On this side of the Atlantic, there are few places like Boston’s Beacon Hill. Here, elegantly preserved 19th-century brick and brownstone homes mingle on streets lined with gas lamps, and everyone congregates in the neighborhood’s cozy shopping district, which forms less than a square mile in the center of one of the world’s great cities.
Parking spaces on Beacon Hill cost more than an average single-family home in many Boston suburbs, and this year’s biggest property sale in the neighborhood topped $9 million. But despite its sheltered status as Boston’s most desired neighborhood, Beacon Hill has not been spared from the meltdown in the financial markets.
This year, sales on Beacon Hill are down considerably from their 2004 peak. Through the second quarter, they have remained on pace compared to 2007. “We haven’t seen prices deflate by any dramatic measure,” said Jeffrey Heighton, senior vice president of Coldwell Banker Residential Brokerage in Boston. “We have seen volumes fall. That has been the main effect.”
In fact, the median sales price of a
Beacon Hill home was up in the second quarter to $553,000, compared to $525,750 for the same period a year earlier. In Suffolk County, which includes Boston and several of its immediate neighbors, the median home price has fallen by 11 percent this year, to $325,000.
But even through the credit crisis and faltering global economy, high-end and mid-range properties, both condos and single-family homes, continue to sell in Beacon Hill, according to brokers. “The finer homes are moving quickly,” said John Ranco, director of sales for the Boston office of Gibson Sotheby’s International Realty. “They are mostly cash purchases, or 50 percent or more down.”
There is also considerable activity in the $1 to $1.7 million range, properties that typically feature three bedrooms and are considered mid-range for Beacon Hill. “They’ve been selling well because they are attractive to growing families who want to stay in the city,” Heighton said.
At the top end of the market, there were a dozen homes on Beacon Hill for sale for $5 million or more last month. The 8,450-square-foot Benjamin Mansion, built in the 1820s and recently renovated, was being offered for $14.5 million. The single-family row house, considered one of the grandest homes in Boston, has six bedrooms, six baths, eight fireplaces, two parking spaces and a lap pool on its roof. The building overlooks the famed Public Garden.
Even pricier is the 10-bedroom Appleton-Parker House, built in 1818 and formerly home to the Women’s City Club. It has a price tag of $27.5 million and is being marketed as either single-family or a multi-family that could be turned into four condominiums.
Location is part of Beacon Hill’s draw. It overlooks the Charles River, Boston Common and Public Garden, and is only a
short downhill walk to the Financial District, Faneuil Hall, the Boston Garden (now TD Banknorth Garden) and the Boston Harbor.
Despite this center-city location — and easy access to public transportation — Beacon Hill has the feel of a village. The narrow streets and dearth of parking discourage cars and virtually eliminate traffic noise off the main streets. The quaint shops on Charles Street are mostly locally owned. On Beacon Street, a couple of blocks from the historic State House, is the bar that became known to millions of television viewers as Cheers, the tavern where everybody knows your name.
“There is a great sense of pride and ownership in the buildings,” said Suzanne Besser, executive director of the Beacon Hill Civic Association. “People see it as a stewardship.”
Beacon Hill is home to a number of public figures, including U.S. Sen. John Kerry, novelist Robin Cook, celebrity chef Todd English and Fidelity Investments head Ned Johnson. Before he became president of the United States, John F. Kennedy was a Beacon Hill resident.
While the neighborhood of about 10,000 does have a reputation for exclusivity, it is not without diversity. The so-called “north slope” has multi-family rental buildings and is home to many students and young singles. There is also senior housing, low-income family housing and a building reserved for people who are HIV positive.
A big factor in the strength of the Beacon Hill real estate market is the limited supply. While other historic parts of Boston, including the Back Bay and South End,
are seeing big new buildings going up, new construction is rare on Beacon Hill. Additionally, the entire area is a historic district, which means existing structures cannot
be altered without City Hall’s approval. Vacant land on Beacon Hill, meanwhile, is almost nonexistent.
Demographics also favor the market on Beacon Hill. Suburban empty-nesters, many of whom lived on Beacon Hill in their younger days, want to give up their cars and enjoy city life. “There is definitely a flight into the city, especially among the wealthier people,” said Michael DiMella, managing partner of Charlesgate Realty Group in Boston.
With property values holding up on
Beacon Hill, the neighborhood also attracts investors from abroad. “Right now, over half of my clients are from overseas,” said Alex Voss, a trilingual principal at Marston & Voss Realty.
Living on Beacon Hill does have its challenges. Parking on the street is all but impossible, and private spaces in garages are scarce and costly. Because the buildings are old, many do not have elevators, and not many have concierges.
Aficionados of the neighborhood accept the inconveniences. “You walk everywhere,” said Heighton. “It’s really a lifestyle.”
Average sales price
(2Q 2008)
$784,805
Median sales price
(2Q 2008)
$553,000
Number of sales
(2Q 2008)
77
Inventory
(2Q 2008)
100
Days on market
(2Q 2008)
85
Top five sales in 2008
1. $9.375 million, 5-bedroom, 5-bath row house, 8 Mt. Vernon Street
2. $6.35 million, 5-bedroom, 7-bath
single-family, 78 Beacon Street
3. $3.5 million, 5-bedroom, 5-bath
single-family, 10 West Hill Place
4. $3.48 million, 6-bedroom, 5.5-bath single-family, 4 Chestnut Street
5. $3.45 million, 5-bedroom, 4.5-bath single-family, 16 Charles River Square