This particular project is going to bring a wealth of apartments to a section of the city that is in extremely high demand. I can’t keep apartments in Charlestown on the market for more than a week. The clientele in the region has realized that the location is phenomenal and allows easy access to the financial district, the North End, and all of Cambridge. It will most certainly spruce up the backside of Charlestown Hill as well.

This is simply amazing. The amount of new construction going in the ground is unprecedented in my lifetime.

Situated 24 minutes to downtown Boston and 14 minutes to Harvard Square this bold property has an open floor plan, soaring cathedral ceilings, lush manicured grounds, 4 bedrooms, 3 full baths, a gourmet chef’s kitchen, and a master suite that can only be described as luxurious.

The two car heated garage, finished basement that can be used as an au pair suite, a gorgeous solarium, and over 4,000 square feet of living space, and 2 wood burning fireplaces round out the features. If interested please contact me at 617-840-9304 or patrickb@nextgenrealty.com

Yet, I just doubt that the weather can truly turn things around. Money is still tight, it’s difficult to get approved for a loan, and the jobs are not there to support the purchase of real estate. Right?

Maybe I was wrong.

Jennifer Athas for www.bostonherald.com writes that:

In Boston the past month has seen 505 single-family homes and condos go under contract, compared to 364 during the same period last year — a 28 percent increase. Throughout Massachusetts, 5,388 single-family homes and condos went under contract in the past month, compared to 4,165 during the same period last year — a 23 percent increase.

As usual, foot traffic has been picking up at open houses and from what I see it is not just the neighbors or window shoppers. I’ve seen real buyers discussing substantial things – not just why they don’t like a certain paint color or vanity. They also seem very astute about the current market.

File under: Let’s get to business.

Cue the small print as a recent article from The Boston Herald by Kenneth R. Harney. Here are some major sticking points to know:

Your current home loan must be FHA-insured and must have been put on the agency’s books no later than May 31, 2009. If you have a mortgage owned or backed by Fannie Mae, Freddie Mac, the Department of Veterans Affairs or private investors, you’re out.

You also need to have an unblemished record of on-time mortgage payments for the past 12 months. Maybe you were late occasionally a couple of years back. That’s OK. But the immediate past 12 months need to be pristine.

On top of that, if your refinancing does not provide you a net savings of at least 5 percent in your monthly principal, interest and mortgage insurance payments, you won’t be eligible either. The program won’t take effect until June 11.

So if you have anything other than an FHA loan and if you are going to net only 4.9% savings that is just too bad. Whoops. Here is some interesting stats according to the piece:

According to an FHA spokesman, Brian Sullivan, FHA has roughly 500,000 active loans in its portfolio that are eliminated from participation solely on the basis of the May 31, 2009, cutoff date. Of those, an estimated 145,000 have mortgage interest rates higher than 5 percent — making them prime candidates for a refi if it weren’t for the cutoff date.

Ouch.

But that is not all . . . seems the days of the wild wild west are returning. If you meet the criteria there is no employment verification or income verification. No new credit report needs to be pulled AND you don’t even have to get a new appraisal. So if your home has declined in market value it doesn’t matter as the appraisal at the date of closing is good enough.

Are you kidding me? No employment verification? Good grief. Here we go again. Hold on to your seat . . . that is if you still have one. As for me, I just was browsing real estate in Tapachula Mexico – beach front for $50K. Bon Voyage!

MLS Market Snapshot (Last 12 months) : What is selling and where?

Below is data drawn from MLS regarding how many properties have sold in the last 12 months. I researched 3 different asset classes in the residential market: condo, single family, & multi-family; breaking down the data in each of the major Boston submarkets. The top 5 submarkets for each asset class is ranked based on number of properties sold in the past year. There is some really good data regarding average ‘days on market’ , average price per square foot, average living area of each asset class sold in the past year. If there was only 1 type of property sold in that submarket, the details for that particular property are listed.

Due to the market correction in late 2008, prospects (buyers or sellers) often have very negative outlooks and lack confidence in the real estate market. This pessimism is generally based in unfounded theories or misinformation.

Asset Class: Submarket Rankings (# of properties sold in the past 12 months)

Condo: South Boston (502) / Brookline (472) / Back Bay (457) / South End (359) / Brighton (236)

Single Family: Brookline (162) / South Boston (54) / Charlestown (48) / East Boston (32) / South End (24)

Multi Family: East Boston (69) / South Boston (34) / Brighton (33) /Brookline (25) / Allston (18)

________________________________________________________________________________________________________

Today to 12 months – 02116 Back Bay SOLD

Condominium Listings: 447
Avg. Liv.Area SqFt: 1,278.87
Avg. List$: $1,183,222
Avg. List$/SqFt: $827
Avg. DOM: 123.69
Avg. Sale$: $1,108,807
Avg. Sale$/SqFt: $786

Single Family Listings: 23
Avg. Liv.Area SqFt: 3,740.00
Avg. List$: $2,852,739
Avg. List$/SqFt: $733
Avg. DOM: 127.22
Avg. Sale$: $2,690,500
Avg. Sale$/SqFt: $693

Multi-Family Listings: 10
Avg. Liv.Area SqFt: 4,095.20
Avg. List$: $2,019,500
Avg. List$/SqFt: $499
Avg. DOM: 52.60
Avg. Sale$: $1,881,500
Avg. Sale$/SqFt: $459

Today to 12 months – 02116 Bay Village SOLD

Condominium Listings: 5
Avg. Liv.Area SqFt: 980.20
Avg. List$: $638,200
Avg. List$/SqFt: $625
Avg. DOM: 97.40
Avg. Sale$: $610,000
Avg. Sale$/SqFt: $601

Single Family Listings: 1
Avg. Liv.Area SqFt: 2,368.00
Avg. List$: $1,375,000
Avg. List$/SqFt: $581
Avg. DOM: 14.00
Avg. Sale$: $1,310,000
Avg. Sale$/SqFt: $553

Multi-Family Listings: 1
Avg. Liv.Area SqFt: 3,856.00
Avg. List$: $1,395,000
Avg. List$/SqFt: $362
Avg. DOM: 13.00
Avg. Sale$: $1,275,000
Avg. Sale$/SqFt: $331

Today to 12 months – 02114 Beacon Hill SOLD

Condominium Listings: 160
Avg. Liv.Area SqFt: 809.62
Avg. List$: $483,681
Avg. List$/SqFt: $609
Avg. DOM: 91.81
Avg. Sale$: $465,406
Avg. Sale$/SqFt: $586

Single Family Listings: 19
Avg. Liv.Area SqFt: 2,940.53
Avg. List$: $2,302,684
Avg. List$/SqFt: $785
Avg. DOM: 246.68
Avg. Sale$: $2,130,895
Avg. Sale$/SqFt: $725

Multi-Family Listings: 1 –
Property Address: 63 Phillips St
List Price: $1,195,000
Sale Price: $1,080,000
Living Area: 2641
DOM: 11
$/SqFt: $409

Today to 12 months – 02118 South End SOLD

Condominium Listings: 359
Avg. Liv.Area SqFt: 1,115.36
Avg. List$: $667,507
Avg. List$/SqFt: $597
Avg. DOM: 82.19
Avg. Sale$: $652,132
Avg. Sale$/SqFt: $585

Single Family Listings: 24
Avg. Liv.Area SqFt: 3,147.65
Avg. List$: $2,028,917
Avg. List$/SqFt: $642
Avg. DOM: 112.29
Avg. Sale$: $1,907,694
Avg. Sale$/SqFt: $603

Multi-Family Listings: 10
Avg. Liv.Area SqFt: 3,979.30
Avg. List$: $1,751,800
Avg. List$/SqFt: $464
Avg. DOM: 67.20
Avg. Sale$: $1,652,188
Avg. Sale$/SqFt: $436

Today to 12 months – 02113 North End SOLD

Condominium Listings: 54
Avg. Liv.Area SqFt: 732.44
Avg. List$: $412,065
Avg. List$/SqFt: $570
Avg. DOM: 182.98
Avg. Sale$: $396,398
Avg. Sale$/SqFt: $546

Single Family Listings: 2
Avg. Liv.Area SqFt: 1,592.50
Avg. List$: $939,000
Avg. List$/SqFt: $579
Avg. DOM: 176.00
Avg. Sale$: $737,500
Avg. Sale$/SqFt: $459

Multi-Family Listings: 10
Avg. Liv.Area SqFt: 3,623.30
Avg. List$: $1,644,890
Avg. List$/SqFt: $432
Avg. DOM: 90.80
Avg. Sale$: $1,517,600
Avg. Sale$/SqFt: $403

Today to 12 months –Fenway SOLD

Condominium Listings: 115
Avg. Liv.Area SqFt: 690.15
Avg. List$: $339,073
Avg. List$/SqFt: $514
Avg. DOM: 71.85
Avg. Sale$: $326,759
Avg. Sale$/SqFt: $495

Single Family Listings: 1
Avg. Liv.Area SqFt: 2,820.00
Avg. List$: $1,275,000
Avg. List$/SqFt: $452
Avg. DOM: 116.00
Avg. Sale$: $1,125,000
Avg. Sale$/SqFt: $399

Multi-Family Listings: 0

Today to 12 months – 02129 Charlestown SOLD

Condominium Listings: 230
Avg. Liv.Area SqFt: 1,529.71
Avg. List$: $473,917
Avg. List$/SqFt: $441
Avg. DOM: 105.93
Avg. Sale$: $460,928
Avg. Sale$/SqFt: $428

Single Family Listings: 48
Avg. Liv.Area SqFt: 1,930.46
Avg. List$: $685,681
Avg. List$/SqFt: $355
Avg. DOM: 89.21
Avg. Sale$: $652,452
Avg. Sale$/SqFt: $338

Multi-Family Listings: 9
Avg. Liv.Area SqFt: 2,347.11
Avg. List$: $729,656
Avg. List$/SqFt: $301
Avg. DOM: 72.78
Avg. Sale$: $679,442
Avg. Sale$/SqFt: $281

Today to 12 months – 02127 South Boston SOLD

Condominium Listings: 502
Avg. Liv.Area SqFt: 1,468.61
Avg. List$: $407,007
Avg. List$/SqFt: $393
Avg. DOM: 103.11
Avg. Sale$: $393,084
Avg. Sale$/SqFt: $379

Single Family Listings: 54
Avg. Liv.Area SqFt: 1,751.61
Avg. List$: $435,402
Avg. List$/SqFt: $258
Avg. DOM: 106.80
Avg. Sale$: $416,170
Avg. Sale$/SqFt: $247

Multi-Family Listings: 34
Avg. Liv.Area SqFt: 2,767.12
Avg. List$: $643,872
Avg. List$/SqFt: $275
Avg. DOM: 50.21
Avg. Sale$: $590,360
Avg. Sale$/SqFt: $255

Today to 12 months – Allston SOLD

Condominium Listings: 66
Avg. Liv.Area SqFt: 1,044.05
Avg. List$: $305,582
Avg. List$/SqFt: $312
Avg. DOM: 87.23
Avg. Sale$: $293,626
Avg. Sale$/SqFt: $299

Single Family Listings: 12
Avg. Liv.Area SqFt: 1,952.67
Avg. List$: $472,350
Avg. List$/SqFt: $245
Avg. DOM: 67.50
Avg. Sale$: $436,018
Avg. Sale$/SqFt: $228

In a major step forward for developer John Rosenthal a Massachusetts Land Court judge has dismissed a zoning challenge that has stalled for the past 3 years his $450 Million complex that is planned to have apartments, stores, and offices, over the Mass Pike just west of Fenway Park.

Yet another good sign for commercial developments in the Hub. I’m not complaining at all. It’s great to see growth coming down the line. This particular project will dramatically alter the landscape between Commonwealth Ave and Brookline Street in the Fenway neighborhood near Boston University.

I have to say that from what I see the article in last week’s Boston Herald about low inventory levels certainly hit home. There are a total of 19 condos with 2 bedrooms at $450K or under in Charlestown. That is only factoring in the number of bedrooms. Want more than just 1 bath? Only 8 are on the market that are $450K or less with 1.5 – 2 bathrooms. How about a parking spot? Only 8 again.

This should be a good signal for potential sellers and sellers that are on the market. Properties should be moving relatively fast with such a small amount of inventory.

I did see a lot of buyers looking throughout the time I was out. And that is on a blustery and cold day in late February.

Even if you don’t believe me on the above two points consider this: rents are nearing all time highs around Boston and the inventory is down. The supply and demand is not weighted in your favor. On the other hand, interest rates on mortgages are at an all time low.

If you are not going to buy now, then when? If you have any questions or concerns on the process or the benefits of ownership vs. renting in the short and long term do not hesitate to contact me directly patrickb@nextgenrealty.com or 617-840-9304. I have helped numerous first time home buyers over the last few years and It would be my pleasure to help you through the process as well.

This is a WELCOME addition to South Huntington and will certainly spruce up things in that neck of the woods. With the Emerald Necklace just moments away, Longwood Medical Center near by, and collegiate students living throughout the area I’d anticipate this being a very successful project. The developer says he is planning on the majority of units being studios and one bedroom units . . . I’d personally like to see more 2 beds and some 3 bedroom units but I won’t complain as this is great news for the area!

Basically a 203K Loans lets the borrower get funds that exceed the purchase price of a property provided they make improvements that will increase the overall value of the property. You can’t take the rest of the loan money and buy a boat, a vacation to Florida, or pay down credit cards. Sorry. According to Ken Trepeta of www.rismedia.com HUD has been “reluctant to reinstate the program for investors.” Trepeta goes on to say that a scandal in New York City over a decade ago but has yet to bring it back.

The 203K Loans were a great tool to bring along and improve areas with distressed properties. Time for Uncle Sam to wake up and stop putting band aids on the sawed off leg of the housing market. Bring back 203K Loans for investors. The fed’s latest scheme in the works is to sell REO’s in bulk so that they can be used for rental housing. Never going to work in my eyes. Too much variations block by block, street to street, on what the rental income potential of a property is for most investors to want to pick up a package deal unless it was an utter steal. Too many variables.

In fact when the it comes down to it the Federal Government should be getting out of the way and giving the tools and power to the state, which can pass on the power to local government to make the determining decisions for guiding individual neighborhoods out of troubled situations. It’s impossible to think the federal government can come up with a blanket program that will work successfully in Boston, Tulsa, Fargo, and San Antonio all at the same time.

Nothing has broken ground yet on what would become a new neighborhood with 5,000 residents, hotels, restaurants, shops, offices, tech research centers, public parks and landscaped streets

Hynes has been quoted as saying “These will all start this year” in regards to his project. I’ve been in love with the industrial feel along Congress, Sleeper, and Summer Streets. I love to catch up with friends at the trendy Drink and who can resist strolling along the waterfront down by the ICA and Louis Boston. I’m looking forward to seeing the greatness that is ahead for the seaport district once these projects get completed.

Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.
The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.
Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.
However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.
Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.
Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”
In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.
While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.
Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generation actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.

Let’s hope this is the beginning of the end for one of the more disastrous blunders in the history of Boston Real Estate. Millennium Partner’s will be taking the lead on all aspects according to the article and it will be a building the consists of retail stores, office space, and residential units. Apparently the plans are calling for the building to be 600 feet higher than the old building or about as tall as One Financial Center. Menino believes construction should begin within the year.

File under: Finally.

All property owners need to be aware that just because your property doesn’t have a lead free certificate DOES NOT mean you can’t rent to people with children. My advice is and always will be to just get a certificate and have the property de-leaded. In general the costs are nowhere near what many owners think it will be AND in Boston there are programs to help subsidize the costs.

If you’d like to be pointed in the direction of a certified lead specialist please contact me at patrickb@nextgenrealty.com

So what can you do about this? In short you can’t prevent it. Within reasonable notice – no, not 24 hour notice, unless specifically stated in your leasing paperwork – your apartment can be shown to other prospective tenants by the owner or agents working for the owner. There are a few things to do in order to help get your place rented fast and end the maddness.

1 – Keep the place clean. If it constantly looks like 60 people were over the night before and the floors are sticky, plates and dishes piled everywhere and dirty clothes smelling up the bedrooms from an over flowing closet then chances are your apartment will be shown for months and months and months. No one will see the potential you once saw in it. Even if you don’t mind living in a situation as described above – many others do and they won’t be able to get past it to judge the apartment for what it is.

2 – Unlock bedroom doors. Real estate agents are bonded and insured for a reason. No one is going to take your possessions while on a showing. If the rooms are locked the chances someone wants to take the apartment diminishes greatly. Would you sign a lease to live in a bedroom you never saw?

3 – Be courteous. While I fully understand we are coming into your living space on these showings an apartment will appeal to more people if the current tenants are friendly and inviting. No need to bake cookies for us but shutting the door to your room and turning the music up as loud as it can go is just awkward.

The fact is that because the overall sales are down it drives up demand in a rental market that is pushed to the brink often because Boston has an influx of collegiate renters that generally grows each year. Period. So if you are thinking the possibility exists to beat up the property owner on them paying a rental fee, taking a discounted rate . . . I am being honest with you: good luck.

I fundamentally disagree with what Ishay Grinberg of Rental Beast says in the article. Renters that rent far in advance have equally a slim chance of a good deal as those that rent later on. In fact I’d argue that as one gets closer to September 1st a property owner is far more likely to make a deal as time is ticking to secure a qualified tenant. However, to clarify, those that receive discounts are generally signing leases within 2 weeks or less of the September 1st deadline . . . anything before that and you shouldn’t expect a break. I do caution my clients to consider not waiting, especially if they find an apartment they could see themselves living in. The last thing you want to do is see the top 3-5 choices you have get rented because you are holding out for a deal. In fact if you have 3-5 choices you should be hugging your real estate agent.

If you are looking to work with a knowledgeable real estate professional who can show you the broadest range of apartments within your budget requirements don’t hesitate to give me a call or email. 617-840-9304 – patrickb@nextgenrealty.com

I think that if this goes through (and with the onslaught of BRA approvals recently one would think this is a show in) it is a stellar leap forward to what already has become a vibrant aspect to the city. If all holds true some of the apartments will be relatively affordable at between $1200 – $1500 a pop.

What is exciting about the potential in the Seaport District is that unlike other neighborhoods that add or improve already existing build outs – this is akin to gaining an entirely new neighborhood for people to live in and enjoy.

Brown notes that in his opinion there is a limit on how many “rich people” are around and can afford to live with the rising cost of renting apartments in Boston. Coupled with the construction that is occurring across the city Brown thinks that there is a good chance these apartments sit vacant as potential tenants move back home or double up in cheaper housing options.

Mr. Brown also realize that there is not strong support on Beacon Hill behind rent control as it would stifle the semi-boom of development that is occurring at the moment.

Taking a step back to analyze this: Brown’s fears are troublesome. Few people have been through more in the real estate development world in and around Boston than Harold. Thus, if he is fearing a return to rent control landlords better pay attention. How awful would it be if these giant new apartment complexes sit half empty with low vacancy rates for a few years and then the developers try to turn them into condos . . . . would it help as there is a dearth of inventory for sale throughout the city or add to mediocre sales figures by flooding the market and driving down prices?

I’m a firm believer that many younger professionals who would have been first time home buyers a decade or even 6 years ago are scared to purchase a property with the overall media analysis that the housing market is in a terrible slump. The voices of real estate professionals such as myself that scream about incredible interest rates and the importance of building equity for ones future seem to land on deaf ears. Because of this I am very bullish on the rental market for the foreseeable future.

However, is there enough renters to fill a gluttony of “luxury” style mid to high rise developments that charge $1200, $1300, even $1400 per bedroom? My gut tells me no – despite that collegiate rentals for new construction and new renovations move very quickly. The majority of the renting clientele who are past their academic days and supporting themselves on their own wallet tend to be looking for “deals” with in the smaller landlords who own and manage their own portfolios.

In short, it is of my opinion that you need to have a balanced approach to development and housing – never weighted in a single direction. Especially in a city as diverse and transitory as Boston is. As mentioned before I wouldn’t want to be the last developer in the ground on some of these new constructions projects . . . you never want to be last to the party. Better to be first in business.

So could we be headed back to an environment where rent control tries to resurface? Let me know what your thoughts are.

1 – When you meet with a LICENSED real estate agent they have to give you a fee disclosure form to sign. This is required by the license they have. It just states that there is a fee for RENTING and apartment – no matter whether the owner or the tenant is paying it. There is not a fee to look at apartments. If you are not presented with this form at the beginning of the showing I would be very suspicious of the agent. Ask them about the disclosure – it is there job to present this form

2 – Be prepared with the number of people you are going to live with. If you are going to live with 3 other roommates, and try to procure a 4 bedroom apartment, make sure everyone is on the same page with price point, location, and that all parents/co-signers know you are looking at places. The last thing you want to occur is find out after seeing 30 apartments over a week is that one member of the group can’t commit because his or her potential cosigner won’t let them live off campus

3 – Be prepared with a deposit. You don’t go to the mall without your wallet (although this might be a good practice) so don’t go shopping for an apartment without a check book. The fact is apartments in areas such as Symphony, Mission Hill, Allston, the North End, and Beacon Hill are being viewed by multiple groups everyday. Being able to place a deposit (on the spot) for your favorite apartment after you are done previewing a few places can be the difference between getting the apartment and not. Three hours later another group of potential tenants may have already placed a deposit with a different agency and you don’t even know it. I’ve seen this first hand MANY times.

4 – Be realistic. There is no such thing as the perfect apartment. Seriously consider if you could live in the apartment you are looking at and don’t dismiss a certain place based on carpet vs. hardwood floor or being a block or so further than your desired location. Trust me, everyone wants the spacious, fully renovated, multi-level property located 3 minutes from campus. Apartments such as that are gaudy in price point and rent within 24 hours of them being on the market . . . however, if you can think rationally about some apartments that you see that meet a few criteria of your mental list of desired features you may realize that the apartment you want to throw out automatically may indeed make a lot of sense.

5 – Don’t judge the apartment based on how the current tenants keep it. Look at the size and space of the apartment. Don’t get discouraged because certain tenants like to live with dishes piled high, uncleaned bathrooms, and clothes all over the floor. Try to imagine how you would keep the place, and what you would do with the apartment. This can be very difficult but if you can master this a lot of options will open up to you.

6 – Trust your real estate agent. If you don’t feel that they can be trusted then I’d suggest you find another one . . . fast. You can always call me at 617-840-9304

7 – Don’t keep searching for the needle in the haystack. If you want to live on a certain 1 square block section of a neighborhood and have a list of “must have” items that is 10 or more lines long AND you have seen 8 apartments on that block BUT don’t see what you are looking for then I will tell you it doesn’t exist. This is like praying for the genie to come out of the bottle. Time to expand your horizons or shrink the list. While you’ve been search for the perfect apartment ALL the other suitable places have been rented by groups that were more realistic and moved faster.

8 – Have fun. Remember you are only signing a 1 year lease (90% of the time in Boston this is the case). Cell phone contracts and car leases run far longer than 12 months. You are never trapped in a place and if for some reason you found an apartment late in the game one year realize that you can begin looking EARLY next time around and find a place that exceeds your expectations.

9 – Don’t be afraid to make an offer. Most of the time a low ball offer will not work. However, make it the right way and you may have a chance. Write out a deposit check and give it to your agent. Fill out applications and give it to your agent. Get cosigner forms to your real estate agent. Tell them to present it to the owner. Yes, you may get shot down but if presented in the correct format you may indeed have a chance to have the offer accepted. Verbal offers NEVER work.

From Mission Hill, to the Symphony neighborhood, Allston, Beacon Hill, the North End, and over into Central Square renters are already aggressively putting down deposits and signing leases. We are seeing an uptick in rental prices due to the tight market across the board thanks to sluggish sales figures (yes, this trickles down to student rentals).

If you are a landlord in the city of Boston or Cambridge and are looking for an analysis of what your property should fetch on the market – or if it has been years since you had an idea of what the market value is do not hesitate to reach out to me. I’d love to hear from you.

When I hear about this I think to myself “WOO HOO!!!!!!!”

Sometimes I feel that only the developers and I share this view. Boston.com is reporting local neighbors and even State Rep Byron Rushing are worried about the developer not having enough affordable units, the shadows the tower may cast, and whether Simon Property Group with give enough towards local art . . . . stop me when you have heard this story line before.

On this particular project and in our current economic climate I am taking the Al Davis approach with the real estate spin: Build Baby! Build!

Currently, we are seeing a vacancy rate from my offices data of 2.7% – this is with a database that has over 100,000 apartment listings and nearly 13,000 property owners. Last year at this time we were hovering around 5%. This translates into an incredibly high demand for apartments. Even currently units that are vacant seem to get snatched up in a week or less despite the fall being a traditionally slower time for apartment rentals.

I’m going to go out on a branch and say that we are going to see an increase in rent anywhere from 10 – 15% across the board in the more sought after locations. Obviously, many factors go into this from the world economy, the ability for renters to qualify for a mortgage, the unemployment rate, to enrollment numbers at the local colleges and down to the condition of a particular apartment. We might even see the cost of renting exceed to cost of buying in the next few years . . . . especially if the 3000 pound gorilla of foreclosures continues to be held up in the mystical land of the banks and never get sa chance to flush out.

Each year the time that which potential renters begin to look for a new apartment pushes back earlier and earlier. This year is no exception with a wave of renters already inquiring about apartments all over the city in all various bedroom sizes. If you are a landlord in Boston I’d advise discussing with your tenants, especially if they are currently in school, what their plans are. Even if you have a specific renewal notice date in the lease – many of them will already know they are moving next year based on dynamics with the roommates, a desire to live closer to school, a desire to move further away and find a cheaper apartment, or just upgrade to an apartment with more amenities such as in unit laundry or an update kitchen. If you have seniors it is almost a assured they will be moving on.

Bottom line is the sooner you can get your apartment to market the better. If you need help or want an analysis of what the price should/could be for your apartments do not hesitate to contact me directly at patrickb@nextgenrealty.com or 617-840-9304

Sorry, but if you get offended because a buyer tries to strike a hard bargain, please don’t come crying to me.

You may not like the offer, but to take it as a personal affront?

We are living in 2011, not 1811.

Frankly, here’s where I think some sellers desperately need a reality check.

First off, to get any offer is a good thing in this depressed market. And while you may not like the number that is on the table, you can always counter.

Or not, that’s fine. But don’t get all huffy and haughty, for the buyer is providing you, if nothing else, with some valuable market intelligence.

OK, maybe your house is truly worth more than what Mr. Overeager Lowballer is offering for it. But it may also be a warning sign the price you have set your heart on is dangerously out of touch with the current market reality.

Be nice and thank your would-be buyer for the offer – it may be the last one you’ll see until you’ve lowered your price four or five times.

The home you raised your children in or spent countless dollars renovating may be your baby, but to buyers, it’s just another house.

Get over it and start thinking like potential buyer.

In the end this is a business and Scott makes that painfully clear. There is no black or white. Yes, people get attached to their homes and that is completely understandable. However, the selling and buying process needs to be free of emotional triggers. When you approach the process with a business outlook and a clear mind it may help you sell the property faster.

In the last few weeks, three builders have started work on complexes that combined will bring more than 850 new apartments to the city over the next couple of years. On Monday, a fourth builder will announce plans to build 295 apartments on a vacant parcel in Chinatown.

Unlike some other real estate watchdogs in our fair city I don’t necessarily think that investors are over leveraging themselves on apartments the way they did on condo complexes a few short years ago. For what it is worth I think this will help to balance out the inventory selection to some degree. Here is hoping I’m not eating crow 5 years from now!

The Federal Reserve has asked Bank of America Corp. to show what measures it could take if business conditions worsen, the Wall Street Journal said, citing people familiar with the situation.

BofA executives recently responded to the unusual request from the Federal Reserve with a list of options that includes the issuance of a separate class of shares tied to the performance of its Merrill Lynch securities unit, the people told the paper.

Bank of America and the Fed declined to comment to the Journal. Both could not immediately be reached for comment by Reuters outside regular U.S. business hours.

I’m starting to get a sick to my stomach feeling about the banking industry in our country . . . again . . . much like way back 3 years ago. Is it true that some things just never changed?

September 1st came and went with a lot of commotion in Boston. I hope if you were part of the moving process things went smoothly. Considering all the issues that I have seen happen on move in day I know it is always best to stay rational . . . . although that rarely occurs.

Hopefully I can get back to writing more content now that the majority of my clients have moved in. What worries me now is that we are looking at a 2.5 percent vacancy rate. Most of the inventory left falls on the extremes. I can rent you a deluxe 2 bed on Broad Street in the financial District for $5000 a month or a 1 bed in Everett for $1250. If you are looking for a reasonable rental in other areas things are bleak. Let’s hope some of these new construction projects that are pegged as rentals finish on or ahead of schedule.

Banker and Tradesman has a nice run down of the new points:

What You Need To Know

Here’s a rundown of the essential points of new FHA regulations regarding apartment to condominium conversions, and how to ensure your building – or your clients’ buildings – meets FHA underwriting standards:

Reserve Studies
New guidelines require reserve studies on all conversion developments. Reserve studies are valid for a period of 2 years.

Repair Funds
Enough reserves must be held to cover any item potentially needing replacement within five years.

Pre-Sale Requirements
For conversions, 51 percent of units must be pre-sold before FHA will issue a mortgage. For new construction, 30 percent must be pre-sold in the first year, 50 percent thereafter.

Investor Concentration
Units rented to a state or city (e.g. rent-controlled or subsidized units) will no longer count as investor-owned.

Commercial Concentration
A waiver may be obtained to allow up 35 percent of the project to be commercially zoned, in an effort to attract more mixed-use development.

I see the biggest issue being the “reserve study”. The association is supposed to have enough in reserves to cover any potential problems that may arrive within 5 years. A conversion of a multi-family could have expenses that are floating near 6 figures. 2 more steps backwards in my humble opinion.

B&T reports that the reserve studies can cost from $5K to $25K alone depending on the size of the building. Gulp.

This is the new look of our government covering their risks as opposed to 2007 when lending was the financial equivalent of the wild wild west.

The developers behind the 184-unit Maxwell’s Green residential development in Somerville, Mass., said Wednesday that they had lined up financing for the $52.5 million project and hired a contractor.

Davis Square Partners, which is building Maxwell’s Green, is a joint venture of K.S.S. Realty Partners and Gate Residential Properties.

The financing was arranged by Bernkopf Goodman and Goodwin Proctor.

This is an incredible project for the City of Somerville and I am looking forward to seeing the finished product.

For example: in Brighton my database has a total of 248 apartments available for rent between now and 9/1/11. That figure includes 76 two bedroom apartments, 50 three bedroom apartments, and 54 four bedroom apartments.

Neighboring Allston does not fare better with 230 total apartments available. That number includes 54 two bedroom apartments, 50 three bedroom apartments, and 36 four bedroom abodes.

No way all of that inventory is consumed in the next 5 weeks.

Across town Mission Hill is sitting on 110 available properties for rent.

Sure, Charlestown, South Boston, Cambridge, Beacon Hill, Back Bay, and the likes are doing good to great. However, this is a tricky business to be in and location is a major factor. To the owners in Brighton, Allston, and Mission Hill I invite you to contact me directly for an analysis of what this agent feels your property needs to be priced in order to avoid vacancy.

If you’re a renter this news hurts. Coupled with the low vacancy rate and high demand for rental housing within the region apartment shopping is becoming cut throat.

I personally take out many clients that see units they like and then when the owner is contacted the apartment has already rented . . . usually within the same day. This should come as no shock to reader of this blog . . . . the rental market has been tight and rising for the last 2.5 months.

RENTERS: take your check book and jump on an apartment if you can visualize yourself living in it. The chances of something better coming along will never happen are slim.

The Ultra Luxury (no not luxury $1Mil condos. We are talking ULTRA LUXURY multi million dollar condos) market is doing swell. Condos that are priced $10 Million or more are moving well according to the article. Who would have known? While the majority of this country is still being weighted down from foreclosures, unemployment, and massive debt, $10 Million dollar plus condos in Boston are selling well. The price of luxury units is up nearly 14%. I hope I’m not the only one who is falling out of their chair reading this.

Clearly, as stated by luxury real estate titan Tracy Campion, those with cash were simply riding out the storm waiting for prices to settle to a point at which they were comfortable.

For those of us stuck in the reality of the regular real estate market I hope we begin to see an uptick that mirrors the luxury market soon. I’ll be holding my breath.

South Boston has 26 apartments available for September 1st.

Charlestown has 8 apartments available for September 1st.

Back Bay has 43 apartments available for September 1st.

Beacon Hill has 15 apartments available for September 1st.

Looks like the summer of me hanging out on the beach and not renting apartments is going to come true. This is not enough inventory for the September 1st rush.

That is great.

The scary part of the poll is that 45% think the government should be “doing more to improve the housing market”. Even more eye opening is that 53% also say the government should help those having trouble paying their mortgage with financial assistance. Generally when I hear about the government giving assistance I think that it is going to come out of the pockets of you, I, and every other citizens. The financial assistance doesn’t magically appear from the Ben Bernanke money tree.

I also find it comical that Obama can do no right. He is criticized for doing too much and too little depending on people’s viewpoint. If only I truly believed the President could actually affect the housing market . . . . that would be nice. . . . then at least someone would have the ability to help.

It is actually good food for thought. I think the tougher issue is trying to pin point when the right time to stop getting into the apartment development game is. Risk vs. Reward. One thing is for sure: don’t build cheap apartment with home depot Mickey Mouse style fixtures and furnishings . . . . people may rent them in the beginning when everything is shiny and new. . . . 10 years down the road do you really want to have to rehab half the building?

In Charlestown I have a total of 27 apartments for rent from now until September 1st. That includes studios, 1 beds, 2 beds, and 3 bed apartments.

In South Boston I have a total of 9 three bedroom apartments in my office’s database. Not to brag but it is the largest apartment database in New England.

File Under: Super tight rental market. Forget the idea of haggling asking price down. Good luck finding an apartment. If I don’t get more product I’m heading to the beach all summer.

Reportedly bids came in around $50 Million or about a quarter of what Vorando paid for the site. Many of the bids are only for a partial stake in the site from developers that either want to build a tower or just re-open the Filene’s, and others that want to turn it into a mixed use building with residences and stores.

Apparently Vorando may be second guessing it’s decision to try and sell. With the economy growing they may indeed just hold on and develop the site on their own.

Either way this is a mess. It is a mess that has gone on since 2006. And with the animosity between City Hall and Vorando I think things could get even messier if Vorando tries to develop the site on its own.

There are more than a few Boston agents that I know who could have filed this report about 6 months ago! Either way I’m glad Harvard has now sounded the alarm.

And unsurprisingly the rental housing is the one bright spot according to the report:

“Rental housing markets are tightening and may begin to lead a modest recovery in housing construction this year,”

Check out the article in today’s Boston Herald.

File under: bottoms up.

What does have the ability to be earth shattering is that, according to Bloomberg News, the rising cost of renting house stocks are helping to increase the risk of that dirty word known as inflation.

From January until October 2010, rents helped hold down overall inflation as the year-over-year change in shelter — mainly rents and what owners would receive if they rented their homes — was negative, according to data from the Bureau of Labor Statistics.

Then the component turned positive in November. Rental yields, or rents relative to home prices, will climb this year to the highest level in more than 20 years and remain elevated for as many as four years, predicts Paul Dales, senior U.S. economist in Toronto for Capital Economics Ltd.

“I’m sure it’s something the Fed is watching, but I wouldn’t be too surprised if they haven’t factored in such a rise,” Dales said. “It’s possible the Fed may be surprised there.”

At their April meeting, Fed officials projected core inflation for 2011 between 1.3 percent and 1.6 percent; their estimate for 2012 was 1.3 percent to 1.8 percent.

And again, for those thinking that this is still a market in which you will get a “steal” or can bargain down the rent: that trend is over.

The article highlights some interesting aspects of the problems that are faced by the police in responding to these properties and the goal of the new “Problem Property Task Force” seems well intentioned “. . .The idea is to identify a home or an apartment building that is dragging down a neighborhood before someone gets shot in the driveway.” However, what i find most interesting is what will affect the wallet of “problem property” owners and that is the enforcement. Apparently a problem property will be identified through a combination of police, inspectional service, and health department records.

Menino proposed fining landlords $300 each time police or other authorities are forced to return to the same address, after four visits in a year. Buildings where police are called more than eight times in a year could get billed $48 an hour for an officer to be stationed outside. Several city councilors proposed a similar ordinance, which would require landlords to obtain city licenses to rent apartments and would subject property owners to fines of $300 or more.

I’ll be interested to see where this issue goes . . .

GREEN TICKET LAW

The Green Ticket Law is now in effect – As of May 14th, 2010 any code violation tickets (including improper trash removal, snow removal, yard issues, etc) will be added to the owner of the properties Quarterly Tax Bills starting this DEC 2011 TAX BILL!!!

I just found this through a friend that manages quite a bit of multi-family units in Boston. Here is hoping your tenants bring there trash cans off the curb each week.

The only silver lining in the figures that are compiled from MLS is a 6.6% rise in the Median Condo sale price.

Looks like the home buyer tax credit was indeed just delaying the inevitable – aka – the market bottoming out. If this is not the bottom of the residential home/condo market then hold on to your seat.

While the President of MAR (Mass association of realtors) puts up the optimistic front that the low mortgage rates, cheap prices, and large inventory are “laying the ground work for real estate’s rebound” I find it hard to believe we are going to see a fast climb out of the hole. I think we have years to go before we can look back on sales figures and make a line graph that shows residential real estate rising on a substantial scale. I hear people talk about how developers are overbuilding apartment inventory (the next boom – bust) and many of them I have great respect for such as Scott Van Voorhis. But the collapse in the economy and housing was a serious shell shock. Has big business moved on? To a degree it has. So we see commercial developments getting into the ground and rolling ahead. In my mind that has little to do with people who are making the decision to purchase a piece of property for themselves. I tend to think this is a more fundamental shift in housing for the immediate future. And yes, that is my gut writing.

Here is a development that is set to change the skyline and feel of Mass Ave and Boylston street. The area is dominated by students from Berklee wheeling around upright basses and lugging guitars on their backs. As an alumni of the school I experienced the vibrant flair around that section of the Back Bay for many years.

Now the school is forging ahead with an aggressive plan to build a tower at the corner of Mass and Boylston and if one wasn’t enough there will be another just a block away on the site of what is now a McDonalds. The buildings, to be used as dorms, will be 290 and 192 feet tall respectively. They will dwarf the surrounding skyline.

If all goes according to plan the smaller tower will open in 2013 and the larger “crossroads” building as it has been dubbed will have construction beginning in 2015. The BRA has already given the green light for the smaller tower. According to Banker and Tradesman the task force debating the larger tower is concerned the potential shadows the building may cause on the commonwealth mall – a hefty 3 blocks away. While I’m a big fan of urban greem space and I enjoy to a large degree my time in the great outdoors I can’t help but chuckle when reading that.

Between Berklee’s plan, another plan to develop the air rights above the Mass Pike for BAC dorms, and the Christian Science Church pushing for 3 huge commercial towers on it’s iconic plot the skyline could be drastically changing in the next decade.

Interesting.

With the onslaught of close to, and, at some stations in the Boston area ABOVE $4 a gallon for gasoline is it rude if I put a tip jar in my car when I meet clients for showings? What if real estate agents started to run meters like cab drivers?

Maybe from now on we can meet at a property and walk the route. At least that way we can become intimately familiar with the neighborhood.

If you’ve got a rental property in and around one of the major universities or colleges in Boston the majority of the potential renters have either found places to live for next year or decided to stay on campus. I’d venture to say 85% of the undergraduate renters are gone. No, that percentage is not drawn from mounds of data that I pooled together. But I can tell you that the traffic on my offices websites had decreased 5 fold in the student markets and the numbers of leads in these location has dwindled.

My suggestion is that if you chased down the market by dropping prices slowly every month or so as everyone else around you had their units rented then this is now time to rethink your strategy. Most of the major management companies across the board are paying AT MINIMUM 1/2 of the brokers fee. The same management companies are paying FULL BROKERS FEE on units that are further away from the “T” or not as updated.

Does this mean every owner in the student areas of Boston needs to pay a brokers fee? No. However, it is critical information to know that these other major property owners are doing so. At the least you probably want to drop your asking price to below the competition. Most certainly if a deal is brought I would HIGHLY suggest that if the clients are half way decent to get’er done at all costs. Far too many property owners went vacant or took full baths on their rental units the past year by getting them rented at the 11th hour.

Here is a quick market snap shot of Allston:

108 three bedroom apartments are available for rent
142 two bedroom apartments are available for rent
83 four bedroom apartments are available for rent

So I was browsing through Banker and Tradesman and noticed that 33 Arch Street in downtown is rumored to be going up for sale.

While the asking price looks to be steep at potential upwards of $600 a square foot ($360 Million) the property is one of the few properties in the downtown market to come online over the past few years. I won’t pretend to know anyone interested in purchasing it or even speculate on who potential buyers might be. However, it will be interesting to see what the tower goes for and if it can spark some movement in what has been a dreary commercial market the last few years. The building is currently 14% vacant.

As always, if you are interested in making a run at the property I’d be more than happy to lend my services to help represent you.

The cost of homeownership in Boston, Los Angeles, Seattle, San Francisco, Portland and Oakland continues to be more expensive than renting . . . Boston ranked third with a rent-to-buy ratio of 19 in the second quarter. A price-to-rent ratio if 16-20 indicates the total costs of home ownership are greater than the costs of renting, but it might still make financial sense to buy depending on the situation, according to Trulia.

Ken Shuman, the head of communications at Trulia, still claims they are expecting a spike in home sales with the low purchase prices nationwide, still historically low interest rates, a plethora of foreclosures, etc, etc, ,etc . . . what else is he suppose to say? Trulia hardly touches the rental market.

The Dig – a weekly publication in and around Boston – has an interesting piece on Somerville Vs. Cambridge Real estate. The article has some great statistic on sales numbers, difference in property taxes, cost of living, and other aspects that should factor into any potentials buyers decision of where to live. It also went into detail on some investment property statistics.

No surprise that people are paying more of a premium to live in Cambridge and that is exacerbated within the piece. The ROI on current investment property is not at good as in Somerville either according to the following statements:

What’s interesting here is that the rent in Cambridge is about 30% higher on average than it is in Somerville, yet the price per unit* is nearly 40% higher in Cambridge. . . If you break down the cost per room, the percentages stay about the same. So even though there is a grand disparity in overall average price for each multi-family home, the ROI (annual income versus overall cost**) is better (by about 15%) in Somerville. That may reflect the higher risk involved in owning in Somerville versus Cambridge. . . a unit in Cambridge costs 40% more to purchase (in multi-family form) but only returns, on average 25% more than Somerville as a flip.

With that said the author has Somerville as the clear winner in terms of value, ROI, and even selection of product. While Cambridge continues as always to be white hot in demand these statistics raise eye brows for sure. Any thoughts?

For those wondering what you get for $15.6 Million the house was listed as having 15,000 square feet of living space, 6 bedrooms, a pool, tennis courts, roughly 7.75 acres of land, and parking for up to 20 cars. Sure, I’ll take two please.

A 15,000-square-foot Weston house has been purchased for $15.6 million, the most ever paid for a single-family home in the town and the most expensive single-family home sale in Greater Boston in nearly four years.

The custom-built home sits on 7.7 acres with views of the Blue Hills, according to a statement. The home consists of six bedrooms, 10 full bathrooms, eight fireplaces, a wine cellar, billiards room, landscaped gardens, a tennis court, pool and pool house.

The home, located at 75 Doublet Hill Road, was purchased by 75 Doublet Hill Road RT and Stephen V. Kenney from Mark and Diane Goldman. Paige Yates of Coldwell Banker Residential Brokerage in New England represented the seller and Rosemary McCready, also of Coldwell Banker, represented the buyer in the transaction.

The Goldmans purchased the Weston home in 1996 for $1.7 million, according to records obtained by The Warren Group, publisher of Banker & Tradesman. The property was last assessed for $9.4 million.

“This notable sale is a … sign that confidence in the luxury real estate market is stronger,” said Jeff Morgenstern, sales manager of the Coldwell Banker’s Weston office.

According to Banker and Tradesman Mike Lowell, former Red Sox World Series MVP, just sold his luxury condo at the Ritz Towers for $1.75 Million. It has been on the market for 461. Yes that is 461 days.

For those of you that don’t have over a year to let your Boston condo sit on the market may I suggest – HOLD ON TO YOUR SEAT – reducing the price. The condo market is currently saturated with a gluttony of listings in both Boston and it’s surrounding cities. In the Back Bay, Beacon Hill, Bay Village, Charlestown, the South End, North End, and South Boston there are 227 two bedroom condos for sale under $500K according to the Multiple Listing Service. Increase the price? 201 is the count of two bedroom condos in the same locations from $500K to $1 Million in asking price.

File under: Start the search for qualified renters.

Great article from boston.com about how both Wells Fargo and Bank of America are 2 of the top delinquent property owners in the city of Boston with fines of more than $80K owed to inspectional services for letting many of the forecolsed properties they own to fall into disrepair and become a “blight” to the neighborhoods.

BUT HARK – the banks question why they are being fined after taking back these properties. The banks are not even sure if they OWN some of the properties as they state that they may be “servicing a foreclosure for another bank, or acting as a trustee for a giant pension fund that holds the mortgage.” To me it sounds like a lot of BS finger pointing and back tracking.

Good luck to inspectional services on collecting these fines.