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What areas in Boston are likely to appreciate in the next 5 years?

Asked by Trulia, San Francisco, CA Fri Mar 9, 2012

What potential local factors could contribute to this appreciation?

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All areas of Boston will appreciate in the next 5 years if the economy continues to stabilize and grow. The downtown area, Back Bay, Beacon Hill and the South End are a standard place to park your money and preserve your equity. If you are looking for more of a "up and coming" area - take a look at the downtown crossing area, Seaport District, East Boston and Dorchester near UMASS Boston. The mayor is really pushing the development of East Boston's waterfront. There are a handfull of stalled construction projects that may finally come to life in the next year or two. Also, UMASS Boston is rumored to be building housing for it's campus. This means the campus may become less of a commuter school and more of a residential community. You may see some more development in the JFK/Savin Hill area as a result of this.
1 vote Thank Flag Link Fri Mar 9, 2012
Southie, JP and Davis Square. They still offer city life in the way the suburbs such as Newton do not. They are all transforming neighborhoods with a lot of room to grow upwards unlike the affluent suburbs that were already nice such as Newton and Brookline. Southie for example, when former industrial areas are cleared for residential high rises that is huge growth. For JP, Southie, and Davis square 3 families are being gutted and renovated to luxury standards. a multi family that sold for 160 a square foot suddenly fetches 350 even 400 dollars a square foot sometimes. The largest rate of appreciation will take place in changing neighborhoods, not established ones.
1 vote Thank Flag Link Fri Mar 9, 2012
Jamaica Plain is growing by leaps and bounds. Development is everywhere. Just got Whole Foods and Harvest Coop is building. Amazing place to live. And the schools are getting better.
1 vote Thank Flag Link Fri Mar 9, 2012
The same as always,

Brookline, Newton, Needham, Wellesley, Belmont, Concord, Lexington, Winchester

Schools, town centers, quality of life, public transportation, proximity to downtown Boston
1 vote Thank Flag Link Fri Mar 9, 2012
incredibly insightful.
Flag Thu Mar 15, 2012
Newton Wellesley Lexington Weston.
Stenth of the schools.
1 vote Thank Flag Link Fri Mar 9, 2012
To further my last comment ...

As an example: "New England, led mainly by Boston, nabbed 14.6 percent of all 2011 angel investments." - huffington post This tells you Boston has a thriving business community. In addition Google announced it's expansion in Cambridge ... My guess is Google's presence their over the last several years has accounted for it's 10% increase in property values since 2005.
Cambridge: http://goo.gl/5TUcM

Hope that helps!
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0 votes Thank Flag Link Mon Mar 26, 2012
Your best bet is to stick to the gentrified neighborhoods if you are on a 5 year plan because the general real estate market is still very unpredictable / recovering

Back Bay http://goo.gl/EYIVf
South End http://goo.gl/txiu6
Beacon Hill http://goo.gl/N4k7E
Charlestown http://goo.gl/6AKgH

Another area to consider:
Brookline http://goo.gl/CSzIy

The main contributing factor for neighborhoods to appreciate is the local economy: commercial offices, retail, restaurants, etc.
0 votes Thank Flag Link Mon Mar 26, 2012
Historically homes have appreciated at 4% per year. This measure tracks the historical rate of inflation plus a point or two.

In Boston, our prices peaked (according to Case Schiller) in 2005. The city realized a 2nd peak in 2008 and then prices quickly fell after Lehman Brothers went belly up.

We have seen a strong rebounding trend and prices have regained their 2008 levels and in some areas (Cambridge and South End) have exceeded those levels by 3-5%.

An equally important question to ask would be " which areas are likely not to depreciate?" The core downtown markets: Back Bay, Beacon Hill and South End along with Jamaica Plain and Cambridge have showed remarkable resiliency .

It is likely no coincidence that those areas are experience the strongest activity in our Boston marketplace.
0 votes Thank Flag Link Wed Mar 21, 2012
It depends on what type of property you are thinking of buying. For single family homes, as always, the towns with top rated schools and good public transportation & amenities will hold their value best, and appreciate in a good market. Locations with a shortage of single families and a vibrant social scene, like Davis and Porter Sqs in Somerville, should do well and have already begun to appreciate.

It's not generally a good idea to buy a single family home or condo with the idea of trying to make a profit in 5 years. When you figure in financing costs, maintenance and sales commissions you'll need about 10% appreciation just to break even. It's a little different if you're buying a fixer upper and want to put in some sweat equity. In most cases you should buy a home because it's somewhere you want to live, and look on capital appreciation as a bonus.

For condos, multi family and investment property stay near the T, preferably the Red Line from Boston north to Arlington, or near a respected college. The Somerville Green Line expansion through Union Sq and Winter Hill is expected to raise values in the neighborhoods near the proposed stations. I wouldn't want to gamble on this being completed in 5 years, though.

A rising tide raises all ships, so it could easily happen that as the market improves many towns experience increasing values. From an investment point of view, however, the safest bet is to stick to the areas I just described.

A good buyer agent who's familiar with investment strategies can help you tremendously. Don't forget, the profit is made when you buy, not when you sell.
0 votes Thank Flag Link Mon Mar 19, 2012
roxbury and revere most likely to be up 10-20% YoY in home prices
0 votes Thank Flag Link Thu Mar 15, 2012
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