Would you fork over more than half a million for a 500 square foot condo? Even if it was in some hot Boston neighborhood like the South End or the Back Bay?
Apparently some buyers are doing just that, the Globe reports in this piece on the latest report by LINK, a firm that tracks the downtown Boston condo market.
Here's what Debra Blair, LINK's president, told the Globe.
"I found it remarkable," she said. "If someone wants to live in the city, they're willing to pay a premium on the urban lifestyle."
Remarkable, or just foolish? After all, when prices hit a soft patch again, those overpriced, 500 square foot condos are going to be hard to sell.
Overall median price for a downtown Boston condo set a new record in the third quarter, hitting $525,000, LINK reports.
And 40 percent of the condos sold over the summer and September went for above asking in the 12 neighborhoods monitored by LINK. In the South End, Beacon Hill and Charlestown, more than half of all condos sold fetched a premium, the Globe notes.
Meanwhile, downtown Boston luxury condo prices are once again nearing their last peak, set in 2008, when the median hit $2 million.
Of course, downtown Boston prices can't just keep on keeping on, year after year. All hot real estate markets cool off or take a tumble eventually. Still, it's hard to see that happening, at least right now, in the Hub's overheated condo market.
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