Boston Home Prices Fall in Crime-Ridden Markets

Boston home prices are rising in the region’s fancy neighborhoods, but falling in less-wealthy ones; and experts fear the Hub’s recent murder wave might make the disparity worse.

“I must tell you I’m worried,” said Barry Bluestone, dean of Northeastern University’s School of Social Science, Urban Affairs and Public Policy. “I do fear the violence has reached a point (where) some are going to say, ‘This is where I want to live?’”

First-quarter figures from Multiple Listing Service Property Information Network show big price declines for Dorchester, Mattapan and Roxbury - neighborhoods hard hit by Boston’s 16 murders of the year so far.

Average condo prices plunged 29.3 percent in Roxbury and 7.7 percent in Dorchester.

In Mattapan, condo prices rose 20.7 percent, but experts attribute that to the impact of one relatively pricey rehab project. By contrast, Mattapan’s average house price fell 8.2 percent.
The declines stand in sharp contrast to price gains in Boston’s fanciest neighborhoods.
For instance, average condo prices rose 34.6 percent in Beacon Hill and 1.5 percent in Back Bay.

“It’s a classic ‘Tale of Two Cities,’ ” said mortgage broker John Ford, who sells real estate in upscale neighborhoods. “We are one Boston, but one area is going up while the other is going down.”

Ford and others attribute some areas’ woes to a number of factors, ranging from a generally soft Massachusetts mortgage market to the subprime home loan industry’s abrupt collapse.
But market watchers say the recent string of murders isn’t helping.

“Violence is obviously going to affect supply and demand,” said broker Sam Schneiderman, who had one Dorchester tenant recently move out because of crime fears.

Still, Schneiderman added that most of the murders have occurred in locales buyers “tend to shy away from anyway, because they hear those are the rougher areas.”

Dorchester broker Kenneth Osherow said he’s actually seen an increase in would-be home mortgage loan borrowers recently, although he assumes some house hunters have decided to look elsewhere.

“After what’s gone on, sure, there will be some trepidation - and rightfully so,” Osherow said. “People want safety and quality of life.”

SOURCE: The Boston Herald