The downtown Boston real estate market was on fire during 2010. Contrary to what was happening elsewhere in Boston, in Massachusetts, and in the United States, sales volume remained strong while average and median sales prices rose to their highest levels in six years (and, presumably, ever).

It’s an extraordinary thing, given the grueling economy (my catch phrase) and almost-double digit unemployment rate. However, Boston is different in a lot of ways than other major US cities. For one thing, we didn’t have a lot of construction during the go-go years, unlike such places as Las Vegas and Miami. And, even though hundreds of thousands of Massachusetts’ residents are out of work, the unemployment rate for those with college degrees is much lower than the average, as little as 4.5%, according to the Bureau of Labor Statistics.

It’s considered de rigueur to talk about “good times” while everyone’s suffering. I’m not, nor am I being smug (my business was slow this year). It’s just reporting the facts.

For details on the sales volume and median and average sales prices for the Boston real estate and condo market, click through to read my Boston Herald Getting Real blog.

Above, 150 Beacon Street, PH, Back Bay, Boston, Massachusetts, the highest-priced sale of the year (according to MLSPIN), $8.5 million. Tracy Campion of Campion & Company Fine Homes Real Estate was the listing broker.

The latest S&P / Case-Shiller real estate index was released, yesterday. It showed continued “weakness” in single-family home prices, both nationwide and locally.

While the Case-Shiller index has some huge qualifiers for its index (repeat sales of the same properties, no new construction), it’s become the de facto decider of all things real estate.

Since 2000, single-family home values in the Boston area have increased approximately 54% but are off from their September 2005 high, when values were up 82% since the turn of this century. Prices increased earlier this year (presumably due to the tax credit programs) but are now back where they were, last October.

The irony is clear. In order to induce sales, the government gave buyers thousands of dollars in tax credits. The result was increased home prices. Now that there’s no incentives, prices have fallen.

Isn’t that a better thing?

The Boston Business Journal and the Boston Herald are both reporting that a local developer is proposing a hotel for two vacant buildings facing the recently-buried Central Artery.

Matteo Gallo is interested in purchasing the two properties near North and Richmond streets. He told the Herald he has already talked to lenders about financing the project.

If he can’t get approval for a hotel, he’d be interested in turning the buildings into apartments.

“Most North End property owners push the Italian old timers out, but I’ve gone out of my way to rent to Italian seniors at a discount to keep them in the neighborhood,” he said.

Er, reverse age discrimination?

Other than that, what a great idea!

Goldman Properties and the Archon Group, through their W2005 BWH II Realty L.L.C. partnership, has proposed changes to its plans for a series of buildings located in the Fort Point Channel neighborhood of Boston.

Instead of tackling all the changes at once, the “Amended and Restated Development Plan” would authorize a phased approach to the 49/51/63 Melcher Street Project.

Phase I would be undertaken in conjunction with the development of the Proponent’s nearby project located at 319 A Street Rear, and would include rehabilitating and converting the existing building at 63 Melcher Street into an approximately 34,700 square-foot residential building with approximately 38 residential units.

Of these approximately 38 residential units, five would be affordable, artist live/work units which will partially satisfy the affordable housing required for the Proponent’s project at 319 A Street Rear, approximately 27 would be smaller unit types, of which four would be affordable, and would range in size from approximately 340 to 500 square feet, and approximately six would be loft-style units.

Phase II would proceed independently of the Proponent’s project at 319 A Street Rear, and would rehabilitate and convert the existing buildings at 49 and 51 Melcher Street into an approximately 185,250 square-foot, integrated commercial building with a single elevator core and continuous floors.

The originally approved 49/51/63 Melcher Street project included approximately 224,136 square feet for gross floor area. The Proposed Project would include approximately 219,950 square feet of gross floor area, an approximately 4,186 square-foot reduction in size.

Plans for the new building proposed for 319 A Street Rear were approved earlier this month.

There is a public meeting on January 10, 2011 from 6:00-7:30PM at Bargmann Hendrie + Archetype, Inc. (BH+A), 300 A Street (Conference Room, 1st Floor) to discuss the project and the changes.

In what must be seen as continued faith in an uncertain market, the W Boston Residences’ sales team has increased prices on a couple of its listings.

According to the Multiple Listing Service Property Information Network, Inc. (MLSPIN), two condos have had price adjustments this week.

Unit #23F was repriced from $825,000 to $865,000. This is an ~857 square foot, one-bedroom, one and ½-bathroom home. Meanwhile, Unit #24J had a a price increase from $905,000 to $965,000. This is also a one-bedroom, one and ½-bathroom home with approximately 1,103-square feet of space.

The mixed-use development is approximately 23% sold at this point, with closings recorded on 28 out of the 122 units in the building. Most recently, two units were sold in late December with the presumed intention to combine them into one unit. The purchase price was $1,850,000.

Otis & Ahearn is the marketing and sales broker. Please contact us for buyer’s agent representation.