8 Responses to “Boston Condo Sales” »»

1. confused
   Comment by confused | 03/19/10 at 4:47 am

   Nice stuff. Kinda puts this en fuego thing in a different light.

   Can you do average and median price per square foot?

2. confused
   Comment by confused | 03/19/10 at 5:24 am

   This is really cool data.

   If you would have put 398,120 in a 4% money market account starting in 2000, you would have 590,000. But you would have lost money in the stock market.

   Buying vs renting

   If you bought the average place with 20% down (80,000), you would have paid ~230,000 at 5% interest to the bank over the last 10 years. Add another 50,000 or so for taxes. So you would have paid out a total of 460K (80K dp, 230K mort, 50K for tax) Anybody got an idea of what upkeep and condo fees average a year? 4000 a good number? If so the total is up to 500K paid out. But you did gain 135K in equity but you lose 6% during the sale so the net outlay is around 370K or about 3000 a month.

   So what could you have expected to rent for 3000/month over the last decade?

3. confused
   Comment by confused | 03/19/10 at 5:32 am

   Oops I did that wrong. You would have paid 70K towards principle in the mortgage payment so the net outlay would be 300K or about 2500 a month.

4. Rich
   Comment by Rich | 03/19/10 at 1:19 pm

   I just checked mortgage rates in the 1st quarter of 2000 and 30-year fixed rate mortgages were going for 8% then vs. only 5% today. So Boston condos are a bit more affordable today vs. 2000 because of the efforts by the Federal government to push down mortgage rates in order to keep the real estate market from totally tanking.

   March 2000 is when the dot-com boom reached its peak, so real estate was doing pretty well then. It’s not too surprising that sales volumes were higher then vs. today.

5. Condo Stats
   Comment by Condo Stats | 03/19/10 at 5:49 pm

   Confused,

   80k dp, 230 in mortgage payments, 50k in taxes, and 40k on condo fees is 400k not 500k as stated above. Assuming your #s for appreciation of 135k but 6% selling fee (apprx 31k) and 70k going towards principle total outlay is 230k. You also need to keep in mind interest and RE taxes are tax deductible. 160k interest and 50k taxes assuming 25% tax rate saves apprx 52k more. Net Outlay is now 180k or about 1500 per month.

6. Condo Stats
   Comment by Condo Stats | 03/19/10 at 5:51 pm

   Avg Back Bay condo price in 2000 vs 2010 is not necessarily comparing similar properties. Can anyone look up sales in Back Bay in 2000 and compare to similar properties sold in 2010 in Back Bay.

7. pain in the
   Comment by pain in the | 03/20/10 at 1:35 am

   Condo Stats….good catch on the math error, I missed it. But the tax savings in that example is partially offset by the interest that would have been earned on the 80K down payment.

   Confused…at 8%, more common in 2000, the mortgage component of your equation would be more like 310,000…which puts the one back in the 2500 to 3000 a month range.

8. Mary
   Comment by Mary | 03/20/10 at 2:30 am

   John,

   Interesting stats, so after the greatest real estate run up in history, prices are now lower than ten years ago and number of sales have been cut in half.

   282k in year 2000 dollars equates to 355K in 2010 factoring in inflation. File under en fuego…lol

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