Real Estate – More Bidding Wars to Come

To-do’s for Blizzard:

-Salt driveway & sidewalks before/during/after snow.
-Have a backup shovel.
-Flashlight(s). Matches & candles.
-Have 3 days of water for drinking, and if prone to power outages, fill tub for toilet flushing.
-Intermittently check roof (especially if flat) and remove snow if possible.
-Keep alleyways and fire escapes clear if possible.
-2-3 days worth of food.
-If power goes out only use cell phone when necessary.
-Know where your heat system vents outside and keep snow from piling in front of it.
-Don’t turn on and sit in car before shoveling out.

Mortgage rates are the lowest since October 2013… This helps balance the (still) rising sale prices:

Today’s rate = 4.15% /
Two months ago = 4.33% /
October 2013 = 4.10% /
One year ago = 3.90% /
Two years ago = 3.53%

Interesting topic that is being brought up more and more: Will the apartment market become saturated as 9,000+ units are built over the next few years? The short answer is Yes… but not as much as people think. Of course whenever the supply begins to catch up with the demand, prices will start to level out. However, most units being built in/around Boston are targeting the higher end of Boston’s market. An example is the Seaport’s Waterside Place where 2-bedrooms are renting for $4,000/mo. Most new developments (that have enough unit volume to effect the market) are full service buildings in Grade-A locations. These higher end rentals will see more direct competition… but this will also make conventional apartment housing more desirable. Thereby keeping those prices stable.

Another side to the coin of an increase in new construction inventory is the increased desire for people to stay in Boston. A lot of these new buildings are also designed to make their respective location an entertainment hub (i.e. Seaport & Assembly Row). This “hub” design is in line with Mayor Marty Walsh’s plans to retain talent from local Universities by keeping restaurants/bars/T-service open later. The focus on retention will help keep demand high as local grads decide to stay in Boston instead of opting for NYC or Chicago.

Overall, I expect a market shift from the influx of new inventory — but I do not think it will have as drastic an impact as some.

Most expensive listing in Boston right now? 130 Commonwealth Ave: 12 rooms, 5 bedrooms, 8 bathrooms, 6 parking spots, 9,908sqft — ($13,900,000)

It still amazes me how fast the Seaport has changed… Vertex Pharmaceuticals just sold their 2 buildings on Fan Pier for $1,125,000,000 (yes – that’s billion).

Average single family sale price over last 12 months (towns west of Boston):

1) Weston – $1,622,278
2) Wellesley – $1,356,200
3) Concord – $1,102,597
4) Newton – $1,094,934
5) Needham – $906,867

Number of accepted offers over last 7 days in Boston: 1) South Boston – 49 2) South End – 40 3) Back Bay – 31 4) Charlestown – 30 5) N End / WF – 20 6) Beacon Hill – 16

I wasn’t sure it would be possible… but it looks like this Spring we will see more bidding wars than last. Inventory is down from last year and there are more buyers looking than ever. I submitted an offer yesterday competing against 22 other offers (9 of which were cash). If you are buying in/around Boston make sure to consult with someone who knows how to navigate these “wars”!