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Tim Schmidt, our rental manager was interviewed by WBZ-TV about the cost of rentals in the Boston area.
BOSTON (CBS) – It’s a question that frustrates tenants across the state: why are rents so high?
In fact, rents in the Greater Boston area are among the highest in the country.
By one estimate, it takes $1,700 to get a unit in the suburbs and $3,000 in downtown Boston.
“This season has been extraordinary. Rents are super high. I think the vacancy rate is 3-percent right now,” said Tim Schmidt of REMAX Destiny in Cambridge.
That vacancy rate is second only to San Francisco.
Schmidt believes one reason for the high rents is good news. The region’s job market is stronger than most other cities.
“You see a lot of start- ups, a lot of bio-tech,” said Schmidt. “There are people starting jobs in the $70,000-$100,000 range and moving to Boston.”
Although there have been new units added in unconventional areas like adjacent to Fenway Park, inventory cannot meet demand.
Cambridge Summary: Lack of inventory continues to challange the market, down 46% compared to July last year. ~ Condo listing $ volume reflects this difference down by 30% from 122 million to the current $85 million in market value. ~ The median list price is up by 15% = $76K with days on market dropping to an average close to 2 months before going off market. ~ Condos that went under agreement have improved by 27%.
Cambridge condo sales, month to date, are up 20% with year to date number of sold condos up by 10%. Sold $ volume YTD increased by 7.6% from $204 million in 2011 to $221 million this year. The median sale price improved by $23,500 with the ratio of sale price to original price at 98% due to multiple offer bidding and reduced time on market. ~ The average square foot price for July was $479 per square foot with the average living area at 1,043 square feet.
Somerville Summary: July condo inventory maintains record lows, down 48% from last July which was less than special. ~ Listing $ volume was down 49% from $55 million to $28 million in value. ~ The median list price stayed very close to the same with the active days on market dropping a couple of weeks to under 3 months. ~ Condos going under agreement decreased by 22%.
Condos sold for the month exceeded last July by 20% with the year to date sales up 35%. ~ Somerville condo sold $ volume YTD is up 26% from the end of July last year. ~ Sold average days on market dropped to less than 60 days. The original price to sale price ratio increased to 98% of the original list price due to competitive bidding. ~ The average square foot price increased by $27 to $356 per square foot with the average condo living area at 1,208 square feet.
Amazing day with RE/MAX of New England and the Boston Celtics celebrating the contributions that RE/MAX agents make to the Children’s Miracle Network.
Housing Recovery Brings Agents Back
DENVER, July 30, 2012 – PRNewswire via COMTEX/
With an improving housing market, real estate agents are returning to the industry. But they’re being very selective about where they’ll have the best chance of success. While other national real estate franchises are still experiencing agent losses, RE/MAX has seen an increase of over 1,300 agents year to date – the first such increase since 2010.
“RE/MAX has always attracted top-performing agents, and that’s especially true after everything we’ve been through in recent years,” said Margaret Kelly, RE/MAX CEO. “Because of the many innovations we’ve put in place, the best agents know that RE/MAX is where they want to be in this new market environment.”
RE/MAX is not just adding new agents, the company is attracting the industry’s top-performing agents. In 2012, the average years of experience a RE/MAX agent has is 15.1. That’s an increase of 23.8% from 2007, positioning the organization for even higher levels of success.
Two national surveys of the country’s best performing real estate brokerages demonstrate that RE/MAX agents outperform agents at the other national franchise organizations. In the REAL Trends 500, RE/MAX brokerages took 44 of the Top 50 positions when ranked according to agent productivity, and the RIS Media Power Broker Survey showed RE/MAX agents averaged 15.6 annual transaction sides, the highest average of any national franchise.
“The many resources and tools RE/MAX offers our agents are second to none, and the comprehensive education from RE/MAX University prepares our agents to provide the highest quality service to the consumer,” Kelly added.
Additionally, RE/MAX has experienced significant success in the sales of new franchises. In the first half of 2012, nearly 300 sales have been recorded. In the United States, Florida led all regions with franchise sales 30% higher than the first half of 2011. Internationally, South Africa saw an increase in sales of 75%, Canada was up by 21% and Europe was 13% higher. Increased franchise sales will lead to a greater number of offices and agents in the near future.
International growth has also continued at a strong pace, with the addition of three countries in the first half of 2012: Morocco, Thailand and the Philippines.
RE/MAX Broker/Owners will be gathering in Washington, D.C., from August 12-14 to mark the many achievements so far in 2012. And the global real estate franchisor will celebrate its 40th anniversary at the annual RE/MAX R4 convention to be held at the MGM Grand Hotel and Casino in Las Vegas next February.
About the RE/MAX Network: RE/MAX was founded in 1973 by Dave and Gail Liniger, real estate industry visionaries who still lead the Denver-based global franchisor today. RE/MAX is recognized as one of the leading real estate franchise companies with the most productive sales force in the industry and a global reach of more than 80 countries. With a passion for the communities in which its agents live and work, RE/MAX is proud to have raised more than $120 million for Children’s Miracle Network Hospitals, Susan G. Komen for the Cure® and other charities. Nobody in the world sells more real estate than RE/MAX.
SOURCE RE/MAX International, Inc.
Copyright (C) 2012 PR Newswire. All rights reserved
Cambridge Summary: Lack of inventory continues to tighten the market down 38% compared to June last year. ~ Condo listing $ volume remains down by comparison by 28% from 141 million to 101 million in market value. ~ The median list price is up by 8% or $39K with days on market dropping to an average of less than 2 months before going off market. ~ Condos that went under agreement went up by 12.5%.
Cambridge condo sales, month to date, are up 4% with year to date number of sold condos up by 5%. Sold $ volume YTD increased by 2% from $161 million in 2011 to $164 million this year. The median sale price improved by $5,000 with the ratio of sale price to original price at 99% due to multiple offer bidding and reduced time on market. ~ The average square foot price for April was $469 per square foot with the average living area at 1,088 square feet.
Somerville Summary: June condo inventory reached a new low down 42%. ~ Listing $ volume was down 38% from $66 million to $40 million. ~ The median list price went up a little over $10K with the active days on market loosing 8 more days. ~ Condos going under agreement increased by 8%.
Condos sold for the month exceeded last June by 17% with the year to date sales up 27%. ~ Somerville condo sold $ volume YTD is up 28.7% from the end of June last year. ~ Sold average days on market dropped by over 2 weeks to 48 days. The original price to sale price ratio increased to 99% of the original list price due to competitive bidding. ~ The average square foot price increased by $37 to $357 per square foot with the average condo living area at 1,294 square feet.