Mega, Mega Prices for Mega HomesOctober 15, 2016
As the Boston luxury real estate properties get bigger and bigger, so do the price tags. Regardless of whether we are talking about condominium prices or Boston luxury homes.
It all started with mega prices in Boston proper and it is trickling down to the suburbs. Up until four or five years ago, the high prices in Boston luxury real estate, at best were into six-digit numbers. Those are bygone days.
Now, we don’t even blink when we see Boston luxury real estate condo sales in seven to eight digit numbers. Some properties, such as The Millennium Tower or The Mandarin Condos, or newly renovated townhouses and/or brownstone condos, command prices upward of $12M-$38M+ range. These prices are a new phenomenon.
Obviously, there are select Boston luxury homes buyers who are willing and able to pay no matter what to get what they want. The demand is there and the sellers are banking on it. This surge in price is affecting the prices in greater Boston area, such as Brookline where a new property just hit the market for $90M -- the highest price ever for a single home in MA. It is irrelevant whether it sells or not. The fact is that it establishes a “new” norm for others to follow.
Five years ago in Boston luxury real estate, we thought asking $10M for a property was insane and unheard of. Today, we don’t even think twice about it, because we are seeing so many prices triple that amount.
So, when people ask whether these prices ever coming down? The answer in a nutshell is no. Price may be flat for a period of time, but these prices set the standard for the future of the market.