Boston Real Estate Cash Buyer Profile 2013

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Information about Boston Real Estate Cash Buyer Profile 2013
Real Estate

Published on March 10, 2014

Author: backbayrealtygroup



This presentation covers how Cash Buyers impacted the Boston real estate market. Furthermore, what impact they might have in 2014.

2013 Cash Buyer Profile Presented By

In 2013 the Boston Real Estate Market Roared Back to Life 2013 was a great year for Boston real estate.The market was helped dramatically by the fact that purchasing power had never been higher. Groups of buyers that had been sitting on the sidelines came out of the wood work to buy property. The 30 year fixed rate dropped to 3.5%* and in some cases and areas it went even lower.This encouraged lots of first time buyers to enter the market as well as those who became renters when the financial crisis hit.Then there was a group that has always played a role, but never quite as large as they did this year... Cash Buyers. *Information Curtesy of

2013:The Year Buyers Flashed the Cash In 2013 there were more cash sales than at any point in the past 5 years. They weren’t only up they were up big.The number of cash deals in 2013 was up 43% over where they were 3 years ago.

The Highest Priced Cash Sale was at the Mandarin Oriental for $6.3 Million.

Full service condo buildings in general did well with cash buyers...

Millennium Place Had the Most Cash Deals in 2013 at 21 Sales 15 North Beacon The Clarendon Residences at the Ritz W Boston 53% 44% 44% 42% Percentage of building sales in 2013 that were Cash

Outside of luxury condo buildings, the most popular price point for Cash Buyers was $500,000-600,000

Price points that did well with Cash Buyers: $5-10 Million 25% of Sales $3-4 Million 27% of Sales $1.5-2 Million 23% of Sales $900,000-1 Million 17% of Sales

Cash Buyers were overwhelmingly buying 2 bed units. Nearly half of all cash deals were 2 beds and 1/3 were 1 bed buyers.

So where did all these deals happen?

Neighborhoods where buyers stashed their cash Back Bay 101 Sales Brighton 74 Sales South End 39 Sales Waterfront 27 Sales Dorchester 25 Sales South Boston 24 Sales Beacon Hill 23 Sales Allston 23 Sales Charlestown 10 Sales North End 9 Sales East Boston 9 Sales

Where do we go from here?

2014: Cash will remain strong In 2014, we expect cash deals to maintain their large presence in the market. Based on numbers from 2013 and the beginning of 2014 we expect cash deals to remain a force in the 2014 market and garner at least 10% of the total sales market.This number could increase as more international buyers come to the Boston market. Jones Lang LaSalle rated Boston as one of the best cities in the United States for long term real estate value in January of 2014. Prime real estate remains a great asset for those looking to put their cash to work and Boston should benefit from this.

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