Page 20 - New England Condominium October 2021

20 NEW ENGLAND CONDOMINIUM -OCTOBER 2021 NEWENGLANDCONDO.COM info@mcoelholandscaping.com 508.966.2700 From Season to Season… We’ve got you covered! RESIDENTIAL & BUSINESS Commercial Properties Condominium Associations Apartment Communities Those Who Set the Standard Choose Concierge Services, Inc. www.bostonconciergeservices.com • (857) 217-4011 When exceeding the standard is the standard. Visit us at Booth 222 Concierge Services, Inc. supplies concierge staffing service to class-A luxury residential properties throughout Boston, backed by the most comprehensive, thorough training program in the industry and complemented by services to residents online. We also supply Door Attendant and Pool Attendant Service, staffing for special events, and other amenity management services. Concierge Services, Inc. often serves as the primary supplier of staff at properties, but we also offer clients added convenience by making available supplementary staffing service when overnight, weekend, and last-minute staffing needs are in demand. Stop by our booth to learn more and discuss in detail how we can provide your property with the best concierge services available. homes, and are moving further out into the suburbs, which they might not have considered in the past.” He observes that all these factors are fueling the current market, and will most likely continue into the foreseeable future, dovetailing with a certain level of uncertainty that won’t re- solve until the pandemic does. “When COVID hit, everything shut down,” says Dorothy Manning, also with eXp and based in Boston. “There was a mass exodus to the suburbs and rural America. Many people moved to New Hampshire to work remotely. The condo market took a hit because it was flooded with units for sale. A lot of owners ended up leasing their units. It has started to pick up, though, and buyers are coming back. There will always be people who want to live a downtown lifestyle—particularly younger millennials.” Seasonality & Financing Miller explains that pricing for con- dominiums and co-ops is still below pre-COVID lev- els in many places, though it is rising quickly. Several re- ports in the latter part of September show condo prices rising about 10% this past quarter in numerous markets. “Whether we talk about Boston, New York, or Florida \\\\\\\[housing\\\\\\\] markets, they still display heavy volume with a return to normal seasonal patterns,” says Miller. He adds that most of this heavy demand is being framed around low mortgage rates. “The market,” Miller says, “is overly re- liant on low-cost financing. On the other hand, lending standards and underwrit- ing are easily 20% tighter than before the housing bubble that caused the Great Recession. We are not looking at a hous- ing bubble crisis. Price trajectory without bank involvement will regulate prices, and we will see improvement in all markets. Lending standards are tight, and there’s lots of stimulus money. When the econ- omy recovers, and office workers go back to work, we will have a gradual recovery into 2022. The delta variant does add an additional layer of uncertainty, but won’t point that even after COVID is eradicated derail it—it’s just postponed it by a few (or at least brought under better control), months.” The Luxury Market A few years ago, the top end of the mar- ket in many locations was severely over- built. The sheer number of units planned, approved, financed, and scheduled for construction ran into a headwind with the change in tax laws and the uncertainties of the 2020 election. The arrival of COVID only exacerbated the problem. “Those buying in new developments,” says Miller, “are looking for a value prop- osition, an opportunity to save money. What we are seeing now is that new de- velopment listing inventory is down 4.4% from two years ago. Decline in supply is up about 140% from last summer. That’s still on the low side, but significantly up from last year, and we’re seeing median sale prices at parity with pre-COVID lev- els of two years ago. Since the beginning of the year, we’ve seen a compression of the COVID discount; we don’t think there’s a lot of discount left. Luxury market me- dian price is now 9% below two years ago, which suggests there is additional future demand for this type of property. Prior to the pandemic, the narrative was that the market was soft at the top, and tighter as you lowered prices. That reversed after the lockdown. Economically, conditions were weighted against wage earners, so upper salary types and mid-tier buyers didn’t feel the eco- nomic downturn of COVID as severely.” Manning con- curs. “Luxury units are selling,” she says. “They didn’t experience as big a drop during the pandemic as mid- level units did. As to foreign investment, we are still regarded as the world’s most stable economy. People still park their money here, despite our recent problems.” “Despite the pandemic, those with access to money did very well,” says Al- lenby. “They had the flexibility to adapt to the situation, and the luxury market did not take a hit during COVID. There have been shifts in preferences, though. Value remains strong in the luxury market downtown. There was a short-term drop in prices, but it’s bounced back up to a consistent strong position. Prices have re- covered and are slightly higher than pre- COVID rates.” The Blurred Line between Work & Home It’s generally acknowledged at this Zoom is probably here forever. Sick as we may be of staring at screens, forgetting to switch on our mics, or shooing kids and pets away during work calls, video con- 2021... continued from page 1 “Buyers are now seeking both office and entertainment space in their homes, and are moving further out into the suburbs, which they might not have considered in the past.” —Brian Allenby See us at Booth 234