Multi-Family Owners in Chelsea Have Much to be Thankful For as 2019 Caps a Banner Year in the Chelsea Multi-Family Market; Chelsea Is One of the Most Active Markets in 2019
Key Takeaways:
Increase in Gross Sales Volume, particularly in the three-family sector
The Chelsea three-family market was the most active market analyzed, with a 4.96% turnover rate
Active private sale market
Gains in total sales of three-family properties – up from 34 in 2018 to 55 in 2019
Average Price per-square-foot trended down in due to 3 sub-$150 per-square-foot sales
Market Insight: In 2018, I said it was Brookline, Brookline Brookline!! In 2019, let me say Chelsea, Chelsea, Chelsea!! Chelsea made strides in the three-family market as total sales volume increased 47.03%. There was also growth in the number of three-family home sales - an increase of 38.2%.
The top-end of the three-family market saw a consistent push, with 5 sales trading over $900K. The top-end of the market follows a trend of owners with well positioned properties able to sell for a high price. Chelsea also saw a three-family sale break the $1mm mark, with 42 Nichols Street, selling for $1,080,000. For investment owners in Chelsea with well-positioned property, now may be a good time to sell. See my ‘Demand Driver’ for more information on selling at the highest price possible.
The number of three-family sales that sell privately is also high. This includes the sale at 225 Chestnut Street (I sold that one). Private sales are a rising trend - we have seen a trend in markets like Brookline, Quincy and Watertown, where landlords are able to obtain a market price without listing the property on the open market. Part of the reason that the price per-square-foot fell was that 7 of the 20 least expensive sales sold privately, with most of them well under the average price per-square-foot in Chelsea.
Outlook for 2020: Still is value to be found – active market that will continue to see increased activities and sellers. With its close proximity to Boston, Chelsea will continue to follow gains that East Boston and Jeffries Point made a few years ago. Chelsea property owners also have the ability to convert their equity into income, or assets in other areas via a 1031 tax exchange.
In Chelsea in 2019, investor-sellers paid an estimated $7,656,302, in capital gains taxes to the Federal Government. For creative strategies to defer taxes and build generational wealth, please see my ‘Free Cash Flow’ Program for sellers.
Please make sure to check out my market reports in Brookline, Cambridge, Somerville, Everett, Malden, Watertown and Quincy. If are interested in selling, please check out my ‘Demand Driver’ or ‘Value Maximizer’ Programs for multi-family sellers or call/text me at 617 272 5440.
