2. In 2013 the Boston Real Estate
Market Roared Back to Life
2013 was a great year for Boston real estate.The market was helped
dramatically by the fact that purchasing power had never been higher.
Groups of buyers that had been sitting on the sidelines came out of the
wood work to buy property. The 30 year fixed rate dropped to 3.5%*
and in some cases and areas it went even lower.This encouraged lots of
first time buyers to enter the market as well as those who became
renters when the financial crisis hit.Then there was a group that has
always played a role, but never quite as large as they did this year... Cash
Buyers.
*Information Curtesy of Bankrate.com
3. 2013:The Year
Buyers Flashed the
Cash
In 2013 there were more cash sales than at
any point in the past 5 years. They weren’t
only up they were up big.The number of cash deals in
2013 was up 43% over where they were 3 years ago.
4. The Highest Priced Cash Sale was at the
Mandarin Oriental for $6.3 Million.
6. Millennium Place Had the Most
Cash Deals in 2013 at 21 Sales
15 North Beacon
The Clarendon
Residences at the Ritz
W Boston
53%
44%
44%
42%
Percentage of building sales in 2013 that were Cash
7. Outside of luxury condo buildings,
the most popular price point for Cash
Buyers was $500,000-600,000
8. Price points that did well with
Cash Buyers:
$5-10 Million 25% of Sales
$3-4 Million 27% of Sales
$1.5-2 Million 23% of Sales
$900,000-1 Million 17% of Sales
9. Cash Buyers were overwhelmingly
buying 2 bed units. Nearly half of all
cash deals were 2 beds and 1/3 were 1
bed buyers.
11. Neighborhoods where buyers
stashed their cash
Back Bay 101 Sales
Brighton 74 Sales
South End 39 Sales
Waterfront 27 Sales
Dorchester 25 Sales
South Boston 24 Sales
Beacon Hill 23 Sales
Allston 23 Sales
Charlestown 10 Sales
North End 9 Sales
East Boston 9 Sales
13. 2014: Cash will remain strong
In 2014, we expect cash deals to maintain their large presence in the
market. Based on numbers from 2013 and the beginning of 2014 we
expect cash deals to remain a force in the 2014 market and garner at
least 10% of the total sales market.This number could increase as more
international buyers come to the Boston market. Jones Lang LaSalle
rated Boston as one of the best cities in the United States for long
term real estate value in January of 2014. Prime real estate remains a
great asset for those looking to put their cash to work and Boston
should benefit from this.