Home Buying in 02478>Question Details

Tony, Home Buyer in Ian

Are Belmont properties overpriced?

Asked by Tony, Ian Tue Jun 3, 2008

Say a 1400 psf condo for with 3 b d1 bath for more than 420K? Or a 1700 sft for 500K?
People's real income are going down..not up!
Wil the prices come down?

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Answers

10
You can look at the housing futures prices at

http://www2.barchart.com/futexch.asp?exch=iom-hp&code=BSTK

which seem to indicate an expectation that the overall Boston prices will remain relatively flat (with a slight decline) over the next five years. The current Boston area prices are a little bit more than 150 percent of 2000 levels. By 2012, the Boston area prices are expected to be a little less than 150 percent of 2000 levels. Of course, this would represent a significant decline in values in inflation-adjusted terms.

Some words of caution when interpreting housing futures data:

1. Like weather reports, they indicate "expectations" -- the reality could be different in either direction.

2. The amount of open interest is small (and actually zero on some contracts). Lower open interest generally corresponds to lower predictive value in a futures market.

3. Local submarkets (Belmont condos in your price range) do not always mirror larger markets (Boston as a whole). The local submarkets are too small to be part of a national futures exchange.
2 votes Thank Flag Link Fri Jun 6, 2008
Belmont is very desirable place to live. Relatively small town close to Boston, with a highly regarded school system. Belmont has very good resale value.
1 vote Thank Flag Link Thu Jan 30, 2014
In 2009, US News gave Belmont High School a gold medal and named it the 100th best non-private high school in the United States and the second best in the state of Massachusetts. The quality of the schools, as well as the proximity to Boston, is keeping the property values stable.
1 vote Thank Flag Link Sat Aug 14, 2010
I've been looking in the Belmont area for a condo this past year. The prices in Belmont are inflated because of the location to Boston and excellent school district. On the positive side, condos and homes seem to sell very quickly if they are half decent.
0 votes Thank Flag Link Sun Apr 21, 2013
Belmont can be a little more expensive than other towns, but it has very good resale value. The condo market is a great way to get into the market.
Flag Thu Jan 30, 2014
Its also a 2 1/2 year old question.
0 votes Thank Flag Link Sat Feb 12, 2011
That's too vague a question. How long has it been on the market without a price reduction?

If any home has been on the market for more than 30 days without a price reduction, then it's overpriced, the marketing has been poor or it's difficult to show.
Assuming the marketing has been good and it's easy to show, then it's time for the listing agent to ask the owner to lower the price.
0 votes Thank Flag Link Sat Feb 12, 2011
Belmont is a town that has always kept its value. Recently I listed a home in Belmont that had 18 offers on it. Buyers loved the location and also the fact that the school system is very well run. The town has a nice Audubon area where you can enjoy nature but at the same time there are fine shops and nice Restaurants. You may pay a lot for a home but when it comes to sell you should feel good about the house holding value and possibly making money. For more information regarding Belmont please visit my new Site http://www.timroche.com
Web Reference: http://www.timroche.com
0 votes Thank Flag Link Wed Dec 15, 2010
You can look at the housing futures prices at

http://www2.barchart.com/futexch.asp?exch=iom-hp&code=BSTK

which seem to indicate an expectation that the overall Boston prices will remain relatively flat (with a slight decline) over the next five years. The current Boston area prices are a little bit more than 150 percent of 2000 levels. By 2012, the Boston area prices are expected to be a little less than 150 percent of 2000 levels. Of course, this would represent a significant decline in values in inflation-adjusted terms.

Some words of caution when interpreting housing futures data:

1. Like weather reports, they indicate "expectations" -- the reality could be different in either direction.

2. The amount of open interest is small (and actually zero on some contracts). Lower open interest generally corresponds to lower predictive value in a futures market.

3. Local submarkets (Belmont condos in your price range) do not always mirror larger markets (Boston as a whole). The local submarkets are too small to be part of a national futures exchange.
0 votes Thank Flag Link Fri Jun 6, 2008
These prices don't sound outrageous. The greater Boston area is one of the most expensive regions in the country. Will the prices continue to drop is anybody's guess. Allegedly the prices have been falling for the last 3 years so there is the chance this is the worst of it or we could see another year.

The way to make the decision is to look at Belmont specifically and not focus too much on the national real estate market trends. Remember real estate is hyper local (each individual area is affected differently by market crisis'). Positives are that Belmont is a stable high-end market (meaning it isn't currently going through a gentrification of sorts - i.e arlington, south end, etc). The area has great school systems and is very close to Boston.

Also look at the facts ...
Condo market snapshot:
Last year, 64 properties, 114 days on market and median home price of $427,000
This year, 41 properties, 165 days on market and median home price of $479,000
Summary: Less inventory higher prices which means the condo market in belmont is still strong despite general market slow down.

I hope that helps. Good luck!
Web Reference: http://www.territoryre.com/
0 votes Thank Flag Link Tue Jun 3, 2008
Belmont is a very nice town that is close to Boston, I feel pretty confident in saying that you've already seen the worst of the declining prices.....
0 votes Thank Flag Link Tue Jun 3, 2008
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