Brookline & Back Bay Investment Markets Soar

The investment markets in Brookline and the Back Bay have long been known as among the strongest in the state, but in recent months, with the sale of properties from 2-3 family homes on Browne, Harrison and, about to go under agreement (still time for offers!) Stedman in the heart of Coolidge Corners, to larger 20+ unit buildings on Summit Ave and several others that are currently under agreement, we are seeing bidding wars market-wide.

I'm currently working on a 9-unit, 5,000 sf brick building in the Back Bay (picture above - call me at 617-593-5685 for details pre-marketing), about to come on for $3 Million and, with projected net income around $145-$155K, priced well for a quick sale at about a 5 cap, while I'm representing the sellers of some Coolidge Corner multi-fams that, as $1.395 to $1.488 Million are offering projected 6.5 to near 7% cap returns (exceptional in this tight market).

We've seen other buildings trading as low as 4.5 or even 4 caps and, in a reverse of a trend from a few years ago, being bought as long-term rentals rather than quick condo conversions (despite, or perhaps because of the the strong condo market, we are seeing rents increasing and, as several local agents have told me this week, vacancy rates, especially in Brookline and nearby parts of Boston, hovering the very low single digits - as many landlords tell me - "we're 100% full at historic high rents.")  With the chance to lock in mortgage rates at today's low's, we're seeing investors coming up with strong 30-50% down payments and acquiring property in these high value, "gold-quality" locations - the flight to quality in today's market is strong.

(Note: As a Vice President at Coldwell Banker Residential Brokerage, and affiliated with Coldwell Banker Commercial NRT, I specialize in helping buyers and sellers of investment properties throughout Greater Boston and can be reached at 617-593-5685 or todd.glaskin@gmail.com with any questions).

Should your home be on the market over the holidays?

This is one of the most frequently asked questions to real estate brokers.  A home is listed and still on the market as November arrives.  The leaves are gone from the trees, we set the clocks back and wake up to 35 degrees and sleet (sound familiar) and homeowners ask - should we take our house off the market and put in back in the "Spring" (I'll blog soon about when the spring market REALLY starts in Boston - a lot earlier than most think).

Having buyers coming into your home when there's snow on the ground, or your holiday decorations are up, or you have guests staying to visit, or you're cooking Thanksgiving dinner . . . OK, it doesn't sound like much fun either and the temptation is totally understood to just withdraw the house from the market (and talk to your agent about doing this, and whether it still accumulates the all important "Days on the Market" while it's withdrawn).  

That said, there are still a LOT of buyers in the market even now in the second week of November.  Our office tracks open house attendance for our sellers to keep them up-to-date on market trends, and yesterday's open houses (Sun. November 7 - rather gloomy weather) saw overall strong turnouts - actually more attendees on average than the previous week.  The interest rate climate remains incredibly strong, and if we start to see an uptick that looks like it more than a market fluctuation (i.e. rates rise and look like they're going to stay trending that way), even more buyers will likely enter the market or make offers to seize the rate.

Also, as other people take their homes off the market, your competition decreases, letting your home stand out more (as compared to a mid-April market when buyers have to cram 30 open houses into two hours).  Your home may also have decorations, working fireplaces, radiant heat, or other features that make it especially appealing over the winter.

As will all decisions, your home, your location, your circumstances and your market will greatly influence your decision - but don't just take your home off the market - you may miss out on the "perfect" ready buyer.