Price Reductions or Reverse Inflation?

A lot of people ask me why I think it’s a good time to buy. After all, now that unbridled faith in the market has fallen out of vogue, prevailing opinion is that we’re supposed to be on the brink of the biggest housing plummet since the Great Depression.

Though I think this might be a bit of an overstatement, it’s true that nationally, prices are likely to continue falling. But I think the effect will be less in areas with a lot of inherent value in their locations (near services, low crime, good schools), and no matter what the drop, unless your home value reduces to nothing, you’re still building equity.

People were foolish to buy into the idea that the value of a home doubles every 10 years. But while apartment prices – like most other things – continue to be pumped by inflation, the current market drop is a rare opportunity to escape a trend that has spiked dramatically as of late.

So here are a few Back Bay and Beacon Hill units for sale that have recently undergone some, shall we say, “reverse inflation”:

8-16 Garrison St #204 – $244,900
0 beds, 1 bath, 305 sq. ft.
Yes, it’s cramped and a little dark. But it’s also cleverly armed with nearly any amenity your heart could desire, and a short walk from the Back Bay T stop, just up the Acela Express from NYC, Philly, Baltimore and DC – all without having to take your shoes off. All this plus three price drops in 54 days on the market could make this the perfect pied à terre.

108 Mt. Vernon St. #1 – $1,695,000
3 beds, 3 baths, 1,640 sq. ft.
Here’s a seller stubborn seller if I’ve ever seen one. 231 days on the market and just now a price reduction. The good news? It’s a $125,000 slash. The bad news: the property still costs over $1000 per square foot. My guess, though, is that after months of denial, the seller is finally fed up and willing to deal.

145 Pinckney St #416 – $319,000
0 beds, 1 bath, 455 sq. ft.
Roomier and sunnier than the other studio profiled above, yet still on the market after 355 days; I think this place really highlights the impact of nice kitchen fixtures on buyer perception. Don’t be fooled, folks: white refrigerators keep food just as cold—if not colder—than stainless units. Shop for your condo accordingly.