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Old 06-27-2022, 10:16 AM
 
2,348 posts, read 1,777,099 times
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Quote:
Originally Posted by G-fused View Post
No, there is zero chance that prices will go down to the 300k levels in and around Boston. The best people can hope for is a slow down in the increase in prices. A reversal is out of the question. I mean has that ever happened in Boston where prices went down? Maybe they stoped going up so sharply but have never really went down.
Depends on what you mean by Boston of course, and if you mean SFH vs Condo.

https://www.redfin.com/MA/Marlboroug.../home/11619648

Just randomly picked an SFH that's in Marlborough. You can see that it sold for 385k in 1988 and then sold for 307k in 1998. Also if you look at the assessment, it had been drifting downward from 2009-2014.
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Old 06-27-2022, 10:30 AM
 
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Quote:
Originally Posted by yesmaybe View Post
Depends on what you mean by Boston of course, and if you mean SFH vs Condo.

https://www.redfin.com/MA/Marlboroug.../home/11619648

Just randomly picked an SFH that's in Marlborough. You can see that it sold for 385k in 1988 and then sold for 307k in 1998. Also if you look at the assessment, it had been drifting downward from 2009-2014.
Agree that it is based on some assumptions and considerations. There may be some very rare exceptions but I would be very surprised to find one. Even the one you posted I am surprised at. 2 things about it - one, it is a long time ago. Two, and much more important is that I would take a strong guess that something was wrong with it in 1998. And I am really suprised it sold for 385 in 1988. That seems off.

But all that said, I don't think prices will ever really drop 'round here. Especailly from 700k to 300k or whatever. I wasn't in MA when the housing bubble burst...did prices drop then? Honest question.
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Old 06-27-2022, 10:33 AM
 
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I think for prices to really tank would require a mass influx of foreclosures and shortsales following massive job layoffs. We haven't really seen that (yet) so i don't think prices will tank like they did following the 2008 recession, and only in areas considered "not nice" by the vast majority of C-D'ers.

I think what we will see is price stagnation and some slight declines in various regions across the state. But I don't have my crystal ball.


Quote:
Originally Posted by G-fused View Post
I wasn't in MA when the housing bubble burst...did prices drop then? Honest question.
I bought my condo during the 2008 recession. Built in 2005 and originally sold for $325K, and i purchased it during the housing crash for $160K. It was still in like-new condition. I was looking at a bunch of short-sales condos back then. All drastically reduced.

I didn't pay much attention to the SFH market though
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Old 06-27-2022, 11:00 AM
 
2,710 posts, read 1,729,269 times
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Quote:
Originally Posted by G-fused View Post
No, there is zero chance that prices will go down to the 300k levels in and around Boston. The best people can hope for is a slow down in the increase in prices. A reversal is out of the question. I mean has that ever happened in Boston where prices went down? Maybe they stoped going up so sharply but have never really went down.
Nope during the in 2008 crash, prices never really went down. They just stayed flat. I remember everyone waiting and waiting and waiting for housing prices to come down, only to be priced out in a few years.
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Old 06-27-2022, 11:07 AM
 
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Quote:
Originally Posted by BostonMike7 View Post
A house in my neighborhood was recently sold (within 6 months) for $580K after a bidding war. Dated interior with some issues and needed paint/trim throughout.

After closing nobody moved in and we were wondering why. A few vehicles would show up now and then and look around. About a month ago it was torn down completely (foundation as well) and a 3500+ SF monster is currently being built in it's place.

This market is crazy if $580K is a teardown.
They just did a teardown near my property in Arlington for $750k. That's not the only $750+ teardown in town either. It makes sense since new construction 4000 + SF homes are going for well over $2 million dollars.
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Old 06-27-2022, 11:13 AM
 
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Quote:
Originally Posted by Brave Stranger View Post
They just did a teardown near my property in Arlington for $750k. That's not the only $750+ teardown in town either. It makes sense since new construction 4000 + SF homes are going for well over $2 million dollars.
I guess it does make sense as some recent new-builds right up the street sold for $1mil+. Average older home is prob $800+ in this area. This build looks like it's going to be an equivalent to those new homes.

What's average price per SF to do new construction these days?
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Old 06-27-2022, 11:18 AM
 
23,569 posts, read 18,661,418 times
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Quote:
Originally Posted by matrix5k View Post
Nope during the in 2008 crash, prices never really went down. They just stayed flat. I remember everyone waiting and waiting and waiting for housing prices to come down, only to be priced out in a few years.



Even though I bought a short sale condo during that period, for 40% less than identical units in the same complex sold for in early 2008?
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Old 06-27-2022, 11:23 AM
 
24,557 posts, read 18,230,382 times
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Quote:
Originally Posted by yesmaybe View Post
Depends on what you mean by Boston of course, and if you mean SFH vs Condo.

https://www.redfin.com/MA/Marlboroug.../home/11619648

Just randomly picked an SFH that's in Marlborough. You can see that it sold for 385k in 1988 and then sold for 307k in 1998. Also if you look at the assessment, it had been drifting downward from 2009-2014.
That was all over the place in metro Boston. The bottom dropped out at the S&L meltdown and it didn’t recover for a decade. I bought at the bottom in Winchester then and it didn’t do better than track the inflation rate for a bunch of years. I got slaughtered on a condo I bought in 1988.

Anyone who thinks housing prices never go down is due for a rude awakening. What I learned from my buying mistake in 1988 is to never buy something I wasn’t prepared to own forever.
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Old 06-27-2022, 11:56 AM
 
2,710 posts, read 1,729,269 times
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Quote:
Originally Posted by massnative71 View Post
Even though I bought a short sale condo during that period, for 40% less than identical units in the same complex sold for in early 2008?
I guess I am only familiar with SFH in the suburbs.
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Old 06-27-2022, 11:56 AM
 
1,537 posts, read 1,121,777 times
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Quote:
Originally Posted by BostonMike7 View Post

What's average price per SF to do new construction these days?
A real estate friend of mine is going through this - I believe he said he's building a 4,700sqft house at almost $300/sqft. Bought a house on a nice square acre of land for $900k that will be torn down.
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