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In the last few weeks our office has witnessed a substantial increase in Boston real estate investment inquiries from international buyers. The majority have been from Europe, probably due to the Greek bailout and the fall of the euro. Despite the many economic problems in the United States, and I for one am very unhappy with the unbridled spending and borrowing of our federal government, the United States of America is still viewed as a safe refuge, particularly in times of uncertainty.
Real estate is tangible and Boston has a fabulous international image. Combined with the hyperinflation of many other international real estate markets, Boston property appears to be a bargain with prices generally under $1,000 per square foot. A client from China recently told me that Hong Kong prices are now around $4,000 per square foot. London and Moscow are even higher! So, to all of you wonderful visitors from abroad: Welcome, welcome, welcome to Boston!
The report claims that when driving and other transportation costs are added to housing costs there is rarely a sufficient savings to the consumer who chooses to live outside the city. People who move to an outlying Boston suburb to find affordable housing or to get more house for their money often sacrifice the savings to higher transportation costs.
The Pulse is a new format where we will endeavor to give Boston real estate market feedback every week. Our customers seem to want to know what is happening all the time these days, hoping to discern trends. I think the real estate market has become more like the stock market in this regard. People love to watch their stocks on a daily basis and I think we have reached the point where people want to know how their real estate investments are doing even if they have no intention of selling or buying.
and commercial markets, which are not always going in the same direction. At this point the residential market has leveled off and is not trending up or down. Of course, we are in the fall market now and sales activity historically is higher before the winter and the holidays. After all, who wants to move during the holidays? The more sales activity, the more absorption. The more absorption, the less the supply and the greater the demand. The greater the demand, the higher the prices trend.
