Archive for October, 2008
October 28, 2008
Dear Boston Sweet Digs Readers,
As part of changes already announced two weeks ago, Redfin is changing up Sweet Digs to focus the format on proprietary, leading-edge indicators of what is happening to home prices in Boston.
We had initially tried to provide a personal review of individual homes for sale in the area, but as a broker and an MLS member, we were not in an ideal position to be objective about other brokers’ properties. Since Sweet Digs was so local, it was also hard to keep pace with Redfin’s growth across the U.S.
The new format will largely focus on what you asked for, and what Redfin does best: hard data, delivered in a freakishly compelling way:
- Broker-only data on transaction-volume, median-price and inventory trends;
- Broker-only data on sale-to-list ratios by neighborhood;
- Redfin-only price-drop data, showing what neighborhoods have the highest fraction of price-reductions;
- Redfin-only reports on shifting search traffic patterns and price parameters;
- Local agent round-ups about how current-week offer dynamics anticipate pricing shifts;
- Analysis of Case-Schiller, Census and National Association of Realtor data.
It’s good stuff.
We’ve been preparing a change in format for several months, informed by a survey many of you completed earlier this summer, so we have reason to believe that you’ll like the new Sweet Digs.
For now, we just wanted to say thanks to the folks who helped us get Sweet Digs this far, for your dazzling wit and insight, your verve and dedication to your craft. And thanks to our readers for your steady support!
The new, more analytical blog posts start later this week. If there’s a particular type of analysis you’d like to see, just leave a comment to let us know. We’ll definitely be listening.
Regards, Glenn
Glenn Kelman, Redfin CEO
October 16, 2008
In the last year or so, I’ve seen a lot of ugly nonsense, but one of the recurrent themes I find most repellent is the idea that loans written to low-income and minority families, and loans that forgive past credit problems, are the cause of the mortgage scandal and the new depression. Dishonest and predatory loans written to those folks: that’s the ticket. But faulting the consumer is easy, stupid, wrong — and distortive.
I say “distortive” for the simple fact that low-income housing loans have been great for families and the economy in many incarnations sinse the end of the second world war. They bolster real estate markets, provide incentives to rehab derelict properties, and help economically disenfranchised people to live the American dream. Well, what used to be referred to as the American dream, before we all got so ridiculously greedy and credit-happy.
Here’s how a successful low-income mortgage program works:
First, you limit the program to areas where housing prices are low, or where there are a lot of empty properties clogging the market. The idea is to provide homes, not convince people to take part in get rich quick schemes.
Second, you reduce the down money requirements from the traditional 20%-30% to 3%-7%. One of our readers, Max, is going to be mad at me for saying that, but it works. 3% of a house’s purchase price is a lot of money to a poor person.
Third, you cap the hell out of the interest rates, or even deflate them — and this is where the mortgage industry got ugly. The idea is to help people into their first homes, and make money off of them later, when their real estate investment pays off and they upsize, or retire to a condo, or whatever. Instead, the banks gouged the hell out of poor people, forced them into foreclosure, and then tanked the economy, making those people into “deadbeats” while wealthy executives looted our economy, creating poverty and unemployment that will surely lead to more foreclosures.
Finally, you make sure that the buyer’s debt-to-income ratio will support the payments — duh! Homebuyers are optimistic and not entirely rational; those aren’t crimes. Fraud and misrepresentation — those are crimes.
In Pittsburgh, the city went so far as to offer rehab loans that allow a family to buy a $23,000 house that needs $100,000 worth of work, and finance the repairs along with the purchase price. And guess what that did? It turned crack houses into tax revenue streams! Guess how high the rate of foreclosure was with those well-run programs. Now guess lower….
In no way do these programs give away money; they make money by creating taxable properties. Some even offer loans that allow a buyer to buy a house, pay a portion of the total rehab & purchase price as a mortgage, and let a chunk of interest-free priciple sit there until the homeowner re-sells the house, at which time it has to be repaid. It sounds nuts, but the city makes its tax money, and eventually the taxpayers get their dough back.
These sorts of programs are great for the market and the economy. Greedy manipulation of them? Not so much.
Get ready to see more of them. They’re part of the real solution we so badly need.
Best Prices Per Square Foot In Beverly
Boston Sweet Digs Home
October 15, 2008
Now is a great time for prospectors and first-time buyers to look at properties that represent a more modest investment per square foot. These are also worth looking at before you pay just as much for a house that doesn’t fit you.
The first one is a “short sale subject to third party approval.” That third party may be a bank, and if it is, get ready for some fun. The first time we offered on a house, the “third party” wouldn’t say yes to the sale and left us in limbo for a month. When we walked away, the bank foreclosed, and ended up auctioning the house for $40,000 less than we offered.
I wouldn’t call those folks the brightest spoons in the drawer. They have their reasons (which mostly have to do with punishing people for falling on hard times, regardless of the damage they do to their own businesses), but bring a lot of patience and flexibility to the table if you decide to deal with banks. Banks aren’t supposed to be in the real estate business, after all….
7 Longview Drive
Beverly, MA 01915
Beds: 3/Baths:1.5
SQ.FT.: 2363
$280,000
$/square foot: $118
9 Summer Street
Beverly, MA 01915
Beds: 6/Baths:4
SQ.FT.: 3839
$278,900
$/square foot: $73
54 Hale Street
Beverly, MA 01915
Beds: 3/Baths: 1.5
SQ.FT.: 1670
$199,900
$/square foot: $120
Image links to source.
Open Houses In Beverly, October 12
Boston Sweet Digs Home
October 15, 2008
What’s new in Brookline? Well, if you haven’t kept track, there have been a few culinary changes afoot in Washington Square in the last few months, including the opening of a new Rod Dee Thai restaurant, the Tamarind Bay dedicated to Indian food served in a sophisticated setting, and Roadhouse, which moved Texas barbecue into Vinny Testa’s old location.
To be nothing but brutally honest, Washington Square restaurants tend toward the overpriced and mediocre, so it doesn’t hurt to have a few more options — especially the reasonably-priced Rod Dee (more along the lines of fast food) which may be the first choice in times when many of us aren’t willing to part with a lot of bucks for a meal.
Meanwhile, new on the market in Brookline are three properties, all of which could be attractive to second-time buyers who want more than just two bedrooms for kids, dogs, houseguests, assorted relatives and the like.
185 Rawson Road, #3
Brookline
BEDS: 3/BATHS:1.5
SQ.FT: 1506
$649K
657 Chestnut Hill Ave
Brookline
BEDS:5/BATHS:1.5
Sq.FT:2000
$699,900
3 Upland Street, #2
Brookline
BEDS:3/BATHS:2
SQ.FT:1655
$589K
Sweet Digs Boston Home
Brookline, Brighton Archives
October 14, 2008
If you read the Somerville papers, or watch Fox25, you’ll know that during his law school days, Barack Obama called the Winter Hill section of town his home. Not that the neighborhood has a prestige that future presidential candidates find irresistible; quite the opposite, a young Obama lived there because it was—and still is—very cheap.
I’d like to say the place is a bargain for the money, but with the closure of the Broadway Star Market there last year, there’s just not a whole lot to do in the neighborhood. People try to find stuff to do, but other than some decent pizza, stained glass, and massive-portion-size Italian, there’s just not that much out there.
Winter Hill does have some great views of the city (and of Everett and Chelsea, in the other direction), but it’s an evil tease view—Obama left Somerville with $400 of unpaid parking tickets due to his car-dependence. City officials say the bus connections weren’t as good back then, but let me tell you: they aren’t great now, either.
In a way, the attitude of the current occupant of Obama’s old apartment sums up the most visible aspect of the neighborhood: it’s a great place to be left alone. Quiet, but close to the city; not bursting with creature comforts, but not skid row, either. The old Victorians and Queen Anne style homes are gorgeous, and come with plots of grass larger than what you might expect to find just over two miles from the Garden.
166 Sycamore St #2
Somerville, MA 02145
4 beds, 2 baths
2,287 sq. ft.
$519,900
31 Adams St #3
Somerville, MA 02145
2 beds, 1 bath
1,074 sq. ft.
$259,000
22 Dartmouth St #1
Somerville, MA 02145
3 beds, 2 baths
1,344 sq. f.t
$335,750
Time for a Lifestyle Adjustment
Boston Sweet Digs Home
October 13, 2008
Taking advantage of the sunshine and warm weather, I spent much of Columbus Day weekend out on the streets, which got me thinking about sidewalks.
Architecture and urban planning critic Jane Jacobs observed back in the 1960s that sidewalks are about a whole lot more than getting to or from somewhere. In the best circumstances, sidewalks are about people-watching, bumping into acquaintances and old friends, and just hanging out. A good city street, according to Jacobs is “a marvel of balance between its people’s determination to have essential privacy and their simultaneous wishes for differing degrees of contact, enjoyment or help from the people around.”
In other words, in the best city neighborhoods, you can share time and space with others without having to share everything with them. Sure, you can have daily chats with fellow dog walkers, but you don’t have to invite every dog walker you meet over for dinner. You can share a conversation with the local shopkeeper, but your pleasantries and chatter don’t have to mean you become best friends. A lively sidewalk brings you in contact with people you wouldn’t otherwise meet, perhaps because you really don’t have much in common. But that’s okay, or even good, because you’re broadening your horizons, no matter how superficial it may seem.
Contrast that with a development with no sidewalk life— no small shops and restaurants within walking distance. Instead, there’s the ubiquitous and always empty “meeting room” or “clubhouse.” You’re not likely to bump into anyone there, and rest assured, whoever you do meet will rapidly become a fixture in your life, for better or worse. In a neighborhood sans sidewalk life, the choice is quick and cutting: either a whole lot of contact or no contact at all. The result, according to Jacobs, is that people become either extremely choosy about their neighbors or they choose no contact at all.
Brookline and Brighton have plenty of areas without much street life. For street life you need walkable commerce. Fortunately, however, there’s that, too, if you know where to look for it. So in honor of weather still warm enough for a stroll, here are three homes near business districts that provide enough sidewalk activity to keep things interesting.
131 Sewall Ave, #63
Brookline
BEDS:2/BATHS:2
SQ.FT: 1456
$549K
37A Harvard Street, #5
Brookline
BEDS:1/BATHS:1
SQ.FT :571
$285K
7 Eulita Terrace
Brighton
BEDS:3/BATHS:2.5
SQ.FT:1600
$574,900K
Sweet Digs Boston Home
Brighton, Brookline Archives
October 11, 2008
Sunday, I’ll continue my indulgence in all things patisserie. A friend of Mr Alyk introduced us to the Chinese Pork Bun, and damn, if those things aren’t addictive. We’ve sampled pork buns from several Chinatown bakeries, and one of the best is Hing Shing Pastry at the corner of Beach and Hudson. The tiny bakery sits across the street from the Chinatown Gate, and its yellow sign is visible in most photos of the gate. The perfect mix of chewy, yeasty dough and savory, sweet pork filling can be picked up for under a dollar; an excellent deal by any standard.
The housing in Chinatown isn’t as bargain-oriented as its pastry: $860 per sq. ft. is average, but that jumps to over $1400 sq. ft. at the Ritz-Carlton. As with other downtown neighborhoods, the location drives up the cost, but Chinatown has the best transportation options in the city: easy access to the Red Line, Green Line, Orange Line, Silver Line, and the Commuter Rail. Loads of dining and Theatre District entertainment make the area perfect for anyone who doesn’t mind the grit of the city and wants to feel smugly superior to the Bridge and Tunnel crowd.
Part of the convenience of Chinatown is hitting all the open houses in under thirty minutes.
40-44 Harrison Avenue, #7D
Boston, 02111
Beds:1 /Baths: 2
SQ.FT.: 885
$479,000
Open House: Sunday, October 12, 2008 1:00 PM – 4:00 PM
multiple units showing
170 Tremont Street, #205
Boston, MA 02111
Beds: 0/Baths: 1
SQ.FT.: 537
$319,000
Open House: Sunday, October 12, 2008 2:00 PM – 3:30 PM
151 Tremont Street, #8M
Boston, 02111
Beds: 1/Baths: 1
SQ.FT.: 590
$469,000
Open House: Sunday, October 12, 2008 3:00 PM – 5:00 PM
Hitting the Links
Boston Sweet Digs Home
Image: Flickr user Shoothead under Creative Commons
October 10, 2008
This week, there are a lot of things on clearance sale, and I’m not just talking about stocks. Coldwell Banker is running a 10-day, 10 percent off sale on many listings … condos on sale like so many cotton socks at Walmart. Meanwhile, realtor John A. Keith reports that many people who would otherwise be listing or buying downtown condos in the $400-$700k range are sitting things out. And who can blame them, with the economy so uncertain — or should I say on the edge of eminent collapse? Here are a three open houses which feature homes that have also recently reduced their prices.
24 Adair Road, #24
Brighton
BEDS:3/BATHS:1
SQ.FT:985
$329K. Reduced from $339K Oct. 1
O.H. Sunday, October 12, 2008 12:00 PM – 1:30 PM
18 Lakeshore Court, #3
Brighton
BEDS:2/BATHS:1
SQ.FT: 824
$249,900. Reduced from $257,900 on Oct. 6.
O.H. Sunday, October 12, 2008 12:00 PM – 1:30 PM
25 Kilsyth Road
Brookline
BEDS:5/BATHS:4.5
SQ.Ft: 5,540
$1,750,000. Reduced from $2,200,000 Oct. 9
Sunday, October 12, 2008 1:00 PM – 2:30 PM
Redfin Sweet Digs Home
Brighton, Brookline Archives
October 10, 2008
No question things have changed a bit in the past few months, but when I wrote in August that foreclosures in some of the city’s tonier neighborhoods could be right around the corner, I didn’t mean 60 days around the corner.
And yet there they are, foreclosures in Beacon Hill (actually, this is in Dorchester) and Back Bay, plain as the Golden Dome or the Pru. So, distressed owners and would-be buyers, battling to stay on top of your payments, or trying to find some way to squeeze a new payment in, may I humbly suggest making a lifestyle adjustment?
I’ve heard about the trauma downgrading your spending can incur, but let’s be realistic: either way, you’ll lose the inflated sense of wealth—but if you don’t get into a property you can actually afford, you’ll be giving up your home and credit rating, too.
So say you did it to be edgy. Say you did it for the space. Say you realized the emptiness of your Platinum card life. You could even tell the truth and say you did it to save money. But whatever you say, decide to say it soon, or you’ll be just another foreclosure statistic, saying it’s someone else’s fault to a nation that has become far too preoccupied with their own losses to worry anymore about yours.
Some comparatively humbler open house suggestions suggestions for the distressed upscale owner:
73 Lexington Ave #2
Somerville, MA 02144
2 beds, 2 baths
2,097 sq. ft.
$679,000
Sunday, October 12, 2008 1:00 PM – 2:30 PM
131 Willow Ave #2
Somerville, MA 02144
2 beds, 2 baths
1,232 sq. ft.
$535,000
Sunday, October 12, 2008 11:00 AM – 1:00 PM
22 Appleton St #1
Somerville, MA 02144
1 beds, 1 baths
783 sq. ft.
$319,000
Sunday, October 12, 2008 12:00 PM – 1:30 PM
Sarcastic Econ Cat Sez: Bailout Bill Working Purr-fectly
Boston Sweet Digs Home
The W Hotel and Residences is topping out this week. [
