According to the National Multi Housing Council’s Quarterly Report released May 7th, the “Market Tightness Index” has nearly doubled nationwide, explaining the easement of pressure on those responsible for renting out apartments here in Boston.  This index measures the change in occupancy rates and/or rents in the market.  As the index number increases, so do rental rates, and the number of vacancies decreases (more people are staying where they are).  This was the highest figure in nearly four years (see Calculated Risk’s graph below) and it certainly explains the decreased availability of quality product throughout the city this year, as well as the lack of incentive companies and owners have had to “make deals”.

(reading above 50 suggests vacancy rate decline)

For more information, please read on for a few key quotes or follow the link below to read NMHC’s full News Release regarding the report.

From the National Multi Housing Council (NMHC): Apartment Industry Shows Widespread Improvement According to NMHC Quarterly Survey of Market Conditions:

The Market Tightness Index, which measures changes in occupancy rates and/or rents, rose sharply from 38 to 81. This was the highest figure in nearly four years. Fully 64 percent of respondents said markets were tighter (meaning lower vacancies and/or higher rents). Only two percent reported looser markets. This is the sixth straight increase for this measure.
…
“We saw a sharp increase in the Market Tightness Index, which fits with the surprisingly strong (for a seasonally weak period) effective rent growth. … Even so, a sustained recovery in the apartment market needs a firm economic and demographic foundation … in the near-term the industry’s prospects still depend upon a stronger rebound in both the job market and household formation.” [said NMHC Chief Economist Mark Obrinsky]

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Address: 2 Eighth St. #1 – East Cambridge

List Price: $229,000

Pros: One of the most well-renovated condos in East Cambridge

Cons: At 420 square feet, you have to be willing to sacrifice size for great quality

Address: 75 Burbank St. #505 – Symphony

List Price: $285,000

Pros: The condo has a wonderful layout, making it feel larger than 430 square feet, AND exclusive roof-rights, which the city has already granted building permits for.

Cons: Since there is no elevator, walking up five floors is not for everyone.

Address: 566 Commonwealth Ave. #1008 – Kenmore Square

List Price: $260,000

Pros: At 866 square feet, you will not find a more space for your money… oh and did I mention it has a balcony overlooking Fenway Park, a concierge, pool and a garage parking spot?

Cons: The monthly condo fee is $1,382… Ouch!

Address: 42 Bradford St. #1 – South End

List Price: $299,000

Pros: Location, location, location!  Direct access to the large patio is certainly a benefit, and the unit has enough space for a kitchen remodel which would increase a future sale price.

Cons: It is a garden-level condo which you would want to access from the patio rather than the below-ground front door.

Address: 176 Bunker Hill St. #1 – Charlestown

List Price: $255,000

Pros: 700 feet to the Bunker Hill Monument with a private patio!

Cons: Mostly renovated but the bathroom still needs some work to be top-notch

Address: 64 West Cedar St. #1 – Beacon Hill

List Price: $278,000

Pros: Enjoying your own private patio in Beacon Hill

Cons: Garden units in Beacon Hill do not get good natural light and the ground-level windows, will limit it even more.

Address: 1450-1454 Beacon St. #604 – Coolidge Corner

List Price: $294,000

Pros: Newly remodeled building just steps from the Green Line and walking distance to the center of Coolidge Corner and Washington Square.

Cons: Lugging your laundry to the common laundry room.  Luckily there is an elevator!

Address: 60 Queensberry St. Unit E – Fenway

List Price: $249,000

Pros: Great lay-out and open kitchen makes this 494 square foot condo feel much bigger than it looks on paper.

Cons: A garden-level condo that backs up to a [seemingly] quiet parking lot.

Address: 922 Beacon St. #24 – Fenway/Brookline

List Price: $299,000

Pros: Perfect location for anyone looking for the convenience of being in the city but the quiet feel of living in Brookline.

Cons: The delicious smells from the restaurant below might leave your senses begging for food you would otherwise not pay for.

Address: 2 Garden Court #2 – Harvard Square

List Price: $269,900

Pros: This one is for all of my Cambridge fans – Live in an actual neighborhood, less than 1 mile from the center of Harvard Square… oh and the condo itself is pretty nice too!

Cons: 588 square feet in such a great neighborhood is a bit too small for more than two people.  It is however, ideal for local professors and graduate students!

Do you have any thoughts or opinions about condos in this price range?  Experience purchasing for less than $300,000?  Want to see any of the condos above?  Feel free to contact us at any time or simply share your thoughts below!

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We are all overly aware that the real estate market is not what it used to be.  Since 2006 we have seen a constant decline in home prices throughout the U.S., some cities such as Las Vegas, have even seen over a 55% decline in home values.  But again let me say, Boston. Is. Fortunate.  Take a look at the graph below:

As you can see above, Boston has remained reasonably strong in comparison to most of the country’s larger cities.  Facing a 15% decline from our market’s peak doesn’t seem too terrible compared to the 36% in California cities or even the 21% in New York City.  Every day however, I see reminders as to why we shouldn’t allow ourselves to get lost in our own world of good product and decent market strength.  We are no longer in a seller’s market, we still face foreclosures and we need to adjust accordingly.

At 9:57 last night, I received a frantic phone call:

“Betsy, today is the first time in my life that I’ve missed a mortgage payment.  They’re going to foreclose on my home if I don’t sell it.  I’m putting it up on the market.  Yes, I know it needs some work but I’ll just give the new buyers a credit to do all of the repairs themselves.  I have to sell it RIGHT NOW!”

I reminded my dear, extremely stressed and temporarily irrational friend, of what I mentioned earlier:  ”We are not in a seller’s market, our market is down… you have to work for the sale”.  So she listened, or pretended to listen, to the points I laid out for her and for anyone else in her position:

1. If you miss a mortgage payment, relax, pull yourself out of the world of frantic, impulse decisions and get back on rational ground.  Depending on your bank you may have four to six months before they begin the foreclosure process.

2. Ask yourself whether you’ve done everything you can to avoid selling.  If not, KEEP TRYING, you don’t want to sell if you don’t have to!

3. You have to make your home sell. Competition is tough and you have to stand out. Remember my friend saying that there was work to be done but she would just give the buyers a credit to do it themselves?  BAD IDEA! When a buyer walks into a home, they want to be impressed; they want to be inspired to purchase your home. What they don’t want is to hear that they’ll have work to do after they’ve purchased it.

4.  If you do have work that needs to be done and you’re on a tight budget, prioritize! What’s going to make the best impression on potential buyers? If you have a hazardous material in your home such as asbestos or lead paint, these are high on the priority list.  In some instances, depending on what you owe, the cost may be greater than the benefit but if you can have them removed by a professional, it opens up your home a whole new group of potential buyers: families with young children.

5.  Don’t go through it alone.  Selling your home is a difficult process on its own.  That process will become exponentially harder when you carry the weight of a potential foreclosure.  Ask a real estate agent to work on your behalf.  Real estate agents are experienced in dealing with potential foreclosures and short sales (if it comes to that), have greater marketing capabilities, more resources, access to large networks of potential buyers, time to dedicate to getting your home sold, and most importantly, are there to protect you while getting the deal done.

A real estate blogger I follow recently stated that “Regrettably, most people cannot be 100% sure that they will remain safe from foreclosure because they can’t foresee the unexpected”.   While homeowners in the Boston area remain at risk of foreclosure, the reasonable consistency in our market has bought homeowners some time to refinance, prepare homes for sale, and get them sold.  As with the case of my desperate friend, this strength will fortunately allow her to sell quickly and avoid foreclosure altogether.  So let me say again, Boston. Is. Fortunate.

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Boston Condo Blog has laid dormant since late February and it’s time to put an end to that!  Now that the first-time home buyer tax credit has expired, new foreclosure-avoidance programs are being announced and the Spring market upon us, you deserve the Boston Condo Blog, your real estate resource, to be on our toes and feeding the information you are hungry for.  Extremely knowledgeable and seasoned Boston real estate agent, Betsy Wagner of the Warren Residential Group, will be doing just that.

Over the next few months, be prepared to catch up on everything you have missed while the Boston Condo Blog has been offline.  Whether you are a market statistics and a “show me the numbers!” type of person, a real estate gossip addict waiting for the next Red Sox player’s condo to hit the market, or a passionate reader looking for educational words about Boston real estate, you will not be disappointed.

So to my fellow real estate guru’s out there: Hold on to your ___________ (fill in the blank here, because not everyone wants to “hold on to their horses”) and be patient as I redesign a few things, shift around the links you have grown accustomed to and truly make this your go-to real estate information source!

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The famed Abbey Road studios which served as an icon for the Beatles‘ album of the same name has been put up for sale by EMI.

The asking price is unknown but experts are estimating the building is worth around $20 million!

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All obviously beautiful homes ranging in price from 3.5 – 12.5 million…yes a big big one at 58 Commonwealth has been locked down under agreement.

Here are some highlights:
58 Commonwealth – UAG $12.5
9 Arlington #3 – UAG $7.499
293 Marlborough – UAG $5.299
Mandarin Oriental #E9C – SOLD $4.150
0 Marlborough #6 – UAG $4.195
81 Beacon #4 – SOLD $3.6
96 Beacon #3 – UAG $3.99

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Interested? Contact 508.930.6232.

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Originally priced at $8.5 million, this 5,700 square foot,  new construction home is now hitting auction with a reserve/min. bid of $4.995 million. This is a great opportunity for a buyer, a full townhouse priced $3.5 million less than original asking…Wow!

**I am representing buyers for this auction. For further information please contact me directly at (508) 930-6232, or email jheller@warrenre.com

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New listing on the rental market.  My favorite thing about Trinity Place is the fact that owners have direct access in to Sorellina – yum.  Just think you can have them send your meatball dish up to your unit.  I’m sold!  Here’s the details from MLS:

“Rarely available luxury condo rental at the famous Trinity building in Boston’s Back Bay. This large layout is perfect for someone who wants comfortable living in the middle of it all. The home features hardwood floors, large windows, and in-unit washer/dryer. Trinity Place features valet parking, a beautifully furnished lobby, fitness facility, and 24/7 concierge services. Walking out the door puts you at the footsteps of the Boston Public library, the Prudential area, and Back Bay.”

Rent is $3,500 for this 1 bed 1 bath home.  Interest? Contact me at jheller@warrenre.com

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