The other considerations that come into play with price per foot would be the condition of the property, quality of workmanship and location. The average price per foot in Newburyport for the last six months is $269. If you isolate Plum Island, it goes up to $401, as properties are generally smaller out there and the water influence will raise and justify the higher price.
If you take out all the Plum Island sales and any properties that have direct water influence for the last 10 years, there were only 15 properties that sold over $400 per foot. Until now!
This spring we had two that broke the record of $466 per foot set in May ’05. Not only did they break the record, they shattered it. The two properties of interest sold at $504 and $545 per foot respectfully.
These properties couldn’t be more different from one another … the $504 property was only 704 square feet but was in a great location, and the $545 was 2,300 square feet, superb location and dressed to the nines.
The other interesting storyline to these is that they both received multiple offers and the two successful buyers did not require lender appraisals as a condition of the purchase. This is important, as lenders would have had a very hard time justifying the price (finding other recent sold properties that are similar).
The buyers wanted these properties at any cost. It is important to also understand that these two properties are not a trend, as the average price per foot has not really changed much in the last 10 years, but more of an anomaly.
These stories show how strong our local real estate market has been this spring and summer. This fall market should be a continuation of the spring market, as the demand for housing will outpace supply.
There will be new buyers and the buyers who did not buy in the spring will be re-energized. The only concern is how much farther the interest rates are going to rise from Bernake’s tapering of quantitative easing and if it will have a drag on our local market. The 30-year fixed mortgage rate last week was 4.5 percent, up a full point since May. The higher interest rates will only add fuel to the market, as the already nervous buyers will fear that they will not see better rates if they wait.
Newburyport real estate agent Bill Barrows has been a Realtor for 22 years