Boston Real Estate Blog

10 Tips to Prep Your Home to Sell

2012-02-02T16:16:00.000-05:00

De-clutter your home or condo, and put away toys, clothing, dishes, etc.
Rent a storage unit. For $100/Month+/-, you can remove winter/summer clothes, shoes, furniture or any extra stuff. The more clean and organized your home shows, the more storage and space it looks like you have.
Clear the bathroom and kitchen counter tops of all clutter
Hide trash cans whether inside or out
Replace any light bulbs that are out.
Remove any decorations or magnets that are on the fridge.
If there are any small items that need painting, caulking or repair, fix them prior to putting your place on the market.
If you own a house, mow the lawn, rake the leaves, and shovel the snow in the driveway and walkways. You want the house to look well maintained.
If you have pets, have your home cleaned to eliminate any smell, and put away all pet food, dog bowl, litter box, etc.
Hire a real estate professional from The Terrier Group!

2011 Boston Condo Sales Data

2012-01-31T11:46:00.002-05:00

Similar to the South Boston condo sales market, the overall Boston condo market experienced price appreciation, with volume being down. In summary, average Boston condo prices were up 2.9%, volume was down 4.7%, and the average days a property was on the market increased 2% in 2011. This data was pulled from MLS.

January 1st - December 31st 2011
Condos Sold - 3540
Average Price - $535,296
Avg. Days on Market - 104

January 1st - December 31st 2010
Condos Sold - 3713
Average Price - $520,264
Avg. Days on Market - 102

2011 South Boston Condo Sales Data

2012-01-18T16:03:00.001-05:00

This month I will be highlighting year end sales data for the Boston condo market, Back Bay, South Boston, South End, Newton, Winchester, Wellesley, and Weston real estate markets. First up is the South Boston condo sales report.

In summary, average South Boston condos prices were up 4.3%, volume was down 4.5%, and the average days a property was on the market increased 7.3% in 2011. The only interesting number is the average price which was up year over year, and I expect to see that in many Boston suburbs and Boston condo markets.
January 1st - December 31st 2011
Condos Sold - 465
Average Price - $382,283
Avg. Days on Market - 102

January 1st - December 31st 2010
Condos Sold - 487
Average Price - $366,588
Avg. Days on Market - 95

South Boston Real Estate Update

2011-12-08T12:11:00.001-05:00

Below are several updates on neighborhood developments, and restaurant/retail business openings.

Social Wines - photo of location above

February 2012 Opening
52 West Broadway at the corner of A Street
1000 sq. ft. for the retail portion. Total leased space is 2000 sq. ft.

11 West Broadway

November 2012 Opening for 50 Apartments
Located at the intersection of West Broadway and Dorchester Avenue
25 One Bedrooms, 25 Two Bedrooms with 6 of them being designated affordable
36 Garage Parking Spaces including 1 for Zipcar. Bike storage for 16-17 bike's
Starbucks has signed a lease for 1500 sq. ft. and will be opening in June-August 2012
Subway has signed a lease for 1500 sq. ft. and will be opening in June-August 2012
5000 sq. ft. of restaurant/retail space is still available for rent

West Square - formerly Emerald Court

Entire city block from West 1st Street to West 2nd Street between C and D Streets.
Emerald Court was approved for 245 Units with 318 Parking Spaces
West Square filed a notice for project change on 7/20/2011 to include 259 Units with 143 Parking Spaces. This was denied by the Boston Redevelopment Authority due to parking.
Recent Update: New Proposal to include 252 Units, and 252 Parking Spaces

Newton, MA Real Estate News - New Grocery Store!

2011-12-06T11:56:00.001-05:00

For those of you that shop at Bloomingdales, and the Chestnut Hill Mall, you may have noticed a large commercial property being demolished across Route 9. For several months I've been wondering what was being built in it's place, and today I found out. Newton MA real estate owners and residents are getting a new grocery store! Wegmans Food Markets of New York will be opening it's third grocery store in Massachusetts. Their first store opened recently in Northborough, and is their first grocery store in the state. They are currently building a second store in Burlington. The projected opening date for the Newton store is early 2013. Click here for the full story from the BostonGlobe.com.

Currently Newton has several large grocery store options, including Star Market, Trader Joe's, and 2 Whole Foods Market's. Newton's close proximity to Boston and excellent school systems has made it an extremely desirable location for families and professionals. Unfortunately with those desirable features comes high real estate prices. In 2011, the average sale price of a single family home in Newton is over $900,000!

28 Condos Under Construction on West 2nd Street

2011-12-02T15:48:00.001-05:00

Demolition on the existing structure at 360 West 2nd began yesterday and the developer will be building 19 condos, as previously reported here. Right next door at 348 West 2nd construction of 9 condos is under way, and they finally have a foundation built. If you look at the gorgeous photo to the left, the 9 unit project currently has a cinder block foundation and elevator shaft. I'm not sure what the delays were, but it's been a slow process.

Outside of these 2 projects, there's an enormous amount of construction going on in South Boston, especially on the West side. If you have kids, and like mine they are infatuated with construction vehicles, don't bother bringing them to a Touch a Truck show. Just head on over to West 1st and F Street! You can see backhoes, bobcats, excavators, front loaders, and "diggers" as my son likes to call them.

New Trendy Restaurant Coming to South Boston

2011-11-14T15:01:00.000-05:00

More good news for South Boston condo owners and residents. Another new restaurant is coming to Broadway. The name of the restaurant is yet to be determined, but the plans are to convert the old Payless Shoes space on West Broadway into a beautiful restaurant, as seen in the rendering. The incoming tenant is the same owner that is opening The Paramount on East Broadway.

The owner deserves credit for realizing the enormous opportunity restaurant owners have if they are willing to take a risk on something that South Boston so desperately needs; quality local restaurants that are different from every other bar & grill in the area.

3 Reasons to Use a Buyers Agent to Buy a Home

2011-10-21T16:31:00.002-04:00

I just finished reading this article and felt compelled to share it with the real estate community. It contains 2 statistics that I found interesting.

"In 2010, only 57% of buyers who purchased their homes had a buyer's agent."
"Buyers who use a buyer's agent pay an average of 5% less than buyers who don't."

Pretty interesting stuff. If you're not using a buyer's agent, make sure the seller's agent is trustworthy, has a good reputation, and will negotiate with their seller to get you a good deal. I've represented buyers and sellers in the same transaction, and I always look out for both parties best interests, but there's many sleazy agents out there that don't. If you need a realtor in Boston or in the suburbs, The Terrier Group can help you, and it's free for buyers! Click here for the full story.

Starbucks, Subway & Social Wines coming to South Boston

2011-10-12T12:23:00.001-04:00

I've been to neighborhood meetings in the last few weeks and several new business' are coming to South Boston in 2011/2012. At the Andrew Square neighborhood meeting, Subway made a proposal to put a new "restaurant" at the intersection Old Colony and Dorchester where AT&T Mobile used to be. Most of the neighborhood was in support with a few members desiring a more trendy South End type of restaurant. It looks like Subway will be moving forward and they hope to open by the end of the year.

At the West Broadway neighborhood meeting, Starbucks and Social Wines presented. Starbucks is slated to open at 11 West Broadway. As some of you may have seen this week, the developer just started tearing down the old Quiet Man Pub and other buildings where the development is being built. Construction will include 50 apartments for rent and I believe 2 commercial spaces for rent. Starbucks will be opening in one of the commercial spots, and I've heard that another Subway is slated to open in the other space.

Social Wines is looking to open up at 50 West Broadway at the corner of A Street in South Boston. This sounds like a great business for the area. I've heard the landlord/owners of 50 West Broadway are difficult to negotiate with as there was already a wine and cheese bar in plans last year, but the deal fell thru due to the landlords high rent demands.

Boston Luxury Condo Building Prices

2011-09-02T10:38:00.003-04:00

After taking a client out to view several luxury condos in Boston this week, I decided to write a post comparing the sale prices in some of the major luxury condo buildings in Boston. The data was compiled from LINK and the sales are from January 1, 2011 thru September 1, 2011. Not surprisingly, the cream of the crop is the Mandarin Oriental as it's the most expensive luxury condo building in Boston. Many of the wealthiest Bostonians call this address home. The entire list of luxury buildings in Boston is much more extensive than this, but I wanted to spotlight some of the well known properties in several neighborhoods.

Building	Sales	Avg. $/Sq. Ft.	Avg. Price
Macallen (South Boston)	8	$511	$639,875
45 Province (Midtown)	21	$771	$1,000,378
Bryant (South End)	4	$789	$1,428,725
Intercontinental (Waterfront)	7	$833	$1,442,243
W Residences (Midtown)	20	$916	$1,211,650
One Charles (Back Bay)	13	$937	$1,575,577
Atelier (South End)	5	$962	$1,671,080
Ritz-Carlton (Midtown)	11	$1,026	$2,016,136
Four Seasons (Back Bay)	7	$1,093	$1,634,571
Clarendon (Back Bay)	25	$1,129	$1,547,500
Mandarin Oriental (Back Bay)	4	$1,754	$8,212,500

Foodies South Boston Update

2011-09-01T13:43:00.000-04:00

Many of my friends, clients and condo owners in South Boston often ask me what's going on with Foodies. The grocery store was supposed to open in the Fall of 2011 at the corner of West Broadway and C Street. As many of you know, Foodies is no where near opening this Fall, but finally, I have an update!

One of my agents, Brian Hooper, gave me the heads up that they started some demolition at the property, so I stopped by the site this week. As you can see from the picture, there are contractors on site. I spoke to the construction manager and he said the goal is to open Spring 2012! It looks like they won't be demolishing the existing structure, but will be renovating it. Hopefully South Boston will have a nice neighborhood market in 2012!

South Boston Condos Approved on West 2nd Street

2011-08-18T11:49:00.002-04:00

The proposal to redevelopment 360 West 2nd Street in South Boston was approved for 19 condos with 25 garage parking spaces. As I've mentioned in previous posts, I think the project is too large, but it's still better than the ugly transfer station that's currently on the lot. Click Here for more info.

In addition, the developer finally started pouring the footings for the foundation at 348 West 2nd Street. He will be building 9 condos with garage parking for 13 cars. It's been a pretty slow process hampered by delays. Hopefully both projects will be 100% complete in 2012.

South Boston remains one of the hottest neighborhoods for young professional condo buyers and developers. With many old 3 families, industrial buildings, and vacant lots prime for development, I think you will see this trend continue over the next 10 years. The area still has so much potential. Now we just need some retail on Broadway!

South Boston Development Update

2011-06-30T17:09:00.000-04:00

This is an update to a post from a couple months ago about 360 West 2nd Street. I attended the 3rd community meeting Tuesday night for the redevelopment of 360 West 2nd Street. The specs on the three different proposals and the dates of the meetings are below

1st Proposal - April 4, 2011 25 Condos, 25 Parking
2nd Proposal - May 5, 2011 21 Condos, 25 Parking
3rd Proposal - June 28, 2011 19 Condos, 25 Parking

In my opinion, 19 condos is still too many for this lot. Below are new condo developments that were built on West 2nd between E & F Streets.

321 West 2nd: 11,300 Sq. Ft. Lot - 15 Condos, 24 Parking (Approx)
335 West 2nd: 16,000 Sq. Ft. Lot - 24 Condos, 40 Parking
348 West 2nd: 6,000 Sq. Ft. Lot - Permitted & Approved for 9 Condos, 14 Parking
366 West 2nd: 2,340 Sq. Ft. Lot - 6 Condos, 9 Parking (Approx)

360 West 2nd is a 9,460 Sq. Ft. Lot. I'm having a difficult time understanding why it should be approved for 19 units when 3 out of the 4 developments above were approved for approximately 1.5 Units per 1000 Sq. Ft. of the lot size. At 19 units, that would be approximately 2 units per 1000 Sq. Ft. of lot. I believe this lot should be approved for 15 condos and 25 parking spaces. Whether that happens or not, we'll see.

If you would like to send comments to the BRA(Boston Redevelopment Authority), please email Erico Lopez at erico.lopez.bra@cityofboston.gov. The public comment period ends July 8, 2011, and if the BRA receives enough negative remarks, they may force the developer to address the neighborhoods concerns.

Price Reduced! Gorgeous South Boston Luxury Condo

2011-06-22T14:14:00.000-04:00

I'm currently marketing this beautiful 2 bed, 2 bath South Boston luxury condo that includes 1 garage parking space. I reduced the price to $469,000 yesterday, which I believe is a fantastic deal. The condo is located at 335 West Second Street, #10 in South Boston. The 24 unit building was constructed in 2005. We are now asking $373/sq. ft., which is a relative bargain in comparison to similar properties. The appliances are top of line Bosch and Jenn-Air, you have a master suite with a California walk in Closet, and as I mentioned above, one full garage parking space.

I'll be hosting an open house this Sunday June 26th from 12-1PM. If you or anyone you know are interested in this condo, please email me at msylvia@theterriergroup.com. It's a gorgeous place, is a well run condo association, and a great location on West 2nd Street. To view the full listing, please Click Here.

Money Matters Boston Real Estate Radio Show - Sunday at 2PM on 1120AM

2011-05-07T11:57:00.002-04:00

This Sunday from 2-3PM I will be a guest on the Money Matters Boston radio show to discuss the state of the South Boston real estate market. The show is hosted by mortgage broker Chris Devin and is on channel 1120AM. I'm sure most of you have better things to do on Mother's Day than listen to me on the radio, but if you're in your car, please tune in. You can also watch online at MoneyMattersBoston.com.

South Boston Development: 360 West 2nd Street

2011-05-06T22:45:00.000-04:00

I attended a community meeting Thursday night for the redevelopment of 360 West 2nd Street (between E & F Streets) in South Boston. The L-shaped lot currently has a brick building with several green garage doors. The developers initial proposal in April was to build:

25 condos (21 Market, 4 Affordable)
Garage Parking for 25 vehicles on the 1st floor
5 story building

The community was against this, so the developer came back for a 2nd meeting last night with revised plans. The revised plans were:

21 condos (18 Market, 3 Affordable)
Garage Parking for 25 vehicles on the 1st floor
4 story building

The community was against this proposal as well. Comparable sized lots in neighborhood that have recently been developed have 9-15 condos. In my opinion, this development should be 4 stories and have 12 condos with 18-24 parking spaces. I believe the BRA(Boston Redevelopment Authority) requires 1.5 parking spaces per unit, but quite often developers don't follow those guidelines.

Contact me at msylvia@theterriergroup.com if you'd like me to email you the proposal with architectural renderings.

South Boston Condo Sales Data

2011-05-04T11:55:00.000-04:00

This morning I did some research on the South Boston real estate market and it's performance thus far in 2011. The data below compares condo sales from January 1st to May 1st in 2011 to the same time frame in 2010. What I found interesting was that South Boston condo sales volume was down 14% during that time frame, yet the average price was up a staggering 33%! In addition, the average days a property was on the market before it sold was up 25%.

In summary, I think the local real estate market is healthy right now. The drop in volume in comparison to 2010 is to be expected as the 1st time home buyer credit was still in effect at this time last year. I don't know how to explain the sharp rise in the average sale price, but I'm sure sellers are happy!

January 1st - May 1st 2011
Condos Sold - 105
Average Price - $393,834
Avg. Days on Market - 145

January 1st - May 1st 2010
Condos Sold - 158
Average Price - $344,201
Avg. Days on Market - 116

Is this South Boston Luxury Condo Overpriced?

2011-04-19T14:37:00.015-04:00

For a change I'm going to write about a new listing that came on the market with another brokerage. This condo came on yesterday and is located at 125 B Street in South Boston. It is a beautiful condo and I like the building very much. Here's a link to the Full Listing and below are the specs:

- 2 Bed/ 2 Bath/ 1 Outdoor Parking Space

- 1055 Square Feet

- Asking Price $579,000 or $548.82/Sq. Ft.

The seller paid $530,000 for this condo in April 2008, so it sounds like he/she would prefer to break even or possibly make a little bit of money if possible. In my opinion this condo should be listed at $499,000. In comparison to what has sold in the last 6 months, and what's currently on the market with similar specs, this unit is overpriced. That's not to say that someone might pay $550,000 for it. There is a resale in the building that sold for $569,500 in May 2010. I think that's a big number and the owner will have a difficult time getting their money back in the next 1-3 years.

What do you think? I've been wrong before and was last year for the unit that sold, will I be wrong again?

Would this marketing work in Boston Real Estate?

2011-03-31T15:40:00.000-04:00

Now this is some crazy/brilliant R Rated real estate marketing from Australia. It certainly gets your attention, but I don't how this would go over if I used a video like this to market a Boston luxury condo. Buyer beware!

Mortage Rate Update

2011-03-24T13:45:00.000-04:00

Mortgage Rate Watch
The spring market is officially here and the good news is that fixed rate mortgages are still hanging in the 4’s. Weekly jobless claims were slightly better than expected, down 5K to 382,000. Weekly claims continue to decline slowly, nevertheless it is a plus for the economic outlook. Here are today’s rates… 30 YR Fixed

4.875% 0 points
5 YR ARM 3.375% 0 points
15 YR Fixed 4.25% 0 points

Did you know that you can purchase a home putting down 5% and not have to pay PMI? If you would like to discuss in further detail, please feel free to give me a call!

Mortgage Rate Update

2011-03-10T14:59:00.001-05:00

Mortage Rate Watch
Mortgage rates are likely to remain in their slow-rise pattern, either staying close to where they are now are or edging higher slowly. However, right now there are lots of bond friendly things happening, too soon to say for sure but the elements are in place to have a bond rally which could improve rates. The world unrest, European economic meltdowns, Japan contracting, Bank of England holds rates and the stock market may finally be correcting. A lot of reasons to buy bonds indeed. It’s still a very good time to lock in attractive rates.

30 YR Fixed Rate - 4.875% 0 points
5 YR ARM - 3.5% 0 points
15 YR Fixed Rate - 4.25% 0 points

South Boston West Side Condo Developments & News

2011-03-08T11:41:00.000-05:00

Today I wanted to update you on some of the current and future projects in South Boston's West side. The area has seen a tremendous amount of development in the last several years as many vacant lots and old warehouses have been developed.

361 West Broadway (Pictured Above - Dewberry Dogs on 1st Floor)
The landlord/owner of this property has added 4 stories to this property which will house 10 new apartments. There are currently 2 units listed on MLS for $2,200-$2,300. According to MLS, the apartments will be available for occupancy April 1st, 2011. The finishes look decent, but they are certainly not luxury condos.

348 West 2nd Street (Across from Trolley House between E & F Street)
This lot previously had an old warehouse which was torn down a few months ago. It now sits vacant and I believe the developer will begin construction in April 2011 when the weather warms up. The lot and approved plans for a 9 unit luxury condo building with garage parking were purchased in December 2010 for $1.3 Million. The building will be 4 stories including a 1st floor garage.

374 West Broadway (Between E & F Street next to Gentle Dentle)
This lot including approved plans and permits to build 9 condos and 1 commercial space were purchased in January 2011 for $1.2 Million, according to MLS. The developer has already begun construction and it looks like a foundation is either going in this week, or will be in soon.

240 West Broadway - Foodie's Market
Unfortunately the Foodie's Market opening has been delayed. I hear the lack of parking is still an issue with neighborhood residents. South Boston desperately needs this grocery store, but it looks like residents will continue to wait. The original opening was planned for summer 2010. That was pushed back to Fall 2011. As of today, no construction or demolition has taken place, and I'm assuming the Foodie's owner is still going through the process with the city.

Mortgage Rate Watch

2010-12-10T11:58:00.002-05:00

I'd like to welcome mortgage banker Chris Devin to The Terrier Group real estate blog. He will be providing weekly guest posts on mortgage rates. His contact info is below if you need any assistance with a refinance or purchase home loan.

Mortage Rate Watch
After seeing rates sky rocket this week, I expect the 10 YR and MBS’s to stabilize or improve over the next few days. However, any improvement won’t likely change the longer bearish outlook.

Across all time frames of closing a loan right now I would recommend locking as the markets have shown us they are extremely volatile. The phrase “rates go up like a rocket ship and fall like a parachute” remain true.

30 YR Fixed Rate 4.625% 0 points
5 YR ARM (LIBOR Index) 3.5% 0 points
15 YR Fixed Rate 4.125% 0 points

The Terrier Group has acquired Bluechip Realty Group!

2010-12-06T11:13:00.003-05:00

I'm thrilled to announce The Terrier Group has acquired Bluechip Realty Group and South Boston power agent M.T. Fox. Bluechip was one of the premier real estate brokerages in South Boston with over $60 Million sales in the last 5 years. M.T. Fox has been one of the top agents in South Boston for the last 20 years, with over $40 Million in sales in the last 5 years alone. This merge will certainly continue the growth and vision I have for the company and should position us to achieve record numbers in 2011.

Let's talk about Stocks

2010-11-04T16:55:00.000-04:00

It's been a slow week in real estate, so I decided to write a post about the stock market and a few companies I like. It doesn't hurt that the market experienced a significant rally today, and all the major indexes are sitting at their highest levels of the year. Anyways, here are my picks.....Chipotle, Apple, Coach, and Whole Foods. Now obviously this is not a very diversified portfolio. However, these businesses are all consumer driven, and with the improving economy, I think they are positioned extremely well to succeed. Not only do I believe the companies stocks will perform well, but I expect their profits to beat analysts expectations. I don't currently own any of these stocks, but I do follow their performance. All 4 stocks are up substantially year to date.

My guess is a high percentage of my readers have purchased at least one item from these companies. I know I've bought significantly more than one item from each of the above companies. I've heard many advisors say to buy what you know. Well, if you have dined at Chipotle, shopped for groceries at Whole Foods, bought a handbag at Coach, or you own an iPod or an iPhone from Apple, then you would be buying what you know by purchasing one of these stocks.

Now before I get carried away with charts, technical data, P/E ratios, etc, please remember, this is a blog, and if you are looking for real financial advise, you should contact a licensed professional. I didn't want to make this an extremely long blog post, so I just mentioned a few things about these companies. I truly admire all four of them and would invest my own money in their stocks. They all have very sound businesses and are run by extremely successful executives. I always say it starts at the top, and these companies are no exception. So if you're bored and looking for a company or stock to follow, take a peak at these. I'm not going to add any disclaimer, but please be sure to do your own due diligence. I did major in business at Boston University, but ultimately I am just a real estate broker.

New Back Bay 1 Bed Condo with Parking

2010-09-27T09:38:00.002-04:00

This beautiful Back Bay 1 bedroom just came on the market last Wednesday. The entire place has been renovated including the kitchen with a professional Jenn Air appliance package, and the bathroom with new white Carrara marble tile and Kohler Purist fixtures. This unit includes 1 deeded parking space with direct access. The building also features one of the nicest common roof decks in the city. With 3 closets, it's a great place for a couple or single person with a lot of stuff!

If you're looking for an investment condo, this place might be perfect as well. It rents for $2,250/month and with around a $400,000 purchase price, you will be making approximately $100-$200/month with a 20% down payment.

Click the virtual tour or view the entire listing here.

New South Boston Luxury Condo For Sale!

2010-09-22T15:50:00.001-04:00

I just listed this beautiful 2 bed/2 bath condo with 2 tandem garage parking spaces. It's located at 335 West 2nd Street in a 24 unit building in South Boston. The finishes are top of the line and this unit is 1372 square feet priced at $499,000. The property was built in 2005 and is 100% owner occupied.

In related news, the Seaport Square development received approval at it's meeting with the BRA yesterday evening. The development will be on 23 acres in the Seaport District and the developers plan on 22 buildings. The 3 biggest projects in the area are Seaport Square, Fan Pier, and Waterside Place which will all drastically change the Seaport District over the next 10 years.

Panera Bread is coming to the South Bay Shopping Center!

2010-08-19T15:50:00.000-04:00

Great news for Boston residents! Panera Bread is coming to the South Bay shopping center in Boston! I was at a neighborhood meeting Tuesday night and representatives from Panera Bread unveiled renderings of their future space. The new restaurant will be roughly 4,400 square feet and is expected to open in November 2010.

A representative from Edans & Avant, the company that owns South Bay, was also in attendance and announced that TJ Maxx will be opening in the old Circuit City space. They will occupy approximately 85% of the original Circuit City space, and Panera Bread will be in the remaining space. Renovations are currently under way for TJ Maxx.

In addition, Old Navy is reducing the size of their store by 8,000 square feet and iParty will be opening in that space in the next couple months. iParty will temporarily open for Halloween season, but will close after for a full renovation, and should reopen later in the year.

Add to that the approval of 2 huge developments projects in the Seaport District, Waterside Place and Seaport Square, and you can see there's a lot of development in the pipeline for South Boston!

If you have $120 Million, Park Lane in Boston's Seaport District is For Sale

2010-07-30T16:55:00.001-04:00

The Park Lane Seaport apartment complex just hit the market and should fetch a big number, probably in the $120-$140 Million range. Park Lane has 465 apartments and was built in 2006. According to my sources at Park Lane, they will be at 99.7% occupancy come September 1, 2010 and are close to that number now. They have many different apartment sizes, but the price range for a two bedroom and two bath apartment is $2,600-$3,500/Month. Parking is additional.

Until recently, the Seaport District has been pretty quiet, but is really turning into a lively neighborhood and is probably the hottest area in Boston. Unfortunately there are only a couple residential condo buildings in FP3 on Congress Street and the Channel Center. In the next several years there will be many developments including retail, commercial, condos, apartments, shopping, restaurants, etc. My estimate is that 5-10 years from now the Seaport District will be fully developed and command prices of $700/sq. ft. and up for a residential condo.

Click here to read the full story

Mass. Single Family & Condo Sales Highest since 2006

2010-07-27T09:20:00.000-04:00

Not surprisingly, single family home sales and condominium sales in June 2010 jumped to their highest levels since 2006. The $8,000 first time home buyer credit and the $6,500 trade up tax credit certainly fueled the market. Unfortunately I think next months data will show a substantial drop in sales. The market has been relatively slow since the April 30th deadline expired.

From the Banker & Tradesman:

Single-family home sales increased 28 percent in June, the fifth straight month of double-digit percentage increases. A total of 5,726 single-family homes sold in June, up from 4,457 a year earlier. Sales volume hasn't come this close to 6,000 since June 2006, when there were 6,152 sales.

Bay State condos posted strong increases in June, jumping 31 percent from a year earlier. A total of 2,511 condos sold in June, up from 1,915 a year earlier. Condo sales haven't exceeded 2,000 since August 2009. Year-to-date condo sales also surged 30 percent to 9,735, from 7,466 a year earlier.

Here's a link to the Full Story

Posh Doggy Hotel to open in the South End

2010-07-09T12:08:00.001-04:00

Interesting news today. A posh new doggy hotel will be opening in the South End this month. Sounds a little strange to me, but K9 owners certainly love their dogs, so I wouldn't be surprised if it does well. The South End has many trendy businesses, so this should fit right in. It is opening on Malden Street which is between Albany Street and Harrison Ave, right near the restaurant Gaslight. So what do you think? Will any of my readers bring their pooch's to the hotel? See below for full story.

Boston's South End, a hot spot for new restaurants and shops, will now accommodate classy canines.

The Urban Hound Daycare and Hotel, which bills itself as Boston's first luxury hotel for dogs, has leased 8,500 square feet at 129 Malden St. in Boston.

The Urban Hound plans to open this month. The hotel will use the two-story building for its operations, and plans to have a hospital-grade air filtration system, high-tech drainage and flushing system, K-9 grass, an Urban Hound training classroom and luxury sleep suites.

Peter Bean, vice president of GVA Thompson Hennessey & Partners, represented the landlord, 129 Malden Street Trust. The tenant was represented by Bonny Doorakian of NAI Hunneman Commercial Co.

Our New Office Grand Opening Party is Tonight!

2010-06-15T14:34:00.000-04:00

The Terrier Group grand opening party for our new office at 366 West Broadway is tonight June 15th from 6PM-10PM. Many of you we've already emailed, but if you are just hearing about it now, feel free to stop by for cocktails and heavy hors d'oeuvres. We have a fantastic raffle that features gift certificates from Amrheins, Shenannigans, Nurture Day Spa & Salon, The Playwright, Cranberry Cafe, South Boston Running Emporium, Java House Coffee, Amsterdam Cafe, and a floral arrangement from Stapleton Flowers. Hope to see you tonight!

366 West Broadway (Corner of West Broadway & E Street)
South Boston, MA 02127
617-269-3900

Foodies is coming to South Boston!

2010-05-10T11:38:00.009-04:00

Great news for South Boston owners, renters, and landlords. We are finally getting a decent grocery store! Foodies will be opening at the corner of West Broadway and C Street in Spring 2011. Construction will begin this summer. Foodies currently has 2 locations, one in the South End and the other in Duxbury. As I've said before, the hottest area in South Boston is the West side that borders the Seaport District, and this should only help that.

In addition, the Dorchester Avenue Restoration is underway and includes a gorgeous renovation of Andrew Square. I'm on the Andrew Square Civic Association and I've seen the plans. The new features will really transform the area with new light fixtures, turn signals, solar powered trash receptacles, stamped pavement, larger sidewalks, and just make it much easier for pedestrians. The entire restoration should be completed by Summer 2011

Also in South Boston, the Old Colony public housing development is getting a face lift with $22 million in stimulus funds.

Boston Herald story on South Boston

My Name is Tom Brady

2010-04-26T15:55:00.016-04:00

My name is Tom Brady. I'm the quarterback of the New England Patriots, one of the best organizations in football. I signed a $60 million deal in 2005, so I make huge cake. My wife is supermodel Gisele Bündchen. You might know her. Some people say she's the hottest women on the planet. I think she's pretty cute.

My wife and I bought a vacant lot in Los Angeles for $11.75 million. Here's a pic of the 22,000 square foot house we are building. What do you think? A little small, no?

I sometimes get depressed that we didn't win the Super Bowl last year, but then I look at my bank statement and am amazed at how many zero's are in $100 million. My life doesn't suck.

For more, click Tom & Gisele

JUST LISTED - 2 South Boston Condos, Brand New Construction $419,000-$449,000

2010-04-09T11:19:00.009-04:00

I just listed these 2 gorgeous South Boston condos. The building is new construction and will have high end finishes including Sub-Zero refrigerators, Wolf appliances, and surround sound throughout with a networked iPod docking station.

Unit #1 is on the second floor and has 2 beds/2 baths, 805 square feet, 10 ft ceilings, storage, 1 garage parking space, a private deck and yard, and is $399,000.

Unit #2 is on the third floor and has 2 beds/2 baths, 937 square feet, 10 ft ceilings, storage, 1 garage parking space, a private roof deck with amazing city views, and is $449,000.

The property is located at 342 E Street, which is between West 3rd and West Broadway, just a block away from our new office. This is one of the fastest developing areas in all of Boston and is walking distance to the Seaport District. If buyers sign a Purchase & Sale Agreements early enough, they will not only qualify for the tax credit, but they'll be able to customize their unit and finishes. The project will be completed in June 2010.

If you are interested in viewing these condos, contact me for an appointment. To view these listings, please visit TheTerrierGroup.com

What's Happening in Real Estate

2010-03-30T11:16:00.008-04:00

Well, not much. I expect this week to be slow with 3 straight days of rain, the NCAA Final Four is this weekend, Passover, and Easter this Sunday. For 1st time buyers and trade up buyers looking to qualify for the tax credit, the deadline to sign a Purchase & Sale Agreement is April 30, 2010. Buyers need to close on the purchase by June 30, 2010. That gives them roughly 4 weeks to find and make an offer on a property. This time around, I don't think the tax credit will be extended.

If you are obtaining an FHA loan for your purchase, the upfront FHA mortgage insurance premium will increase from 1.5% to 2.25% on April 5th. This is the percentage that's tacked onto the loan amount if a buyer obtains an FHA loan. What's nice about these loans is all single families qualify for them, no income restrictions, and you only have to put 3.5% down.

Going forward, I think next week should start a busy month in real estate. I expect April 5th to April 30th to be very busy with buyers scrambling to find homes. I certainly wouldn't advise buyers to rush into purchasing a home, but it is an $8,000 credit, and with mortgage rates still near historical lows, it seems many people are doing just that. After the tax credit expires, we'll just have to wait and see what happens with the real estate market.

HGTV Looking for 1st Time Home Buyers in Boston!

2010-03-24T10:53:00.004-04:00

I received an email yesterday from HGTV in regards to them casting for Season 8 of My First Place in Boston. They are looking for first time homebuyers in the Boston area who might be interested in sharing their buying experience with HGTV and the rest of the World! They are looking for a homebuyers who are:

*Buying their First place
*Will be closing on a Purchase in 2010
*Buying within a 30-60 miles from Boston

If any of you are interested, let me know. I'll be speaking with her today. The show airs Thursday's at 8PM.

Mass. Home & Condo Prices Jump in January

2010-02-26T14:07:00.006-05:00

We are certainly not out of the woods yet, but some good news for the housing market this week. Year over year numbers for both sales volume and prices increased for both single family home's and condo's. Below is the full data:

The median price for single-family homes sold in January rose 9.6 percent to $285,000 from $260,000. It was the second consecutive month that median prices for single-family homes increased by about 10 percent when compared to the prior year. Sales of single-family homes jumped 11.8 percent to 2,153 from 1,926 in January 2009, posting the fourth consecutive month of double-digit percentage increases in single-family home sales.

Condominium sales and median prices also surged last month. The median condo price jumped 16.7 percent to $245,000 from $209,900 in January 2009. It was the third straight month that median condo prices increased year-over-year. Condo sales soared 25.3 percent to 1,011 in January from 807 a year earlier. Condo sales have climbed by more than 10 percent year-over-year for four straight months.

Approved 245 Unit Condo Project in South Boston Headed to Auction Tomorrow

2010-02-25T17:55:00.005-05:00

A huge condo development in South Boston is set to be auctioned tomorrow. The site is an entire block and is bordered by C & D Streets and West 1st & West 2nd Streets. The development was going to be called Emerald Court and the BRA approved plans were for 245 condos, 3600 sq. ft. of retail space and parking. Not surprising in this tough economy, the developer has had a difficult time financing the project.

The parcel is located in one of the hottest areas in South Boston. It's walking distance to the Seaport District, and there are 2 new developments just a block away, the Spice lofts, and the Signal Building. It's certainly disappointing to hear plans will not be moving forward, but hopefully a new developer will purchase the site and build in the next 6-18 Months.

Here's the full story from the Banker & Tradesman

2009 Year End Boston Condo Sales Numbers

2010-02-03T16:39:00.006-05:00

One of my readers sent this link to Boston.com with year end sales data for Boston condos. This is great information not only for agents/brokers, but for home buyers. It's also an easy way to compare neighborhoods in Boston and see what you can get for the money in each area.

Link to 2009 Boston Condo Sales Data

What if mortgage interest rates rise to 6% in a year?

2009-12-14T09:21:00.007-05:00

With 30 year fixed rate mortgages hovering around 4.8% near historical lows, it got me thinking this weekend. More than likely, a year from now, mortgage interest rates will be higher than they are today. Many buyers are waiting to see if real estate prices have further to fall. In my comparison, I'll show you why I think the next several months are the best time to buy.

For an easier comparison, let's say the current 30 year fixed mortgage is 5%. Let's say you purchase an average home for $400,000 with 20% down. Your loan amount would be $320,000, and your monthly principal & interest payment would be $1,717.83. If you decide to wait a year to purchase and rates were to rise to 6%, that same $320,000 loan would cost you $1,918.56. That's a $200.73 increase, or 11.7%. That's a huge amount!

Now interest rates may only rise a half a percent in the next year, and then the increase would be less, but it's still a substantial difference in your monthly payment. If rates only rise to 5.5%, then that same mortgage would cost you $1816.92/month. That's still almost a $100 increase. On the other hand, if you as a buyer successfully negotiate $5,000 off the purchase price, that amounts to a savings of only $22.71/month.

In addition to the above data, we have the $8,000 first time buyer credit which will expire at the end of April 2010. Low interest rates, depressed real estate prices, and an $8,000 first time home buyer credit all combine to make this an ideal time to invest in real estate.

The Terrier Group is moving and expanding!

2009-12-11T13:05:00.014-05:00

I am proud to announce that The Terrier Group has bought a new office at 366 West Broadway in South Boston and will be relocating January, 1 2010. The new office is located at the corner of West Broadway and E Street. It's a great corner retail space that I actually blogged about last year when it came available for sale or lease.

Here's an excerpt from the story in yesterdays Banker & Tradesman:

The Terrier Group, a Boston residential real estate company, has relocated to 366 West Broadway, Unit C-2, in South Boston. Owner Michael Sylvia purchased the 1,024-square-foot commercial condo for an undisclosed price.

If you are a new or experienced agent, we are hiring, so feel free to contact me. Stay tuned for details on our grand opening party in January 2010.

$8,000 1st Time Home Buyer Credit Extended and Expanded!

2009-11-09T10:50:00.004-05:00

Great news for the housing market. This will not only help 1st time buyers that were rushing to beat the November 30th deadline, but it will also help trade up buyers. The bill was signed by President Obama on Friday so it is a done deal. See details below:

In addition to extending the $8,000 first-time homebuyer tax credit, the new law also allows a $6,500 credit for repeat or move-up homebuyers who have lived in their primary residence for five years or more. The credits are available to buyers who sign purchase agreements on a new or existing primary residence between December 1, 2009, and April 30, 2010. Buyers have until June 30 to close on their new homes.

There is an $800,000 price max to qualify for the tax credit. The income limits for buyers was also raised and are now $125,000 per year for individuals and $225,000 for married couples. Under the old program, the limits were $75,000 and $150,000 respectively. The first-time homebuyer credit is also available to those who have not owned a home in the previous three years. The credit does not have to be repaid unless the home is sold or ceases to be the primary residence within three years.

For more information or any questions, visit the Federal Housing Tax Credit site.

New Listing! 2 Beds, 2 Baths, Private Roof Deck, 1 Deeded Parking Space - $449,000

2009-10-19T15:01:00.003-04:00

I just listed this 2 bed plus, 2 bath condo with a private roof deck and 1 deeded parking space. It's located on West Broadway in South Boston between E & F Streets.

The unit features hardwood floors, central air, granite counters, stainless steel appliances, Master Suite with a jacuzzi tub and a walk in closet with California Closets, washer/dryer in unit, gas fireplace, a nice back deck, and a gorgeous private roof deck. It's 1165 square feet and has a nice open living and kitchen area.

It is currently rented but the tenant is relocating to Richmond, Virginia. If you were to purchase this condo with 20% down at current mortgage rates, your monthly payment including principal, interest, taxes, and condo fees would be approximately $2400/month. Not a bad deal considering it's rented for $2500.

Here's a link to a Virtual Tour: 381 West Broadway, Unit 7

Louis Boston moving to Seaport District/Fan Pier

2009-10-15T12:19:00.007-04:00

Is this a good move? High end clothing boutique Louis Boston will be moving to the Seaport District/Fan Pier in Spring 2010. It's current location is between Newbury Street and Boylston Street. They have been in that space since 1988, so this is a big move for them.

Will they be successful in Fan Pier? I don't know, but my guess is they'll be saving a substantial amount in rent. Here's a small quote from today's Banker & Tradesman.

According to Mayor Thomas M. Menino, Louis Boston will operate out of a modular trailer setup before moving into 20,000 square feet of permanent space.

$8,000 First Time Buyer Credit - Extension Likely

2009-10-08T15:40:00.005-04:00

I read different articles on this every day, with the majority of them being in support of extending the $8,000 first time home buyer credit from November 30, 2009 to sometime in 2010. What do you think? Is this just a cash for clunker deal but for homes? Here's a little blurb from a New York Times story yesterday.

Extending the First-Time Home Buyer Tax Credit, due to expire at the end of November, is high on the Democratic Congressional to-do list, legislative aides said.

After Wednesday’s meeting with President Obama and House Speaker Nancy Pelosi (D-Calif.), Senate Majority Leader Harry Reid (D-Nev.) released a statement that the government should “continue efforts to strengthen the housing market by extending the home buyer tax credit.”

Mark Zandi, chief economist at Moody’s Economy.com, who is a consultant to Democrats in the administration and Congress, is advocating extending the credit through August and making it available to all home buyers. He said failure to extend the credit just as more foreclosures enter the market will push housing prices down.

Auction at The Bryant Back Bay - October 17, 2009

2009-10-01T16:30:00.012-04:00

I stopped by a broker luncheon today the Bryant Back Bay on Columbus Ave. The developer is selling 10 units through an auction on October 17th. Minimum bids start at $1,075,000. All the units are 3 bedrooms. According to my research, there are dozens of other condos available in the 50 unit development, as public records only show 5 units sold.

After walking through 9 of the 10 units up for auction, I have to say, I wasn't that impressed. The finishes are beautiful and comparable to any of the other luxury condo buildings in Boston. However, I didn't see anything different or special to justify the pricing. The interior features included direct elevator access, Viking appliances, granite counters, chocolate brown cabinets and floors, and white cabinets in the bathrooms with marble tile and Kohler fixtures. I found the guest bedrooms small, the views so so, and the rear patios/decks to be right on top of the bordering property.

For the amenities, location, and finishes, it's worth considering if you can snag one of the 2000+ sq. ft. units for $600/sq. ft. If you need me to be available to represent you on October 17th, I would be more than happy to make time!

New Listing! 2 Bed, 2 Bath, 2 Garage Parking Spaces $499,000

2009-09-11T09:36:00.008-04:00

I just listed this luxury 2 bed, 2 bath condo. It's in a gorgeous building in South Boston called the Trolley House. There are 24 units in the building and it is 100% owner occupant.

The unit features maple hardwood floors, C/A, granite counters, high end Jenn-Air and Bosch appliances, jacuzzi tub, washer/dryer in unit, extra storage, and best of all, 2 heated garage parking spaces! It is 1372 square feet and has huge open living and kitchen area, which is great for entertaining. Priced at just $363/sq. ft., it is a tremendous value for the location as the west side of South Boston was recently named the hottest neighborhood in Boston by the Improper Bostonian!

Here's a link to a Virtual Tour: 335 West Second Street, Unit 16

For more information or to schedule a schedule, please contact me at 617-212-1900.

What's the difference between an Agent, Salesperson, Realtor®, and a Broker?

2009-08-06T14:42:00.018-04:00

I deal with many clients who are unfamiliar with different aspects of the home buying process including the terms that go with it. Sometimes people say my realtor, or my agent, or whatever. In today's blog, I am going to explain the difference between all of these titles.

Agent/Salesperson
The terms agent and salesperson are interchangeable. To become a licensed salesperson in Massachusetts, you have to be 18 years of age or older, and you must complete a 24 hour classroom course prior to taking the state exam. If you pass that exam, you become a licensed salesperson in Massachusetts. As a salesperson, to practice real estate and be paid commissions, you must work under a real estate broker. There is no actual work experience required to become a salesperson.

Realtor®
To obtain the title "Realtor®", you must be a member of the National Association of Realtors®. The term Realtor® is a registered mark used to identify it's members who pledge to a strict code of ethics. Technically speaking, it may be incorrect to call someone your Realtor® if they are only a licensed salesperson. Agents and brokers can become Realtors®.

Broker
Aspiring brokers must first be a licensed salesperson and work under a broker for at least 1 year. Once you have done this, you can apply to become a broker and potentially open your own office. To obtain your brokers license, you must take an additional 30 hour classroom course and pass the states broker exam. Massachusetts also requires all licensed brokers to file a $5,000 bond with The Board of Registration of Real Estate Brokers & Salespeople which costs $50. If you successfully pass the exam, you become a licensed broker in the state of Massachusetts. As a broker, you can work for yourself, or you can continue to work for someone else.

What's Selling in Boston?

2009-08-05T16:58:00.009-04:00

Today I decided to do some research and see what price ranges are really selling in Boston. My guess is it's properties in the $300,000-$400,000, but I'll let the data do the talking. According to MLS, 1156 condos have sold in Boston in the last 3 months. For MLS purposes, "Boston" includes Allston, Back Bay, Beacon Hill, Brighton, Charlestown, Chinatown, Dorchester, East Boston, Financial District, Hyde Park, Jamaica Plain, Leather District, Midtown, North End, Seaport District, South End, South Boston, The Fenway, Theatre District, and the Waterfront.

Now for the data. If you click "What's Selling in Boston", a PDF should pop up with the full list of sales. Not surprisingly, the most active price point was $300,000-$400,000 which had 306 condo sales. I believe the $8,000 first time home buyer credit has helped this segment of the market. Once you get above a $500,000 purchase price, most individuals or couples will not qualify for the credit as they probably earn more than is allowed under the program. For single taxpayers the cap is $75,000, and $150,000 for married couples filing a jointly. Certainly not ground breaking information, but interesting to see.

As far as the local real estate market, year over year volume and prices are down. I expect to see an increase in activity in September, October, and November as the summer ends and people try to beat the December 1st deadline for the first time home buyer credit. As far as the luxury market, I think we are looking into at least 2010 to see a recovery.

Mid-Year Condo Sales Report

2009-07-01T08:39:00.026-04:00

Below is a condo report comparing sales from January 1, 2009-July 1, 2009 vs. January 1, 2008-July 1, 2008. An interesting note is that the South End and South Boston have clearly been the most active markets in 2009 with 170 and 187 condos sold respectively. Dorchester, not shown here, was the only other neighborhood with over 150 condo sales. In most areas, prices and volume are down yet average prices in Back Bay are higher in 2009.

Back Bay	2008	2009
# of Condos Sold	205	104
Avg. Price	$1,048,691	$1,161,415
Avg. Price/Sq. Ft	$909	$923
Beacon Hill
# of Condos Sold	93	64
Avg. Price	$716,753	$710,152
Avg. Price/Sq. Ft	$797	$923
East Boston
# of Condos Sold	64	28
Avg. Price	$248,296	$226,810
Avg. Price/Sq. Ft	$239	$237
North End
# of Condos Sold	32	25
Avg. Price	$443,254	$449,956
Avg. Price/Sq. Ft	$607	$566
Seaport District
# of Condos Sold	20	12
Avg. Price	$623,318	$483,590
Avg. Price/Sq. Ft	$479	$459
South Boston
# of Condos Sold	203	187
Avg. Price	$396,287	$368,956
Avg. Price/Sq. Ft	$383	$371
South End
# of Condos Sold	300	170
Avg. Price	$671,492	$613,644
Avg. Price/Sq. Ft	$617	$602
The Fenway
# of Condos Sold	80	43
Avg. Price	$373,817	$317,834
Avg. Price/Sq. Ft	???	$513

Just Listed! South Boston 3 Family Investment Property

2009-06-23T13:33:00.006-04:00

I just listed this 3 family that actually has 4 units. If you are in the market for a small investment property, this is a good building. The monthly rental income is $4,300. Because it's an investment property, banks will require you put down 20% or $97,000 for your mortgage. The monthly expenses including taxes, insurance, common utilities, water & sewer, vacancy loss, and your mortgage will come to about $3,500.

For those of you who can do math, that's $4,300 (income) minus $3,500(expenses) which equals $800/month in positive cash flow, or $9,600/year. That's almost a 10% return on your initial $97,000 investment!

If you're a wanna be real estate mogul, this may be a good oppurtunity to jump in the game. Call or email me with questions or to set up a showing.

Apple sells 1 million 3G S iPhones and Gas prices down after 54 day rally

2009-06-22T11:12:00.008-04:00

You may ask, how does this relate to real estate? Well, it really doesn't, but I found it interesting seeing that "A", I drive a car, and "B", I stopped into the Apple store twice this weekend and am considering a switch to the iPhone. Apple came out and said they sold over 1 million new 3G S iPhones that began selling on Friday. The highest Wall Street estimates had them selling 750,000, so once again, Apple far exceeded expectations.

As many of you have probably noticed at the pump, gas prices have been on tear the past couple months, as oil rose to over $72/barrel. Fortunately prices pulled back today and oil is trading around $67/barrel. The price of a gallon of gas was on a 54 day rally that finally ended.

I've added a poll to the blog to see what phones my readers are using. Please go to the Terrier Blog site and take the survey.

Back Bay parking space sets a new record selling for $300,000!

2009-06-11T13:19:00.011-04:00

A new record was set yesterday when a buyer purchased a parking space located behind 48 Commonwealth Ave for $300,000. Yes, that's with 5 zeros! This topped the previous record set in 2006 when a parking space sold for $250,000 behind 31-33 Commonwealth Ave.

To put this into perspective, if the buyer financed the purchase at current rates and put 20% down, the monthly mortgage payment would be $1362.69! I'm pretty sure they paid cash, but it's still seems crazy. I guess $20 for valet parking isn't such a bad deal.

Link to Boston Herald Story

The new Terrier Group Website is here!

2009-05-20T10:39:00.004-04:00

Finally! After a 2-3 month design, the new The Terrier Group website has been launched! The site has many new tools for buyers and renters. Those features include a Map Search, Market Update, What's Your Home Worth, and My Home Hunter which allows you to set up a custom account, search current inventory in real time, and receive emails with property updates.

The neighborhood pages are very useful for people relocating to Boston or those of you unfamiliar with some areas in Boston. Of course, there are links to this blog, so if the weekly emails aren't satisfying your craving for Boston real estate info, view the blog archive.

Please check it out and give me some feedback. The website is located at www.ttgre.com or www.theterriergroup.com.

Price of Stamp Increases 2 cents to 44 cents

2009-05-15T12:12:00.004-04:00

For those of you who were unaware, including me, the price of a first-class stamp increased on May 11th, 2009 to 44 cents from 42 cents. I don't know about you, but it seems like they increase the price every 3-6 months! It's pretty frustrating when I pull out my book of 42 cent stamps and realize I now have to go purchase a book of 1 cent stamps. Does anyone else find this annoying?

I would rather them increase the price 5 cents every couple years. Even 50 cents seems inexpensive to me for the convenience the Postal Service offers. One fact that supports my point above.....the US Postal Service lost $2.8 Billion last year!

Is it time to refinance?

2009-05-14T16:25:00.007-04:00

With rates near historic lows at or below 5%, many of you may be wondering if now is the time to refi your mortgage. My opinion is yes, if your mortgage is less than or equal to 80% of the value of your home and your current rate is above 6%. Simply put, if your house is worth $500,000 and you owe $400,000, you are a good candidate. Don't know what your home is currently worth? Call or email me for a free analysis of your property.

Below are some extremely helpful questions and answers from James Linnane, a senior VP at Wells Fargo Mortgage in Chicago.

How should you approach refinancing?

Number one, make sure you're dealing with a reputable lender. Number two, don't just ask what the rate is; ask what are the rate options and what total closing costs will be. One of the big mistakes some borrowers make is they get enamored with an interest rate, only to find out at the closing table they didn't read the fine print.

What percentage point drop justifies refinancing?

It depends on a number of variables, including how long you're going to be in your residence, what state you are in. I would encourage everybody who has an interest rate of more than a half percent higher than the current market to go down the road of investigating whether it's in their interest to refinance or not. . . . If your interest rate is going to be lower and your payment is lower, it's pretty easy to calculate the break-even point.

Does a "no-cost refinance" really exist?

I don't care what anybody advertises or says. There are upfront costs. If an appraisal costs $300, that is a cost that's going to be incurred in the process of refinancing, whether it's paid by the borrower writing a check for $300 or whether it's embedded in the interest rate.

How does a borrower avoid points?

If my sister came to me and asked me that question, my response would be "Why do you want to avoid paying points?" It may be in your interest to pay points. Basically, points are a way to buy down your interest rate.

Has your sister come to you for loan advice?

Yes. And not only did I advise my sister to pay a point in her example, but I'm in the process of refinancing my own loan and I'm paying points.

When should someone absolutely not refinance?

If you are . . . listing your house for sale.

What can you rent for $2500

2009-05-05T14:06:00.042-04:00

Heading into our busy rental season, I figured it was a good opportunity to post something about the rental market. Typically you see articles or postings on what you can buy for a certain amount. Here I am going show you examples of what you can rent for $2500 in and around Boston. It's interesting to see how in different neighborhoods you may get a 1 bed for $2500, and in others that same $2500 with get you a gorgeous 3 bedroom. All photos and descriptions provided via MLS. The Italic gray font is text that is cut and pasted from the listing. My comments are in normal black font.

Back Bay - 255 Beacon Street, #42: 1 bedroom

Fantastic over sized 4th flr corner 1 bedroom in the heart of the Back Bay @ Dartmouth St, steps to the Charles River footbridge. Perfect layout offers entry foyer, lg living rm w/ FP & bay window river view, & totally renovated eat-in kit w/ SS appliances & glass-fronted cabinets. Hdwd flrs, hi-ceilings, lots of windows & light. Central air!

Not bad for a 796 sq. ft. 1 bed in a great location in Back Bay. Certainly not a value, but you are obviously paying for the location.

North End - 464 Hanover Street, #15: 2 Bedroom

Heart of the North End! 2BD/1BA,HW floors, carpet in bedrooms, direct water views, large common roof deck, gas heat, central air, recessed lighting, W/D on each floor, common storage.

The North End is up in the top 5 most expensive Boston neighborhoods, so a 2 bed for $2500 is pretty reasonable.

South Boston - 339 Dorchester Street, #2: 3 Bedroom

New construction condo quality 3 bedroom, 2 bath with hardwood floors, stainless/granite kitchen, C/A, in unit laundry and deck. Pet friendly! Tenant to pay full fee. Available April 1st. 5 month corrective lease from April-August with option to renew for 12 month lease.

Gorgeous 3 bed that was built from the ground up last year. If this unit were in Back Bay, it would be $5,000/month or more!

Jamaica Plain - 160 Hyde Park Ave, #3: 5 Bedroom

Spacious & vibrant renovated 4-5 bedroom JP condo. Short walk to Forest Hills T stop. Bi-level unit features hardwood floors, 2 full baths, sun filled rear deck, full driveway parking for 3 cars, mahogany pool table, washer & dryer and more.

JP is a short commute to Boston and a very affordable option for many young professionals who can't afford to pay downtown prices.

Overall, the residential rental market in Boston is in fairly good condition. I expect 3, 4, and 5 bedrooms to be in higher demand this August and September as people look to reduce their housing expenses. Many people in 1 or 2 bedrooms may move home with their parents to save money or into a larger apartment to reduce their monthly rent. Either way, if you are renewing your lease, I don't expect landlords to be increasing rents this year.

Mass. Q1 Home Prices Fall 18%!

2009-04-29T08:12:00.006-04:00

From the Banker & Tradesman

Single-family median home prices in Massachusetts fell 18.2 percent during the first quarter compared to the same period in 2008, marking the steepest percentage decline for any quarter since The Warren Group began tracking prices in 1987.

The median price for homes sold during the first three months of 2009 fell to $253,500 from $310,000 in the first quarter of 2008. The March median home price was $255,000, or 16.1 percent lower than the $304,000 median price recorded in March 2008. Monthly median home prices have been falling by double-digit percentages year-over-year since last September.

Median condominium prices in Massachusetts in the first quarter also posted the sharpest decline for any quarter since The Warren Group started recording price changes 22 years ago. The median condo price fell 16.9 percent in the first quarter to $220,100 from $264,900 during the same months in 2008. The March median condo price was down 15.2 percent to $229,000 from $270,000 in March 2008.

A total of 2,802 condos were sold from January through March, nearly 27 percent lower than the 3,832 condo sales transactions recorded during the same months in 2008. Condo sales in March totaled 1,135, a 22.3 percent decrease from 1,460 a year earlier. Condo sales have fallen by 20 percent or more for 12 out of the last 15 months.

In the neighborhoods of Boston, volume is certainly down, but prices in many locations have actually increased. Back Bay is one example of a neighborhood bucking the trend. MLS statistics show:

Back Bay Median Price

1/1/09-4/29/09: $840,000

1/1/08-4/29/08: $675,000

This is also happening in several other Boston areas, so don't expect to get 10-20% off asking price, especially if the property is priced accordingly and it just came on the market.

Life After Hockey.....The Terrier Group

2009-04-09T15:49:00.013-04:00

Well this is post is unrelated to real estate, but I figured I'd put it out there. For those of you who don't know, I chose to name my company The Terrier Group because I am a graduate of Boston University. Their mascot is a Terrier, so there you go.

Boston University is well known for a having a storied hockey program. For the 1st time since 1997, BU takes the ice tonight in the NCAA Frozen Four in Washington, D.C. The Terriers have a great chance of winning their 5th National Championship this weekend.

Below is a story from the BU website about the 1995 NCAA Championship team which was the last BU squad to win the National Championships. I was fortunate enough to play on that team, so I am quoted a few times. I want to wish the Terriers luck tonight and hope you all will be watching!

For those of you who didn't enjoy this plug, I'm sorry. I will be back with real estate postings soon, unless the Terriers win! Go BU!

Link to BU Story

Mass. Foreclosures Fall in February

2009-03-31T09:10:00.010-04:00

From Banker & Tradesman

Fewer Bay State properties were foreclosed on in February compared to the prior month and a year earlier, according to a new report from The Warren Group, publisher of Banker & Tradesman. But the number of foreclosures initiated by lenders has climbed for four consecutive months.

A total of 823 foreclosure deeds were recorded in February, a 4.3 percent decline from 860 foreclosure deeds in February 2008. February foreclosure deeds were also 16 percent lower than January when there were 980 deeds recorded. Still, foreclosure deeds jumped 8.6 percent during the first two months of 2009 to 1,803 from 1,660 a year earlier.

Lenders filed 2,295 petitions to foreclose in February, a 17 percent jump from 1,960 petitions in January. But foreclosure petitions fell 19.1 percent from the same month in 2008 when 2,838 petitions were filed. Foreclosure petitions are the first step in the foreclosure process. So far this year, 4,255 foreclosure petitions have been filed - a 29.7 percent decline from 6,050 foreclosure petitions during the same months in 2008. The Warren Group tracked 917 auction announcements in February, down 27 percent from 1,256 in February 2008 and 30.2 percent from 1,313 in January.

How's your real estate agent/broker doing?

2009-03-30T09:40:00.009-04:00

Hopefully I am your real estate broker! A client emailed me this picture and I thought it was pretty funny. I have spoken with several friends and colleagues in the business and like the rest of the economy, real estate has been slow. We certainly didn't start the first quarter of 2009 well, but the last 3-4 weeks have been extremely busy. The market typically picks up this time as we come into the spring market. The $8,000 first time home buyer credit helps also.

Yesterday I actually had a bidding war for a single family home in Quincy. My client ended up paying a few thousand dollars over asking price, but it was a great house that was priced below market value.

Open House Report

2009-03-09T09:16:00.006-04:00

I was out with a client yesterday to view open houses in South Boston. Fortunately this pic was not from any of the condos we visited. Some places were busy with several groups of people in the open house at the same time, while others were slow. I spoke to several agents that conducted open houses in other Boston neighborhoods, and they confirmed this. The weather was beautiful, but that can be a positive or negative thing. I do believe there is some pent up demand and that should bode well for the Boston housing market.

My client and I were browsing 2 bedrooms priced from $300,000-$400,000. I noticed prices have come down a bit and you can certainly get a very nice 2 bedroom in South Boston for $350,000. If you desire certain amenities like parking or a private roof deck, it will be a little more difficult at that price.

I don't know what to expect from this spring market, but what I saw yesterday confirmed how I viewed the local housing market. There are plenty of buyers out there, they are just looking for a specific product, price and location.

Manny Ramirez inks $45 Million Deal AND lists his Ritz-Carlton Condo For Sale.....Again

2009-03-05T20:36:00.013-05:00

My good friend Jason Weissman and partner Will Catlin had this condo listed for 364 days starting November 28, 2005 and finally expiring on January 1, 2007. It was listed at $6.9 Million and there were no price reductions. They received some great PR and possibly attained a few luxury buyer clients, but unfortunately they were unsuccessful selling the Ritz Penthouse.

Fast forward to the present day. As I was reading the Banker & Tradesman yesterday, I came across some interesting news. Manny decided to list that same condo for $8.5 million, but with another agency! Here's what I'm thinking. It's been over 2 years since the property was taken off the market. The US is currently facing the worst housing crisis in my short lifetime. It didn't sell at $6.9 million, yet Manny thinks his place has appreciated $1.6 million or over 23% in those 2 years, . Am I crazy? How does that work? What do you think?

Maybe I'm wrong. Maybe this place will sell for $7 or $8 million. Maybe some sucker will come around and shell out $1900/sq. ft. for the 4500 sq. ft. Penthouse, but I doubt it.

Remember this. Whether it's the biggest piece of junk or the nicest house on the block, if it's priced accordingly, everything will sell!

Link to Banker & Tradesman

New 15 Unit South Boston Condo Project Approved

2009-02-23T09:30:00.014-05:00

From this weekend's Boston Business Journal:

The Boston Redevelopment Authority approved a 15-unit residential project located at 333-339 West Broadway in South Boston.

The five-story project, being developed by Paul Adamson and Mark Cummins of South Boston, will contain 15 condos of which two will be affordable. The units will be one and two bedrooms and all will feature exterior decks. There will also be ground-floor commercial space and below-grad parking.

This property is located across the street from Shenannigan's in South Boston. These Irish developers own Shenannigan's, the parking lot and apartment building next door, the Clock Tavern a couple doors down, as well as several other buildings in the area.

Their most recent project was four townhouse style condos at 257 West 3rd Street, pictured to the left. These unique condos sold quickly in May 2008 from $599,000-$635,000. The finishes were high end and all four condos had roof decks, 3 levels of living space, and 2 garage parking spaces.

The new project, which I assume will be completed in early 2010, won't have to look far for comps. There is a new 9 unit condo building located at 345 West Broadway that was just completed by another developer. Those condos are not selling well as only one unit is under agreement. The average asking price is around $400/sq. ft. Prices range from a 1006 sq. ft. with 2 beds/2 baths and 1 parking space for $449,000, to a Penthouse which is 2360 sq. ft. with 3 beds/2.5 baths and 2 parking spaces for $899,000. I expect to see some price drops in the coming weeks.

If you are interested in either of these developments or any condos in Boston, shoot me an email and I can get you more details or answer any questions.

American Idol and Real Estate

2009-02-18T08:56:00.011-05:00

I don't really know what the hell this post is all about, but I watch American Idol (yeah, I'm a loser), and I work in real estate. The only real story I found that could tie the two together was former American Idol winner Fantasia Barrino barely escaping foreclosure in January 2009. Interesting? Something tells me her parents were not financial planners. I don't know how much money she's made, but I think it's more than I've made. She purchased the home in N.C. for $1.3 Million and the auction was scheduled for January 12, 2009. Luckily she was able to negotiate a deal with her lender and did not lose the home.

Now back to the important stuff. Pretty disappointing performances last night, although I liked Danny Gokey who sang last. I'll be sure to tune in tonight for the results and I'll try to dig up some dirt on previous Idol contestants and their homes.

Lukewarm Response to First-Time Home Buyer $8,000 Credit

2009-02-17T08:52:00.020-05:00

Some real estate people and home buyers will surely be a little disappointed today when President Barack Obama signs the proposed economic stimulus bill. Included in the new package is a change to the current $7,500 first time home buyer credit. As reported here in previous posts, the current tax credit is $7,500 with an interest free repayment over 15 years.

The Senate was not only aiming to up the credit to $15,000, but also to eliminate the repayment, and make the credit for all home buyers and not just first time home buyers. Unfortunately the bill came up a little short and is only providing an $8,000 credit to first time home buyers with no repayment. Still a great deal, but it fell short of what many people (including me!) were hoping for.

What do you think?

Link to CNNMoney.com Story

Suprisingly, ARM Resets are Lower for Many

2009-02-09T12:16:00.011-05:00

Some 420,000 hybrid ARMs are scheduled to reset in 2009, according to the Treasury Department. A year or so ago, it seemed that many of these loans were going to see their interest rates reset to as high as 12% or more. But then interest rates started falling, hitting lows they hadn't seen in 37 years.

I know first hand what this article is referencing. I purchased my first property 5 years ago in February of 2004. I chose to go with a 5/1 ARM as I didn't think I'd live in the property for more than 5 years. I also figured I would sell it before the rate reset after the 5 years. I was right about the first part, but wrong about the second. This passed May I decided to rent the place out as the income was substantially more than the mortgage and condo fee.

Unlike what the article states, I didn't go with an ARM because I couldn't afford the 30 year payment, I just thought it was a better option for my situation. As it turns out, I received a notice in the mail from Chase stating that my rate was going to adjust effective 4/1/09. I was a little concerned that my payment would be going higher, but fortunately for me, my rate went down from 4.375% to 4%! This was obviously great news for me, and it sounds like thousands of other homeowners are receiving similar good news.

Idiot's Guide to Buyer's Agent

2009-02-03T09:27:00.005-05:00

I saw this graphic online and thought it did a good job of simply displaying why a buyer should use a buyer's agent. An Exclusive Buyer's Agent can advise you on value, negotiate the most favorable terms, and look out for your best interests. Purchasing a home without buyer representation is a huge mistake as the sellers agent is representing the seller and trying to get him or her the highest price possible. These are just a few points on why you should utilize a buyer's agent when purchasing a home. If you would like more details or representation for your next purchase, please email me.

Update: 1st Time Home Buyer Credit Repayment Could Be Eliminated

2009-01-29T17:07:00.009-05:00

This is even better news than what I reported in August 2008. There is a possibility the recent stimulus plan could include eliminating the repayment of the $7,500 1st time home buyer credit. As it currently stands, the $7,500 tax credit is an interest free loan that needs to be repaid over 15 years. The new proposal would eliminate the repayment entirely and actually put money in homeowners pockets.

To read this recent news story, visit Boston Herald

For all the information, guidelines and FAQ's, visit the National Association of Home Builders website at NAHB

If you purchased your first home between April 8, 2008, and July 1, 2009 and occupy it as your primary residence, you qualify for this credit. I highly recommend you apply for it when you file your 2008 taxes. Worst case scenario you get an interest free loan of $7,500 that needs to be paid back over 15 years. Best case scenario you get $7,500 for free!!!!!

Boston Condo Statistics

2009-01-15T20:38:00.013-05:00

Below are statistics from MLS on several Boston neighborhoods comparing January 15, 2008 to January 15, 2009:

Back Bay
1/15/08 - Condos on the Market: 154, Avg. Asking Price: $1,668,416
1/15/09 - Condos on the Market: 179, Avg. Asking Price: $2,024,291

South End
1/15/08 - Condos on the Market: 173, Avg. Asking Price: $761,179
1/15/09 - Condos on the Market: 143, Avg. Asking Price: $722,358

North End
1/15/08 - Condos on the Market: 51, Avg. Asking Price: $625,127
1/15/09 - Condos on the Market: 31, Avg. Asking Price: $447,774

South Boston
1/15/08 - Condos on the Market: 197, Avg. Asking Price: $455,463
1/15/09 - Condos on the Market: 206, Avg. Asking Price: $415,143

East Boston
1/15/08 - Condos on the Market: 103, Avg. Asking Price: $294,244
1/15/09 - Condos on the Market: 51, Avg. Asking Price: $234,083

My thoughts: Back Bay 2009 data is skewed because of the high priced units currently available at The Mandarin Oriental. Back Bay is the only market to have a substantially higher number of condos on the market in 2009 than in 2008. There are several other new large developments in the area including The Mandarin, The Bryant and, The Clarendon, amongst others.

I don't what's going on with the drop in average asking price in the North End!

Other than that, average asking prices are down a bit, and the number of properties on the market have decreased. Although the data does not suggest this, the Boston real estate market is pretty healthy right now. There are still buyers out there for the right product at the right price. If you will be selling in the coming months, pricing will be the most important factors for a quick sale.

Should you refinance in 2009?

2009-01-06T17:33:00.008-05:00

I have some advice.....don't ask President Bush! I plan on refinancing at some point in 2009. I expect rates to dip under 5% for a 30 year fixed mortgage as the government continues to try and stimulate the economy and the housing market.

The editor of this article does a great job of explaining what's currently happening in the mortgage market and gives some great advice. If you are considering refinancing or purchasing a home in the next year or anytime in the future I highly recommend you read this informative article.

Link to Business Week

I'm Back!

2009-01-05T11:56:00.006-05:00

Happy New Year! Today I am officially in the office and back to reality. I haven't posted for about a month! As most of you know, I got married on December 6th and honeymooned after that. I'm sure you all have been lost without my brilliant editorials.

In 2009 I hope to take the Blog to the next level and obtain many more readers! Let me know if there is anything you would like to see more of, or topics you think I should cover.

Best of luck to all of you for happy and healthy 2009!

Brief Update on Several Boston Developments

2008-11-18T10:03:00.006-05:00

The Herald published a short article on the status of several Boston real estate developments. Some I've reported about here and others are projects that have yet to break ground.

Three condo developments that are selling well border the South End and Back Bay. The Clarendon, Columbus Lofts and The Bryant. The Clarendon is the tall concrete structure that's now a part of the Boston skyline, and as noted in the Herald, is having a topping off ceremony this week. This photo is from several months ago, but it should allow you to identify which building I am referring to.

Link to Boston Herald

Coldwell Banker to Close Waterfront and Somerville Offices

2008-11-12T15:07:00.008-05:00

Does anyone care? I actually just drove by the office on the Waterfront. It's a block down from Joe's American Bar & Grill. Maybe they are facing too much competition on the Waterfront from Otis & Ahearn which is a couple doors down? This economy does not help as it is much more difficult to close deals.

The Boston waterfront and Somerville offices of Coldwell Banker Residential Brokerage are set to close by the end of the month, Banker & Tradesman has learned.

The Boston office’s 24 agents will move to other local offices, including the Back Bay, while Somerville’s 15 agents will move to the company’s Cambridge and Arlington locations. Three administrative positions will be terminated, two in Somerville and one in Boston, according to Roni Boyles, Coldwell Banker’s director of corporate communications.

The waterfront office, located at 113 Lewis Wharf, is scheduled to close Nov. 28. A source in the Somerville office confirmed the branch’s closing would occur “by the end of the month.”

Update: Trump Files Suit Against Lenders

2008-11-11T14:35:00.004-05:00

As reported here a few weeks ago, there is turmoil between Trump and his lenders who financed the International Hotel & Tower in Chicago.

He is now suing his lenders to extend a $640 million loan. Whatever happens, it looks like there will be a significant shortfall even when all the condo units have sold, which probably won't happen until 2010. Sales have been well below original estimates and the projected revenue leaves Trump $100 million short of what he will owe lenders.

Maybe the Government can step in and bail him out? Or maybe the banks will renegotiate his loan terms? In semi-related news, don't you just love lenders who renegotiate terms for borrowers who miss payments but not for good customers. Something should be agreed to across the board, not just for people who are unable to pay their mortgages.

Link to Wall Street Journal

Interesting Real Estate/Hockey News in St. Louis

2008-11-11T13:45:00.007-05:00

In an interesting move, the St. Louis Blues have announced plans to pay ticket holders mortgage or rent for up to 4 months or $4,000. Well, not exactly. For each Saturday night home game starting November 29th, the Blues will choose a seat number randomly and that ticket holder will win the prize.

Either the housing market is really bad in St. Louis or ticket sales are struggling. I have to hand it to them for making the effort. I can pretty much guarantee the Boston Bruins will not be attempting this promotion.

Link to Boston Herald

Conforming Loan Limits to remain unchanged in 2009

2008-11-10T09:39:00.006-05:00

Despite the slide in housing prices in most parts of the country, the conforming home loan limit will remain at $417,000 next year for most of the country, the government said Friday.
Loan limits for two-, three-, and four-unit properties will also remain at 2008 levels. For two-unit properties the limit is $533,850, for three-unit properties it's $645,300, and for four-unit properties it's $801,950.

What does this mean for you? Well, if you are buying a condo for $500,000 and you were putting down 20%($100,000), this would be a conforming loan at $400,000. If your purchase price was $600,000 and you put down 20%($120,000), this would be a jumbo loan $480,000 and your rate would a 1/2 point to 1 point higher. The difference between a 6% rate and 6.5% on $480,000 is a $156/month which is a substantial amount over the life of the loan. If you are purchasing a home or condo for $417,000 or under this will not affect you.

Link to CBSMarketwatch

New Tower Proposed for Downtown Crossing

2008-11-06T16:59:00.004-05:00

If you're looking at this photo, I believe the proposed tower would be built on the left side across from the old Filene's building which is currently being developed. In my opionion, any development in Downtown Crossing is a positive thing.

Midwood Management Corp. filed plans yesterday with the Boston Redevelopment Authority to demolish four stores at Washington and Bromfield streets and replace them with a 28-story tower. If approved, the development will include six floors of retail totaling 49,200 square feet and 276 residential units on the upper levels. Construction is expected to start in 2010.

Link to Boston Herald

Even Trump is having issues with Financing?

2008-10-29T09:15:00.005-04:00

Not entirely, but he is getting pressure from his lenders. One of his current projects is the Trump International Hotel & Tower in Chicago. It will be 92 stories which is the tallest building constructed since the Sears Tower was built in 1973. Usually Trump has several partners on his deals, but as this article explains, he went in this one solo.

So far, Mr. Trump has lined up buyers for a bit less than $600 million of condo units and condo-hotel units in a residential market that has virtually seized up. Yet he owes lenders as much as $1 billion when the loans are due, according to public records and several people familiar with the project. He has closed around $200 million in sales so far, with roughly $380 million still in contract. The retail portion of the giant building is for sale, at a time of rising vacancies for retail space in Chicago and one of the worst eras for retailers in years.

Link to The Wall Street Journal

Is the End in Sight for the Housing Slump?

2008-10-28T22:49:00.011-04:00

Some very good points are made by June Fletcher about when the housing market should bottom, and the lessons we can learn from this current crisis. I entirely agree with all her comments about the economy, housing market, and especially what is written below.

As terrible as this is for people who have lost or will lose their homes, overall, this painful contraction is necessary—a counterbalance to the era of easy money and over-leveraging. When it is over, homes won't be worth as much as they were before, but their prices will be more in line with people's incomes. Loans won't be given to everyone with a pulse, but they will be available to people with good credit. The market will be back to normal.

Perhaps by then we'll have learned some lessons: Just because someone is offering to loan you money doesn't mean you should take it. Don't assume lenders and regulators will look after your interests. Before you sign a contract, read the fine print. Since neither job security nor rising equity is guaranteed, stick with fixed-rate loans. Don't live beyond your means. Pay your bills on time, and keep enough cash on hand to pay for at least six months of expenses. Think of your house primarily as shelter, not a cash machine.

Link to The Wall Street Journal

20 Percent Down or No Mortgage

2008-10-28T21:44:00.006-04:00

So what do you think? Do you agree with Mr. O'Neil's opinion below?

President Bush's former treasury secretary Paul O'Neill says Congress should scrap plans for a new economic stimulus package and instead require that no future home mortgage be awarded without a 20 percent down payment.

If every mortgage was backed by a 20 percent down payment, O'Neill said, the financial system would be protected long-term, even if some individual investments or businesses failed. "If you can't afford a home mortgage, we shouldn't give you one," he said.

Seems a little harsh to me. I agree with his views about home ownership, but 20% seems a bit steep. I bought my first 3 properties with 5% down and I've never missed a payment. 100% financing is different animal. When borrowers don't have anything invested in their homes, they have nothing to lose except the home itself.

I've always felt that banks need to look at borrowers on a case by case basis. If someone has a full time job, sufficient income, excellent credit and can put down 5-10%, I see that as an excellent candidate for a loan. I work with young professional buyers all the time who fit that mold and I'm pretty sure none of them have defaulted on their loans.

Link to MSNBC.com

Update! Crude Oil down, Euro down, Dow way down, real estate???

2008-10-24T10:09:00.006-04:00

Good news on commodities. Crude oil is lower and is now trading at $63.15 a barrel. That's down from $70.89 Tuesday when I initially blogged about it. I filled my car this week with premium gas for $2.91/gallon. Not bad. That number should be even lower this weekend and in the coming weeks.

The Euro has continued it's tailspin hitting $1.26 this morning and is now trading at $1.2669. Bad news, the Dow is down another 400 points today. Take it for what it's worth as I'm not a Wall Street guy, but I do see the stock market bottoming in 2008. I have a couple private wealth manager friends at Barclays(formerly Lehman Brothers) and BNY Mellon. All of them are putting their best clients into real estate! Haha! I wish. But seriously, if you are in the market for a home or real estate investment, this winter should be a great time to buy. Sellers are more realistic with their pricing, and those putting their properties on the market this winter are people that need to sell.

Feel free to add your insight Barclays and BNY Mellon guys.

One more thing. Mortgage rates dropped about a 1/2 point in the past week. 30 year fixed rate mortgages are averaging 5.96% this week, down from 6.40% last week.

Where do you see the economy going?

2008-10-21T17:48:00.011-04:00

Just some thoughts here and I would appreciate yours. I see the economy and the national real estate market bottoming in the next 6-9 months. In Boston, the real estate market continues to be surprisingly resilient. I see a few things that should have long term benefits for our economy and consumer spending.

To the left is a chart of crude oil prices over the past year. Since July 2008, crude oil has dropped from a historic high of $147.55 to where it settled at today, down another $3.36 to $70.89 a barrel. Consumers will benefit from this drop in many ways, but most noticeably in the reduction in gas prices. Almost every industry is affected by the price of gas, especially airlines, delivery services, and real estate agents!

What about the Euro? After rallying for the past 5 years, the Euro has taken a sharp turn downward against the Dollar. As of today, 1 Euro was equal to $1.3057. That number was at almost $1.60 just 3 months ago. The main reason for this is people realized economic weakness was not limited to the United States. The European economy is struggling also.

These are just two factors, but long term I believe both of these will help the United States substantially. Yes it will hurt exporting because the cost to buy our goods and services will go up, and yes, tourist visits to the United States will decrease.

There are a number of industries and issues I have left out. I could go on endlessly with different arguments, but this post would be even longer than it already is. I still think the US economy is in rough shape, but I see a foundation for a bottom starting to be built. Let me know what you think.

Crazy News....California Home Sales Jump 65%

2008-10-21T17:27:00.005-04:00

Some interesting data was released today by MDA DataQuick with regards to the California real estate market. It's pretty mind boggling to think sales in California could increase 65% year over year, especially in this environment. As stated in the article, the increased activity is due to people buying foreclosure resales at substantial discounts from their values just a couple years ago. In fact, 51% of those sales last month were foreclosure resales! Also, the statewide median home price went down to $283,000, a drop of about 34 percent from $430,000 in September last year.

Link to MSNBC.com

Exclusive News and Photos from W Boston Hotel & Residences

2008-10-20T09:38:00.022-04:00

Here are some exclusive photos taken Friday of the new W Boston Hotel & Residences in the Theatre District. The building is located at 100 Stuart Street which is directly across the street from restaurants Rock Bottom and California Pizza Kitchen. The building is one of Boston's newest luxury condo/hotels and is currently under construction.

There will be 235 hotel rooms situated on floors 3 through 15. There will be 123 condo Residences and those will be housed on floors 16 through 28. Similar to The Intercontinental, the building will have a separate hotel and condo entrance on the 1st floor. The remainder of the ground floor will host a yet to be named restaurant, lounge/bar, spa and may have a couple other commercial spaces.

The W Residences will feature your typical luxury condo building amenities including valet parking, 24 hour concierge, fitness center and W's signature Whatever/Whenever service which I think explains itself.

Construction is scheduled to be completed in Fall 2009. Pre-construction prices have yet to be released. If you are interested in this development, you can contact me to be your buyers agent or stop by the sales office which I believe is still located at 200 Newbury Street. In the next several months I would expect to see an on site sales office. I'll keep you posted on pricing and unit availability at The W.

How does that work? Home prices go down yet taxes stay the same

2008-10-16T15:59:00.008-04:00

Assessments for 2009 will been released this January, but don't expect your real estate tax bill to go down anytime soon. If you would like to contest your homes assessment, visit http://www.cityofboston.gov/ and search for tax abatement. The site gives you specific instructions on how to ask the City of Boston for a reduction in your taxes. There is a bit of work involved, but if you are successful, it will be well worth your time.

Link to CNNMoney

A bit of good news

2008-10-09T21:01:00.012-04:00

Some good numbers were released yesterday on pending home resales.

The index of pending home resales rose 7.4 percent, the most since October 2001, after falling 2.7 percent in July, the National Association of Realtors said yesterday in Washington.

Amidst all the negative news, this was a welcome surprise. The data was based on sales that took place prior to the current Wall Street crisis that today saw the Dow close at 8,579.19, it's lowest level since '03.

From my experience, deals have recently been more difficult to close, but there are still buyers out there. If you can get financing, this winter may be a great time to buy a home. The people that will be selling our owners that have to sell. This creates tremendous opportunities for individuals with excellent credit and adequate funds for a down payment. This is an ideal situation for investors with plenty of capital on hand to scoop up deals. If you have capital and your looking for a deal, call me and I will find you something.

Link to Boston.com

Gibson Sotheby's Closes South Boston Office!

2008-10-07T15:35:00.008-04:00

So I was driving up West Broadway in South Boston this morning. As I drove by what used to be the second nicest South Boston real estate office, I noticed Gibson Sotheby's had shut down their South Boston branch. FYI, the nicest office is ours!

This branch had only been open for a few years, but it was still surprising. I called their office phone number, but there was no answer. I also contacted one of their agents to get some info, but have not heard back yet. Gibson Sotheby's is down to 6 offices with branches in the Back Bay, Waterfront, Dorchester, Westwood and two in the South End. Formerly Boston's largest independent real estate firm, Gibson Domain Domain was acquired in November 2006 by Sotheby’s International Realty

As the economy continues to under perform, you will see more real estate offices and other business' consolidate their offices. It's interesting because I was reading an article the other day about this topic. Follow the link below for more on real estate consolidation.

Link to Inman News Story

Follow up story.....How to Save Energy

2008-10-06T22:53:00.008-04:00

This story is actually less about heating costs and more about saving energy. It also includes some information on how to cut down heating costs. My suggestion, where sweatpants and a sweatshirt in your house and don't turn the heat up as high. The bit about unplugging electrical devices is not new, but definitely helpful if your looking to cut costs.

There's a hidden price tag to the DVRs, iPods and cellphones proliferating at home. Even when fully charged or in off or standby mode, many plugged-in devices still draw, or "leak," power to operate remote controls, clocks and other needs. That costs the average household about $100 each year. The worst offenders: TVs and computer printers.

Link to WSJ.com

News Flash! Boston is the most expensive city to heat your home!

2008-10-03T20:46:00.005-04:00

Ok, so I knew Boston was cold in winter, but I had no idea that it was the most expensive place to heat a home. I just thought everyone had to deal with the exorbitant heating bills. The main reason for the high heating costs in Boston are the cities high dependency on oil. 36% of the residents here use oil and it is the most expensive heating source. Clink the link at the bottom to see a detailed breakdown on Boston. One of my future posts will be on how you can save on your winter heating bills!

Buffalo, N.Y., gets cold during the winter. Really cold. Just ask any Bills fan who has attended a home football game. The average low temperature during the months of January and February is 16 degrees Fahrenheit. Boston, at the same latitude, posts average lows of 23 degrees during that time.

Yet the typical Buffalo family will spend $333 less to heat a home this year than families in Boston do. In fact, Buffalo residents will likely spend less this winter than those in Washington, D.C., who right now are complaining about the oppressive heat in the Potomac River Valley.

Why? The need for heat depends on temperature, of course. But local prices, inventories, refining capacity and choice of heat also play a role. Eight-eight percent of Buffalonians use natural gas; this is the most efficient and least volatile energy source available. Only 2% of residents use more expensive heating oil, compared with 36% of Bostonians.

Link to Forbes.com

Mortgage Rates Rise as Applications Fall

2008-10-02T11:41:00.006-04:00

After rates dropped a few weeks ago, they bounced higher last week after the credit market news. The hysteria in the market should settle down over the next couple weeks. I expect rates to drop back under 6% before the end of year.

"Average mortgage rates were nearly unchanged during the past week, leaving rates above the levels of two weeks ago," said Frank Nothaft, Freddie Mac vice president and chief economist, in a news release. "Reflecting the rate uptick from two weeks ago, the Mortgage Bankers Association reported that loan applications were down 23% last week."

Link to CBSMarketWatch

Is Now a Good Time to Buy?

2008-09-30T09:26:00.008-04:00

Decent article in the Journal about whether people should buy or continue to sit on the sidelines. What it basically says is that if you have access to capital for a down payment and a secure job, now may be a good oppurtunity to buy. This is what I am also seeing in the Boston real estate market. If you can put down 20%, have good to excellent credit, and have a full time job, you will have many options for financing. If you only have 5-10% put down, it is possible to get financing, it's just more difficult.

Q: Given what's happening in the financial markets, is now a good time to buy a home?

A: For some people, yes. If you…

have access to credit
have fat cash reserves
aren't already over-exposed to real estate
have a secure job or income stream
expect to hold the property for at least two years

…then now is an excellent time to buy.

Link to Wall Street Journal

Breaking News! Dow suffers biggest point drop in history, down 777 points!

2008-09-29T16:15:00.008-04:00

The markets sharp decline was due to the House of Representative's rejection of the $700 Billion bailout plan. For the bill to pass, it needed 218 votes. It came up 13 votes short of that target. The final tally was 228 for and 205 against. Two-thirds of Democrats and one-third of Republicans voted for the measure. That's some unimpressive support for Republican President George Bush.

The price of crude oil fell 9.84%, or $10.52 a barrel to $96.37. This was the second largest drop in dollar terms.

The U.S. dollar rallied against other major currencies as market turmoil in Europe threatened the euro. It closed at 1 EUR = $1.4449.

In other related economic news, The Terrier Group did not sell any properties today! This may be the end of the World as we know it. Liquidate all your assets and move all your cash under your mattress!

Neighborhood Snapshot: Downtown Crossing

2008-09-28T09:12:00.004-04:00

The Boston Globe has a brief snapshot of Downtown Crossing in today's paper. The neighborhood still has a ways to go before it becomes a vibrant location for young professionals and students. I was in the area the other day and there are still many closed and vacant stores. The luxury condos at 45 Province are scheduled to be completed in late 2009 and will be a nice addition. However, the completion of the old Filene's building renovation is several years out.

I was never a big fan of the Ritz-Carlton Residences or the location, but resales have been strong. Downtown Crossing is still a bit sketchy, but with the money the city and developers are investing there, it should have a lot of potential over the next several years.

Nine hundred condo units are proposed or under construction, including high-end luxury units on top of the Filene's building and at 45 Province. The Residences at the Ritz Carlton were among the first of a new generation of luxury housing to come here. There are numerous new loft-style units that have been redeveloped in the small buildings on the side streets. A few units have balconies, but as a whole the neighborhood tends to have the feel of converted office buildings.

Link to Boston Globe Story

WTF?!! Mass. Pike to hike tolls again!

2008-09-26T11:24:00.004-04:00

Some more positive news yesterday for drivers who utilize the Mass Pike. Turnpike officials are considering hiking the Allston-Brighton and Route 128 tolls from $1.25 to $2.25! Even worse, they are floating the idea of raising the tunnel tolls from $3.50 to $8.50! I don't know about you, but that's seems like an awful big increase to me! I agree with what this guy says below, but unfortunately I don't think the Turnpike Authority oversees 93, nor is it the cause of their budget deficit.

Bill Phillips of Milford, another one of the drivers steering their cars into the rest stop on this gloomy, rainy morning, said the people using Interstate 93 should be asked to shoulder some of the burden.

"The people going north and south -- those people aren't paying. If they need more money, they should put up tolls on the north and the south people. That will be popular, right?" said Bill Phillips

In my opinion, this is just another example of fiscal irresponsibility. I don't understand how Massachusetts and the US are unable to figure it out! This is a bigger issue entirely that is deserving of an entire post. I will just leave it that the Turnpike Authority is not doing a good job of being our "landlord."

Link to Boston.com Story

Mass. Foreclosures slip in August

2008-09-25T14:20:00.004-04:00

This is not a huge surprise. In May 2008, state legislators began requiring lenders to give homeowners 90 days to cure mortgage defaults. This essentially delayed the process, and by no means will solve the problem. My assumption is the majority of these homeowners who were given the additional 90 days will continue down the same path, which is foreclosure. I think it will just be 3 additional months of lenders not receiving mortgage payments.

I don't know how to cure this mess, but I don't think bailing all the dummies out makes sense. People need to take responsibility for their actions. What do you think?

After consistently climbing by double- and triple-digit percentages, the number of foreclosure deeds filed in Massachusetts dipped 2 percent in August from a year earlier, according to The Warren Group, Banker & Tradesman’s parent company.

There were 998 foreclosure deeds recorded in August, down from 1,018 in August 2007. Despite the slight monthly decline, year-to-date foreclosure activity has surged in Massachusetts. A total of 8,804 foreclosure deeds were filed during the first eight months of the year, up 79 percent from the 4,920 deeds recorded during the same period in 2007. Foreclosure deeds represent the final step in the foreclosure process.

“The number of foreclosure petitions has begun to climb again after slowing down in May because of state legislation that took effect requiring lenders to give homeowners 90 days to cure mortgage defaults. While the number of petitions has started to go up, they haven’t reached the level the state saw in the first quarter, when about 3,000 petitions were being filed every month,” said Timothy Warren Jr., CEO of The Warren Group. “One explanation for the drop-off may be that mortgage companies and lenders are modifying loans and are making more of an effort to work with borrowers who are struggling to make monthly payments. But we’re not seeing or hearing any indication of that. Another explanation is that lenders are simply slowing the process down with a less aggressive approach so that the properties do not become vacant and vandalized. Keeping delinquent, but otherwise responsible, homeowners in their homes has advantages for everyone.”

Want to find a hot neighbor?

2008-09-24T09:31:00.011-04:00

WTF? If you want to find a hot neighbor, maybe try Craigslist, but you are definitely not going to do it by reading this blog. The actual story discusses how to find the next hot neighborhood.

If you want to do that, follow the artists! This is not a huge revelation. It's been happening throughout the country and in Boston. It is most recognized in the South End which over the past 10 years has seen a dramatic transformation. This transition includes trendy new boutiques, art galleries, coffee and pastry shops, and hip restaurants. Unfortunately this trend displaces many artists in the vibrant neighborhoods they essentially helped create.

The article states that the next area to flourish in Boston is Jamaica Plain. Below is the clip written about JP.

The neighborhood, three miles southwest of downtown, has plenty of green space. Its picturesque Jamaica Pond is popular for sailing, rowing, and outdoor concerts. It has retained its diversity and relative affordability despite the development of condos and the influx of wealthier residents. Some artists, fleeing the neighborhood's rising rents, are pushing into neighboring Roxbury. Lowell, about 40 minutes away, and nearby Somerville are also attracting bohemian residents.

Link to BusinessWeek

Manhttan real estate likely headed lower in 2009

2008-09-23T16:15:00.005-04:00

The Manhattan real estate market has been extremely resilient the past 1-2 years, but with all the Wall Street turmoil, the coming year could be a difficult one. Why is this going to happen? Read below.....

First up: Job losses on Wall Street. In 2006, the most recent full year of New York State Department of Labor data, finance and insurance companies employed 15.7% of Manhattan's workers. They earned an average of $269,000, more than 2.5 times the average private-sector wage. Property prices will suffer from slashed bonuses and submarine stock options, not to mention the pink slips.

Link to Wall Street Journal

August Home Prices Hit Six-Year Low

2008-09-23T10:56:00.002-04:00

The median price of single-family homes in Massachusetts tumbled 9 percent in August, sinking to the lowest price for the month of August in six years, according to a new report from The Warren Group, parent company of Banker & Tradesman.

The median price for single-family homes sold in August was $323,000, down from $355,000 in August 2007. It was the lowest price for August since 2002, when the median selling price was $297,500.

Significant declines in home prices on Cape Cod and the islands and in Central Massachusetts helped drag down the statewide median price last month. The median home price in Barnstable County plunged 18.8 percent to $325,000 in August from $400,000 last year. In Worcester County, the median home price was down 15 percent to $234,000 from $275,000 in August 2007. Statewide, the year-to-date median home price was $318,000, a 9.1 percent decline from $350,000 a year ago.

In the City of Boston, this is not entirely the case. The condo market is very healthy and there is actually a shortage of quality condos on the market. I'm not sure of the exact year over year numbers for Boston, but condo prices remained pretty much flat year over year in all of Massachusetts. My assumption would be that volume in Boston was down, but prices were slightly up.