The real estate market in Allston has been thriving for at least two years now. While this may be something that property sellers rejoice about, buyers may not be too pleased. Often, the very hot market trend means that buyers will be expecting skyrocketing prices in a suburban neighborhood such as Allston in Massachusetts.
If you are planning to purchase a real estate property in Allston, the prosperous trend may continue next year and beyond. Does this mean you have to look elsewhere for your next property instead of Allston?
Why People Buy Properties in Allston
One of the best things about Allston that attracts buyers of real estate properties is that it has a little bit of everything. You can find hip bars, business centers, startups, and artsy cafes. There are young entrepreneurs and college students and they mostly live side by side one another. The arrangement makes this place very interesting and appealing to many people.
People who can not get a living space in Cambridge mainly choose Allston, which is why you can find a high concentration of Boston University and Harvard University students there. Because of this student presence and the promising millennials in the area, Allston has become an excellent location for rental investment. It is one of the reasons why people buy properties here, although there are also some who choose to make a purchase to use the property as their residential home as well.
Allston is in a convenient location which makes it a popular destination for Bostonians and even tourists. If you are planning to buy a property in this location, here are some figures to ponder:
- The asking price for properties for sale in Allston has seen an increase of almost 60% compared to last year.
- Many of the surrounding areas have a problem with the inventory where there are fewer houses for sale. In the case of Allston, the good news is that the number of homes that are up for sale this year has increased 33.3%.
- This year, the median list price is around $839,000 while the median sale price is around $526,000.
- As for the median list price for every square foot, the properties are priced at $638 per square foot. For the median sale price per square foot, the price was $482 in August.
- All in all, the Allston market trends are showing a positive trend. There is a continuous increase, especially in the median home sales, which is now $63,000 – up 14% over the past year. As for the average price for every square, numbers may be conflicting but currently, it continues to rise. The average price per square foot was $468 last year and is now $496 this September.
- The median sales price varies depending on some factors, such as the number of bedrooms of the property. From May to August, one bedroom properties were priced at $450,000 on average. This amount is higher than last year’s $15,000 during the same period. Five years prior to that, one bedroom houses were just $184,500 on average.
- Meanwhile, two bedroom properties are now priced at $527,500, which is a huge 16.1% increase compared to last year’s $454,500. Five years before that, the houses with two bedrooms were only $258,500. As for three bedroom properties, the median sales price in Allston remains the same as last year, which is $495,000. Five years before that, the houses were priced $400,000 on average. Four bedroom properties are up 6.2% in median sales price compared to last year. In 2017, these houses cost $760,000 while they were $715,806 on average in 2016. Five years ago, the asking price was $427,500.
To summarize the property numbers for the period of May 24th to August 23rd, all properties saw an increase of at least 13% from last year. The average median sales price for all properties is $527,500, while last year, it was $423,500. Properties that are up for sale usually get sold quickly because of the high demand for housing in this area. In fact, the average sale per list is 98.2%, which is definitely great news for those who are looking to sell in Allston.
What about Rentals?
If you are thinking about purchasing a property as a rental investment, you should know the numbers as well. Since Allston is a popular place for students and young professionals, rentals are actually a good investment. The median rent per month from July 24th to August 24th was recorded to be $2,400. The highest rent almost reached $4,000 in the month of November. It declined in the months of January to July but went up again before July ended.
Due to the popularity of the area, many rentals surface, especially from February to May. The fewest rentals are around the months of October to December. As for condo units, the median price of condominiums in Allston is $422,900, a 64% increase since 2011. These details should give you an idea of when to put your Allston property up for rent.
Moving to Allston
Allston features a gritty expanse of land that encompasses some parts of avenues like Brighton, Commonwealth, and Harvard. If your plan is to purchase a property, it makes sense that you know about what to expect in Allston. It is a great location for those who are looking to sell as well as those who want to buy a property in the area since you are close to the city. Plus, buyers can find some really attractive deals including more affordable real estate properties.
Compared to some areas in Boston, Allston is cheaper – whether you want to rent or to buy a property. However, it is still not that cheap. The median price for rent and homes for sale are just slightly cheaper than some Boston neighborhoods but it is still more than the median rental price in the United States.
You have probably heard about Allston being called “student ghetto,” which may make you wonder if college students live all over the area. Because it is in close proximity to colleges, such as Northeastern University, Boston University, and Boston College, you can expect to find a lot of students there. If you are worried that they are the ones dominating the area, you can actually find many young professionals in Allston. In fact, the Boston Redevelopment Authority estimates that almost 90% of Allston is comprised of renters that are mainly young professionals. Currently, the median age is 25.
There is also something special in this neighborhood, including the fact that they actually celebrate what they call “Allston Christmas.” It is an informal curbside holiday that is celebrated every year during the start of the month of September. At this time of the year, Allston Christmas is when droves of students arrive and others move out of their apartments as well. It is Christmas because they exchange different items such as lights, microwaves, tables, and sofas. Everything that they do not want will be left on the curb, while the things that they do want will be taken to their new apartment.
What You Can Do Based on the Real Estate Trends in Allston?
The home values in Allston are rising and it is no wonder that these numbers are expected to keep increasing till next year. As a matter of fact, experts are saying it will continue to rise to almost 4% in 2018. As for the median rent price, it is currently at $2,400. The rent list price per square foot is $2.93.
Because of its convenient location, many people look for rental properties in the area. Compared to Boston though, the mentioned median price of Allston is lower since it is $2,700 in the state capital area. Landlords may not be too happy with the comparison, but this is something for the buyers and of course, the renters to be glad about.
The Allston market has been quite healthy over the past few years. There is comfort in knowing that the place has not seen a really big change. There are still restaurants that may have been there 10 years ago and there are also boisterous bars and college kids that keep on moving around. The only difference is it costs more to live in Allston. However, this does not stop people from buying properties in this part of Massachusetts.
Even more interesting is the expansion of Harvard University as well as the New Balance complex, which are both bringing in more apartment buildings and residential properties up for sale and for rent. Even with the increasing prices and the fewer number of homes that are put up for sale in Allston and other nearby areas, it is still a great time to buy a property especially since it is predicted that the trend will continue.
Brand new housing is generally available all year round in Allston. You can even find historic Victorians and homes for families. There is diversity in the houses offered in the area, which is always a good thing whether you are buying for your family or you are a student.