed - 3.5 Bath, Back Bay Condo
Sale Price- $6,400,000

Built during the heady, roaring 20s, 100 Beacon Street, with its finely carved limestone ground floor and grand center entrance, is representative of Classical Revival buildings of its era on New York's Park Avenue or Chicago's Gold Coast.

While not quite the range there was in April, we're still looking at a low of $23,000 for a condo in Roxbury, all the way to $3,100,000 for a Back Bay condo on Marlborough Street.

To put that in perspective, parking spaces in the Back Bay routinely sell for around $125,000 (5x the price of the Beethoven Street condo in Roxbury) and this parking space in the Back Bay just sold for $300,000. Yes, that's $300,000 American dollars for a parking space! And not even in a garage! Wow.

What are your thoughts? Comment below!

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"The 1850" Lofts in the South End to be auctioned starting at $175K

Michael DiMella — Wed, 10 Jun 2009 07:40:00 GMT

Another new development project in Boston is changing tack from a traditional sales model to the auction format. "The 1850" lofts (located in the bleeding edge of the South End south of Harrison Ave at 90 Wareham Street - map) are to be auctioned June 28th, at the Westin Boston Waterfront Hotel.

As I have written before in Longwood Towers in Brookline go to auction, its impossible to say whether or not there will be good deals to be had at the auction. It depends on the level of interest and how many real bidders are there on auction day, but with starting bids of $175,000, there could be some opportunity to pick up a South End condo at a great value. Of course, they have carved out parking from those bids, so parking spaces are available for an additional $35,000.

Location

"The 1850" is located on the far southern part of the South End in the SoWa (South of Washington) area - see map below (from Sowa Sundays). SoWa is considered an "up and coming" part of the South End, and has rapidly undergone positive changes in the past few years in terms of real estate developments (like the 700 Harrison condos) and great new shops, galleries, and restaurants moving in (like Gaslight and Rocca). On top of that, there is the excellent SoWa Open Market and Produce Market that is really becoming a popular place to spend Sundays in the South End. I also included a street view below for an indication of the area directly around the building (although keep in mind these views appear slightly dated).

View Larger Map

The 1850 Lofts

If you need more information (or would like to arrange a tour of the units) please don't hesitate to contact me, but here's a quick rundown of the building and units. The 1850 Lofts marketing team describes the building as "History with Attitude":

That’s The 1850. Old, but not quaint. Bricks, but not bow fronts. Take an historic South End factory. Remove the machines, but leave in the character, and add a great big dose of clean, contemporary design. Put it in a neighborhood that works for a living, yet lets you walk to great restaurants, transportation and leisure venues. When you combine old Boston history with new South End energy, the results can be wonderful. Welcome to the high-style, high-value condominiums of The 1850.

Exposed beams
Original brick walls
Lots of large, energy-efficient windows
High ceilings…many up to 10’ tall
Wired for cable, Internet and security
Central air conditioning
Washer and dryer hook-ups
Dedicated parking available
Stainless steel Frigidaire® appliances in kitchens
Maple cabinets with light or dark stain and contrasting granite countertops
Tile backsplashes
Tile in bathrooms
Upgraded fixtures throughout

These units are "true loft" style, which means brick and wood beam construction, open floorplans (although many can be easily converted into 1 or 2 bedrooms by adding interior walls if desired), and concrete floors. See photo below from developer website:

Auction Info

Sunday, June 28th (check in at 12 noon, auction begins at 1pm) at:

Westin Boston Waterfront

You must register in advance for the auction in order to be eligible to bid, and if you would like buyer representation then you must be sure to have your buyer agent register with you. If you would like to discuss buyer agent service from me or advice on bidding, you can contact me and I'd be happy to chat about that.

Here is the list of units to be auctioned:

Previous sales at The 1850

So, how to figure out how much to bid for these South End condos at the auction? The best way is to look at data from the units that have sold so far to date. There are 60 total units in the building, and 20 units have sold thus far. There have also been a few affordable units set aside and sold previously, so the remaining 35 units will be available at auction. Here's the summary data from the 20 market rate sales:

20 Sold (between June 2008 - May 2009)

Average Price: $396,535

Median Price: $394,500

Price per Sq Ft: $505

Average Day on Market: 76

Here are full details for each of the 20 sold units at The 1850 Lofts (sorry to the text is a little small fit it in, so if you have trouble reading this, please contact me for a larger copy):

The columns are, in order: Sale Price, City, Street/Unit, Square Footage, Price per Sq Ft, Number of Bedrooms/Bathrooms (all listed as lofts with 1 bath, although some layouts could be configured as 1 or 2 beds), Location within building (which floor), Days on Market, and Sale Date.

As you can see, the starting bids are substantially reduced from the previous selling prices so this auction could be a good opportunity to get a condo loft in the South End for a great price. Of course, the units most likely won't sell for the minimum bids, but doing a little research, looking at the units, and determining what you are willing to pay going into the auction could help you secure a good loft for you.

Do you have questions? What are your thoughts? Comment below!

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Mortgage rate update: Rates rise into the mid 5% range [del.icio.us]

mdimella — Mon, 08 Jun 2009 14:17:26 PDT

Boston apartments market report for summer 2009

Michael DiMella — Sun, 07 Jun 2009 06:09:00 GMT

There's always plenty of news and data released about the sales market (too much at times!), but if you're a renter or a landlord in Boston you may care more about the Boston apartment market instead. So where to turn?

Well - my new site and blog for the Boston apartment market is now live and I just posted an updated Boston rental market report at Boston apartment outlook for summer 2009 which I invite you to take a look at. From now on, most of my commentary and analysis on the apartment market will now "live" on that blog instead since there's a whole site built as a resource for renters and landlords in Boston. Check it out for a minute and see what you think.

Here's a quick summary of the post just in case you don't want to make the jump over there right now (why not??):

The Boston apartment market has remained mostly resilient to the general recession (so far) with vacancy only inching up slightly to the mid 6% range for the downtown core neighborhoods. Asking rents in Boston have been stable in 2009 at an average of $2,477 per month downtown but there have been slightly more concessions offered this year though - things like free month's rent or rental fee being paid by owners, etc.

For more details and info on a few other sub markets (like Cambridge and Brookline), check out the full post here.

Do you have questions? What are your thoughts? Comment below!

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Mortgage rate update: Rates rise into the mid 5% range

Michael DiMella — Sat, 06 Jun 2009 07:18:00 GMT

For previous mortgage rate updates (which include graphs of the rates over time) see the following mortgage update posts from May 8, 2009 or April 24, 2009 or April 17, 2009 or see this post about jumbo rates for more about larger loans.

Conforming rates:

Some analysis of the rising rates from the Freddie Mac weekly mortgage rate survey press release:

Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.29 percent with an average 0.7 point for the week ending June 4, 2009, up from last week when it averaged 4.91 percent. Last year at this time, the 30-year FRM averaged 6.09 percent.

"30-year fixed-rate mortgage rates caught up to the recent rise in long-term bond yields this week to reach a 25-week high," said Frank Nothaft, Freddie Mac vice president and chief economist." And the slowdown in the housing market has now detracted from economic growth for the past 13 quarters, the longest quarterly stretch since at least 1947, according to the Bureau of Economic Analysis. In the first quarter of 2009 alone, residential fixed investment shaved 1.4 percentage points off of real GDP growth, the most since third quarter of 2006.

"Yet, there are signs that the housing market may be moderating. Housing affordability rose in April to the second highest reading since January 1971 when records began, according the National Association of Realtors® (NAR). As a result, pending existing home sales rose for the third consecutive month by 6.7 percent in April and represented the largest monthly increase since October 2001. Three of the four regions experienced increases, led by a 33 percent jump in the Northeast, the NAR reported."

Here's a chart of the latest average mortgage rates this week by region:

See historical chart of rates since 1971 here

Jumbo mortgage rates:

Here's a graph of jumbo rates over the past year from bankrate.com. The current rate average sits at 6.68%:

We'll see what the bond market brings in the next few weeks and also if there will be any further government actions to try to keep mortgage rates low or push them back down a bit. However, since the rates are completely market driven, there is only so much the government can do. Mortgage rates in the 4%'s may be gone at this point but I'll try to keep you updated!

Do you have questions? What are your thoughts? Comment below!

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Thinking of staging your Boston condo for sale? Does 300% ROI work for you? [del.icio.us]

mdimella — Mon, 30 Mar 2009 07:19:49 PDT

Why staging your home pays off when you sell.

Does Manny Ramirez realize there's a recession on? [del.icio.us]

mdimella — Thu, 05 Mar 2009 21:34:13 PST

After being listed at $6.9M for about a year on the market with no takers in 2006, Manny upped the price of his penthouse in the Residences at the Ritz-Carlton to a cool $8.5M when he put it back on the market today....

Is Scott Boras negotiating Manny Ramirez's condo sale in the Ritz? [del.icio.us]

mdimella — Thu, 05 Mar 2009 21:27:12 PST

How the new $8000 first time homebuyer tax credit will work [del.icio.us]

mdimella — Wed, 18 Feb 2009 13:43:25 PST

Now that it's official and Obama has signed the economic stimulus bill, here is some clarification on how the $8000 first time homebuyer tax credit will work.

Boston foreclosure homebuyer fair presented by the City of Boston [del.icio.us]

mdimella — Wed, 18 Feb 2009 09:21:27 PST

The City of Boston is holding a special foreclosure homebuyer fair for people interested in buying REO (bank owned) property in Boston.

$8000 homebuyer tax credit to create demand; now what to reduce foreclosures? [del.icio.us]

mdimella — Fri, 13 Feb 2009 10:23:16 PST

$15,000 homebuyer tax credit for purchases in 2009? [del.icio.us]

mdimella — Wed, 11 Feb 2009 04:46:00 PST

See the major differences of the Senate and House stimulus packages plus a description of how the $15,000 homebuyer tax credit will work.

Thinking of remodeling? Read this... [del.icio.us]

mdimella — Tue, 20 Jan 2009 16:44:42 PST

Map of all foreclosures sold in Boston in 2008 [del.icio.us]

mdimella — Tue, 23 Dec 2008 12:47:02 PST

Great custom google map showing concentrations of foreclosed property sales throughout Boston.

Should we bail-out mortgage borrowers in default? Is "loan modification" the magic pill to save the economy? [del.icio.us]

mdimella — Fri, 05 Dec 2008 10:59:04 PST

Boston Foreclosures: 5 Neighborhoods in Top 25 Massachusetts towns hardest hit [del.icio.us]

mdimella — Mon, 17 Nov 2008 14:42:17 PST

Great foreclosure info from Massachusetts and Boston that sheds some light on the foreclosure problem and housing market.

What else does Tom Brady have in his bag of tricks? [del.icio.us]

mdimella — Fri, 05 Sep 2008 11:16:58 PDT

Tom Brady, Superbowl winning QB is now a Boston real estate mogul after his latest Beacon Street condominium project.

Jim Cramer, Mr. Mad Money, calls a bottom to the housing market [del.icio.us]

mdimella — Wed, 03 Sep 2008 08:25:02 PDT

Jim Cramer, a staunch bear on the housing market for the past few years, changes his tune and predicts an actual bottom. Why and when it will happen in the post.