What sells quick? Big, old and pricey

Interesting but since Realtors play games with the listings (pull them and re-list) this type of analysis is simply conjecture.

For example, 90 Jason Street in Arlington sat on the market for most of last year with no takers… the sellers even reduced the price a few times.

Then the holidays came and they pulled the listing… come early spring it was re-listed and a $ucker bit… took it right off the market on day 1.

So, did this house sell within seven days?

It should come as no surprise that the more expensive “antique” and historic homes with all their grandness and “curb appeal” remain selling at a fairly brisk pace… what would be surprising is if their more common and puny $hit-box brethren were to do the same.

Brockton and Haverhill , buy now before you're priced out forever....

They draw the same conclusion that I would: The upper end of the Boston market remains relatively strong.

Sounds like a few people need refresher courses.

Statistics showing that, of the homes that sold quickly, more were "bigger" or "pricier" are not the same as statistics that show bigger, pricer homes sell faster. As many depressed sellers of bigger, pricier homes could tell you.

Nor does a median price of $459K represent the "upper end" of the Boston market.

Nor, sadly, despite the best efforts of the Globe real estate desk, is Arlington a "hot market," considering it will post something like an 18% drop in sales year over year for March.

It is interesting, however, to observe how quickly poorly thought out, back-of-the-envelope calculations make it into the mainstream media, as long as they support the previously agreed-upon storyline.

Belive it or not its happening...unless Realtors are submitting offers and creating over-ask bidding wars. The 'yuck' properties you can pick up 5-8% discount...well priced luxury or well built properties are going for premium. 3 Over-ask bidding wars this weekend alone!

Belive it or not it's happening ... unless Realtors are submitting offers and creating over-ask bidding wars. The 'yuck' properties you can pick up 5-8% discount ... well priced luxury or well built properties are going for premium. 3 Over-ask bidding wars this weekend alone!

I think most people who post here know better than to believe a single word a realtor has to say about anything.

I think most people who post here can judge for themselves the merit of comments by real estate agents, several of whom in my judgment number among our most valuable contributors. The merits of non-substantive attacks on other participants are less immediately apparent.

Play nice or play elsewhere.

The definition of "hot" properties here are those that sold quicker than other properties that also sold. I wouldn't want my property to be that kind of "hot". I would rather cool it down somewhat with a price increase and sell it in a couple of months.

This study doesn't tell us why those properties sold so quickly. Certainly the properties are more desirable, but maybe it's the price that makes it so "hot". Even though the properties are more expensive than others that sold, maybe they were worth even more. Either through ignorance or temperament, the owners of those homes priced them to sell. Maybe they didn't know how strong demand would be. On the other hand, maybe they are more desparate to sell (perhaps because they fear more than others a persistently declining market).

To find out anything meaningful, the study must go much deeper. To make the kind of conclusions the article seems to be making, they would have to go into historical prices for properties of different types and see how the graphs compare.

One thing that signals the meaninglessness of this "study" is that old, large, expensive and expensive-by-the-square-foot properties are "hotter" than newer, large, expensive and expensive-by-the-square-foot properties. What does that mean?

I’d like to restate my last comment… it reads a bit too mean spirited… There is nothing wrong with a (beat up house) … most of us grew up in a (beat up house) … we should be proud of (them)! … the point is, typical homes should have never been bid up into the stratosphere and are now experiencing a significant correction (see the low tier of the S&P/Case-Shiller index for Boston).

Higher priced homes, though, are also feeling pain (prices have been falling and listings for high priced homes, especially for over $1 million, are racking up fast!) but key homes in historic districts with premium locations and classic appeal will inevitably bring buyers.

Although, two interesting points to note are Arlington’s Pleasant Street historic district where many homes have recently been languishing and have been generally selling under list AND Concord which looks to be a total disaster.

Concord is a real interesting study as it bucks the inventory trend (inventory is mounting fast and quite possibly could surpass that seen in 2006) and has MANY expensive, historic and luxurious properties that have been sitting on the market for a very long while.

Interesting...I keep very close track of the Newton market and the majority of the houses that sold in 7 days were most likely previously listed. I saw some of them hanging around last spring. Same with this year...I keep seeing some of the same old recycled listings touted as "NEW". Right now in Newton, everything is Under Agreement, sometimes for months, that does not tell me that "things are remaining relatively strong" until these people can get the cash to close the deal.

Right now my husband and I are watching to see how many tank.

My husband and I have been looking for an "expensive" property for six months now. As recently as four months ago, our bank had assured us that we were approved for $2 million with 10% down. We found the perfect property in Boston for less than $1.5 M and called our banker. He told us that recent changes in Jumbo loans now require that we put down 30%. We are scrambling to find this money (or a better mortgage broker) but may not get it together in time to get this home.

I'd like to suggest that the homes under agreement for an inordinate amount of time may be there due to the fact that the buyers are trying to hit a moving financing target. The financing pendulum has swung so far that those of us with good incomes and good credit cannot get reasonable access to loans. I am confident that once the smoke clears and banks return to more "traditional" lending habits, the sales (and market) will rebound.

Fawn, Thank you for making my point. People are no longer in the postion to access the Jumbo loans they once thought they could regardless of income and credit...hence the house goes back on the market.

Sellers may think their house is worth X, but if the lender's assessment differs, who is going to be able to, or better yet want to buy thier house in this climate.

It is inconceivable to me that someone could expect to get a $1.8 million mortgage to buy a $2 million house on a measly $200,000 down payment. If one can actually afford the resulting $12,000 a month principal and interest payment, one can certainly afford to save an equivalent $144,000 per year--minus, of course, the humble housing costs that befit someone saving for a major goal.

Banks agree with me. They are increasingly looking at down payments with a critical eye. Everybody and his brother who sold a house recently has a windfall in the bank--most much more than $200K. Such a windfall is not indicative of the ability to save aggressively, and so is much less persuasive to a bank than an old fashioned larger down payment.

This is why many AUSs--automated underwriting systems--have been reprogrammed to count house proceeds differently from other down payment funds.

Lynn, you are correct on two points. De- and re-listing properties has reached epidemic proportions, in an intentional effort to hide days on market. And yes, we've returned to the days when you have to sell your house not only to a buyer, but to a bank. And the banks aren't biting.

One problem with the Redfin hypothesis, it's wrong. What's selling is new construction not old, it also is LESS expensive per square foot. What they failed to factor in to their equation is knockdowns.

Prime example:

74 Fairmont Avenue, Newton MA.

Sold for 2.9 million in March, the only million plus sale for the entire month ( there are now 93 listings over 1 million , but that is a tale for another day).

Trulia, Zillow and the City of Newton assessors list the house as having seven bedrooms, 3.5 baths, 3,424 sq ft with a build date of 1912. Problem is , the house when sold in march was 7,607 sq feet , 6 bedrooms and seven baths. This is the description taken from the listing ;

"Gracious new home with open layout and beautifully proportioned rooms. Abundant details include substantial moldings, wainscoting and built-ins. The glorious chef's kitchen has a full array of state-of-the-art appliances. Lavish master suite with dressing..."

So when Refin calculated the price per sq foot they more than doubled the actual cost and added 96 years to it's age. This is not an isolated example, three other higher priced sales in Newton during the month of march were all new construction of old properties;

66 Forest Ave : 825,000
75 Manet rd: 845,000
34 Beecher rd: 947,5000

Turns out what is happening is the exact opposite of what redfin claims, brand new lower priced properties offered by developers ( they get it) sell while over priced used homes offered by delusional sellers sit and sit....

Fawn has some useful information in her comment.

Banks will return to "traditional" loan making.

But traditional does not mean the last 5 years. Banks are losing billions on that sort of loan making, and it simply will not happen again.

Look at all the mortgage lenders who have gone bankrupt if you wonder why.

So banks will go back to loaning out at high down payments and low debt-to-income ratios. Because this won't lose them money, and will create loans investors will be willing to buy.

100% financing is the wave of the past.

Amazing how many people think we will bounce right back to a bubble. THere is literally no sane analyst who believes this, but an amazing number of the general public still do. Utterly inexplicable.