This post was contributed by a community member. The views expressed here are the author's own.

Health & Fitness

A Good Year for Boston Homeowners

A Good Year for Boston Homeowners

Across the country and here in Greater Boston, real estate sales and prices have risen steadily for more than a year. I asked Aaron Lippert, Team Leader of Keller Williams offices in Boston’s South End, Back Bay, Beacon Hill and Charlestown neighborhoods to offer some current market perspective for Bostonians to consider as 2013 wraps up and we set our sights on a happy homeownership new year.

Survey Says:

Find out what's happening in Brooklinewith free, real-time updates from Patch.

NeighborWorks America surveyed 1,000 US residents about homeownership and two-thirds responded that they have not changed their opinion on homeownership in the last five years. Eighty-eight percent say owning a home is an important element of their “American Dream.”  Buyers flocking to Boston’s historical, sought after downtown neighborhoods are single females, empty nesters, international and young professionals.

Trend Continues:   

Find out what's happening in Brooklinewith free, real-time updates from Patch.

The Warren Group reports that Massachusetts single-family home sales rose this fall, increasing almost 19 percent from a year earlier - and the Huffington Post reported that Massachusetts boasts two of the 25 most expensive real estate markets in the United States. Weston and Newton made the list of pricey communities; along with two towns in Connecticut and thirteen tony locations in California. “Boston held its value during the downturn because of the city’s cultural attractions, professional jobs, educational institutions and our vibrant medical community.  Plus, convenient access to the mountains and beaches makes Boston a sought after location for many different audiences for many different reasons,”  Lippert explains.  

Boston Strong:

Whether you look at month to month or year to year, local real estate sales continue to impress. The Bay State has seen a 7 percent increase in year-to-date sales compared with last year, according to the Warren Group. Lippert’s four Keller Williams offices  list and sell some of the most expensive property in the country. The average Back Bay condominium sells for $1,114,333, an average 2 bedroom condo goes for $1,152,838 and the occasional single family property, a rarity in this prime urban space, tends to sell for over $5 million. Boston is strong.

Market is Jumping:

The Massachusetts Association of REALTORS reports that new listings jumped 11 percent this fall. Sellers are more confident in today’s economy and keeping a close eye on mortgage rates –and that trend is impacting today’s inventory. For example more than 600 new listings hit the market in October of this year, compared with October 2012.

Above & Beyond:

"The pace of the housing market has surpassed expectations this year," said The Warren Group CEO Timothy M. Warren Jr.  “Today’s real estate climate and the steady strong market conditions that we have experienced for more than a year now are very encouraging.” Commenting from his South End office, Lippert reports, “2013 has been busy for our four Boston offices and a fifth location in nearby Chestnut Hill -  and the hot market trend continues as the year draws to a close.”

Meatier Medians:

Median single-family home prices rose almost 10 percent in October to $313,050 – the highest price tag since the fall of 2007. The year-to-date median sales price is up to $324,900, a more than 12 percent increase from $289,000 last year. Lippert says, “The rise in prices and strong buyer interest is encouraging for homeowners - and the economy.”

Yes, Condos Can!

Statewide condo sales surged 16 percent in October. Communities beyond Boston, including South Natick, Watertown and Wayland, are now seeing condos priced over a million dollars. “Boston is a market known for its expensive condo inventory.  As a result of this and the aging boomer segment, we are seeing condo expansion into neighboring suburbs. This trend widens the target area beyond Boston and Newton, and provides would-be-condo-buyers with options outside the city, yet close enough to Boston’s world class amenities,” Lippert says.

Foreclosure Fade

Sales of distressed homes—which include foreclosures and short sales—made up 14 percent of October sales, down 25 percent year-over-year. National foreclosure pre-sale inventory is at its lowest point since 2008, Lender Processing Services reports. “A recent survey indicates that consumers are happier with their banks. The pain of the collapse is not forgotten but optimism is more prevalent these days. Foreclosures have dropped significantly – and most distressed property that remains – pre-dates the collapse in 2008,” Lippert explains.

Investor Ease

Investors are not competing with home-shoppers as much as a year ago – which means less competition for prospective buyers interested in buying and living in their homes. According to a recent Campbell/Inside Mortgage Finance survey of real-estate conditions, investors were 4 times more likely last year to invest in bargain properties. Lippert explains, “We are seeing less investor activity; however, international investment is still persisting in the downtown market.”

Tech Time Savers

Today’s buyers and sellers can benefit greatly from technology, “Today’s young professionals, empty nesters and suburban families benefit from easy access to market info, sales listings and homeownership resources. With so many resources at their disposal, homebuyers and sellers can maximize their home sales search from home, work or the road,” Lippert said. “The infusion of technology has had a tremendous impact on the real estate industry. The glue; however, for the buying and selling process continues to be the REALTOR who brings current market insight, negotiation skills and community perspective that simply cannot be gleaned from websites, apps, blogs and video posts.”

 

We’ve removed the ability to reply as we work to make improvements. Learn more here

The views expressed in this post are the author's own. Want to post on Patch?