According to the Boston Business Journal, the Boston Redevelopment Authority is again looking for a developer of what could very well be Boston’s tallest skyscraper. Seven years after the plans for the project on a city owned garage site fizzled, the mayor has confirmed the plan to seek a developer for the almost 48,000 square foot construction project
The 30 year fixed mortgage rate rose to its highest level in two years. The Feds multi stimulus programs which have kept lending rates low to help stimulate businesses and homeowners alike to borrow money for purchases and for improvements have slowly come to an end. The policy has kept Boston mortgage rates at record lows for most of the past 5 or so years.
Mortgage rates have gone up more than 36% since May when the 30 year rate was at 3.35%.
“If you were considering buying a home, rates aren’t going to get much better any time soon” said Erin Lantz, director of mortgages at Seattle based Zillow.com. “Buying sooner rather than later makes good sense.”
Home buyers know too well the down side of the rising mortgage interest rates. They have been in love with the rock bottom rates which have significantly increased their purchasing power. The rising interest rates have sent some buyers into a panic rushing around trying to find a piece of property to sign their names on before the Fed bankrolled gravy train ends. Boston home buyers are not the only ones scrambling to protect their backsides as the rates start to climb, the bankers are too. Unfortunately, the buyers may soon find that mortgages, which are already hard to come by, may also get tougher as rates head back up. Higher rates may eventually boost mortgage lending, as rates begin what is likely to be a long, slow rise, the banks may start tightening up on their lending.
Cash Buyers Putting ‘Squeeze’ On Boston Real Estate Buyers
Apparently all cash buyers are putting the squeeze on normal real estate buyers. 40% of all the condos sold in Massachusetts in April did not involve any financing or mortgage. A quarter of all home sales also did not involve a mortgage or financing. There are many factors involved such as those people who in the past would normally be out of their parents homes are still not moved out yet due to the bad job market and can’t afford to pay a mortgage and the first time buyers are finding that they cant afford prices that are rising in today’s real estate market. Rents are rising right along with home prices. In Brighton, there was an 11.6% jump in rents in June compared to one year ago. Maybe those who are still living at home with mom and dad should look at the brighter side; at least they don’t have a mortgage loan that is higher than what the property is worth. It is apparent that many of the all cash buyers are foreign investors, and many of the new all cash buyers are the mover-uppers who are discovering that in today’s market, they can get their wanted price when selling, allowing them to put a substantial amount down when they turn around and purchase their new “move up” home.
You can read the entire article in the Boston Real Estate Now Blog, visit www.boston.com/realestate.
Time to Put Your Condo on the Market.
There is no doubt that the Boston real estate market continues to boom according to the latest sales figures for the different neighborhoods. The condo market has continued to set sales records with the Back Bay neighborhood leading the way. Sales prices are also breaking records. Condo prices in the downtown market jumped to a new record high in the second quarter of this year for several reasons. A tightening inventory and increased demand for luxury units were partially responsible for the increase in prices. Buyers are looking for new luxury amenities like valet services and concierge services.
In the three month period ending in June, there was a 5.3 % increase in prices over the same period a year ago, according to LINK, a Boston company that tracks condo sales in a 12-neighborhood area. There was a 2.45 increase in the luxury condo market sales between April and June, according to LINK. Overall sales of condos have shown a slight decrease from last year’s sales due to a growing inventory shortage. Real estate professionals are predicting a continuing increase in prices for the foreseeable future due to falling inventories. This situation has caused sales to jump in some of the other Boston neighborhoods in recent months according to Debra Blair, Pres. of LINK. Blair predicts that prices will continue to rise for at least another 3-5 years when inventories are expected to start increasing again.
According to the Multiple Listing Service (MLS), Boston Condo sales continued at a record pace during the first half of the year, with several different neighborhoods taking the lead as sales prices increased. Brighton had the hottest sales in the $236K – $283K range with 44 sales, Jamaica Plain had 42 sales in the $330K – $380K range, South Boston had 48 sales in the $493K – $580K range, and the South End had 69 sales in the $740K – $1.125 range. Back Bay recorded 84 sales that exceeded $1.125M in price.
Many factors were considered however it appears that when buyers cannot find a home in a particular price range, it is not uncommon for the buyer to consider moving up and spending more, even if it’s in a different neighborhood.
Many Boston real estate professionals agree that most buyers will spend more if the buying opportunity is good, no matter what the neighborhood.
Take a tour of the great city of Boston and check out Boston condos, apartments and lofts for rent lease or sale. we have a wonderful inventory of Luxury units for every taste and income.
At Boston Luxe we promise to give you excellent assistance by one of our professional Realtors. Our team always put you the customer first.
Condo and town home sales in Boston are breaking all records in recent months. High rise luxury condos are also now available and many in the different neighborhoods. You have to admit that there are some beautiful Boston Condos, lofts and apartments in today’s Boston real estate market, and most are within walking distance to great shopping and the entertainment options that Boston is known for. Great restaurants and sports scene activities are close by also.
Boston has it all for sure. The shopping available features great and unique shops, with plenty of high end type boutiques.The condos are priced from the affordable to very expensive with all types of designs and floor plans available. Condo and town home sales in Boston are breaking all records in recent months.
Is it any wonder that this town is now the economic hub and cultural center for all of New England?