2021 Real Estate Observations (Boston, Plymouth, Harwich: depreciation, calculator, cost)

[massnative71]

Originally Posted by mdovell

The trouble I see you in Weymouth is that the Redevelopment just led to the consolidation and just a lack of character. For example the old Fairgrounds are in South Weymouth was sold off by the Kearney family. They also own the product and Fairgrounds. Literally dozens maybe a hundred homes were built on that land. So now you got less of an activity though to go to in the area. The Cameo Theater I think still exists so that I don't know how it stays in business. Of course that's South Shore Hospital. The old Harbor Light mall was demolish to create a Lowe's demolished for a Lowe's. So instead of some of your smaller shops in simply became a national chain. Purity Supreme closed to become johhnys food master and then whole foods.

I would say that there's a strong difference between the following areas.

1)actual desirable areas

2) bedroom communities that are cheaper than 1 and have transit and highways to 1

What you described is a phenomenon seen across the region, and across the country. Nothing at all unique to Weymouth.

Originally Posted by mdovell

Probate is going to be interesting because if people have moved to more suburban and rural areas about how much it's going to urbanize and change them in the short to long term. Are restaurants going to add menu items? , are retailers going to change product lines? , is there going to be more construction?

Like anywhere else, they will occasionally analyze their market and make necessary adjustments, as they always have.

[msRB311]

The prices right now are astounding to me. How are wages keeping up with housing market? Especially after a year of many people being out of work. I realize the white collar crowd kept their jobs...I guess these are the only folks buying right now?

[yesmaybe]

Originally Posted by msRB311

The prices right now are astounding to me. How are wages keeping up with housing market? Especially after a year of many people being out of work. I realize the white collar crowd kept their jobs...I guess these are the only folks buying right now?

You'd be surprised what people can get approved for. Especially when there's basically zero risk to the initial mortgage lender.

Then you have people buying assets that aren't the dollar.

[msRB311]

I'm sure people get approved for far more than they should. The trouble then becomes putting down a bigger down payment and having larger monthly mortgage payments obviously.

[Shrewsburried]

Originally Posted by msRB311

I'm sure people get approved for far more than they should. The trouble then becomes putting down a bigger down payment and having larger monthly mortgage payments obviously.

Desirable eastern markets aren't much of a concern in terms of defaults/negative equity as those who land the highest bid are typically putting down large DPs or are buying sans lender (e.g., cash).

The risk ramps in the less desirable perimeter markets where purchasing power is largely fueled by mortgage rates. I wouldn't touch these markets right now because rates, assuming no notable fed intervention, will organically rise and towns like Marlborough or Leominster aren't going to suddenly realize demand from highly qualified cash/asset heavy buyers ... no, their existing pool of highly financed of buyers will simply have lower purchasing power.

[msRB311]

I know someone who paid a lot for a house in Randolph recently. Not sure what they were thinking.

All that aside it is still shocking for me to see houses that were like 750k a year ago be 900k now even in more desirable areas.

[olacda]

it's shocking to see house price spikes like this one in Lexington, 43 Baskin Rd. 360K over asking!! even in towns like Southborough where it's not as hot previously.. this one at 3 Devine Ln went 170K over asking. WTF is going on..

[yesmaybe]

https://www.redfin.com/MA/Provinceto...home/169287025

Condo in P-Town. Originally put on the market in October 2019 at 960k, now down to 749k. And it's got a high HOA ($864). Not sure who the target demo would be for something like this, retirees would be scared off by the HOA I would think and P-Town starts to get pretty far for a weekend excursion.

[msRB311]

Yes I've noticed a lot of houses on the cape that are priced as actual houses for many people now. Before I was seeing plenty in the 300-400k where many could easily get a 2nd home. Now I see these homes for 600-749k.

Most logical thinking people don't want to spend that much on a weekend summer cape house unless of course they're wealthy.

[porterhouse]

Originally Posted by yesmaybe

P-Town starts to get pretty far for a weekend excursion.

Not if you live in the city. Hop on the fast ferry and you are there in much less time and stress than most locations on the Cape.