Massachusetts-the best bang for the buck? (Boston, Newton: real estate, 2014, how much)

[Rhapsodie2014]

I have been looking at property up the kazoo,,,what I notice is that I will see properties for say over 1 Mill, then another property for around 600K,,,,,and they look the same...I am reading that the McMansions are not really selling anymore. Any thoughts on this,,,,I also notice, in my price range such a variability in square footage and desirability. In other words I am looking at price 250,000 and less,,,,I see what I consider wonderful homes and small dumps....any thoughts. I know, obviously location matters, but I am talking within same town. I am not comparing Newton to say some town in Western Ma.
Also, does anyone who follows Real Estate a lot (like agents) see that the prices will come up in next 1-2 yrs....trying to get back before that happens,,,,
I was there until 2003, lived in a particular suburb of Boston, very blue collar, and little borderline houses were selling for >450,000.

[Beachcomber4]

Originally Posted by Rhapsodie2014

I have been looking at property up the kazoo,,,what I notice is that I will see properties for say over 1 Mill, then another property for around 600K,,,,,and they look the same...I am reading that the McMansions are not really selling anymore. Any thoughts on this,,,,I also notice, in my price range such a variability in square footage and desirability. In other words I am looking at price 250,000 and less,,,,I see what I consider wonderful homes and small dumps....any thoughts. I know, obviously location matters, but I am talking within same town. I am not comparing Newton to say some town in Western Ma.
Also, does anyone who follows Real Estate a lot (like agents) see that the prices will come up in next 1-2 yrs....trying to get back before that happens,,,,
I was there until 2003, lived in a particular suburb of Boston, very blue collar, and little borderline houses were selling for >450,000.

Lots of questions- a few answers. I'm not a real estate agent but I am surrounded by them. LOL

McMansions- people aren't really buying upgrade houses like they used to. Beside unemployment etc. the reality is their starter home isn't worth what it was (many people are even upside down) so they don't have the equity to justify the move. For awhile real estate was a sure fire investment but then the bubble burst and it became obvious that real estate could not be counted on as an investment. There is also a new practicality. The cost to heat, cool, maintain and have the McMansion cleaned is taken into consideration and people seem to be looking more at needs than wants.

In your 250K and less price range, if it looks fabulous and a similar style/size house that is a dump is selling for the same price there are a few possibilities. First, is the "lipstick on a pig" syndrome. Someone pretties the house up, gets it ready for resale but there are major problems that will cost a bundle to fix. The second is as you mentioned location. You think a house looks great online but once you get there, high tension wires, crack dealer neighbors etc. etc. Finally, is the price realistic? Sometimes a motivated seller prices a house right, in other instances someone with a great emotional attachment or debt insists their house is worth more than the market will bear.

I too lived in a blue collar suburb of Boston and I can tell you that houses in the 400's in 2003 are selling for much less. I know a couple who bought their house for 485K that year could not unload it last year for mid- high 300's.

I'm sure someone with in depth knowledge can give you a market forecast. My husband and I recently went to an Open House and the agent who was showing the home (I knew from my buying experience that she was perennially the number 1 agent in our area) told us she had the best year of her career in 2010. She said she was selling very high end homes and low end cottages. I've been in our home for close to three years and in the past 4 months I have received more solicitation from agents than I ever have. All the letters have examples of homes that have sold in our specific area, the selling price and the good news for us, that prices have rebounded a bit. Not to the early 2000's prices but at least they've improved. The one thing all homes that sell in our neighborhood seem to have in common is they are turnkey. Those that need work, no matter how much sellers lower the price seem to sit on the market. I suppose that means there are bargains for the handy buyers to be had.

Good luck in your efforts to return!

[Rhapsodie2014]

Thank you so much for the info,,,nothing beats being there in the flesh,,,,which wont happen for me till next year,,,,,then I will be looking for a Realtor that works for the buyer..

[miu]

I think that there are several reasons for houses of differing qualities being priced in the same range.

1. In a city such as Newton where I live, some areas are more convenient to amenities than others. Or some streets are quieter while others are on busy roads or within hearing distance of road or train traffic. And some school districts are more desirable than others.

2. Sellers are aware of certain key housing price points. So someone with a nicer seeming house wants to sell it sooner than later. Perhaps the nicer house has been on the market longer. And a seller with a shabbier looking house sees the potential in their house or isn't in a rush to sell it.

I have no plans to ever sell my house. It's definitely shabby looking, but I have a riverview. And I love that it's in NOT in one of the fancier areas of the city. I don't want the pressure of having to keep my lawn perfectly manicured and the paint on my house fresh looking. Plus, my commute to work is very easy from my part of the city.

If I ever won Powerball, I would still keep my lot, but build a better house on it. Maybe I would also try to buy the surrounding houses to mine and knock them down... that's how much I love my location!

BTW I found and bought my home with the intent that it was going to be a longtime residence for me. I didn't buy it as an investment. So after 20 years. my place is worth a lot more than the original price paid for it. So I recommend that you take your time looking at houses and only buy one that speaks to you. Don't try to buy the nicest house for the money and just focus on getting a house that is the best fit for you.

[Rhapsodie2014]

Originally Posted by miu

I think that there are several reasons for houses of differing qualities being priced in the same range.

1. In a city such as Newton where I live, some areas are more convenient to amenities than others. Or some streets are quieter while others are on busy roads or within hearing distance of road or train traffic. And some school districts are more desirable than others.

2. Sellers are aware of certain key housing price points. So someone with a nicer seeming house wants to sell it sooner than later. Perhaps the nicer house has been on the market longer. And a seller with a shabbier looking house sees the potential in their house or isn't in a rush to sell it.

I have no plans to ever sell my house. It's definitely shabby looking, but I have a riverview. And I love that it's in NOT in one of the fancier areas of the city. I don't want the pressure of having to keep my lawn perfectly manicured and the paint on my house fresh looking. Plus, my commute to work is very easy from my part of the city.

If I ever won Powerball, I would still keep my lot, but build a better house on it. Maybe I would also try to buy the surrounding houses to mine and knock them down... that's how much I love my location!

BTW I found and bought my home with the intent that it was going to be a longtime residence for me. I didn't buy it as an investment. So after 20 years. my place is worth a lot more than the original price paid for it. So I recommend that you take your time looking at houses and only buy one that speaks to you. Don't try to buy the nicest house for the money and just focus on getting a house that is the best fit for you.

Very well stated,,,I used to live in Newton, had uncle that lived there, I always loved it there, didnt even realize at the time where I was living until I moved. I have lived in several areas around Boston,,,,,and all of them were better than where I live now in Los Angeles suburb.
I am excited to come back and take my time looking.

[seeriously]

The nicer the city or town, the more amenities like walk into the square or beach nearby, the less you'll get for your buck because of the town's reputation. There are some beautiful old victorian houses in Haverhill and Amesbury (if you're looking on the north shore) where you can get a bargain as opposed to Newburyport. On the other hand, I'm a firm believer that if you're willing to live small, then you can live anywhere you want.