The Year in Review 2011
HAPPY NEW YEAR! The following qualitative observations are mine and reflect my own experiences and limitations; the quantitative data was found on the Multiple Listing Service (MLS).
OVERVIEW The beginning of the year was upbeat as buyers who had returned to the market late in the 4th Quarter of 2010 continued their search for homes through the first half of 2011. I was fortunate to have received multiple referrals resulting in several listings and multiple buyers. Sales were prompt and robust; my work for my clients was recognized by being identified as a “Top 500” agent in New England! The summer was quiet, as it tends to be, and was a good time for me to create a blog presence, have fun, relax a bit, and prepare a more refined online marketing campaign. The post-Labor Day Fall market included a significant decrease in the number of new listings in comparison with 2010. This was true for all property types, but most notably for single family houses in Cambridge. In working with several buyers, we found it difficult to find appropriate properties. We did notice that several “plus” properties (those that fit a full range of my client’s needs) attracted multiple offers and, in some cases, selling prices that exceeded asking prices. As Fall progressed, several buyers decided to postpone their search until Spring 2012, in part because of their concerns about the future direction of property values in the area. At the same time, several clients contacted me to work with them for investment properties. My sense is that those clients who took a longer view have been more apt to actively seek and purchase properties. The holidays, which were active last year, have been busy again! One group of clients had their offer accepted on New Year’s Eve and I’m working with another. It appears that 2012 is off to a promising start. I’m looking forward to more properties becoming available for my buyers as well working with sellers in what has been a reasonably strong, yet value driven, local market.
The lending environment is still very important. One typically needs very good credit and a substantial down payment, though many lenders have programs that can provide alternatives. Interest rates are very favorable and little or no increase is anticipated for the next year, based on comments made by representatives of the Federal Reserve Bank.
The highlight of my architectural endeavors was working towards Planning Board approval for 380 Somerville Avenue in Union Square. Since receiving that approval in July, I have been active with a variety of proposals for residential and commercial clients. This year, I’m looking forward to learning from a series of webinars prepared by the United States Green Building Council (USGBC) on LEED for Homes.
One hundred and fourteen (114) single-family residences sold for an average price in excess of $1.07M and an average sale price per square foot in excess of $440/psf. There were thirty-nine properties that sold in excess of $1M; fifteen properties sold in excess of $2M; and six properties sold for over $3M. The Total Market Value for single family residences was $122,531,413. The condominium market was active with 709 units sold in 2010 with an average price in excess of $498K. The Total Market Value for condominiums was $354,160,682. Fifty eight (58) multi-family properties sold for an average price in excess of $902K and an average price per square foot of $281/psf. The Total Market Value for multi-family residences was $53,274,912.
The Total Market Value for single family residences, condominiums, and multi-family residences in Cambridge was $529,967,007.
Private development included proposals to the Planning Board for for a $600M project by Novartis near MIT as well as a 227-unit residential development that involved the demolition of the “Faces” nightclub (never thought that I would see the day!).
Sixty-five (65) single-family residences sold for an average price in excess of $489K and an average sale price per square foot in excess of $264/psf. Two single family properties sold in excess of $1M and eleven sold in excess of $750K. The Total Market Value for single family residences was $31,799,350. Three hundred and forty eight (348) condominiums sold with an average price of $391K and an average sale price per square foot of $326/psf. The Total Market Value for condominiums was $136,208,500. One hundred and sixty (160) multi-family properties sold with an average selling price of $526K and an average price per square foot of $184/psf. The Total Market Value for multi-family residences was $84,590,516.
The Total Market Value for single family residences, condominiums, and multi-family residences in Somerville was $252,598,366.
Notable private development included Planning Board approval for the Residences at 380 Somerville Avenue in Union Square, and the passage of a $25.75M bond for the construction of a T-station at Assembly Square. I worked with ICON architecture, inc. for the design of the thirty-unit USQ project. Richard DiGirolamo was the attorney. The passage of the bond helps the development of the Assembly Row site by the Federal Realty Investment Trust (FRIT). The following link leads to an article that describes the project: http://www.thesomervillenews.com/archives/21039