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WEEK OF MONDAY, APRIL 4, 2016
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A Publication of The Warren Group CASH IS KING
Cash Sales Declining As Prices Rebound Sellers Love Cash, But Buyers Find It Difficult To Compete BY JIM MORRISON BANKER & TRADESMAN STAFF
C
ash sales dropped to 33.9 percent nationwide – a seven-year low – according to the property information and analytics firm CoreLogic. In Massachusetts, a state with one of the lowest percentages of cash sales in the country, cash sales have also been declining, and in 2015, just 20 percent of properties statewide were purchased without a mortgage. Cash sales peaked at 46.6 percent nationwide in 2011, according to CoreLogic. Prior to the peak, cash sales hovered around 25 percent of all sales. Economist Albert Saiz, associate professor of urban economics and real estate and director of the MIT Center for Real Estate said the number of cash sales largely depends on sales prices; the higher the price, the fewer cash sales one would expect.
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BY SCOTT VAN VOORHIS BANKER & TRADESMAN COLUMNIST
THE ’BURBS? Baker Quietly Challenges State’s Starter Home Drought With Modest Zoning Proposal
BAKER TAKES AIM TARGET RETAIL RANGE:
HIGH $300K TO LOW $400K TARGET SQUARE FOOTAGE:
1,850
Since the median sales price of a home in Massachusetts is higher than the national median sales price, it’s natural to
TARGET DENSITY:
HIGH
Continued on Page 8 ROOM TO GROW
Devens Bets On Big Pharma Expansion
H
ome prices in Boston and across the suburbs are hitting new highs once again, fueled in large part by a steady, decades-long decline in new construction. So it’s nothing short of astounding that Gov. Charlie Baker’s proposal to boost the construction of “starter homes” is the first measure of its kind on Beacon Hill in recent memory. This long-standing lack of interest in the halls of state government in what was once a staple of middle class life speaks volumes. It not only highlights just how completely messed SCOTT VAN VOORHIS up the Massachusetts housing market has become, but also the challenges ahead for Baker, intent on building an image as a kind of troubleshooting “Handyman-in-Chief,” ready to tackle our state’s most stubborn functional issues. “When you come to school here from Pennsylvania or North Carolina or the Midwest and you want to buy a home, you have to spend an enormous amount of money for a house that is functionally obsolete,” said Benjamin Fierro, a Boston attorney who has represented the local home building industry for years. “We believe there is an enormous market out there,” he said. Baker’s proposal is fairly modest given the scale of the housing shortage we face and the entrenched local opposition to pretty much anything with four walls and a roof, but we will get to that later. As part of a larger economic development package, our governor wants to entice suburbs and towns across the state to create “starter home” zones for smaller homes affordable to firstContinued on Page 3
Rezoning And Transit Upgrades Would Boost Prospects BY STEVE ADAMS BANKER & TRADESMAN STAFF
A
s life science companies look for suburban parcels for manufacturing sites, MassDevelopment sees additional potential for drug manufacturing at its 4,400-acre Devens property. The economic development agency is seeking to rezone approximately 50 acres for commercial uses, including pharmaceutical manufacturing. A similar proposal failed to gain approval last spring due to concerns in the town of Harvard about residential development. The housing option is now off the table, said Richard Henderson, MassDevelopment’s executive vice president of real estate. “We’ve had good discussions with Harvard. We have a sense that we would be favorably received if we come in again,” Henderson said. Continued on Page 10
CONTENTS
In Person ������������������������������������������������������������������ 7
Commercial & Industrial ���������������������������������������� 10
Points ����������������������������������������������������������������������� 4
Residential �������������������������������������������������������������� 8
Classified Sections ������������������������������������������������� 12
By The Numbers ������������������������������������������������������� 6
Banking & Lending �������������������������������������������������� 9
Records Section ������������������������������������������������������ B1