20 Responses to “The Clarendon Sells Another” »»

1. Mary
   Comment by Mary | 03/04/10 at 12:42 pm

   John,

   Need a little help here. This whole Clarendon thing has struck me as odd. Prices of million plus dollar properties in the downtown have been cratering yet The Clarendon appears unaffected.

   They wouldn’t be putting already sold units (deposits and PS, no deed) on MLS just to make it appear recent would they?

   I ask because today’s sale of unit 19D for 4.75 million likely was made years ago. Here is a piece of a story written about the buyer in the fall of ‘08:

   “Their recent success has meant the @#$$ standard of living is improving. Next year, they’ll move into a three-bedroom apartment in a new luxury condominium building downtown where the 1,600-square-foot balcony is bigger than their current apartment.”

2. Ron G
   Comment by Ron G | 03/04/10 at 5:23 pm

   Mary, your ignorance is so, so sad.

3. megan
   Comment by megan | 03/04/10 at 5:58 pm

   Let me guess, Ron, you’re a realtor? And the Clarendon’s sales are commanding high prices because Real Estate always goes “up, up, up”.

   I’m sorry, but we’ve been fed a lot of BS and have seen enough manipulation over the last five-to-ten years. We now question something when it doesn’t make sense.

4. John Ford
   Comment by John Ford | 03/05/10 at 12:43 am

   Mary, I’m confused by your comment. Are you trying to say that the Clarendon marketing team, independent brokers who sell condos at the Clarendon, buyers and the lawyers involved with the Clarendon sales are all working together to prop up the Clarendon prices and sales numbers?

   If you recall the Clarendon didn’t obtain their Certificate of Occupancy until late Dec 2009. So I don’t find it unusual that almost all sales recorded didn’t occur until 2010.

5. Mary
   Comment by Mary | 03/05/10 at 2:02 am

   John,

   My point is this, either intentionally or by omission sales made long before the market/credit crisis are being used as evidence of the health in million dollar market today.

   Wouldn’t today’s buyer who used these sales as comps be at an disadvantage?

   Bottom line question for you:

   Do you think (or know) if the closings we see today are actually recent sales or simply the completion of PS agreements signed long ago?

   BTW,

   Ron great read, thanks for the insight…lol

6. John Ford
   Comment by John Ford | 03/05/10 at 4:34 am

   Mary, according to MLS #23C at the Clarendon was first listed on 5/21/2009 it went under agreement on 2/10/2010 and according to MLS sold on 2/26/10.

   My thoughts, I would think most if not all Jan 2010 sales were under agreement for a long period of time. I would also think based on 4-6 week closing time period that sales we see now or since Feb 15th were put under agreement in 2010.

7. Mary
   Comment by Mary | 03/05/10 at 6:16 am

   John,

   What does MLS show for unit 19D ?

   Thanks…

8. John Ford
   Comment by John Ford | 03/05/10 at 8:01 am

   Mary. this is interesting, 19D at the Clarendon went on the market on 6/25/2008 went under agreement on 7/15/2008 and sold on 3/4/10. I have no inside info why there was such a long gap between under agreeement and the final sale.

   BTW don’t forget no closing could be excuted at the Clarenddon until the Certificate of Occupany was issued, which was late Dec 2009.

9. Mary
   Comment by Mary | 03/05/10 at 8:36 am

   John,

   I think I have it figured out, I found 21 sales at the Clarendon and all but five sold for below asking. The five (big ones) that sold for list, have a listing date of 2008. These five were likely sold before the market began it’s downward spiral. The early birds simply lost the ability to negotiate, according to another blog the amount put down on these units would have been substantial:

   “Want to reserve a unit at The Clarendon. First, make sure you contact us to represent you as your buyers agent. Next step after touring the property and selecting your unit would be a $2,500 deposit. After that there is a 10% deposit with your signed Purchase and Sale Agreement which is due 10 days after your deposit. Then there is an additional 5% due 6 months after the signing of your Purchase and Sale Agreement. “

   In the case unit 19D which sold yesterday, the buyer either completes the purchase or puts a match to over $700K. Me? I would have chosen the match….

   What do you think?

10. Kevin
    Comment by Kevin | 03/05/10 at 10:36 am

    I think that sux.

11. confused
    Comment by confused | 03/05/10 at 11:03 am

    Awesome detective work Mary!

12. Mike
    Comment by Mike | 03/05/10 at 11:59 am

    Sooo…what someone was willing to pay in June of 2008 is now going to be used in comps to show what someone is willing to pay in March 2010, almost two years later?

    I’m not suggesting anything unsavory is occurring. It appears to be an artifact in how MLS and the closing process work/are reported. In boom times, the same series of events would have resulted in a “current” sale that was much below the current market. I’ll bet sellers and their agents would have howled to have it excluded from the comps in the good times, but won’t say a peep now.

    Hey, Ron G, any more comments about Mary’s “ignorance”?

13. Ron G
    Comment by Ron G | 03/05/10 at 12:19 pm

    Yes, let’s make up data to fit our opinion!

14. Mike
    Comment by Mike | 03/05/10 at 12:28 pm

    Doesn’t sound like any data is being made up at all – the “under agreement” date is coming straight from MLS. The scenario she describes sounds very credible, and Mary has demonstrated again and again when she cites data, it’s accurate. Sounds like you are more ignorant than Mary.

15. Ron G
    Comment by Ron G | 03/05/10 at 7:24 pm

    Guessing about under agreement dates isn’t data it’s a game. There is 50% more sales of $1 million plus properties this year than last. You can’t spin that.

16. Bradley
    Comment by Bradley | 03/06/10 at 3:43 am

    That’s right Ron G.

    Guys the high end market is zooming right now. Buyers are coming out from their hidey holes and snatching up properties.

    That 2+ million dollar townhome on St. Botolph Street went under agreement this week, after what, a week on the market?

    En fuego baby… en fuego!

17. Condo Stats
    Comment by Condo Stats | 03/06/10 at 4:33 am

    There have been 51 Million Dollar sales in downtown Boston in 2010 compared to 23 in 2009. Even 500k to 999k has had 89 sales compared with 52 last year. 24 Sales have been for over 1000 per sq ft which is a record for Boston Real estate over the 1st 2 months of a year. (16 was the 2nd most in 2007)

18. ChaosFreak
    Comment by ChaosFreak | 03/09/10 at 8:02 am

    Mary, you are right that many of the closings recorded in Jan 2010 at The Clarendon were under agreement since 2008. However, there is nothing nefarious going on… closings can’t be recorded until Certificate of Occupancy is issued, which happened at the end of December. You’re right that you shouldn’t use these as comps.

    As for closings occurring since mid-February, they should all reflect current values, and as you rightly point our they are mostly below asking, though still well over $1000 psf. I wouldn’t say “en fuego” yet but the trend is definitely upwards in terms of sales and price.

    While it’s great to see units going for $3M+, I’ll be happier to see the $800-$1200K range start popping!

19. Lisa
    Comment by Lisa | 03/09/10 at 3:08 pm

    ChaosFreak, I loved your comments very well thought out.

20. Mike
    Comment by Mike | 03/10/10 at 8:46 am

    People have a weird idea of what a strong market is like. Relative to the last 10 years, these numbers are pretty weak, yet those pushing the bull market agenda seize on every bit of good news as an excuse to run around screaming that the market is on fire. These are encouraging numbers, and point to some return of market normalcy, even if they are well salted with some old “under agreement” pricing set back before the market turned.

    Be pleased that these numbers are pointing in the right direction, and look to them as hope that we’re pulling out of the nosedive. But please don’t suggest the markets are “en fuego”. They’re not.

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