Page 16 - New England Condominium April 2019

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