Posts Tagged 'Real Estate Market Update'

East Boston Real Estate Market Heats Up

The East Boston real estate market has been crazy lately, especially for three-family buildings.  Traditionally, most buyers have been owner occupants intending to live in one floor and rent out the other two.  Lately, some real estate speculators, developers and investors have perceived East Boston as being “hot,” and this has increased the number of people looking at properties.  This can be helpful if you are a seller and it can be helpful if a developer or investor buys a property and improves it.  New facades, apartment layouts, and physical improvements can only help a neighborhood and improve the quality of life for those who live in the properties. But it can make it quite difficult for an owner occupant looking to purchase a first home. It can also be hurtful for a neighborhood if a speculator purchases a property simply to wait for it to appreciate in value while not making significant improvements.

Some recent Tony’s Realty sales and listings give a glimpse of what is happening in the Jeffries Point neighborhood.  In January, we listed 74 Everett Street for $379,000.  This was a decent three-family of average size that needed a lot of renovation.  Over two dozen parties viewed the property and we received multiple offers, two from speculators / investors and one from an owner occupant.  The house went under agreement quickly and sold to an owner occupant for $377,000.   Last December, a smaller three-family on Everett Street sold for $317,000. This also was purchased by an owner occupant.  More recently, 34 Cottage Street, a completely renovated, beautiful brick three-family went on the market for $549,000 and had over 15 interested parties view it on one day of showings.  It had multiple offers and went under contract in one day.

Currently there is no shortage of local renters wanting to buy properties in East Boston.  There is also a plethora of investors, developers, and speculators who have a more recently developed enthusiasm for East Boston. When properties are listed, it is almost impossible to make individual appointments for viewers, so instead, they are more commonly presented in “group showings.”  It is not unusual for properties to receive multiple offers, especially within the first few days of being listed.  Sometimes these offers are at or above asking price. This frenzy of buyers has created a sense of confidence among sellers who are “watching the market” and sometimes reluctant to “sell their property now” if they think the market is “improving.”  The result has been a complete lack of inventory, and sadly, not enough properties available for many home buyers who want to make East Boston their home.

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

Email Tony with your questions or comments.

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2008 East Boston Condo Prices Down from 2007

In 2008, as recorded by our Multiple Listing Service, 104 condos were sold in East Boston. The average selling price was $230,748 and the average days on market (DOM) was 138 days. The average price per square foot was $228.

These figures differ from 2007, when 142 condos were sold. The average days on market was similar at 137 days, but the average price for the previous year was $256,844, and the average price per square foot in 2007 was $277. From 2007 to 2008, there was a decrease in value per square foot of approximately 18%.

One astonishing difference between 2007 and 2008 in condominium sales is that in 2007 almost all of the condos were brand new and none were bank owned. In 2008, 22 of the 104 condos (more than 20%) were bank owned properties.

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.

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Multi-Family Price Drops Make it Possible to Renovate East Boston Homes

While the East Boston condominium market continues to remain strong, with 45 units either selling or going under agreement in the last two months alone, a significant trend in the local market is the plummeting prices for unrenovated multifamily properties in the neighborhood.

Many of East Boston’s two and three family homes are in dire need of repairs and improvements—new functional room layouts, updated plumbing and wiring, deleading, extensive exterior improvements, and general improvements to kitchens, bathrooms and flooring. But, there is a light at the end of the tunnel—no pun intended. As prices of these 2 and 3 family houses continue to drop, they will be cheap enough for homebuyers, developers and contractors to purchase them and make the necessary improvements to transform them into beautiful homes. Many units of housing will probably be converted into condominiums, greatly increasing the neighborhood’s owner occupancy rate.

When prices for unrenovated multi family properties were artificially inflated, it was not economically feasible for someone to buy the properties and make the necessary repairs and upgrades. Hopefully, with more realistic sale prices of East Boston’s more decrepit housing stock, our neighborhood we will see great physical improvements made to these buildings, along with an increased number of concerned residents living in them.

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.

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Affordable Housing a Good Option for East Boston Buyers

While East Boston has always attracted buyers to this corner of the city due to its affordability, there has traditionally still been room for “Affordable Housing” in our neighborhood.

Housing oftentimes built with deed restrictions, Affordable Housing makes it possible for first time homebuyers (usually this means a buyer who has not owned a home in the past 3 years) to purchase a home at a price that is below market value—developers of Affordable Housing offer housing to the public at prices that are below what one might find in the open marketplace. Because Affordable properties are priced below market value, they are usually purchased at list price—they can either be sold in a lottery or by a first come, first serve basis with a real estate agent.

In return for the benefit of purchasing a home below market value, a buyer oftentimes pledges to resell the property to the next buyer at below market value, too—oftentimes this translates into an increase in the home’s value of, at most, 5% a year. And if an owner puts any improvements into the home (hardwood floors, for example), the owner can usually add another 1% to that 5% annual increase in value. Buyers must meet certain income guidelines before purchasing an Affordable unit, and their income must be verified by city and state agencies prior to closing.

Affordable Housing is a great way for individuals to make headway in building equity at an affordable price. It is oftentimes a means to home ownership in a property that is either new construction or fairly recently built—properties that are generally in much better condition or bigger than a typical East Boston property offered at the same price.

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 Zaragoza with your questions or comments.

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