Bostonians are bombarded with talk of a “real estate downturn”, the buzz around town is that Buyers want to take advantage of the real estate crisis, sometimes we hear that prices are falling, and foreclosures are being touted as a widespread epidemic.

However, in the core of downtown Boston:

• There’s no real estate downturn
• Boston city center real estate is not in the middle of a real estate crisis
• Prices are not falling, but appreciating, in downtown Boston
• There are little to no foreclosures in downtown Boston

What do we mean by “downtown Boston”? Simply put, it’s the neighborhoods that make up the core of the city: Back Bay, South End, Beacon Hill, West End, North End, Waterfront, Financial District, Midtown, Leather District, northern South Boston, and the Seaport District. Oftentimes, generalizations are made about what “Boston” actually encompasses, and Boston is inaccurately lumped into state-level Massachusetts information, skewing the public’s perception of the real story.

Does it matter that distinctions are made between downtown Boston, the suburbs, the state of Massachusetts, and the US, when talking about the status of the real estate market? On many levels, yes. Sellers need to know that they can still sell and make a profit, Buyers need to know that they are still going to have to pay a premium for living in the city center, and everyone needs to know that the downtown Boston real estate market is much more stable than the majority of news stories would have you believe.

Kevin Ahearn puts together yearly statistics for downtown Boston real estate, representing a broader scale of neighborhoods than we alluded to above, and he displays a 5.74% appreciation in average Boston condo prices in 2007 over 2006. Additionally, to take a specific South End neighborhood example, we see both average and median home prices continuing to rise. The city center is much different than the rest of the state, or the country for that matter, and these statistics demonstrate that.

Across the USA, foreclosures are indeed up in numbers, however, there is by no means an epidemic of foreclosures in the city of Boston. Take, for instance, a recent foreclosure map that John Keith put together that provided a visual representation of where foreclosures are cropping up in Boston. One might think that there are tens of foreclosures all across the city. There was 1 foreclosure in downtown Boston at the time of this writing, at 25 Channel Center. A single foreclosure is far from an epidemic.

We aren’t trying to put a “positive Realtor spin” on these messages. Truth be told, there are many towns, cities, and even states that are experiencing falling prices, and significant foreclosure numbers. However, mass generalizations that liken downtown Boston to the state of Massachusetts, or the country for that matter, paint an inaccurate picture. More accuracy and attention to detail needs to be practiced when citing real estate statistics – real estate is local. Bottom line, according to the data available, downtown Boston real estate is doing just fine.

Are you headed out of town this holiday season? If you are in downtown Boston, and need to get to Logan Airport, you should consider taking the T (MBTA Subway). The T provides an inexpensive, and relatively efficient, means to get to Logan.

There are several ways to get to Logan Airport from downtown via the T, we’ll cover one of those routes today: the Blue Line. From all points downtown, head to the outbound Blue Line. You’ll take the Blue Line towards Wonderland underneath Boston Harbor, past East Boston’s Maverick, and exit at the conveniently named ‘Airport’. Once you exit the T, simply follow the signs for the free ‘Airport Shuttle’. You’ll exit the T station and head right towards some large poles next to the adjacent roadway. On those poles, facing the roadway are signs stating which airlines are served by which shuttles. Simply hop on the shuttle that matches your airline/terminal (no ticket or transfer card needed), and you’ll be at Logan in less than 5 minutes.

A ride on the T will cost you only $1.70 if you have a Charlie Card (you can purchase a Charlie Card with a stored value online, and then have it shipped to your home at no cost). From many points in the core of downtown that only require one transfer onto the Blue Line, plan for the trip to take roughly 45 – 50 minutes. In comparison, a taxi ride from downtown Boston to Logan can cost anywhere from $20 – $30, and take you anywhere from 15 – 25 minutes.

The Boston Public Library (BPL) recently announced their Digital Audio Books program. Library patrons can now download audio books to PCs or iPods some digital media players. The new site looks much like Amazon.com, and boasts downloads at anytime.

Access to the site is limited to library patrons with a library card only. If you do not already have a physical library card, learn more about instantly obtaining a BPL eCard.

Boston’s own Ben Mezrich was at the Boston University Barnes and Noble book store on Monday evening to speak about his new book, Rigged. The new novel, from the method writer that has become quite popular after the success of Bringing Down the House and Ugly Americans, follows the true story of a Harvard Business School MBA grad who changed the world of oil, from Wall Street to Dubai.

Ben spoke in a very humbled tone on Monday night, answering questions and discussing the various predicaments he, and more so his writing alter ego, has been through over the past 10 years since delving into non-fiction thrillers that oftentimes chronicle smart and savvy entrepreneurs at heart.

If you appreciate the entrepreneurism at the heart of many Mezrich protagonists (at least from his non-fiction work), Jab, Jab, Jab, Right Hook or Crush It! by Gary Vaynerchuk may also be titles you should consider reading.

We have been contacted by a writer from the London Financial Times in an effort to find a green condo or single-family home that will be featured in a high profile international news story on ‘period’ houses that have been restored sustainably (i.e. to green criteria without losing their architectural integrity and character).

If you have renovated an individual home or condo anywhere in North America (we’d prefer Boston in an attempt to put the city on the international map as a place that is environmentally conscious) that fits the below criteria, or know of someone who has, please contact us.

We are seeking a property (be it a brownstone, a single-family, etc.) such as the following.

• A home of historical architectural interest, so it has a ‘period’ exterior that needs to be preserved. It might be brownstone, or weatherboard, or an Art Deco building, or something else, but it will not be a new or recently built building. Ideally it will be a relatively unusual or unique one.
• Something restored with a significant ‘green’ agenda in mind, so it has energy efficient, heat conserving, water efficient design and technology – the more, the better.

An ideal case study might be a substantial but dilapidated family mansion that has been bought up and overhauled to make it as carbon neutral and ecologically sound as possible. It might or might not be divided into smaller units for sale. It need not be on the market at the present time, so long as the owner or developer is amenable to discuss the property and allow or provide photography.

As mentioned, this story would be part of a lead feature in the weekend property section of the London Financial Times (the pink paper), and homes identified here in North America that are willing to participate would receive publicity to the level desired.

If you have a suitable property, or know of anyone that does, please contact us with your story, the more details and photos (if available), the better.

Rise and shine Boston. Daylight Saving Time comes to an end today, November 4, 2007. Don’t forget to “Fall Back” one hour today.

If you have not already stopped by the Wiggin Room in the Boston Public Library (BPL) for the WW II Poster Exhibit, we highly recommend it. The exhibit, which displays a large collection of “victory” posters will be on display, and is free to the public, until September 30, 2007.

Through September 30, 2007 in the Wiggin Gallery. A selection of posters from the collections in the Print Department of the Boston Public Library. The majority of World War II posters were published from 1939 to 1945 by the United States Government Printing Office. They were a visual call to arms for all citizens.

If you were one of the iPhone early adopters, reported by our friends at condoDomain back in late June, you are probably quite disgruntled by Apple slashing $200 off the price of their new gadget earlier this week. The Wall Street Journal reports today that Steve Jobs, Apple CEO, will be providing a $100 credit to “give something back” to the early adopter crowd (i.e. those who spent $599 on the higher end 8 GB iPhone).

Responding to a flood of emails complaining about a surprise iPhone price cut, Mr. Jobs apologized publicly and said Apple will offer a $100 credit at Apple stores to all iPhone users who paid the original price.

If you purchased your iPhone at the original $599 price within 14 days of Wednesday’s price cut, you are eligible to receive a $200 cash refund. Also note that Apple announced they will be discontinuing the lower end iPhone with 4 GB of memory.

Back to actual condo news later 🙂

Every taxpayer in the city of Boston who owns residential property and occupies the property as his or her principal residence on January 1, 2007 may be eligible for the residential tax exemption for Fiscal Year 2008. For the purpose of this exemption, the principal residence is the address from which your Massachusetts income tax return is filed.

Since 1983, the city of Boston has elected to apply a residential exemption to residential property that serves as a principal residence of its owner. The value of the exemption is subtracted from the total full tax valuation. For fiscal year 2007, the residential exemption was 30% of the average value of all residential property in the City. The residential exemption value was $138,767 – equating to residential taxpayers who qualified saving $1,525.05 on their tax bill.

If you have not already, you should soon receive your Residential Exemption Application in the mail at your home address. Applicants are being asked to respond by October 1, 2007. For more information, to file an application in person, or if you have not received your application, please see the City of Boston’s website on residential tax exemption.

*Learn more about how Boston Property Taxes are calculated. 

If you don’t keep up with the Massachusetts Department of Revenue website, let this be your indication that it is tax-free weekend in Massachusetts!

On the weekend of August 12-13, 2007, Massachusetts will hold a “tax free holiday weekend,” where customers can avoid the 5 percent Massachusetts sales tax while shopping for some goods. Here are some general guidelines:

• The Massachusetts 5 percent sales tax will be waived for most goods that cost $2,500 or less.
• The sales tax is exempt for tangible personal property bought for personal use only.
• Motor vehicles, Meals, gas, and tobacco products remain taxable.
• Airline tickets and sporting events are considered services, and thus remain taxable.
• Bundled goods — such as computer packages that include computer, monitor, and printer — only qualify for the tax exemption if the price of the entire bundle is less than $2,500.
• Prior sales and layaway items do not qualify.
• If an article of clothing exceeds $2,500, you receive a $175 deduction on the sales tax. For example, if you buy a dress for $3,000, you pay sales tax on $2,825.
• For coupon items, the sales tax applies only if the post-deduction amount is more than $2,500. For coupons applied to total purchases, the discount is pro-rated for each item sold.
• Internet orders paid for Aug. 12-13 are exempt.

You gotta love tax-free weekend in Boston. Boston Real Estate is always tax-free – this weekend, and every weekend, you can purchase a Boston Condo tax-free 🙂 Contact us for more details.