Adam Geragosian Real Estate Blog

Housing in small cities is likely to be hot in 2012. Once again, Jed Kolko, the chief economist at Trulia.com expressed his opinion about places such as Boston, San Jose, Austin/Houston, and Rochester in upstate New York and how they are some of the smaller cities that will out-do the rest of the country in real estate.

The western suburbs of Boston, in particular locations such as Cambridge, Newton, Weston, Wellesley, Lexington and even Framingham and the northern suburbs like Burlington, Winchester, Andover are all going to fair well. This is largely due to their strong job markets and the biotech and high-tech firms that are booming and constructing far more office and research space. Vacant office locations are highly diminishing, down to now 13 percent in the town of Waltham, as an example. We will see if this continued attraction for companies to flock to the Greater Boston area and develop our suburbs has what is predicted to be a significant positive influence on the real estate market in this new year.

The much discussed ‘Innovation District’ is totally renovating the South Boston and Waterfront neighborhoods. The plan is for young, tech-savy individuals to come from the world-class universities in the area or from afar, all to settle down in this new neighborhood. It certainly is one that is destined to keep people in the area permanently, with roughly 90 new firms and some 1,700 or so units planning to set root.

Some of the developments soon to on the drawing board include:

Waterside Place – 236 apartments, 19-stories
Pier 4 – 357 apartments, 21-stories
Seaport Square – 750 apartments, 22-stories
411 D Street – 197 apartments, 2 buildings (one will be 5-stories, the other 6-stories)
319 A Street – 202 apartments, 20-stories

If you were to go to an area with many outlet stores, how far outside of Boston do you think it is? 10 minutes, maybe 20? Both are incorrect. Surprising as it may seem, the closest outlet center is at least 45 minutes away in Wrentham, Massachusetts. Well, the town of Somerville, only 12 minutes away from Beantown just down Interstate 93 looks to change all of that. Especially with the recent economic troubles for many families, we are constantly looking for the best deals for classic brand names at accessible locations. Well, you will be happy to see the new developements taking place at Assembly Square.

Developed by Assembly Row, the proposed plan will cost upwards of $1.5 Billion dollars and is expected to get underway sometime in the new year. About 50 stores, many offices, a pair of 450 housing unit buildings with an additional third one to be designed (developed by AvalonBay Communities Inc.), a 12-screen movie theatre, a variety of restaurants, a new MBTA station and a completely new park perfect for outdoor concerts are all in the works. The Federal Realty Investment Trust began their involvement in this process 6 years ago. They are anticipating that the traditional mold will be broken which typically has seen such outlet stores clustered far outside of metropolitan areas. The increased competition with stores in Boston and the mass amount of consumers in the area will make this a desired location that will also increase value of real estate nearby.

According to Market Watch and real-estate website Zillow.com, 30 year mortgage rates have recently reached an all time low. Zillow reports the 30 year fixed rate mortgage is currently holding at an average of 3.73%, down from 3.81% a week earlier. The previous low was 3.74%, which was in September.

Many mortgage trackers have reported record low rates in the recent weeks. Furthermore, the rate for 15 year mortgages is currently holding at 3.07%, which is down from 3.11% from the previous week. These excellent, low rates make now the perfect time to consider purchasing a home.

Bloomberg Businessweek has recently released a list of their top 50 cities within the United States. Judging the cities on various criteria, the results that came back were exciting. This is because Boston was listed as the #16 in the country. The term city applies to even localities that many of us would have assumed to be a town. With that said this #16 ranking is very impressive.

The central premise for praising Boston in such a manner is because Bloomberg Businessweek notes that because of the plethora of fine restaurants, world-renowned educational institutions and historical importance, Boston is extremely unique. The above factors, including low foreclosure levels, constant population making high medium income and below average unemployment rates, among other points have helped the city hold on far better than other American cities after the recession.

The following information was taken from Bloomberg Businessweek and highlights some of the statistics about Boston that has resulted in this city being placed so favorably:

-Percent with bachelor’s degrees: 42.9
-Percent under poverty level: 19.1
-Median household income: $52,433
-Property crime rate: 3,324
-School score: 69.94
-Pro sports teams: 4
-Foreclosure rate: .0032
-Percent Unemployment: 7.1
-Park acres per 1,000 residents: 7.6
-Bars: 199
-Restaurants: 1,863
-Museums: 148
-Colleges: 34
-Libraries: 59
-Air Quality Index: 104

Real Estate Winter checklist:

1 – Service furnace/boiler.
2 – Clean gutters.
3 – Drain sprinklers/water spouts.
4 – Service wood burning chimney.
5 – Weather strip drafty windows & add door sweep.
6 – Change to programmable thermostat (if not done already).
7 – Change air filters.
8 – Clear soffit vents to prevent ice-damming.
9 – Purchase roof rake for areas prone to ice-damming.
10 – Trim back branches that overhang home.
11 – Have shovel and sand/salt for stairs, walkway, and driveway.
12 – Remove and store window screens.

The rules and regulations within a condo association can sometimes affect whether or not a property will sell. I recently ran into a situation where buyers (a couple) were set on purchasing a particular condo in Boston. This property was seemingly perfect for them. It had everything they were looking for… It was updated, hardwood throughout, top floor, high ceilings, fireplace; etc. The issue they ran in to was that the association did not allow pets. When I first took them to see this property it was no issue because they did not have a pet, nor did they plan to get one. However, during the course of our search that changed. Just like the pets, this property was now banned.

This situation got me thinking on two topics I have seen more of lately. Pet and Smoking restrictions/bans within condo associations. Now, I am a dog guy… So I could never live somewhere that did not allow pets. But on the other side of the coin, I do not smoke and would never live somewhere that smoking was allowed. Smoking bans have come to the forefront because of a recent lawsuit in Boston; leading more associations to ban the habit. I think this is a good idea because it only takes one smoker-unit within a building to make the other units unsalable. The trick to ban smoking is to have the condo docs changed BEFORE a smoker moves in.

Although some people put them under the same umbrella, I think Pets and Smoking should be entirely separate issues. I have had plenty of clients walk out of a building immediately because of the smell of cigarettes. To the contrary, I have never encountered a situation where buyers disqualified a unit because pets were allowed.

Keep the dogs, quit the cigarettes.

A heavy caution towards who you hire to sell your home or represent you through the purchase of a home has never been more important. There are many options as to who you can choose to represent you on either side of a transaction. You need to take time with this decision as it can be one that helps you earn, or potentially lose, a lot of money. Agents that are experts in their field are trustworthy, willing to go the extra mile, and can be real driving force behind a smooth and profitable transaction. Real Estate is a business with very little resistance to entry. Because of this, just about anyone can get their license and be a “real estate professional”. This idea alone should force you to be incredibly cautious in whom you choose. There are also many discount brokerages out there that offer money back at closing to a buyer. From my experience, many of these agents are not well versed in the locations they cover. This lack of local knowledge can cost you far more money than you will save by using such an agency. There is a reason why Mercedes does not discount their cars. If you have a good product, and believe in what you are selling, then you should be comfortable moving forward at your market value. With so many options in to choose from… be careful and make sure you do your homework!

Boston is one of the most unique metropolitan areas in the United States. We’re an older city with a great selection of condos. Whether you’re looking for upscale luxury properties, new developments, or older homes with antique charm our city has it. Wintston Churchhill once famously called Commonwealth Avenue in the Back Bay “the most beautiful street in the world,” speaking of course to the Parks, Trees, and Brownstones.

Like the rest of the country, Boston suffered during the recent real estate slump. Many potential sellers holding off on putting their homes on the market, for fear of low pricing. Many of these sellers opted to either wait until the market improved or opted to rent out their vacant condos.

Our outlook for the coming year in Boston condos? Very positive. If recent trends continue, we’re looking forward to a pretty good market…

In the Northeast, we know how harsh and long the winters can be… however, this has been one of the worst in recent memory. The record amount of snow we saw this winter had an affect on the real estate market. With sidewalks blocked, parking spaces marked, streets not plowed; etc. It made it difficult to show property. This weather kept a lot of buyers inside, and sellers off the market. As we head in to the final stages of winter, the spring market has begun to come alive. Over the last few weeks listing activity has picked up. Along with the new listings, there are many buyers who have awakened from their seasonal hibernation.