The Fall Real Estate MarketOctober 3, 2015
Boston luxury real estate buyers were hoping that prices would adjust accordingly based on the increased inventory in the fall and the flood of new properties. So far the opposite is true.
We are seeing high Boston luxury home prices across the board in all different neighborhoods. Luxury units in high-end buildings that commanded $1500+ per square foot are now considered the new normal average price, even in older buildings that need a facelift. The high profile luxury towers, we are seeing prices as high as $3000/ft. Even though units maybe completely renovated and beautiful, the building and its location have a big impact on value and pricing.
It makes a big difference to pay for a renovated unit in a renovated building as opposed to a Boston luxury home in an older building. Renovated units in renovated buildings or new construction buildings hold their prices on resale. Common areas, general condition of buildings and lobbies of buildings make a big impression, as do units, when potential Boston luxury real estate buyers first enter them. Services and amenities offered in buildings are also factored in. This is something that both sellers and buyers have to be aware of when they price their property.
Unfortunately, due to the strong market, some sellers want to bank on the market and demand top dollar for their property. Buyers, desperate to buy, fall into the frenzy. Needless to say that historically, looking at the real estate cycle, the prices do hold up (unless the market crashes and goes back up again). However, buying and selling Boston luxury real estate should not be emotional, but rational.