Columbus Center Project moving forward
April 14, 2008 | Filed Under Real Estate News, Commercial Real Estate, Boston Condos, Boston Luxury Developments, Boston Real Estate | Leave a Comment
The 1.3 million-square-foot mixed-use development to be built above the Mass Turnpike seems to be pushing forward. Despite financial setbacks, Columbus Center’s developer said the $800 million project is still alive and well.”We have no intention of abandoning it,” Roger Cassin, managing partner of WinnDevelopment, told Banker & Tradesman in an interview.
The Columbus Center Project will consist of 443 Condominiums, a 162-room hotel, three parks and 39,400 square feet of retail space. The project will stradle the Back Bay, South End and Bay Village neighborhoods of Boston. Other new developments in the area are 285 Columbus Lofts and The Clarendon.
Some Housing Markets Show Improvement: Report
April 5, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Boston Real Estate | Leave a Comment
While most U.S. cities posted home price declines in January compared to a year ago, some markets are faring better, according to the latest housing market report by Radar Logic, a real estate data and analytics company. Of the 25 Metropolitan Statistical Areas (MSAs) examined, only two cities — Charlotte, N.C. and New York City — showed year-over-year appreciation with 3.9 percent and 2.0 percent, respectively. Milwaukee and Philadelphia posted virtually no change for the year, while Seattle (-1.4 percent) showed year-over-year depreciation for the first time. While 21 of the 25 MSAs showed declines compared to a year ago, nine posted returns above or equal to those recorded in December 2007.
The MSAs with the largest year-over-year depreciation in January were markets that experienced high appreciation rates during the housing boom: Sacramento, Calif. (-27.8 percent); Las Vegas (-25.4 percent); San Diego (-21.2 percent); Los Angeles (-16.6 percent); and Tampa, Fla. (-15.6 percent).
The study also showed that many MSAs posted impressive appreciation rates compared to five years ago. Leading cities were Miami (10.4 percent); Seattle (9.4 percent); Washington D.C. (9.1 percent); New York (9.0 percent); and Los Angeles (8.6 percent).
According to the report, Boston is now among the trailing metro areas.
Luxurious Belvedere condo is available for purchase
March 23, 2008 | Filed Under Boston Lifestyle, Boston Condos, Boston Luxury Developments, Boston Real Estate | 1 Comment
Unit 10B at The Belvedere, Back Bay is available for purchase. This magnificent 3000+ square feet, 3 bedroom, 3 and a half bathroom , 10th floor condo offers amazing views of symphony and the Christian Science Museum.
The Belvedere, located on 100 Belvidere Street in the Back Bay, is a boutique luxury development that offers concierge services, doorman, garage with valet and self parking, private library with continental breakfast by the on site chef Laurie Waters, roof terrace and a private dinning room & kitchen. The Belvedere has an exclusive and private entrance to the Prudential mall.
3 Bedrooms, 3.5 Bathrooms, 3083 square feet, 2 deeded garage parking spaces, all available at $3,795,000.
Listed with Brigitte LaBonte of Coldwell Banker.
New Luxury Rental Available On The Waterfront
March 19, 2008 | Filed Under Boston Lifestyle, Boston Condos, Boston Luxury Developments, Boston Real Estate | Leave a Comment
The Boston luxury rental market is heating up and the best properties are going fast. This stunning two bedroom two bathroom penthouse at the new 5 Star luxury Battery Wharf Residences will be offered for lease starting May 1st for $9200 unfurnished. The unit can also be furnished for an additional fee. Enjoy sparkling water views from every window as well as the expansive terrace. Tennants will receive world class services from the Regent Hotel and Spa and top-of-the-line finishes.
For more Boston Luxury Apartments, Click Here.
Fed cuts rates by 3/4 of a point
March 18, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Real Estate Investment, Mortgage and Finance, Boston Real Estate | Leave a Comment
The Fed threw in a change-up today, instead of its usual fastball. While the Fed funds futures market was pricing in a 94 percent probability of a 100 basis point cut today, the FOMC instead settled on a less aggressive 75 basis point cut in the Fed funds rate. Today’s action brings the Fed Funds target rate down to 2.25 percent, three percentage points lower than where it was last August. The real Fed funds rate, which adjusts for current inflation, is at a negative 1.75 percent — a highly accommodative monetary policy stance. The Fed concurrently cut the discount rate 75 basis points, bringing that borrowing rate down to 2.5 percent.
The Fed wanted to remind the market today that they are in charge of monetary policy and not the Fed funds futures market. The Fed is subtly trying to reassert itself and disabuse the markets that whatever it asks for it gets.
It is also clear that there is increasing concern among some on the FOMC that free-wheeling rate cuts are creating a significant problem with the Fed goal of anchoring inflation expectations. There were two votes against. Both Plosser and Fisher wanted less aggressive action. Every time the Fed cuts rates the U.S. dollar takes it on the chin, threatening higher import and price inflation. Moreover, record oil and gold prices seem at odds with a deflationary spiral scenario that would warrant a one-percentage point or lower Fed funds rate.
The Fed is hoping that its efforts to restore market liquidity and ease the credit crunch through more direct measures such as the TAF, TSLF and Discount window will mitigate the need for the Fed to continue to pull its most powerful, but bluntest monetary policy leaver, the Fed funds target rate.
Bottom-line: the Fed is still open to further rate cuts if the economic and credit outlook continues to deteriorate, but we are much closer to an end point on Fed easing than we were at the start of the year. We expect the Fed to cut again in April, bringing the Fed funds target rate to 2.0 percent, though beyond that there will need to be more signs that the economic and financial downturn is still intensifying and that unemployment is rising rapidly.
How Bad Is The Housing Market ‘Crisis?’
March 8, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Boston Real Estate | 4 Comments
It seems no one can avoid the negative news surrounding the real estate industry. But is the housing market really as bad as people think?
After analyzing recent foreclosure numbers from RealtyTrac and information from various government agencies, Bankrate.com and MSN Money personal finance columnist Scott Burns both conclude that the data offers some reassuring news. The national foreclosure rate did climb 79 percent between December 2006 and December 2007, with foreclosures affecting 1.2 million properties last year. But that’s less than 1 percent of all U.S. households, which number approximately 128 million, Bankrate.com reports.
Burns notes that in the top 100 housing markets, the foreclosure rate is slightly higher at 1.38 percent. But if you rank-ordered the top 100 housing markets, only 34 had foreclosure rates above the group average and 51 areas had rates of 1 percent or less.
Some analysts have warned that the number of adjustable-rate mortgages (ARMs) that are scheduled to reset this year or next year could have a big impact on the overall housing market. Bankrate.com reports that the problem will not be widespread. Approximately 1.3 million of the 3.7 million prime ARMs (35 percent) and 2 million of the 2.1 million subprime ARMs (92 percent) are scheduled to reset this year or next year. But the total number of ARM resets amounts to only 3.3 million loans, affecting just 2.6 percent of U.S. households.
In our 2007 Year End Boston Real Estate Market Report we saw a value increase in the Boston market, especially in Boston’s prime neighborhoods Back Bay, Beacon Hill, South End and Downtown.
Commercial Brokerage Business Flattens in Fourth Quarter
February 21, 2008 | Filed Under Commercial Real Estate, Boston Real Estate | Leave a Comment
The fourth quarter of last year was a telling quarter for the commercial real estate brokerage industry. While major brokerage firms reported record revenues and healthy net income last year, results dropped off sharply in the fourth quarter reflecting a weakening commercial real estate environment. The latest quarter results are also a sign of what is to come this year.
CB Richard Ellis Group Inc. reported full year 2007 revenue rose 49.7% to $6 billion. The company reported net income of $390.5 million compared to net income of $318.6 million in 2006. However, fourth quarter revenue was just 30.4% compared to the year earlier and net income was less in the fourth quarter of 2007 compared to a year earlier.
Jones Lang LaSalle Inc. reported record net income of $256 million for the year, an increase of 46% over 2006. Revenue for the full year 2007 was $2.7 billion, an increase of 32% from the prior year. Fourth quarter net income increased just 30% from a year earlier and revenue only 22% from 2006.
Both firms are world powerhouses, but it is clear from where the slowdown is coming. For Jones Lang LaSalle, revenue in the Americas region for the full year 2007 was $765 million, an increase of 23% over the prior year, but fourth quarter revenue increased just 11%.
For CB Richard Ellis, sales in the Americas increased by 7% for the full year but decreased by 14% for the fourth quarter. As for leasing, for the full year leasing activity increased 3% but fourth quarter was flat.
Executives from the two companies added color to the numbers and provided their outlooks for the coming year in their quarterly conference calls following the release of the results this month.
Source: Co-Star
Q4 Home Sales, Prices Fall, But 73 Cities Post Gains
February 16, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Boston Condos, Boston Real Estate | Leave a Comment
Sales of existing single-family homes and condos fell 20.9 percent during the fourth quarter of 2007, to a seasonally adjusted annual rate of 4.96 million units compared to a year ago, according to NAR. The national median sale price of an existing single-family home was $206,200 in the fourth quarter, down 5.8 percent from the previous year when the median price was $219,000. Median sale prices fell in the fourth quarter in all four U.S. regions, with declines of 3.2 percent in the Midwest; 4.8 percent in the Northeast; 5.4 percent in the South; and 8.7 percent in the West.
Still, of the 150 metro areas covered in NAR’s survey, 73 showed price gains, including 11 with double-digit increases. Seventy-seven had price declines, including 16 with double-digit drops.
Boston, according to the “Median Sales Price for Existing Condos - Coops Homes for Metropolitan Areas” survey, increased 2.4% from last year. San Fransisco increased 2.7%, Providence increased 3.6% and Chicago increased 6.4%. New York decreased 2.9%, Miami decreased 6%, Los Angeles decreased 9.7% and Las Vegas decreased 10.3%.
Source: NAR
Luxury in Cambridge at One First
February 15, 2008 | Filed Under Boston Lifestyle, Boston Condos, Boston Luxury Developments, Boston Real Estate | 2 Comments
So, you want to be a stone’s throw from Downtown, steps to shopping and restaurants, right on a T line and have a garage space…One First may be the place for you. One First in East Cambridge features five elegant buildings surrounding an beautifully landscaped courtyard and offers homeowners the intimacy of a small residential building without sacrificing luxury ammenities. The One First project offers buyers the choice of 86 different floor plans includings lofts, duplexes, flats and townhomes. The units are light and airy with soaring ceilings and exceptional attention to detail. One First offers a common roof deck, underground garage parking, a fitness room, a library and 24-hour concierge services. The project is steps from the Lechmere Green Line T, Charles River Esplanade and the CambridgeSide Galleria Mall, and minutes to the Red and Orange Lines as well as the Mass General Hospital medical area.
Please contact us with any questions.
U.S. Is Top Global Market For Foreign Investment
February 9, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Real Estate Investment, Boston Real Estate | 1 Comment
The United States was ranked the top global property market among foreign investors, but Asia is close behind, according to a new survey by the Association of Foreign Investors in Real Estate (AFIRE). China ranked second behind the U.S. for the second time in three years, and the gap between the two countries narrowed from 27 percent in 2005 to less than 5 percent in 2007.
The U.S. was also considered the most stable and secure for real estate investments by 56 percent of those surveyed, followed by Germany, the United Kingdom, Australia and Japan. New York City and Washington, D.C. were ranked the top two global cities for foreign investors’ real estate dollars, followed by London, Paris and Shanghai.
Other significant changes in 2007 where:
- Singapore, up to 6th place (tied with Tokyo) from 24th place in 2006
- Sydney, up to 9th place from 15th place in 2006
- Hong Kong, up to 10th place from 11th place in 2006
Top U.S. cities are:
- New York
- Washington DC
- Los Angeles
- San Fransisco
- Seattle
Boston was not mentioned in this survey.
Source: AFIRE
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