Page 16 - New England Condominium April 2019
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16 NEW ENGLAND CONDOMINIUM   - APRIL 2019   NEWENGLANDCONDO.COM  A  ft er many years of expansion and   growth  nationwide,  most  co-op   and  condominium  markets  saw   both  turbulence  and  some  overall  decline   in 2018. Th  e market has turned from one   favoring sellers to one more hospitable to   buyers. Markets like stability – and 2018   was a year marked by uncertainty. Th  is un-  certainty can be pegged to several trends,   the most prominent of which were fl uctua-  tions in interest rates; changes in tax laws   thanks to the 2017 tax bill depressing the tax   benefi ts of home ownership; overbuilding   (and potential overbuilding); and – despite   the generally good employment fi gures – an   undercurrent of declining confi dence in the   overall economic picture.  Boston  “Th  e trajectory of Massachusetts’ sky-  rocketing  real  estate  market  fl attened  as   winter loomed,” reported realestate.boston.  com, “leaving some to wonder whether   we’re glimpsing the end of a 10-year-long   bull run. Like people who predict the end   of the Patriots dynasty each year, they will   eventually be correct, but real estate experts   say we’re not there yet.”  As in other pricey markets, signs on the   horizon of a potential end to the Boston   real estate fairy tale are centered around tax   policy and rising interest rates. Like New   York and Illinois, Massachusetts is a high-  tax state, and the result of the reduction of   property tax deductibility on federal income   taxes is beginning to make itself felt. Rising   interest rates have also played a role, as buy-  ers are very sensitive to every additional   penny of monthly cost, the article continues.  Bobby Wooft er, Principal Broker for   My Boston Condo, sees the market as very   healthy. “Th  ere’s so much new industry   moving into the area: General Electric, Am-  azon, and others,” he says. It seems like a new   building is going up every week. Th  at makes   for a healthy market.” Th  e people who work   there need someplace to live. “Th  e luxury   boom continues,” Wooft er adds.  He does see some dark clouds on the ho-  rizon, however. “Th  ere may be a lag due to   the climbing price point. It can’t just keep   going up, passing the last deal. Th  ere is more   inventory than one year ago on the market   – especially luxury – but mid-market is very   bullish and competitive.”  One of the unique features that Wooft er   mentions is the prevalence of small condo-  minium associations in the Boston market   and throughout New England. Unlike other   markets, associations containing less than   six units – and oft en with as few as three –   are prevalent. Th  is is due in large part to the   existing housing stock in Boston’s tradition-  al neighborhoods. Dominated by three-unit   multi-family buildings, owners oft en see   greater value in converting to condominium   ownership rather than selling the property   Market Survey  Where We Were in 2018 – and Where We’re   Headed   BY A J SIDRANSKY  TRENDS  ISTOCKPHOTO.COM


































































































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