In the city of Boston, Massachusetts, 4.7 percent is the amount the home value has increased in the last year. 9.2 percent is the amount of increase it has been predicted that the home value will increase in the following year.
$582,700 is the house worth median in Boston. Per square foot, the list cost median in Boston is $676. The Metro Area of Boston-Cambridge-Newton Massachusetts has a much lower per square foot list cost median which is $276.
For houses listed now in Boston, $724,900 is the cost median. For houses that have been sold, $626,000 is the cost median.
$2,700 is the rent cost median in Boston, MA. The Metro Area of Boston-Cambridge-Newton is a bit less at $2,600.
When it comes to the real estate economy, the foreclosure rate is important. This is because the foreclosure rate can greatly affect the value of real estate. The higher the foreclosure rate, the lower the value of real estate.
If the rate of foreclosures for a particular area goes way down, the value of homes in that area could also go way down. And a very high foreclosure rate at a national level could be a major contributor to the formation of a recessionary economic period.
The city of Boston has a foreclosure rate that is nearly 3 times higher than the national average. In Boston, for every 10,000 homes, 4.7 go through foreclosure. In the United States, for every 10,000 houses, 1.6 go through foreclosure.
There is a first step that occurs in the process of a homeowner having to go through foreclosure. That first step is called mortgage delinquency.
How is mortgage delinquency defined? Mortgage delinquency is defined as the condition of an homeowner missing a payment on their mortgage.
1.3 percent of homes in Boston are experiencing mortgage delinquency. Our nation has a mortgage delinquency rate of 1.6.
The recession of 2008 had very negative effects on the real estate economy as well as the U.S. economy. One such effect was the worth of houses in the United States fell a greater amount than 20 percent.
This very negative effect from that recession has continued currently with quite a few homeowners being underwater when it comes to their mortgages. How is being underwater on a mortgage defined? It is defined as the owner of a home owing more on their mortgage than the worth of their home.
9.4 percent of homeowners in Boston are now underwater regarding their mortgages. The Metro Area of Boston-Cambridge-Newton has a lower underwater rate of 6.3 percent.
Moving on to commercial real estate, our focus in Boston is multifamily property. We are going to be looking at a very large multifamily development – one of the biggest in Boston.
The name of the multifamily development is Echelon Seaport. At 133 Seaport Blvd., the final beam was secured to the first of three towers.
This first tower is a 14 to 21 story tower that is tiered. When the construction of the first tower is completed in 2019, it will have 255 condos.
The whole Echelon Seaport multifamily development is 3 towers at a cost of $950 million. The plan involves 717 condominiums, as well as apartments and micro units on 3.5 acres.
Martin Walsh, the mayor of Boston said that the project will contribute to helping with the city’s lack of affordable housing. The Echelon Seaport will have 28 affordable units that are on site. There will also be 62 affordable units that will be built off site.
$3.2 million was given by the developer to a fund in Boston called Boston’s Inclusionary Development Fund. Also $1 million was given by the developer for the purpose of more affordable housing to Boston’s Neighborhood Housing Trust.
This effort to help with the problem of so many people not being able to afford housing is very laudable.
$82,380 is the median annual household income for the Boston-Cambridge-Quincy Massachusetts metro.
A source to get some information on the Boston multifamily market is Rental Housing Association – www.gbreb.com/rha
Also, for another great source to find out more about apartment real-estate in Boston, go to http://www.biggerpockets.com/
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