Distinctive Homes Magazine - Boston - Volume 4 Issue 3 - (Page 11)

GIVEN THE PLUNGING FINANCIAL MARKETS AND THE DECLINING NATIONAL AND STATE HOUSING MARKETS, IS THE DOWNTOWN BOSTON CONDOMINIUM MARKET COLLAPSING? SIMPLY, THE ANSWER IS NO! has been involved with real estate for a number of years, initially on the development side through her family’s business and more recently on the sales side. She brings to real estate over 20 years of overall business experience. As a strategic consultant to Fortune 500 companies, Frann provided business intelligence and strategic advice to corporate executives on a broad range of business issues (operational, R&D, strategy, marketing and M&A). She worked independently and as Vice President of the Consumer Products, Services and Retail Practice at a Cambridgebased global consulting ﬁrm. Frann brings the same consultative style, high level of professionalism, attentiveness and service to real estate. She holds an undergraduate degree from the University of Pennsylvania and an MBA from New York University (Stern School of Business). In addition, she is a member of the Greater Boston Real Estate Board, National Association of Realtors, MLS, LINK and will soon be certiﬁed as an Accredited Buyers Representative. FRANN BILUS The Downtown Boston Condominium Market is alive and well! Proof is in the numbers. Activity at the high end of the market is particularly strong. $1,000+ per Sq Ft Transactions Increased Dramatically is upward pressure on pricing, driven by factors such as high demand, relatively low supply (3.5-4.5 months), limited development pipeline, limited land, among other factors. If you’re waiting for price reductions to make your move, here’s what you will discover: well-priced properties sell quickly, within days or weeks of hitting the market, in some cases, at or above the asking price. There have been bidding wars, leaving “bidders” disappointed as a result of the mistaken belief that their “low ball” offers are realistic and will be accepted by “desperate” sellers. While it’s true that prices will come down on properties that are priced incorrectly (i.e. too high) from the get go, if a property sits on the market for an extended period of time (and average days on market varies by neighborhood), it means that the property is overpriced relative to what it’s worth in today’s market. The real picture of pricing shows the average sales price and median sales price in the Boston downtown condominium market has trended upward, and this upward trend is expected to continue. So, What’s the Bottom Line? When you ﬁnd the property you love, don’t wait. Look at the data, get solid advice from your trusted real estate agent/consultant, decide what the property is worth to you and then go for it now. The numbers indicate the price is likely to go up next year!! A look at the number of transactions $1,000+ per square foot shows this segment has increased dramatically in absolute transactions (+57%) and in market share (+2.2 pts) year to date 2008 compared to the same period year ago. Four of the most desirable downtown neighborhoods are driving this growth: double-digit growth in Back Bay, Beacon Hill and Midtown and triple digit growth in the Waterfront. The Waterfront neighborhood has reached record levels and is the leading neighborhood for $1000+ per square foot transactions. This is driven primarily by the strength of the luxury high-rise luxury market. $1Mil+ Transactions Show Solid Gains The $1Mil+ transactions have grown year to date versus year ago to 13% share of market, up 1.7 pts compared to the same period year ago. There has been a substantive increase in the $1Mil-$1.99Mil segment in both market share and number of transactions. Market share has risen to 9.3% translating to an +.7 pt gain. The $2Mil + segment has surpassed the previous peak of 2007 resulting in a +.9 share pt gain. Prices are Trending Up, Not Down In the Boston downtown market, there Source: MLS and LINK YTD 9/12/08 Disclaimer: Data is taken from sources deemed reliable but subject to errors and omissions.

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Distinctive Homes Magazine - Boston - Volume 4 Issue 3

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