General News

Boston Condo Market 2018 Review

A Look into Boston's Condominium Sales Market

 

It's safe to say that Boston's real estate has been on a hot streak. With 2018 at a close, Boston condominium sales have set even higher records than ever before. The Seaport took the lead in 2018 as the most expensive neighborhood, with the highest average sale price. Back Bay and South End continue to be highly sought after neighborhoods. South Boston also saw an increase from previous years when comparing average price and price per square foot; However, the most impressive statistic was that South Boston was the most popular in terms of condominium sales volume, totaling to 753 units sold. Now the question is, what does the market have in store for 2019?

 

 

 

Click to view available condos in South Boston

Click to view available condos in South End

Click to view available condos in Back Bay

Click to view available condos in Beacon Hill

Click to view available condos in North End

 

 

 

 

 

New Short-Term Rental Law

Gov. Baker of Massachusetts signed into law a bill regulating and taxing any kind of "short-term rental" (that is, any rental for 31 days or less).  There is an exemption for properties that are leased out for 14 days or less per calendar year, but this law is expected to have a substantial impact on owners that rent vacation homes and utilize services such as Airbnb and VRBO.

This new law takes effect on July 1, 2019.  Hosts are obligated to register with the State and their local municipality, carry $1 million in liability insurance per unit, and possibly be subjected to inspections that will vary from city to town.  Additionally, short-term rentals will be subject to new taxes and fees, including, but not limited to, a state tax of 5.7%, local taxes up to 6% (Boston can levy up to 6.5%; Cape Cod and Islands can levy up to 8.75%) and "community impact fees" of up to 3% may be levied locally on professionally managed properties (owners of 2 or more units in one town).

It will be interesting to see what impact this will have on tourism and business travelers, particularly if cities and towns decide to max out the allowable fees and taxes. 

See additional details at marealtor.com/ShortTermRentals.  

Disclaimer: This article should not be construed as legal or tax advice.  If you own, operate or are considering owning or operating a short-term rental property, we recommend that you seek guidance from a lawyer and/or tax professional.  

 

 

Back Bay Association Annual Breakfast with Mayor Martin J. Walsh

Back Bay Association Annual Breakfast with Mayor Martin J. Walsh at the Fairmont Copley Plaza

The Mayor talked about new developments and businesses, new restaurants opening on Newbury Street, housing for the homeless and Boston springing forwarded.

Pictured left to right: Shelagh Brennan, Robert Weintraub, City of Boston Mayor Martin J. Walsh & Josh Zakim (City Councilor for District 8)