Monday, June 13, 2005

Half the story of real estate prices in Boston is well-known --- we're one of the coastal markets where prices are skyrocketing. The other half is not so well-known. One of the most active segments of the market -- and one of the ones most active in driving up prices on the whole -- is the luxury segment. And while those lower down on the totem pole are resorting to increasingly desperate stratagems (variable-rate mortgages, interest-only loans) in order to afford the initial payment on an increasingly unaffordable shack or condo, how does the upper class do it? The headline on a week-old edition of the Back Bay Courant (the silkened rag for one of the city's toniest neighborhoods) tells the tale:

Luxury Home Buyers are Paying in Cash

Of the $300 million in condo purchases at the new Ritz, for example, $270 million came in cash over the barrelhead. The same goes for 61 of 104 units in Trinity Place, the downtown building where a single-bedroom condo sells for the same price as an entire French countryside chateau.

One might point out the implications of this for the shape of the larger society -- but one wouldn't want to engage in class warfare, now would one?


Anonymous Anonymous said...

The 700 square foot condo must have been put up for sale by Duke Cunningham.

Dwight Meredith

6:28 PM  

Post a Comment

Subscribe to Post Comments [Atom]

<< Home