MA Real Estate is CRAZY (Boston, Springfield: low income, rentals, buyer)

[r_p]

Originally Posted by MikePRU

$50k in appreciation on a house purchased for $980K is slightly more than 5% appreciation. I'm not sure I would label anything under 5% as typical appreciation either. I would put the bar lower.

That house (77 Taylor St) appreciated at a rate of 5.6% between 1995 and 2017, so it is normal. The buyers are not dumb. Compared to other desirable top-tier cities, it is a steal.

Not so normal would be something like this.

[bugelrex]

Can someone explain why this home sold for almost 300k above ask. sold for 1.43M

https://www.redfin.com/MA/Newton/92-.../home/11412510

Assessed is 866k
lot size is 12,000 sqft (0.28acres)
built in 1950, only the bottom floor appears renovated. nothing high-end
1 mile walk to commuter rail (cannot walk to T)
The only unique feature which might justify a crazy overbid is a small private road entrance shared with 2 other homes. kind of like a 3 house cul-de-sac
At 1.4M, there's not much left for any contractor flip

Can someone explain?, there are certainly other homes in Newton around 1.1M with very similar features?no? I cannot think of any reason for the crazy overbid other than a crazy-fed-up spouse who wants to close before school starts

[CaseyB]

Originally Posted by bugelrex

Can someone explain why this home sold for almost 300k above ask. sold for 1.43M

https://www.redfin.com/MA/Newton/92-.../home/11412510

Assessed is 866k
lot size is 12,000 sqft (0.28acres)
built in 1950, only the bottom floor appears renovated. nothing high-end
1 mile walk to commuter rail (cannot walk to T)
The only unique feature which might justify a crazy overbid is a small private road entrance shared with 2 other homes. kind of like a 3 house cul-de-sac
At 1.4M, there's not much left for any contractor flip

Can someone explain?, there are certainly other homes in Newton around 1.1M with very similar features?no? I cannot think of any reason for the crazy overbid other than a crazy-fed-up spouse who wants to close before school starts

Except for one of the bedrooms, it looks pretty nice. I like the kitchen, the backyard is attractive. It looks like it's in Newton Center which is one of the better areas.

[walker1962]

You must be a realtor or have some other skin in the game. To just say its always healthy is to broad. If price inflation far surpasses affordability relative to income growth, that's really not healthy. What's bad about home appreciation versus bonds or stocks is homes don't pay dividends or interest only capital gains which do the owner little good until they sell and that's assuming they can use that money to find other housing for which some of the cap.gain can be banked.

[bugelrex]

Originally Posted by walker1962

You must be a realtor or have some other skin in the game. To just say its always healthy is to broad. If price inflation far surpasses affordability relative to income growth, that's really not healthy. What's bad about home appreciation versus bonds or stocks is homes don't pay dividends or interest only capital gains which do the owner little good until they sell and that's assuming they can use that money to find other housing for which some of the cap.gain can be banked.

One theory for the appreciation is 'inflation' under-reporting by the government. We all know items such as
- healthcare
- education
- food

basic necessities have been getting more and more expensive, but yet the government claim inflation is in-check because ipads are still cheap.

It makes sense for people to lock-in the housing costs now since the rates are low. The current appreciation in housing is simply being brought forward now instead of allowing to happen naturally because of the low rates.

If you can find a forever home and you can sacrifice a little to make the monthly payments on a low-rate 30year fixed... it makes absolute financial sense to buy now as 'insurance' against runaway inflation

[walker1962]

Boston won't be S.F. or even NYC in the foreseeable future because the population growth just is not there to support that king of house price inflation. Now if Amazon does something stupid on put its HQ2 in Boston, all bets are off.

[bugelrex]

Originally Posted by walker1962

Boston won't be S.F. or even NYC in the foreseeable future because the population growth just is not there to support that king of house price inflation. Now if Amazon does something stupid on put its HQ2 in Boston, all bets are off.

This article is interesting. In 2016, Boston Venture capital funding was pretty much the same as 'the real silicon valley' (excluding SF). "silicon valley" where a 900SF/tiny lot house in Palo alto sells for 2.6M (an uninhabitable neighbor sold for 1.8M)

https://www.citylab.com/life/2017/06...valley/530352/

2.6M house
https://www.sfgate.com/realestate/ar...A-12985459.php


But yeah, the current reality is Boston tech scene needs a handful more 'serious' and successful companies. Only wayfair and hubspot are successful newcomers so far..

Even if Amazon HQ2 doesn't pick Boston, the 50k growth in jobs will happen over 10 years from other tech/biotech/healthcare companies (Amazon is launching its Healthcare company here).. so its going to happen regardless

[redplum33]

Originally Posted by bugelrex

This article is interesting. In 2016, Boston Venture capital funding was pretty much the same as 'the real silicon valley' (excluding SF). "silicon valley" where a 900SF/tiny lot house in Palo alto sells for 2.6M (an uninhabitable neighbor sold for 1.8M)

https://www.citylab.com/life/2017/06...valley/530352/

2.6M house
https://www.sfgate.com/realestate/ar...A-12985459.php

That cottage is Palo Alto did not sell for 2.6M. It is listed at 2.6M. Huge difference.

Anyone can list anything at any price. It means nothing.

[redplum33]

Originally Posted by bugelrex

Can someone explain why this home sold for almost 300k above ask. sold for 1.43M

https://www.redfin.com/MA/Newton/92-.../home/11412510

Assessed is 866k
lot size is 12,000 sqft (0.28acres)
built in 1950, only the bottom floor appears renovated. nothing high-end
1 mile walk to commuter rail (cannot walk to T)
The only unique feature which might justify a crazy overbid is a small private road entrance shared with 2 other homes. kind of like a 3 house cul-de-sac
At 1.4M, there's not much left for any contractor flip

Can someone explain?, there are certainly other homes in Newton around 1.1M with very similar features?no? I cannot think of any reason for the crazy overbid other than a crazy-fed-up spouse who wants to close before school starts

I can't explain, but I can tell you one thing...

92 Claremont St in Newton at 1.43M is a far better purchase than 77 Taylor St in Needham at 1.03M.

[Vanderbiltgrad]

Most of the wealthy or people who care about education go to private schools in the South. Public education is not the best here but I doubt it is good at any American High School. I am not trying to be that european elitist but public education is not USA's best point.