Archive for March, 2009

Magnificent East Boston Three-Family for Sale

This week Tony’s Realty is proud to present a beautiful three-family home located at 146 Trenton Street. This East Boston property was completely renovated by the current owners in 1997 and has been lovingly taken care of since. It will be delivered vacant.

The home features three magnificent apartments, all separate utilities, a lovely backyard, a large walk-in basement, and a wonderfully restored Victorian style clapboard facade with a tri-color palette. It is a short walk from the newly restored Souza / Putnam Square.

The first two floors currently have four rooms each featuring large eat-in-kitchens, beautiful bathrooms, large master bedrooms, smaller offices, and ample closet space. The third floor features an adorable, sunlit one bedroom apartment. The building’s entryway is wonderfully restored, and the yard is perfect for a patio or gardening. This house is probably one of the best restored and maintained three-families that has been on the market in East Boston within the last five years. It has too many features to list. Showings will begin on Saturday, April 4. The property is priced at $419,000.

Please check back as we continue to update you on East Boston real estate happenings. To see all our listings, or to search MLS properties, head to the Tony’s Realty Website.

Email Tony with your questions or comments.

 .

Advertisements

Large Non Short Sale Three-Families Sell Quickly in East Boston

In East Boston, there is an increased demand for larger three-family homes in decent condition that are not short sales.  Most sales taking place recently have been short sales (in a short sale, a seller attempts to sell a property at market value, which is less than what is owed on a mortgage, and asks the bank to forgive the difference between the amount owed to the bank and the amount a buyer is willing to pay).  Short sales are sometimes not approved, and approvals can take three to six months.  There are many buyers unwilling to attempt a short sale purchase, but who instead want to buy a “non short sale property” from a “regular seller” so that a sale can take place in the normal 45-day time frame.

Recently, some larger three families in East Boston, which have not been short sales, have sold for higher prices than many short sales.  A large 4,128 square foot three-family with a driveway at 641 Bennington Street near Orient Heights recently sold for $350,000.  Another large 3,553 square foot three-family at 222 East Eagle Street sold in January for $320,000.  A large 4,764 square foot home at 358 Meridian Street was recently listed at $325,000 and went under agreement in just 24 days.  Similarly, a large 4,632 square foot three-family at 316 Saratoga Street was listed at $325,000 and went under agreement in just 6 days. (The last two properties have not yet sold; most properties that go under agreement within 30 days sell within 90% to 100% of asking price.)

East Boston has a shortage of large three-family properties on the market and in good condition that are not short sales.  Regular sellers will find that even in these tough economic times, there is a strong demand for large three-families in good condition in the $300,000 to $350,000 price range.  They tend to sell quickly.

Please check back as we continue to update you on East Boston real estate happenings. To see all our listings, or to search MLS properties, head to the Tony’s Realty Website.

Email Tony with your questions or comments.

 .

A Glimpse Into the East Boston Mortgage Crisis

A bank-owned two-family located at 91 Leyden Street on a very large 6,695 square foot lot was placed on the market on March 13 for $199,900. There was an accepted offer only 11 days later—most bank owned properties sell close to their asking price.

The mortgage history of this property gives us a terrifying glimpse of the East Boston mortgage crisis. The last owners purchased this two-family plus in-law in 1997 for $147,000. Their down payment was less than $7,000; their original mortgage was only $140,082. They refinanced the property six additional times: in March 2001 for $183,750; in September 2002 for $260,000; in November 2003 for $267,000; in May 2004 for $316,000; in June 2005 for $325,000. Lastly, two mortgages were obtained in January 2006 totaling $409,500. The property was foreclosed upon in September 2008.

Many East Boston homeowners borrowed consistently and extensively on their homes over the last decade. Ironically, even as a 2009 bank-owned foreclosed property, 91 Leyden Street will probably sell at a price higher than it did in 1997. This makes us wonder if housing prices in our neighborhood have “collapsed” or are just returning to their “normal levels” of the late 1990s.

Please check back as we continue to update you on East Boston real estate happenings. To see all our listings, or to search MLS properties, head to the Tony’s Realty Website.

Email Tony with your questions or comments.

 .

Walking Away from Your Home Loan

 

See this March 13, 2009 New York Times article regarding short sales, deeds in lieu, and foreclosures:  Thoughts on Walking Away From Your Home Loan.

.

East Boston: Housing Collapse or a Return to Normal Prices?

Last month, a two family with a big driveway on a 5,000 square feet lot was foreclosed upon—the property was located at 687 Saratoga Street near the Wood Island train station.  It is currently on the market for $183,000.  The property’s history gives an insightful glimpse of the troublesome East Boston mortgage crisis and supposed housing “collapse.”

The property was purchased in 1999 for $195,000.  The buyer obtained 95% financing and bought the house with a mortgage of $185,250.  In 2001, the owner refinanced the house for $190,750 and later took out an additional mortgage for $40,000.  In 2003, the owner refinanced again, borrowing a total of $328,500.  In July 2005, the owner refinanced a fourth time, borrowing a total of $440,000 on the property for which he only paid $195,000.

Some East Boston properties are selling at 50% of their 2004/2005 values, but not much less than their mid to late 1990s prices.  Perhaps current market conditions are not signs of a housing “collapse,” but are instead a return to “normal prices” after an extended period of artificially inflated prices due to the nonstop availability of mortgages and loans over the past ten years.

Please check back as we continue to update you on East Boston real estate happenings. To see all our listings, or to search MLS properties, head to the Tony’s Realty Website.

Email Tony with your questions or comments.

 .

Two-Families Averaging One Sale Per Week in East Boston

In the last three months, 13 two-family homes have sold in East Boston. The average selling price was $222,246. These properties ranged from a small 3 and 4 room near Central Square, which sold for $144,200 to a large 5 and 6 room on Leyden Street in Orient Heights, which sold for $300,000. Another large, standard two-family sold in Orient Heights near the Winthrop border for $280,000.

Of the 13 properties sold, one was bank owned; another 10 were “short sales.” In a short sale, a buyer negotiates with a seller’s bank to purchase a property at a “market value” price—generally less than what the seller owes the bank. The most challenging part of a short sale is convincing a seller’s lender that a buyer’s offer is a “reasonable price and not lower than current market value.”

Only two properties that sold were neither bank owned nor short sales. Both were older two-families. One was on Saratoga Street near Dom Savio, which sold for $190,000. The other was on Emmons Street near Maverick Square, which sold for $210,000. Even in this economic downturn of lower selling prices, there seems to be a steady flow of buyers interested in East Boston properties. In the last three months, 1 two-family house sold per week on average.

Please check back as we continue to update you on East Boston real estate happenings. To see all our listings, or to search MLS properties, head to the Tony’s Realty Website.

Email Tony with your questions or comments.

 .