The Boston Globe is reporting today that an office-and-retail complex near Longwood Medical Area will be the first major property in Boston to be offered for sale this year. Brokers predict it will mark the beginning of a turnaround in commercial real estate after two straight years of sharply declining sales.

The owners of One Brigham Circle will begin soliciting bids for the 200,000-square-foot complex within days, an executive handling the marketing said.

Click here for the full story

As of Friday January 8, 2010 here’s what is currently on the market for sale in Boston.  Please note the numbers reflect condominiums and not single family properties.

$200,000 – 300,000 = 280

$301,000 – 400,000 = 285

$401,000 – 500,000 = 182

$501,000 – 600,000 = 125

$601,000 – 700,000 = 79

$701,000 – 800,000 = 52

$801,000 – 900,000 = 41

$901,000 – 1,000,000 = 33

1,001,000 – 1,500,000 =89

1,501,000 – 2,500,000 = 81

+2,500,000 = 65

Stats direct from MLS

Presale just began on Boston’s new Spice Lofts! Get yours today…call me at 508.930.6232 or email jheller@warrenre.com.

NEW CONSTRUCTION LOFTS Starting from $499,000
(1218 sqft to over 2000 sqft)

SPICE LOFTS
@141 West 2nd St
South Boston, MA

Luxury Lofts with low condo fee
- 17 Loft Condominiums:
- 2 Bedroom 2 Bathroom layouts garage parking and city views.
The Spice Lofts @ 141 West Second Street consist of seventeen two-bedroom, two bathroom condominium loft homes ranging in size from 1218 square feet to over 2000 square feet, available for occupancy during the summer of 2010. The majority of the lofts homes have dual exposures with breathtaking city views. Superb natural lighting coupled with soaring ceiling heights create a wonderful feeling of openness. Each home comes with a deeded garage space and the option to add a second space (Pricing,Floor Plans and Location details).

In keeping with the true essence of the conversion of industrial space to residential use all of the homes feature combinations of the original architectural details such as concrete columns, over-sized windows and polished concrete floors. Reserving your home now provides the opportunity to customize the finishes.

Thanks to our friend Brian Cav over at SmarterBorrowing.com for the following 5 Thoughts on Mortgages for 2010.

Have we ever come into a year with so many questions regarding mortgage financing?

* What will happen with mortgage interest rates?

* Will banks continue to have tighter lending guidelines?

* How much will you need as a down payment?

* How important is my credit score?

1. Credit Scores

Please, please, please have the best possible credit scores when you submit your mortgage application for purchase or refinancing. A mid FICO score of 740 or higher for a borrower and/or co-borrower will get you the best mortgage financing interest rates you can get today. Keep a close eye on your credit scores, check them to make sure there are no errors. You can get one free Credit Report per year from the three credit bureaus (Experian/Equifax/TransUnion) from www.annualcreditreport.com. Do it.

2. Down Payments

The more the merrier… I can’t stand this saying. The larger the down payment, the lower the interest rate on your mortgage. Pretty simple. We’ve returned to an old rule of thumb on down payments: 20% down will get you the best mortgage interest rate. After a few years of lowered required down payments, the minimums are back with a vengeance. An example: A condominium in Greater Boston a few years ago could be financed with no money down. Today financing for that same condo requires at least 10% down payment. One important exception: FHA loans, which are backed by the Federal Housing Administration http://www.hud.gov/offices/hsg/fhahistory.cfm, require only a 3.5% down payment.

3. Mortgage Interest Rates

Folks… They are going up, and they are going up soon! Homeowners: if you are considering refinancing but have not pulled the trigger, please think about it. Refinance with a lower Mortgage Interest rate and lower your term? Home buyers: if you are on the fence with a specific home to purchase I see Mortgage Interest Rates at 6% by mid to late 2010. Please contact your Real Estate Agent. Get my take on where mortgage interest rates are headed with my weekly Boston Massachusetts Mortgage Market Update Here’s a link to my recent post on whether to refinance now. Also, the Fed’s purchase program is expiring mid 2010 and I would not plan on this being extended again. No one wants mortgage-backed securities these days so I would expect mortgage interest rates to go up because of this. All things are pointing towards higher mortgage interest rates in 2010.

4. FHA

FHA mortgages are amazing and very popular right n0w! For mortgage borrowers who cannot meet the current tighter guidelines we have in our market, the FHA Mortgage may be the answer. The average credit score requirement for an FHA borrower is around 690, so if you don’t have a 720 or better credit score and a minimal down payment this is a mortgage program you can look at. Now for the bad news… FHA loans are more expensive than conventional Mortgage products (although not by much) because there is a insurance premium as well as a tiny bit higher Mortgage Interest Rate. I blogged recently about the Obama administration announcing tighter guidelines for FHA Mortgage Borrowers in 2010.

5. Lending Guidelines

Yes, I think guidelines will get tighter. Unemployment is around 10% and the labor market is awful. There is no way credit requirements will get better in 2010…

Questions? Comments?  Contact

Brian Cav

bc@SmarterBorrowing.com

617.771.5021

Brian Cav is a Mortgage Banker in the Greater Boston Area with over 10 year of experience in the Financial Industry.  Reprinted with the permission from www.SmarterBorrowing.com Please visit http://smarterborrowing.com/ for additional Blog Posts, etc.

You asked the questions we’ve got your answers. It’s Question and Answer time with Jeanine Heller of Boston Condo Blog. Have a question? Email them to jheller@warrenre.com with Q&A in the Subject line.

Q: Has the real estate market hit bottom or will home values sink lower?
A: How does anyone predict the bottom? I think we will see a slight dip in home value but nothing substantial. So yes I would say we are close to the bottom. At the same time I don’t think we will see any type of major upswing or bounce back either. If anything takes a hit it will be the new luxury highrise inventory, but I think most came on the market way overpriced to begin with. This isn’t the booming buy and flip quick market we saw prior 2006, the days of flash for cash and bidding wars are gone. Buyers are more cautious with their investments and are really seeking out those great irreplaceable investments.

Q: What are your favorite condos currently on the market?
A: My favorite listings currently on the market – that’s a good one. I have a couple favorites but each for different reasons. My first is the 2 bed penthouse at FP3 for $1.8M, the view of the water and Boston skyline is insane, also it has two enormous private outdoor patios and a sleek modern layout. I will have to post photos of this home, you enter up a set of stairs and walk into this gorgeous open kitchen with floor to ceiling windows all around, honestly the view stops you dead in your tracks – it’s breathtaking. James Bond would feel very at home here. Another favorite is Zero Marlborough at $4.1. Who wouldn’t like a 3,500 sqft floor-through home over looking the public garden? This building just has a good feeling when you walk into it and there’s no wasted space in the unit. All 3,500 sqft have been put to use and the master bath is to die for. I like the 210 South Street lofts over in the Leather District…This is a tough question.

Q: Which Boston neighborhood will my investment be most secure in?
A: No question about it the answer will always be Back Bay. Back Bay and Beacon Hill – specifically the flat of the hill will always command top dollar for Boston real estate. Neighborhoods such as the South End (SOWA) and the Seaport are more risky as they are somewhat on a tipping point and could go either way. If you want to be safe stick with Back Bay / Flat of Beacon Hill.

Q: What’s with all these auctions? Is an condo auction the same as a foreclosure?
A: An auction is not the same as a foreclosure and can actually be a very smart tactic for moving units quickly in today’s market. It’s not that people don’t want to buy today it’s that they can’t. Although mortgage rates are down securing funding for large luxury residential buildings has been close to impossible. Often times buyers are asked to put up to 20% down when in previous markets almost anyone could buy with zero down – we all know how that turned out though. For example say a buyer wants to purchase a condo for $300,000 well he then has to be able to put $60,000 (20%) down in cash. Also, the FHA typically requires the condo building to have at least 51% owner occupancy in order for a buyer to secure a conventional loan. Therefore, holding an “auction” offering slight discounts in order to hit this number is a great strategy. Typically homes sell at fair-market-value so the developer doesn’t take a loss, units move quickly and it opens the door for mortgage backed buyers. A great example of the use of an auction as a strategic tactic would be The Bryant Back Bay.

Q: Did a parking spot really sell for $300,000 in Boston.
A: Sadly yes.

Q: How early should I begin my rental search?
A: Rental availabilities typically come on the market 45-days prior to occupancy. So, about a month and a half to a month before your desired move in date.

Q: I see your background is in the movie business, how does it compare to the world of real estate?
A: Oh not all that different inflated egos, gossip and lots of sorting through rubbish to get to the truth – Ha. The movie business definitely had better parties + events, oh and real estate doesn’t send you on all expense paid trips to Cannes or Sundance. On a positive note I have yet to see a real estate agent throw a computer at another agent — I saw this happen on more than one occasion while working in film.

Q: I’m looking to buy/sell/rent how do I contact you? Are you currently taking on more clients?
A: Either call me at 508.930.6232 or send an email to jheller@warrenRE.com – Yes, I am currently taking on more clients.