BostonRealtyBlog

I've got a really REALLY new blog

2010-09-22T10:24:00.000-07:00

Don't go to the old new blog. Go to the new new blog

I've got a brand new blog.....

2010-05-22T07:14:00.000-07:00

It's not really brand new, but it's replacing this one. Go to Joe Wolvek's Boston Real Estate Blog!

Columbus Center Dies from lack of...well...Money...

2010-03-14T18:01:00.000-07:00

The mega-development-to-be-that-never-was, the Columbus Center, died quietly today at 13, the last few years of which were spent on life support. The project's main backer, Calpers, the California State Pension Fund, apparently decided that there were plenty of ways to lose money back at home, rather than investing in a losing proposition in Boston. Really, why leave home? There are many things that Boston could use, but another high rise luxury condominium complex is more than likely not one of them.

The Columbus Center was going to be "...a towering five-building complex of condominiums, hotel rooms, and stores..." located above the Mass Pike, combining office, retail, and condos.

Now, one thing that I was definitely looking forward to was having some retail and street life along the the stretch of Columbus between 223 Columbus (the Pope Building) and Clarendon, and I hope that in the medium term future there's a way to make economic sense out of some kind of project there. My own opinion is that it will have to be on a smaller scale. But there are significant economic hurdles to owning the air rights above the Pike, let alone the costs of above-roadway construction. So it's kinda tricky, as we say in the industry.

Anyway, here's the whole story from the Boston Globe.

Perfect Investor Condo: $319,000. Open Sunday March 7 from 1-2:30

2010-03-04T11:00:00.000-08:00

This sunny one bedroom "split" is located on the 5th floor of a professionally managed elevator building with spectacular views of The Back Bay Fens! It can easily be used for two roommates. Comparables rent for $1800-$1900. The updated kitchen and bath are in great condition, and the unit itself is ready to move into. New electric wiring. New plumbing. Common areas, building electric, and heating system have been updated, building is in great condition. On Back Bay/Symphony line, Near Berklee, "T", buses, shopping, Newbury, you name it! Sorry, NO PETS!

Click for photos and more info

Boston Real Estate Activity Picking Up

2010-03-04T10:41:00.000-08:00

As you can see from the graphs above,sales activity, while not at 2007-2008 levels, is a whole lot perkier than last year. Additionally, there is good supply, but not a glut. Median prices are also looking pretty healthy over most of the neighborhoods. Click on Back Bay, South End, and Beacon Hill to see the details. Other neighborhoods coming,

Downtown Condo Inventory Still Tight

2010-02-26T11:32:00.000-08:00

As of 2/26/09, there were 1089 condos available in the downtown Boston neighborhoods. This year, it's approximately 1166. Looking over the past decade, these numbers represent historically low supply...which helps the real estate market here not to crash. Supply, with rare exceptions is always relatively tight here, since there's little room to build. The one exception to this is the niche of very high end high rises, which is the one very soft market segment.

Due Diligence for Real Estate Agents and Buyers

2010-02-18T07:07:00.000-08:00

Great blog entry from Rona Fishman in the Boston Globe a few days ago. It has to do with the due diligence that SHOULD have been done in the Smoky Condo lawsuit. But it is also great advice for what both buyers and agents should be doing in gathering info on any prospective condo purchase:

As an agent, I am responsible for figuring that out what is important for my client. That’s part of the art of a good agent. Instead of studying mind reading, I figured out how to ask the right questions.
The more restrictions someone puts on a search, the fewer choices he/she will have. So, I ask for the “do-or-die” requirements first. Most ... are pretty obvious. How many bedrooms, baths, storage, etc…It is after that initial list where things can get too vague if I don’t ask the right questions.
“Do or dies” include anything that will make the new owner sick or inhibit their life significantly. This includes a smoke-free building for the plaintiff of this case. It is not reasonable for this person to buy in a building where the other residents could be a non-smoker today, but sell to a chain smoker a month after she closed. If she were working with me (assuming that she actually told me this...), it would have been up to her to specifically direct me to show her anything that wasn’t a smoke-free building. I might have found myself working with her for a year -- and seeing only ten properties total. So be it.

Read the whole entry.

There are tons of potential transaction killing issues out there: Pet restrictions, noise, lead paint, rental restrictions, and the general financial and physical condition of the unit and association, as well as the legal footing of the association. Most of this will come out in the wash in the course of due diligence, but the agent, the buyer, and the attorney need to be proactive in uncovering any potential issues.

A further word about being how to be a successful real estate agent. I've been in the business for 18 years, and a huge portion of my business is from repeat business or referrals from previous clients. That's the only way to be successful. It's up to you the buyer to find an agent who will be a knowledgeable and dependable partner. Make sure your agent has never had any complaints against them. Make sure your agent has happy past clients. Talk to your agent about the process. A good agent will encourage you to get together just to talk. It is worth making some time for this. A good agent has done this hundreds of times, and can be a good guiding partner. A bad agent is worse than no agent at all. And just like any business, there are good apples and bad apples.Get in touch with me if you'd like more info.

Full Boston Real Estate Market Report for 2009

2010-02-16T13:46:00.000-08:00

2009 certainly wasn't pretty, was it? But it appears to be improving in most neighborhoods. To get the full reports complete with stats, graphs, and all sorts of fun stuff click on Citywide,South End, Back Bay, Beacon Hill, Midtown, Leather District, Seaport, South Boston, Fenway. There are also lists of closed properties for each neighborhood.

I'm sorry it's not in 3D, but I'm on a budget here....

Smoky Condo Lawsuit Dismissed

2010-02-16T13:17:00.000-08:00

The lawsuit brought by Alyssa Burrage against her real estate broker was dismissed today in Suffolk Superior Court. The lawsuit alleged that her buyer agent has misled her and caused her to buy a property where secondhand smoke was coming up from the unit below. For details of the lawsuit click here.

The jury found that the plaintiff failed to show with reasonable probability that her agent had misled her. More details as they come in.

Highest Sale Price for a Condo in the South End 2009

2010-02-16T10:53:00.000-08:00

So where do you think the highest sale price for a condo in the South End was? Atelier 505? Nope? D4? Wrong again. Appleton Street? Union Park? No and no. Interestingly enough, it was at 485 Harrison Avenue, unit 601. Click here for pics and info. If you'd like more info on this property ot any others please get in touch.

Lessons From The Smokey Condo Lawsuit

2010-02-12T07:31:00.000-08:00

If you haven't heard about it by now, the buyer of of a South End condo is suing the real estate agent who served as her buyer agent over the issue of secondhand smoke. Basically, she's an asthma sufferer who purchased a condo that smelled like cigarette smoke when she visited it. She says that the agent told her that the seller was a smoker and that the smell would go away if she repainted the walls and refinished the floors. She further alleges that she asked her agent for the contact info for the seller, so she could confirm that the seller was a smoker, and the agent refused to give that information to her. Turns out that the people in the unit downstairs smoke, and their secondhand smoke was entering her unit. Oy. If you'd like all the gory details, click here.

Oh boy. This is so rife with questions that it's really hard to know where to start. But I'll start here:
Lesson One: If there's a potential issue, whether it's environmental (smoke) structural (roof, etc), financial (assessments, reserves), that issue needs to be discussed directly with the association or seller. As a matter of fact, I always give my clients contact info for the association or management company. If there's information only the seller would have, I arrange for my clients to speak with the seller. This is usually done after the offer is accepted, prior to P&S, where the contingencies will protect you and your deposit, but in some cases can be done up front.

I really have no idea who said or did what in this case. BUT...I want my client to know about any potential problems without any filter (me). And if you've got asthma and the unit smells like smoke, you need to make sure you've got all the info or you just can't buy that unit. Additionally, the agent has the fiduciary responsibility of diligence with respect to his client, the buyer. He or she has a legal obligation to discover and present all the available information. One of the reasons you work with an agent is that they've been around the block many, many times and they know what information is important, and how and when to get it. If you're not doing that, you're not providing value to your client, the buyer. Which is why you've got to make sure you're working with the right agent.

Beacon Hill Real Estate Market Report

2010-02-11T13:11:00.000-08:00

2/11/10- Beacon Hill 2009 and 1st quarter in-progress real metrics are posted and you can see all the fun graphs, charts, numbers, etc by clicking right here. Interesting. At least to me. Prices, as reflected by $ per square foot of sold units went down about 3% from 2008 to 2009, but median price for sold condominiums went from $509,000 in '08 to $510,000 in '09. Selling prices were on average about 91.3% of asking prices, down from about 93.5% the year before. Click here for the graphs n' stuff.

New Smoke Detector Regulations

2010-02-10T07:12:00.000-08:00

This isn't the first time I've posted about this, and I'm sure it won't be the last. The Commonwealth of Massachusetts has updated and clarified the new requirements. Basically, within 20 feet of a kitchen or a bathroom that has a tub or a shower, you need to have a photoelectric smoke detector. This is because they're less likely to go off if you're taking a shower or if you're roasting a chicken. Therefore, you're less likely to remove the batteries.

In other areas you need to have an ionization and a photoelectric detector, or a combination of the two.

Each city will have a further fine tuning of this regulation and I'll post for Boston and surrounding towns when these regulations become clear. Or at least clearer....

Read the details here.

Makeover At The Corner of Mass and Washington.

2010-02-09T07:06:00.000-08:00

(2/5- Boston.com) Opened in 1875, the Hotel Alexandra was a gorgeous building which fell into disrepair in the early 1900s. The corner of Massachusetts Avenue and Washington Street has recently been undergoing a renaissance, while this building, on the northwest corner has continued to stand out as an eyesore. Now....

The Church of Scientology plans to open a street-level cafe, bookstore, and chapel as part of its renovation of the 19th-century Hotel Alexandra, a long-faded Gothic beauty that for years has sat mostly empty at a prominent Boston crossroads.

2009 Back Bay Boston Real Estate Wrap and Details

2010-02-04T13:13:00.000-08:00

2/4/10- Back Bay market details for 2009 and January 2010 are now posted, and you can take a look at them here. Some surprising metrics. According to LINK, which takes their closed data from the Suffolk Registry of Deeds, the 4th quarter of '09 (114 closings) was the 2nd strongest 4th quarter since 2005 (although for perspective, the 4th quarter of '04 had 198). This was definitely energized by the homebuyer tax credit, although it's hard to know how much. Average asking to selling ratio was about 89%, which was off considerably from previous quarters. This was led by the weak extreme high end market.
Click here for all the details.

South End Boston 2009 Real Estate Market Wrap

2010-02-03T09:55:00.000-08:00

2/3/10- OK, I've finished the South End 2009 market wrap as well as the current numbers. Take a look for all the fun metrics: $/SF, median prices, condos sold, supply, absorptions, etc. You couldn't have more fun if you tried. And of course I know you will try. The South End was the least bad neighborhood in one of the least bad cities in the US. As you can imagine, it's all a mixed bag, but it's a heckuva lot better than last year (which admittedly is not a high bar). I'm cautiously optimistic.

2009 Boston Citywide Real Estate Summary

2010-02-02T13:25:00.000-08:00

(BostonRealtyweb-2/2/10)- Well that was fun wasn't it? 2009, I mean. Real estate wise. My apologies to Sergio Leone, but it started out really ugly, became merely bad, and then became...well, I don't want to say good, exactly, but a heck of a lot better. In February, I was gnawing on my fingernails...By the time it all ended in December, The real estate market was still alive and out of the ICU.

Get more details here

Latest South End Boston Activity

2010-01-29T08:27:00.000-08:00

(BostonRealtyweb.com) Real estate sales activity in the South End of Boston is up and supply is down...so far. Click here for the good and the bad. Just the numbers, folks...no spin...

FHA Tightening Requirements on New Mortgages

2010-01-28T07:57:00.000-08:00

(1/27 Boston.com) I've been posting a lot of FHA related stuff recently. FHA insured loans have lately been the easiest way for homebuyers to get a low down-payment mortgage. But a stunningly large percentage of these loans are going bad, leading the FHA to tighten up the requirements, and make sure that their insurance payouts are covered.

Here's a good summary of the changes.

Hub Luxury Real Estate Prices Up

2010-01-27T12:57:00.000-08:00

Jan. 26 (Bloomberg) -- The most expensive third of the residential real estate market has been the sector showing the greatest weakness. There are now some hopeful signs.

Prices for the most expensive U.S. homes rose in 12 of 17 cities tracked by S&P/Case-Shiller indexes in November, indicating efforts to help first-time homebuyers are also leading to move-up purchases.
Miami, Boston, Phoenix and San Francisco all registered gains at the top end of their markets, according to seasonally adjusted data from S&P Case-Shiller, which produces so-called tiered indexes for 17 cities that divide the housing market into thirds according to price. The bottom third, with the biggest share of first-time buyers and foreclosure purchases, also increased in 12 metro areas.

Read all about it here

More FHA Insured Loans Being Written

2010-01-21T08:10:00.000-08:00

(1/20 Bankrate.com) An increasing percentage of Boston real estate buyers are using FHA backed mortgages because of the low down payment that is required. Here's some helpful info.

City of Boston Property Tax Abatements

2010-01-15T10:07:00.000-08:00

Happy new year all! Many of us got a rude welcome to the new year by getting a notice from the city that our property taxes are going up. If, like me, this is true for you, you CAN do something about it.

Click on the links below. If you believe your property has been overvalued for one of several reasons, you can fill out the form and file it with the City of Boston Assessment Department. The deadline is February 1, 2010. You can walk-in by that date, or it must be postmarked by that date.

If you need my help with sold property comparables or anything else relating to this matter, please get in touch.

Click here for instructions

Click here for the application.

Boston Real Estate Market Much Happier Now

2010-01-06T07:13:00.000-08:00

(1/6/10 www.Bostonrealtyweb.com)- I love a good graph, don't you? You may have other interests in your life; say, nuclear physics, gaming, staring out into space, collecting "Bewitched" memorabilia...My particular tic is keeping an eye on the Boston real estate market. I find it very interesting. Happily, not as "interesting" as most other real estate markets around the country, but interesting nonetheless.

Using the word "recovery" is really premature. But hypothetically speaking, what's going on now in Boston is what it would look like. Vastly increased numbers of closings across most of the Boston neighborhoods, not only in November (deadline for first homebuyer tax credit), but in December too.

If you'd like to see all the most recent real estate sales, pricing, and other figures from the South End, Back Bay, and other downtown Boston, read the full story here.

Great Destinations...Boston!

2010-01-02T12:13:00.000-08:00

(1/2/09-nytimes.com)
Each week, the Times does a big interactive feature with slide shows, etc. on great destination cities. This week it's Boston.Great article, even if you live here!

Boston — Here’s what you do: Fly into Logan International Airport here. Hop on the free No. 66 shuttle bus. Get off at the water taxi stand next to the Hyatt Harborside hotel.
Your water taxi, a blue-and-white 25-passenger boat, is waiting at the dock. You called ahead, from the bus. So what if it’s cold? Winter is a great time to visit Boston. Fewer tourists. Lower hotel rates. Ice skating and hot chocolate at the Frog Pond, on the Boston Common. But, not to worry, the water taxi is heated. Sit back on the white cushioned bench and prepare to enjoy the seven- or eight-minute trip across the harbor.

Read the full article: In Boston,Where Change Is in the Winter Air

It's All About The Inventory

2009-12-31T08:03:00.000-08:00

(12/28-Boston.com) Scott Van Voorhis (whom I think usually gets it right) from the Boston Globe (which many times gets it wrong) puts his finger on the right qustions to be asking about the direction of Boston real estate prices.

We all know now home and condo sales skyrocketed in November, both here and across the country.
Thanks Uncle Sam for all those tax credits.
But a key, often overlooked stat, in gauging the future direction of the housing market, especially here in the Boston area, is the inventory of unsold homes and condos.

Read the full story

Boston Real Estate Sales Soar in November

2009-12-22T15:03:00.000-08:00

(12/22-Boston.com.). Sales of MA homes and condos rose by more than 50% in Nov. when compared to last year. The expiring tax credit, pent-up demand, and a feeling that maybe the world ISN'T going to end (yet) contributed to this. But also, when you compare current sales ( that goes for any time thru March) with the preceding 12 months, it's definitely going to look good....

Sales of Massachusetts single-family homes and condos rose by more than 50 percent in November when compared to the same month a year ago, and prices also showed some improvement, said the Warren Group, a Boston firm that tracks local real estate activity.
A year-ago, the country was in the midst of a financial crisis that hurt home sales. As a result, November 2009 benefitted from some easy comparisons to November 2008, said the Warren Group, which added that a home buyer tax credit also helped last month's sales.

The full story is here.

Six Indicted In Mortgage Fraud Scheme

2009-12-22T14:52:00.000-08:00

(12/22 boston.com). Scheme used bogus documents to defraud homeowners. Nice, huh?

A grand jury announced the indictment today of six real estate investors and mortgage brokers in what the state attorney general's office described as an "elaborate mortgage fraud scheme."

The Suffolk County grand jury returned indictments accusing three real estate investors, two mortgage brokers, and a former local attorney, according a press release issued by the attorney general. The alleged $12.5 million scheme involved using bogus documents to defraud homeowners and mortgage lenders in real estate transactions involving 26 distressed multi-family homes in Greater Boston. The accused allegedly made $2 million in profits.

Get the full story here.

Boston Real Estate Market: Which Way is Up?

2009-12-21T15:06:00.000-08:00

(12/21-boston.com). Some folks predict a mild price drop in '10. Scott Van Voorhis of the Boston Globe isn't persuaded, due to short inventory and other factors. I think Scott's smaht.

I got a lot of responses to my post Friday on predictions by Mark Zandi of Moody'sEconomy.com and others that 2010 will bring another drop in home prices across the country, including Boston.

Judging from the comments, more than a few people believe MoodysEconomy.com's prediction of a 4.5 percent drop in Boston area home prices is too mild, and that its projection of a modest rebound in prices in 2011 as positively ridiculous.

There are definitely some concerns going forward as it relates to still high unemployment, rampant foreclosures, and the planned expiration of the home buyer tax credit.

That said, I also made clear I am not totally buying into the almost fashionably gloomy predicts of doom when it comes to home values, especially at it relates to the high-cost Boston area.

Read it all here

Homebuyer Tax Credit Details and FAQ

2009-12-15T15:08:00.000-08:00

(12/15 GBREB) Posted by the Greater Boston Real Estate Board, here's an excellent bullet-pointed detail of the extended and expanded Homebuyer Tax Credit program.

Click here for full details

New Smoke Detector Regulations

2009-12-15T14:46:00.000-08:00

(GBREB). The Boston Fire Department has imposed new guidelines on the different types and placements of smoke detectors to be used in residential property.

Here, for your viewing pleasure, is a list of FAQs released by the Greater Boston Association of Realtors. BTW, these requirements go into effect April 5, 2010.

Boston Home Prices Show Small 2009 Drop

2009-12-10T15:14:00.000-08:00

-(12/10 dBusinessNews) The average sales prices of homes in Boston closing in November showed a less than 1% drop compared to last November.

Okay, so we're not partying like it's 2004. Still, stability is a good thing....

NORWELL, MA, ISSUED DECEMBER 10, 2009 . . . Data released today by www.housesavvy.com shows the Greater Boston Real Estate Market continues to be one of the healthiest markets in the country. One indication is that while the average sale prices of homes have been declining nationally, the average sale price of homes in the Greater Boston Market closed in November of this year is almost identical to one year ago. In November of 2008 the average sale price was $395,068; last month the average was $391,638. Nationally, the average sale price has dropped 5% year-to-year, from $229,600 to $218,100.

Get all the fabulous details here.

Boston Property Taxes to Rise

2009-12-10T15:11:00.000-08:00

(12/10-Boston Herald). The city has responded to the recession and falling property values by...YIKES! Raising tax rates!

The tax bill for the average Hub homeowner will rise by $173 next year as the city tries to fill the gap left by a 5 percent drop in the assessed value of single-family homes in Boston due to the weakened housing market, according to the city.

The residential tax rate for fiscal 2010 is expected to be $11.88 per $1,000 of valuation, compared to the 2009 rate of $10.63. The rate for business properties will rise from $27.11 in 2009 to $29.38 per $1,000 of assessed value.

Get all the depressing details here.

$40m Apartment Building Proposed for Haymarket

2009-12-05T12:41:00.000-08:00

(12/5-Boston.com) But final decision on developer and use for site delayed 'til January.

Get the full story here.

U.S Jobless Rate Falls

2009-12-04T12:39:00.000-08:00

(12/4-Boston.com) Okay, it's only 0.2%, but I'm a glass half full kinda guy. Plus, local employment's getting better. So I'll take it. Thank you. Let's see what happens in January.

Link no longer active.

Mass Sales Activity High as Prices Remain Low.

2009-11-25T12:49:00.000-08:00

(11/25-Boston.com). Foreclosures are still depressing median real estate prices across the state, but low inventory is providing pushback.

Read all about it!