(This was originally posted on Joe Wolvek's Blog. Joe has helped clients in the Back Bay, South End, and other downtown neighborhoods as well as Brookline, Cambridge, and other inner suburbs since 1992. He works with Gibson Sotheby's International Realty.)
The market right now is characterized chiefly by tight inventory. Last year at this time, in the downtown neighborhoods of Boston (see above), there were about 1038 condominiums on the market. This year, it's about 855, which is about 18% fewer. As a matter of fact, in the South End, inventory hasn't been this tight since 2000.
This makes it an opportune time for sellers who have reasonably priced, attractive properties (as opposed to overpriced, unattractive ones which will hang around for quite a while). I have seen several really nice properties, mostly in the $400,000 to $600,000 niche come onto the market and sell at the first open house.
My feeling is that as we move forward, even into this month, we will see increased good quality inventory and increased sales activity. I've been impressed by the number of buyers venturing out to open houses and to showings, but there's not much to buy right now in that price range. If you've been out there looking, you know what I mean. Look for that to start changing before the month is out.
The higher end of the market appears to be demonstrating increased activity. Between
10/1/2010 and 2/8/2011, 122 $1m+ condos sold in the downtown neighborhoods as compared with 103 the year before and demand appears to be increasing. The continuing problem (for these sellers, at least) is that there is still a very large supply, given the fact that there are 3 luxury towers with many unsold units, although they are beginning to sell at a faster clip.
Another positive sign is that there are about 30% fewer resale units at the Ritz Towers Boston than about three months ago (21 as compared to 30).
The Clarendon Back Bay is now about 50% sold out with approximately another 10% under agreement. This is really not that surprising given its superb location and finishes. It really is an impressive project. In my opinion it's the best new building in Boston (Mandarin Oriental notwithstanding)
45 Province has a longer road, but they've had some new activity, and they claim to have a three year financing agreement, giving them some time on the sellout. According to LINK, about 23 of their 150 unts have closed.
The Residences at the W Boston is in foreclosure hearings. The judge will more than likely rule by the end of March. About 27 of their 123 units (22%) have closed. While it's a very good quality project, I think the location has had a dampening effect on sales, given the premium prices of the units.
The links to the left on my blog will give you additional info on the individual neighborhoods. If you'd like to comment on any of this please visit. Let me know what you think.
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