Boston's Back Bay "On Fire"

The Boston Metro had asked me to comment on the latest activity in the Back Bay, based on the notion that it has been "hot". Well, it has. According to MLS, in the first quarter of 2009, there were 38 condo sales in the Back Bay. As of today (with 2 weeks left of sales to go in the first quarter), there are 73 condo sales (the article states 69 condo sales, because the data was gathered a few days ago). Of that 73, 17 sales have been at The Clarendon, Boston's first luxury high-rise condo building. This is a huge factor because last year, the luxury market was sluggish. I believe it is not directly due to better "deals" in luxury land, however, buyers have a better grip on how they view real estate as an investment and what they are willing to spend for a home. Looks to me like consumers are saying that Back Bay is considered a wise investment. Here's the article:



Boston real estate brokers are saying the Back Bay market is “on fire,” with 69 sales since January with an average price of $1.4 million. “Many buyers feel the recession is ancient history,” says John Ford, owner of Ford Realty on Charles and Tremont streets. “Last year at this time, peoples’ investment portfolios were losing money. They’ve gained the losses from 2009. Now they are using their recouped losses, and have more confidence in purchasing luxury condos.”

During the same time period last year, only 29 units sold in the Back Bay area with an average sale price of $1.3 million. The high-end market in Back Bay was also driven up by two luxury properties that just received occupancy permits — the W Residences and The Clarendon, both on Stuart Street.

Many of these condos were put under agreement in ’08 and ’09, but closings on about 28 units occurred this quarter.

There are currently 42 properties under agreement in Back Bay with 26 valued at $800,000 or more, and 21 at $1 million or more, according to Multiple Listings Service.

“Activity in the entire Boston market has really picked up and the momentum in Back Bay is excellent right now,” says Paul Santucci, a broker with Boston Realty Advisors. “Although there are hotter neighborhoods in Boston at the moment, the Back Bay still embodies the characteristic of luxury and perfect Boston location, continuing to attract buyers.”

For more information on Back Bay home sales and data, contact me at: 617-694-0004 or PSantucci@bradvisors.com