Buying a Home

An Insider’s Guide to the Boston Luxury Real Estate Market

A behind-the-scenes look at new real estate in one of America’s oldest cities.

By Geoff Nudelman

December 31, 2018

It’s an increasingly familiar scene: hundreds of young professionals mill about a farm-to-table lunch, a hip workout gear shop, or a SoulCycle spin class.

Across America, this is a common snapshot in newer cities where affluent 20- and 30-somethings are starting fresh in more affordable secondary markets.

But this particular scene isn’t happening somewhere new. It’s happening in one of the oldest cities in America: Boston.

While the traditional neighborhoods of Beacon Hill and Back Bay are still alive and well, the growth of Boston’s luxury offerings are front and center in Seaport–a neighborhood that was literally underwater until the late 1800s and is now thriving as an example of the future of American living.

“It’s truly an iconic location,” says Janice Dumont, CEO of Advisors Living, speaking about the site of new building Pier 4–a dramatic, curved, 106-unit enclave tucked behind the Museum of Contemporary Art on Seaport’s northern side.

Pier 4’s modern architecture (designed by renowned firm SHoP), full-service amenities, and integrated waterfront living are drawing buyers from far and wide to the urban environment. (Some are paying as much as $4,200 per square foot for penthouses.)

“[Based on all on of this], Seaport has created a new destination within the city,” Dumont says.

As much as a skyline dotted with cranes and construction is dizzying in Seaport, the center of traditional Boston luxury still resides in the #5 neighborhood of our Top 10 Priciest Neighborhoods in America: Beacon Hill.

“It’s a real village and a tight-knit community,” says Manuel Davis, senior vice president of Advisors Living and the exclusive listing agent at the Archer Residences, Beacon Hill.

The full-service, seven-story building (half of which was the original Suffolk University Law School) underscores the immense work and effort required to restore and modernize a piece of living history–and how attractive that proposition is to luxury buyers.

What started as 75 residences of varying sizes has been condensed to 61 condos due to buyer requests, many averaging above $5 million. (Davis could not give specific sales figures, but noted that they have been “robust.” The building will be completed towards the end of 2019.) The Archer Residences had to work with several historical commissions to carefully restore the combined building, retaining Beacon Hill’s trademark charm and style along the way.

Coupled with extremely limited inventory in single-family homes, Beacon Hill stands to remain an epicenter of Boston luxury for some time to come.

Just across Boston Common, the Four Seasons Boston Hotel and Residences remains another mark of traditional Boston affluence. Built in 1983, the residential side of the building has long been home to some of the city’s wealthiest people with a location overlooking the park and one of the earliest examples of modern, full-service amenity living in the area. Since its opening, residences have rarely traded on the market and haven’t been available for long.

The success of the original property spurred Four Seasons to build a large new residential/hotel hybrid tower just a mile-and-a-half away at One Dalton.

“It’s in a class all its own,” says Michael Carucci, executive vice president at Gibson Sotheby’s, which is the exclusive listing agent for the 61-floor project.

While he can’t reveal sales numbers, he did say that the building is 75 percent sold with “sales at a record pace compared to other Four Seasons projects around the world, and at price premiums above the Boston market that are higher than most price premiums achieved by other comparable projects in their respective markets.”

“Boston is becoming such a global destination [for the ultra-wealthy]. A lot of us were wondering: What took so long?” he says.

Opening in spring 2019, One Dalton will bring 160 condos perched above the new hotel, which marks a decided shift in the local luxury market. Three separate floors are earmarked as dedicated amenity spaces, with several floors at the top of the building reserved for unfinished penthouses. Pricing will range from $2.5 million to over $40 million.

Carucci noted that luxury buyers across the entire spectrum–not just the younger set–are looking for all-in-one, live/work/play lifestyles, drawing them to buildings in places like Back Bay and Seaport that are close to major commercial centers.

“There’s no longer an appetite for commuting,” he says. “It’s very important to people to not to sit in traffic anymore.”

Perhaps therein lies much of this newfound attraction to Boston: it’s a highly walkable city. End-to-end isn’t much more than an hour at a strolling pace, and many of these newer projects are taking advantage of the old “location, location, location” adage.

Boston’s next major neighborhood renewal, Lovejoy Wharf, takes advantage of its waterfront location. While Related Beal has already opened a 15-story, 157-unit building right next to the relocated Converse HQ (and complete with an Instagrammable restaurant facing the water), that’s just the tip of iceberg.

This largely quiet residential area sits next to TD Garden and a major transit hub, and as it stands could be Boston’s next micro-hotspot.

“The evolution has been really interesting,” says the Codman Company (TCC) managing director Sue Hawkes (TCC works with several residential properties throughout Boston). “It’s been a niche area that was formerly cut off by some of Boston’s man-made boundaries.”

Besides shoes and brunch, the Hub on Causeway is bringing a major mixed-use development–complete with Boston’s largest supermarket–to a site across the street from the sports arena. The planned residential and office components are aimed at attracting tech and advertising workers–the ones that can afford luxury properties and the required amenities of 21st century living. (Verizon has already pre-leased a significant chunk of the building’s available office space.)

However, all of this new inventory coming online may present new challenges for a city that has traditionally had a tight luxury housing market.

“The developers are going to have to deliver a really good product,” Carucci says, “because over the next couple of years there will be fierce competition for buyers. There’s no question about that.”

Home Sales Rising Throughout Massachusetts

home sales

Home sales in Massachusetts were up in August after a drop off in July, according to data from The Warren Group.

Compared to 2015, home sales in August were up 9.8% and the median home price was $364,900, 1.6% increase from last year. Condo sales saw an increase as well, 14.7% more than last August.

July was the only month this year that saw a decrease, 12.5% down from last year. The dip represents the tightening real estate market.

This year was the biggest August for sales since 1999 and the highest median price that month since 2005.

Residential real estate has been doing well this year in Massachusetts, which is good for both buyers and sellers.

Single-family home sales have seen an increase of 14.2% since last year and condo sales are up 8.6%.

At the same time, the average number of homes for sale continue to decrease and this month marks the 55th straight month of decreased inventory.

While prices rise there is a desperate need for more inventory to keep people on the market.

Contact our advisors for more advice on buying or selling a home. 

Building Boom Brings More Condos to Boston

Boston Building Boom

Boston’s building boom is bringing a huge amount of new development focused more on condos than apartments, something that has seriously shifted in the last five years.

So far this year, condos make up the majority of the over 4,000 housing units that have been requested by developers, according to the Boston Globe.

These statistics emphasize that the rental market in the city has begun to soften as demand for homeownership grows.

There is a growing demand for condos in the city, both in the form of the high-end high rises and more moderately priced options in upcoming areas.

Developments in West Roxbury, South Boston and Allston have all been approved or begun construction throughout the beginning of this year.

City officials are working to create one of the biggest bursts in construction that the city has ever seen and more than 10,000 units of housing have been added since 2011.

The goal is to add 53,000 housing units throughout the city by 2030.

With the focus shift to condo buildings, rents are falling in existing buildings in popular neighborhoods such as Fenway, South End and downtown.

The new developments throughout the beginning of the year were largely focused on the most central neighborhoods, but a large amount of new housing will be focused on outlying neighborhoods.

With these trends, experts are expecting housing prices to begin to level off.

Contact our advisors for more expert advice on buying your new home in Boston. 

Mass Home Prices Rise as Inventory Decreases

Home prices blog

Home prices throughout the state continued to rise in July, but the number of actual home sales has decreased for the first time this year.

New figures by The Warren Group show that buying a house is not an easy feat. The median price of a single-family home in Massachusetts has climbed 2.7% in July, to $369,000 and condos have climbed 3.7% to $350,000.

Despite this increase in price, the numbers of homes sold during the month fell by 12.5%, with fewer property owners listing their homes for sale.

Other reports have supported these claims, with a report by the Massachusetts Association of Realtors showing that the number of single-family homes listed for sale this July was down 29% compared to the same time last year.

This decline in inventory of available properties has been going on for 54 straight months according to the reports.

Due to a decrease in inventory, buyers are seeing an increase in prices and intense competition with homes selling at a much faster rate.

Without a boost in supply this trend is suspected to continue throughout the end of the summer.

Need help selling or buying a home? Contact our advisors for expert advice and exclusive listings. 

Breakdown of the Fastest Selling Boston Neighborhoods

Roxbury

The speed of the current housing market is no secret, but depending on what neighborhood you’re buying or selling in, this speed can vary.

NeighborhoodX has put out a report looking at the speed at which condos in various Boston neighborhoods have sold.

By analyzing transactions from various Boston neighborhoods in the month of July and looking at data from the number of days condos were on the market, they were able to create a list of the fastest-selling neighborhoods.

The final list ranges from 24 days on the market to 69 days, Brighton, Allston and Dorchester tied for being the shortest and Back Bay being the longest.

Right in the middle were Jamaica Plain and Beacon Hill with an average of 39 and 41 days on the market.

Price also played an important factor in this analysis. The neighborhoods where condos spent the fewest days on the market had an average price of $450,000. The average selling price in Back Bay where the average days on the market were the longest, was $1.7 million.

View current available listings by neighborhood here or contact our advisors for advice about the current market. 

View the full breakdown below:

Boston neighborhoods condo breakdown

Credit: NeighborhoodX

High Home Sales Compete With Low Inventory

Fort Point Housing Construction

Home sales are at a high so far this year, but this doesn’t mean that buying a home has gotten any easier.

Houses are being sold at the fastest rate since 2007, making buyers work extra hard to get a house under contract, according to Realtor.com.

The biggest challenge that has come along with this is a low inventory of available homes, which takes away from making more sales.

Buyers are having trouble finding a home that that met their needs and buyers are reporting similar issues.

This doesn’t come as a surprise, with 13% more people looking to buy a home this summer and 5% fewer homes actually available for sale.

The low level of inventory combined with the speed that homes are being sold and high prices all contribute to becoming a seller’s market.

However, this doesn’t mean it is easy for sellers. The biggest issue sellers are facing is time.

As more owners decide to sell their homes and prices recover and mortgage rates remain low, this process will be slightly easier.

The other main problem for potential sellers is finding a home to purchase. Most sellers aren’t willing to risk selling their home without already having a new one under contract first.

Remodeling and home improvement projects also slow down the selling process, even as this area of the industry has been seeing a boom.

The average peak for sales is typically June or July, however with the combination of low mortgage rates, strong demand and an increasing number of buyers and sellers, this may extend the peak.

If you’re thinking about buying then now is the time to begin the process. We provide services for buyers and sellers.

Contact our advisors today for expert advice in buying or selling your home. 

Massachusetts Public Schools Best in Country

Boston Public Schools Blog

Good news for Massachusetts residents, especially those with children, public schools throughout the state have been ranked the best in the country.

Massachusetts tops the ranks by WalletHub, analyzing a number of different factors including test scores, teacher to student ratios and dropout rates.

View the ranking of each state by clicking on the map below:

Source: WalletHub

Massachusetts was followed closely behind by a few other New England states, including Connecticut, Vermont, New Hampshire and Maine, all in the top 10.

Across the specific rankings Massachusetts was ranked number one for the highest math test scores, highest reading test scores, number two for the highest average ACT scores and number two for the safest schools.

When searching for your new home as a family it is important to consider the quality of the school district and public schools throughout the area you are moving into.

Our advisors can provide guidance on finding a new home that suits all of your families’ needs.

Contact us today to begin your home search. 

Massachusetts Home Prices Reach Record Peak

Beacon Hill

Massachusetts home prices are hitting record breaking peaks, according to a report by The Warren Group.

The median sale price for a single family home in Massachusetts reached $372,000 in June, which is up 1.9% year-over-year and at a record breaking level.

According to the report this is the highest monthly median in history, beating out the record high from 2005 of $370,000.

Condo prices are also on the rise, with a record median of $345,000 which is up 4.5% from last year.

Even with the record high prices the summer months remain the strongest for closings and aren’t expected to slow.

A total of 7,387 single-family homes sold in June, which is up 14.9% from last year.

While these statistics on Massachusetts home prices are positive for sellers, they leave buyers looking at a stronger competition and a fast moving market.

This also means that buyers looking for a more expensive home will have more luck than those looking for cheaper or entry-level homes.

Contact our advisors for more information about buying or selling property and the current Massachusetts market. 

Prices of Greater Boston Homes Are Rising

Greater Boston Suburbs

Home prices are rising throughout the towns that make up Greater Boston, which is good news for homeowners, but bad news for buyers.

Towns including Marlborough, Revere, Weymouth and more have seen their median home prices rise about $300,000, according to Boston.com.

Woburn and Braintree, which have often been seen as more affordable locations have now seen their median prices go further into the $300,000’s or even $400,000.

As the housing market makes it even harder for middle-class buyers in these towns, homeowners looking to sell their houses aren’t complaining about the increase.

This rise in Greater Boston means that suburbs that were often seen as cheaper options are now catching up with the rest of the Boston area prices.

In Marlborough, home values have risen 16%, with the median house price at $331,000, according to statistics by The Warren Group.

Weymouth has also seen a 12% rise, to $333,625 as the median home price.

Inner suburbs such as Revere are seeing the same shift, with an 18% increase to $335,000.

Buyers are moving out to these further suburbs as alternatives from more expensive zip codes, however that is pushing the price increase.

To view listings in these areas click here.

Boston Puts Millions into Improving Street Safety

Biking Safety in Boston

Boston is getting millions of dollars in funding to improve pedestrian and cyclist safety, which is great news especially as the weather warms up.

Many residents rely on cycling or walking for their commute no matter what neighborhood they live in. Even though Boston has been rated one of the top cities in the country for walkability, a lot still needs to be done to ensure the safety of everyone at busier locations.

VisionZero is a program that has been implemented to improve safety for cyclists and pedestrians and it just got a big boost in the 2017 budget.

Following a fatal collision last summer at the intersection of Massachusetts Avenue and Beacon Street, the program is looking to redesign the cities’ most dangerous intersections to make them safer.

The four areas that will be prioritized this year include: Massachusetts Avenue, the Talbot-Norfolk Triangle in Dorchester, the area around the Orange Line’s Stony Brooke Station in Jamaica Plain and Harvard Avenue.

These areas have been selected first after three years of crash and speeding data was analyzed.

The City Council has approved a $9.3 million budget over the next three years to improve these and other similar areas that have seen frequent collisions or speeding.

The improvements include creating more crosswalks, wider sidewalks, speed bumps, new bicycle lanes and redesigning traffic signal patterns. These changes will be made without interrupting parking areas and will be adjusted for all modes of travel.

How safe do you feel on your commute? Let us know what areas you’re looking forward to seeing improved!