The real estate market may be struggling but the luxury market is a different story
The real estate market has been slow to recover in most of Massachusetts, with prices low and sales sluggish in many communities.
There is one exception — the luxury market in some posh areas of greater Boston.
Communities such as Weston, Wellesley and Brookline have seen substantial increases in home prices in the past year, according to the RE/MAX of New England Luxury Housing Report. Weston, Brookline, the South End and Beacon Hill have also seen a jump in the number of sales, according to the report.
In Beacon Hill alone, the number of units sold between 2010 and 2011 skyrocketed 87 percent.
“The real estate market is hyper local, no matter where you are talking about,” says Paul Mydelski, broker/owner of RE/MAX Leading Edge. “People are starting to spend money again. Some of the luxury markets, like Wellesley, Brookline and Newton, are appealing areas. People want to be there and it is not unusual to see sales well over a million dollars.”
According to the report, the average sale price in Brookline jumped 26 percent between 2010 and 2011. And Brookline’s prices are continuing to increase, says Mydelski, who owns real estate branches in Winchester, Arlington, Newton, Waltham and Watertown. “People have recovered money they lost. They are starting to make money, and employers are hiring,” says Mydelski.
Average home prices in 2011
Brookline $1.8 million
South End $1.5 million
Wellesley $1.9 million
Weston $2 million
(Source: RE/MAX of New England)