Tuesday, December 9, 2008
Thursday, November 13, 2008
Zillow: One third of homes sold for a loss
Not to be a downer but I think it is important for buyers and especially sellers to realize the magnitude of the housing crisis.
From Inman News
Nearly one out of three homes sold in the last year was sold at a loss, and an estimated one in seven U.S. homeowners were "upside down" on their loans at the end of September, according an analysis of public records in 163 markets by Zillow.
Zillow estimates that the percentage of borrowers upside down -- owing more on their mortgage than their home was worth -- was even higher among those who bought in the last five years: 29.5 percent.
Nationwide, home prices have fallen 9.7 percent in the last year and 12.8 percent since the market peak in 2006, Zillow said.
Homeowners were considered to have negative equity if Zillow's estimate of their home's current value was less than the original mortgage, the company said in releasing its third-quarter market report.
Many real estate professionals question the accuracy of Zillow's home valuations, however, and the company said it also excluded principal payments and equity withdrawals since loan origination in its calculations.
Foreclosures made up close to one in five transactions in the last year, Zillow said, and more than half of sales in some distressed markets like Merced and Stockton, Calif.
While many reports focus on year-over-year price changes, Zillow -- which claims its quarterly market reports are the most comprehensive of their kind -- also looks at long-term trends.
Looking back five years, Zilllow reported flat or negative long-term price appreciation in about one quarter of the markets it analyzed.
That's an indication "of the enormous amount of value that has been taken out of the real estate market" in the past few years, which includes seven consecutive quarters of decline, said Zillow's vice president of data and analytics, Stan Humphries.
Of the 27 metropolitan statistical areas (MSAs) showing long-term depreciation, prices were down most in Stockton (-3.8 percent five-year annualized change), but also in areas like Boston (-1 percent) and Cleveland (-0.8 percent). Another 12 markets saw flat five-year annualized returns.
Looking back 10 years, Detroit was the worst-performing market, with a five-year annualized change of -3.1 percent and a 10-year annualized change of 0.9 percent. That compares with a 3.4 percent five-year annualized change for the nation as a whole and a 6.1 percent 10-year annualized change.
The percentage of homes sold at a loss in the past 12 months shot up from 23.7 percent at the end of the second quarter to 30.2 percent in the latest report, which includes data through the end of September. More than half of homes were sold at a loss in 17 markets, all but three of which were in California.
Zillow calculates whether a home was sold for a loss by comparing public records of sales during a quarter with the last recorded sale of a home. The calculation does not take into account closing costs or commissions.
From Inman News
Nearly one out of three homes sold in the last year was sold at a loss, and an estimated one in seven U.S. homeowners were "upside down" on their loans at the end of September, according an analysis of public records in 163 markets by Zillow.
Zillow estimates that the percentage of borrowers upside down -- owing more on their mortgage than their home was worth -- was even higher among those who bought in the last five years: 29.5 percent.
Nationwide, home prices have fallen 9.7 percent in the last year and 12.8 percent since the market peak in 2006, Zillow said.
Homeowners were considered to have negative equity if Zillow's estimate of their home's current value was less than the original mortgage, the company said in releasing its third-quarter market report.
Many real estate professionals question the accuracy of Zillow's home valuations, however, and the company said it also excluded principal payments and equity withdrawals since loan origination in its calculations.
Foreclosures made up close to one in five transactions in the last year, Zillow said, and more than half of sales in some distressed markets like Merced and Stockton, Calif.
While many reports focus on year-over-year price changes, Zillow -- which claims its quarterly market reports are the most comprehensive of their kind -- also looks at long-term trends.
Looking back five years, Zilllow reported flat or negative long-term price appreciation in about one quarter of the markets it analyzed.
That's an indication "of the enormous amount of value that has been taken out of the real estate market" in the past few years, which includes seven consecutive quarters of decline, said Zillow's vice president of data and analytics, Stan Humphries.
Of the 27 metropolitan statistical areas (MSAs) showing long-term depreciation, prices were down most in Stockton (-3.8 percent five-year annualized change), but also in areas like Boston (-1 percent) and Cleveland (-0.8 percent). Another 12 markets saw flat five-year annualized returns.
Looking back 10 years, Detroit was the worst-performing market, with a five-year annualized change of -3.1 percent and a 10-year annualized change of 0.9 percent. That compares with a 3.4 percent five-year annualized change for the nation as a whole and a 6.1 percent 10-year annualized change.
The percentage of homes sold at a loss in the past 12 months shot up from 23.7 percent at the end of the second quarter to 30.2 percent in the latest report, which includes data through the end of September. More than half of homes were sold at a loss in 17 markets, all but three of which were in California.
Zillow calculates whether a home was sold for a loss by comparing public records of sales during a quarter with the last recorded sale of a home. The calculation does not take into account closing costs or commissions.
Wednesday, November 12, 2008
Tuesday, November 11, 2008
Christmas....Already?
So is it just me or are we being bombarded extra early this year with the Christmas ads, songs and decorating? Don't get me wrong I definitely enjoy the holidays but I would like to recover from my Halloween candy hangover before thinking about the next big holiday.
I guess the mentality is to remind us early that we should get out and shop in order to stimulate our economy. Not a bad idea especially with some of the sales that I have seen. I never think about Christmas shopping this early but I am tempted to this year. Could all the early ads and spirit make a difference in consumer spending?
I hope so...they've got me heading out the door!
I guess the mentality is to remind us early that we should get out and shop in order to stimulate our economy. Not a bad idea especially with some of the sales that I have seen. I never think about Christmas shopping this early but I am tempted to this year. Could all the early ads and spirit make a difference in consumer spending?
I hope so...they've got me heading out the door!
Monday, November 10, 2008
How did Sutton vote?
To see the polls results for Sutton visit:
http://www.suttonma.org/Pages/SuttonMA_Clerk/results
http://www.suttonma.org/Pages/SuttonMA_Clerk/results
Thursday, November 6, 2008
Condo In Sutton - Only $185,855!
Energy efficient middle unit in great commuter location! Close to MA Pike, 146 & Rt 20. Large combo liv/dining area w/ oversized french door that leads to private deck w/ scenic views of backyard. Efficient kitchen w/ oak cabinets, electric range and dishwasher. 2 large beds w/ plenty of closet space plus 1.5 baths! Pets allowed and full basement for all your storage needs. Low monthly condo fee! All NEW siding and NEW roof!
See more photos at www.SandiandMichelle.com
Wednesday, November 5, 2008
Tuesday, November 4, 2008
Please Vote!
Please take the time to cast your vote today. This is the one chance we have to make a change. YOUR vote does count!
Sunday, November 2, 2008
The Villas- Sutton, MA
New Listing!
RE-SALE*Expansive light filled DETACHED Villa offers luxury living @ Pleasant Valley CC*Formal & casual spaces*First floor boasts master suite w/elegant master bath & additional bedroom (or library)*Gourmet cherry kitchen opens to cathedral family room w/stone fireplace*Second floor has it's own master suite & living area*Gleaming hardwoods, detailed trim package, flowing floor plan & two entertainment size decks*10'ceilings in walkout lower level*Placed within complex to afford maximum privacy
Call Sandi for more details or a private showing. 508-839-8408
View more photos at www.SandiandMichelle.com
Wednesday, October 22, 2008
Monday, October 20, 2008
Home Safety
Massachusetts has a law that before a house can sell, the town’s fire department must come in and inspect that the smoke and carbon monoxide detectors are in the right place and are working. The majority of the houses I see either have smoke detectors in the wrong spot or the batteries no longer work. Many houses don’t have carbon monoxide detectors until the owner installs them before the closing.
Whether you’re looking to sell now or not, take the time to replace the batteries in all of your smoke alarms and make sure that you have a smoke detector and carbon monoxide detector on each floor of your house. Each city has their own requirements, but here are the basic rules:
Smoke Detectors
Since smoke is light, you should mount your smoke detectors on the ceiling, not on the wall
There should be a smoke detector at the top and bottom of every staircase (unless your basement stairs come up into your kitchen because the smoke from cooking will set it off, causing you to take out the battery and thereby defeating the purpose of having a smoke detector)
There should be a smoke detector no more than 10 feet away from all of your bedrooms (some towns require smoke detectors in each bedroom)
Change the batteries in your smoke detectors every time we move the clocks forward or backward to ensure you always have fresh batteries
Carbon Monoxide Detectors
Carbon monoxide is heavy, so mount your detector on the wall, not on the ceiling
Carbon monoxide detectors come either battery powered or as a plug in. If you get a plug in type, make sure it has a battery backup so your family stays safe in the event of a power failure.
There should be a carbon monoxide detector no more than 10 feet away from all of your bedrooms
Your local fire prevention office will be happy to help answer any specific questions you have regarding carbon monoxide and smoke detector placement. The goal is to keep you and your family safe!
Whether you’re looking to sell now or not, take the time to replace the batteries in all of your smoke alarms and make sure that you have a smoke detector and carbon monoxide detector on each floor of your house. Each city has their own requirements, but here are the basic rules:
Smoke Detectors
Since smoke is light, you should mount your smoke detectors on the ceiling, not on the wall
There should be a smoke detector at the top and bottom of every staircase (unless your basement stairs come up into your kitchen because the smoke from cooking will set it off, causing you to take out the battery and thereby defeating the purpose of having a smoke detector)
There should be a smoke detector no more than 10 feet away from all of your bedrooms (some towns require smoke detectors in each bedroom)
Change the batteries in your smoke detectors every time we move the clocks forward or backward to ensure you always have fresh batteries
Carbon Monoxide Detectors
Carbon monoxide is heavy, so mount your detector on the wall, not on the ceiling
Carbon monoxide detectors come either battery powered or as a plug in. If you get a plug in type, make sure it has a battery backup so your family stays safe in the event of a power failure.
There should be a carbon monoxide detector no more than 10 feet away from all of your bedrooms
Your local fire prevention office will be happy to help answer any specific questions you have regarding carbon monoxide and smoke detector placement. The goal is to keep you and your family safe!
Thursday, October 16, 2008
For Rent
GRAFTON: $3,800/month
It's like your own mini estate! Park like private setting with all the amenities you need! Top end appliances, huge family room with floor to ceiling stone fireplace, luxurious master bathroom with see through fireplace, walk-up attic, outdoor fireplace, wrap around farmers porch,heated sun room, 2 car oversized garage and plenty of storage. The perfect home for entertaining! Owner would prefer to rent with furnishings but can be flexible. Pets will be considered case by case.
Wednesday, October 8, 2008
Tuesday, October 7, 2008
Positive Attitude!
MARKET UPDATE
There has been a significant amount of media attention lately on the “Credit Crunch/Crisis” that the economy is facing.
The media has done a terrific job of informing the masses about the Wall Street and global economic troubles. And while it is definitely troubling for most, it’s also not 100% accurate. The news has the public believing that there is a shortage of residential mortgage money available, and that is simply not true.
There are many mistruths and rumors running about and I’m here to tell you 5 essential facts:
FACT #1 The current credit crunch directly impacts business borrowing money but not consumers looking for residential mortgages!
FACT #2 There is no shortage of residential mortgage money for those who qualify!
FACT #3 There are very few residential loans available for those who cannot verify income, assets, or employment!
FACT #4 Qualifying criteria for residential mortgages is essentially the same as it has always been!
FACT #5 30 year fixed rate loans have been fluctuating in the upper 5%’s and low 6%’s depending on your credit score and amount of down payment!!!
While the stock market is having its troubles, the housing market is ripe for buyers.
Low rates and great home values… What a great combination!!!
MICHAEL DUNSKY
Your Lifetime Mortgage Expert
MORTGAGE MASTER, Inc.
102 Elm Street
Walpole, MA 02081
Direct 508.850.4124
Fax 508.355.0223
www.dunsky.com
There has been a significant amount of media attention lately on the “Credit Crunch/Crisis” that the economy is facing.
The media has done a terrific job of informing the masses about the Wall Street and global economic troubles. And while it is definitely troubling for most, it’s also not 100% accurate. The news has the public believing that there is a shortage of residential mortgage money available, and that is simply not true.
There are many mistruths and rumors running about and I’m here to tell you 5 essential facts:
FACT #1 The current credit crunch directly impacts business borrowing money but not consumers looking for residential mortgages!
FACT #2 There is no shortage of residential mortgage money for those who qualify!
FACT #3 There are very few residential loans available for those who cannot verify income, assets, or employment!
FACT #4 Qualifying criteria for residential mortgages is essentially the same as it has always been!
FACT #5 30 year fixed rate loans have been fluctuating in the upper 5%’s and low 6%’s depending on your credit score and amount of down payment!!!
While the stock market is having its troubles, the housing market is ripe for buyers.
Low rates and great home values… What a great combination!!!
MICHAEL DUNSKY
Your Lifetime Mortgage Expert
MORTGAGE MASTER, Inc.
102 Elm Street
Walpole, MA 02081
Direct 508.850.4124
Fax 508.355.0223
www.dunsky.com
Monday, October 6, 2008
Buying a House? Use a Buyer's Agent
If you’re looking to buy a house, there are 2 important steps to take. The first step is to get prequalified. With so many changes happening in the mortgage industry, you want to make sure that you can afford the houses you are looking at. Remember, there can be a difference between the amount of money that a bank will lend you and the amount of money you feel comfortable paying each month. You don’t want to be house poor - keep your monthly payment at a level that lets you sleep at night.
The second step is to interview until you find a buyer’s agent you are comfortable with. When a seller put their home on the market, they hire a seller's agent. So doesn't it make sense if you are buying to hire a buyer's agent? The agent will work directly for you. Their job is to help you get the best price and terms for the property and to guide you through the process, putting your needs first. The best part is there is NO cost to you! A buyer agent gets paid at closing from the seller. All a buyer's agent asks you to do is be loyal. They will be showing you lots of homes on nights and weekends. In exchange they (i.e. WE) want to know that you will eventually buy from us, not the listing agent directly.
I recently talked to someone who started looking at houses for sale in Grafton, MA without doing either of the 2 important steps we recommend. By the time they had received my name as a referral, they had already seen the house they liked 3 times with the listing agent. The listing agent works for the seller. Don’t put yourself into this situation. Find a buyer’s agent you feel comfortable with before you start to shop for your new house.
The second step is to interview until you find a buyer’s agent you are comfortable with. When a seller put their home on the market, they hire a seller's agent. So doesn't it make sense if you are buying to hire a buyer's agent? The agent will work directly for you. Their job is to help you get the best price and terms for the property and to guide you through the process, putting your needs first. The best part is there is NO cost to you! A buyer agent gets paid at closing from the seller. All a buyer's agent asks you to do is be loyal. They will be showing you lots of homes on nights and weekends. In exchange they (i.e. WE) want to know that you will eventually buy from us, not the listing agent directly.
I recently talked to someone who started looking at houses for sale in Grafton, MA without doing either of the 2 important steps we recommend. By the time they had received my name as a referral, they had already seen the house they liked 3 times with the listing agent. The listing agent works for the seller. Don’t put yourself into this situation. Find a buyer’s agent you feel comfortable with before you start to shop for your new house.
Monday, September 29, 2008
Thursday, September 25, 2008
The Million Dollar Question!
Timing the Market
I hear many buyers say, "I want to wait until the market hits bottom before I buy." My question is, "At what point do you know exactly when a market has hit bottom?" When it starts to go back UP is the answer. That's the mistake most uneducated buyers make for any market - housing, stocks, etc. Most uneducated stock buyers who want to be investors try this strategy. They wait to buy until it "bottoms out" and as the stock is dropping suddenly it turns and starts to go up again - they panic and buy. Then they want to wait until it "peaks" to sell. They watch and watch, up and down. Then down, then down some more, then the thought "Ok I think it peaked - I'll sell." Don't make much money that way.
The only way to know a market has bottomed out is when it starts to rise again over a sustained amount of time. Given the slowness of real estate vs. stocks it's much more dangerous to try this game in real estate. The reports you'll see about the real estate market for September 2008 will be out around October 15th. Those reports are based on closings in August, which are based on contracts written in June or July, which are based on buyers looking at houses in May or June, which were priced based on houses sold between December 07 and May 08. Can you see where I'm going with this? By the time your newspaper tells you the market has started to increase, it will have really started 3-5 months ago and you still need 1-2 months of looking and escrow. That's if you first catch the article then jump in with your agent and start right away. You'll have missed the best price.
You can't time a housing market. It isn't possible or smart. Real estate is the best long term investment in the history of our country. If you buy and stay (without refinancing) for a minimum of 7-10 years history shows you will always sell for higher than you bought so don't worry and go get a great deal out there.
I hear many buyers say, "I want to wait until the market hits bottom before I buy." My question is, "At what point do you know exactly when a market has hit bottom?" When it starts to go back UP is the answer. That's the mistake most uneducated buyers make for any market - housing, stocks, etc. Most uneducated stock buyers who want to be investors try this strategy. They wait to buy until it "bottoms out" and as the stock is dropping suddenly it turns and starts to go up again - they panic and buy. Then they want to wait until it "peaks" to sell. They watch and watch, up and down. Then down, then down some more, then the thought "Ok I think it peaked - I'll sell." Don't make much money that way.
The only way to know a market has bottomed out is when it starts to rise again over a sustained amount of time. Given the slowness of real estate vs. stocks it's much more dangerous to try this game in real estate. The reports you'll see about the real estate market for September 2008 will be out around October 15th. Those reports are based on closings in August, which are based on contracts written in June or July, which are based on buyers looking at houses in May or June, which were priced based on houses sold between December 07 and May 08. Can you see where I'm going with this? By the time your newspaper tells you the market has started to increase, it will have really started 3-5 months ago and you still need 1-2 months of looking and escrow. That's if you first catch the article then jump in with your agent and start right away. You'll have missed the best price.
You can't time a housing market. It isn't possible or smart. Real estate is the best long term investment in the history of our country. If you buy and stay (without refinancing) for a minimum of 7-10 years history shows you will always sell for higher than you bought so don't worry and go get a great deal out there.
10 Good Reasons To Buy A Home
10 Good Reasons To Buy A Home
1. Quality of Life
2. Pride of Home Ownership
3. Tax Deductibility of Mortgage Interest
4. Tax Deductibility of Property Taxes
5. Appreciation Potential
6. Deferred Gain and Capital Gain Treatment
7. Once in a Lifetime Exclusion
8.Principal Accumulation
9.Leverage: Where else can you buy an investment of this size with 5-10 percent down?
10.The Real Cost of Renting: At $700 per month, with a 6 percent rental increase per year, you will pay $110,719 over a 10-year period and have no ownership of the property.
1. Quality of Life
2. Pride of Home Ownership
3. Tax Deductibility of Mortgage Interest
4. Tax Deductibility of Property Taxes
5. Appreciation Potential
6. Deferred Gain and Capital Gain Treatment
7. Once in a Lifetime Exclusion
8.Principal Accumulation
9.Leverage: Where else can you buy an investment of this size with 5-10 percent down?
10.The Real Cost of Renting: At $700 per month, with a 6 percent rental increase per year, you will pay $110,719 over a 10-year period and have no ownership of the property.
Tuesday, September 23, 2008
Open House - Single Family
Join us on Sunday from 12-2 at 43 Pleasant Street, Grafton.
For more details please vist www.SandiandMichelle.com
Open House - Condo
Join us from 1-3 at 21 Azalea Lane, Grafton.
For more details visit www.SandiandMichelle.com
Thursday, September 11, 2008
September Special from Wells Fargo
We are offering a FREE 1 year buydown on 30 year fixed rate mortgages !
So for example, if the today's mortgage rate is 5.875%, with the free buydown the customers 1st year mortgage rate is 4.875 %, and then after 1 year it reverts back to 5.875% for the next 29 years. This savings can be enough to pay for the customers closing costs !!! On a $500,000 mortgage that's a savings of $311 per month or $3732 for the year !!
So what are the parameters ?
Mortgage amount between $417,000 and $523,000
20 % down
Primary Home
Purchase or rate and term refinance
Fred
Frederick A. Paine
Mortgage Consultant
Alliance Home Mortgage, LLC
An Affiliate Of Wells Fargo Home Mortgage
MAC M3738-011
77 Main Street
Hopkinton, MA 01748
Work - (508)435-3046
FAX - 774-759-3008
Cell - 617-899-7747
fred.paine@alliancehm.net
www.fredpaine.com
So for example, if the today's mortgage rate is 5.875%, with the free buydown the customers 1st year mortgage rate is 4.875 %, and then after 1 year it reverts back to 5.875% for the next 29 years. This savings can be enough to pay for the customers closing costs !!! On a $500,000 mortgage that's a savings of $311 per month or $3732 for the year !!
So what are the parameters ?
Mortgage amount between $417,000 and $523,000
20 % down
Primary Home
Purchase or rate and term refinance
Fred
Frederick A. Paine
Mortgage Consultant
Alliance Home Mortgage, LLC
An Affiliate Of Wells Fargo Home Mortgage
MAC M3738-011
77 Main Street
Hopkinton, MA 01748
Work - (508)435-3046
FAX - 774-759-3008
Cell - 617-899-7747
fred.paine@alliancehm.net
www.fredpaine.com
Tuesday, September 9, 2008
Rates are coming down!
Even better today from Wells Fargo:
30 year fixed , 30 day close, with 720 credit 25% down is 5.75% !!!!!
30 year fixed 60 day close, with 720 credit and 20 % down is 5.875% !!!!
It's time to get off the fence and buy. Yes, you may not get as much as you would like for your current home but you will more than make it up on the buying side. It is a buyer's market right now, so you can negotiate and get a great rate on a 30 year fixed at the same time. These rates are historic, don't let your dream home be too.
30 year fixed , 30 day close, with 720 credit 25% down is 5.75% !!!!!
30 year fixed 60 day close, with 720 credit and 20 % down is 5.875% !!!!
It's time to get off the fence and buy. Yes, you may not get as much as you would like for your current home but you will more than make it up on the buying side. It is a buyer's market right now, so you can negotiate and get a great rate on a 30 year fixed at the same time. These rates are historic, don't let your dream home be too.
Monday, September 8, 2008
Great Rates!
Rates are really great !
30 year fixed , 30 day close, with 720 credit 25% down is 5.875% !!!!!
30 year fixed 60 day close, with 720 credit and 20 % down is 6% !!!!
30 year fixed , 30 day close, with 720 credit 25% down is 5.875% !!!!!
30 year fixed 60 day close, with 720 credit and 20 % down is 6% !!!!
It's All About Price
Wow! It happened again today. We received 3 offers, all over asking on a home that we had listed. What’s the secret? It was priced where the data told us it should be priced and the seller listened to the facts. Of course it would be easy if that was the end of the story but its not.
Did you know we're really in the middle of two different markets? One that you hear about in the news - slow, declining, too many houses on the market, buyers waiting to decide, etc. The other (that you don't hear about) where homes sell in one week with multiple offers, and over listing price. You see, there are actually quite a few buyers out there in the market. They are just waiting for a great deal. Then as soon as one comes they all pounce on it! Everyone wants a deal! Buyer agents keep a list of Tier 1 properties that will sell this week (super fabulous deals), and Tier 2 properties that will sell in the next month. Everything else will be there for a long time so no urgency to see those. The Tier 1 properties are amazing. 10+ showings a day. It's two extremes. Think of it on a converging graph. When great condition meets below market price, you will sell for over asking. The poorer condition, the more below market you need to be. If condition is great, but you go to market value it might sell, but below asking and be ready to wait 6-9 months.
This part is really important! If your home is worth $320,000 and you list it for $325,000 you won't sell. If you list for $320,000, you have 14 days. If no offers in 14 days, be ready to sit a few months and guess what - it's not worth $320,000 by the end of that month. If you list for $305,000, you have 30 days and then same as above. You'll probably get offers for $295,000.If you list for $299,900, pack your bags, enjoy all the offers, sorry for so many showings all day, congratulations on selling for $305,000! Of course if you listed it for $305,000 you wouldn't have gotten it.
It may sound strange but it's supply and demand and it's happening right now every day. Supply something rare (a great condition home for an amazing price) and you will receive a huge demand.
Did you know we're really in the middle of two different markets? One that you hear about in the news - slow, declining, too many houses on the market, buyers waiting to decide, etc. The other (that you don't hear about) where homes sell in one week with multiple offers, and over listing price. You see, there are actually quite a few buyers out there in the market. They are just waiting for a great deal. Then as soon as one comes they all pounce on it! Everyone wants a deal! Buyer agents keep a list of Tier 1 properties that will sell this week (super fabulous deals), and Tier 2 properties that will sell in the next month. Everything else will be there for a long time so no urgency to see those. The Tier 1 properties are amazing. 10+ showings a day. It's two extremes. Think of it on a converging graph. When great condition meets below market price, you will sell for over asking. The poorer condition, the more below market you need to be. If condition is great, but you go to market value it might sell, but below asking and be ready to wait 6-9 months.
This part is really important! If your home is worth $320,000 and you list it for $325,000 you won't sell. If you list for $320,000, you have 14 days. If no offers in 14 days, be ready to sit a few months and guess what - it's not worth $320,000 by the end of that month. If you list for $305,000, you have 30 days and then same as above. You'll probably get offers for $295,000.If you list for $299,900, pack your bags, enjoy all the offers, sorry for so many showings all day, congratulations on selling for $305,000! Of course if you listed it for $305,000 you wouldn't have gotten it.
It may sound strange but it's supply and demand and it's happening right now every day. Supply something rare (a great condition home for an amazing price) and you will receive a huge demand.
Wednesday, August 27, 2008
The Northeast Fared the Best
Posted on Wed, Aug. 27, 2008
New-home sales up 2.4% in U.S., still lag '07
The Northeast fared the best.
By Alan J. Heavens
Inquirer Real Estate Writer
New-home sales in July increased 2.4 percent nationally over June, yet remained 35.3 percent below July 2007 levels, the Commerce Department reported yesterday.
Two separate measures also released yesterday showed continued erosion in home prices in the second quarter.
"Hardly any new homes are being sold, but at least the sales pace seems to be hitting a bottom," said Joel L. Naroff, chief economist at Commerce Bancorp Inc., of Cherry Hill.
The Northeast performed better than any other region in July, with a month-to-month sales increase of 38.9 percent and an annual rise of 4.2 percent.
The only other region to show a monthly increase was the West, where foreclosures competed with new homes, forcing builders to slash prices to move inventory.
"A rise in new-home sales in July looks like good news on the surface - after all, most analysts had expected a decline," said Nigel Gault, chief economist for Global Insight Inc., of Lexington, Mass.
July's increase resulted from a 5.1 percent downward revision of June's original numbers - so the level of July sales was worse than expected, he said.
The steep decline of new homes for sale from 10.7 months' supply in June to 10.1 months in July was seen as a sign that builders had gotten the message and were bringing fewer homes to market.
"This is . . . a necessary adjustment to bring the market back into balance," Gault said.
Mark Zandi, chief economist at Moody's Economy. com in West Chester, said that although the end of the housing downturn would be "long and painful," it has begun.
"It will take another year - perhaps two - to work off all that inventory, but at least it is no longer rising," Zandi said. "The housing crash is not over, but the bottom is finally coming into view."
Increased foreclosure sales appeared to have an effect on home prices during the second quarter of the year. Standard & Poor's Case-Shiller National Home Price Index, which covers all nine census divisions, showed a record 15.4 percent drop in the quarter, compared with the same period in 2007.
The Office of Federal Housing Enterprise Oversight reported a 4.8 percent drop for the nine divisions for the second quarter year-over-year.
Economists attribute the difference in Case-Shiller and Housing Enterprise Oversight measurements to the fact that Case-Shiller's national index is weighted to more expensive markets, while the federal agency's is weighted to lower-cost ones, making Case-Shiller price declines greater.
Case-Shiller's regular June index, which covers 20 metropolitan areas, but not Philadelphia, showed prices 15.9 percent lower than in June 2007.
"The good news is that while year-on-year price declines continue to set records, the steepest price declines are behind us, and some markets have moved up over the past few months," Gault said.
For the financial sector to recover and the economy to revitalize, Naroff said, the market has to stabilize and home prices have to stop falling.
--------------------------------------------------------------------------------
Contact real estate writer Alan J. Heavens at 215-854-2472 or aheavens@phillynews.com.
New-home sales up 2.4% in U.S., still lag '07
The Northeast fared the best.
By Alan J. Heavens
Inquirer Real Estate Writer
New-home sales in July increased 2.4 percent nationally over June, yet remained 35.3 percent below July 2007 levels, the Commerce Department reported yesterday.
Two separate measures also released yesterday showed continued erosion in home prices in the second quarter.
"Hardly any new homes are being sold, but at least the sales pace seems to be hitting a bottom," said Joel L. Naroff, chief economist at Commerce Bancorp Inc., of Cherry Hill.
The Northeast performed better than any other region in July, with a month-to-month sales increase of 38.9 percent and an annual rise of 4.2 percent.
The only other region to show a monthly increase was the West, where foreclosures competed with new homes, forcing builders to slash prices to move inventory.
"A rise in new-home sales in July looks like good news on the surface - after all, most analysts had expected a decline," said Nigel Gault, chief economist for Global Insight Inc., of Lexington, Mass.
July's increase resulted from a 5.1 percent downward revision of June's original numbers - so the level of July sales was worse than expected, he said.
The steep decline of new homes for sale from 10.7 months' supply in June to 10.1 months in July was seen as a sign that builders had gotten the message and were bringing fewer homes to market.
"This is . . . a necessary adjustment to bring the market back into balance," Gault said.
Mark Zandi, chief economist at Moody's Economy. com in West Chester, said that although the end of the housing downturn would be "long and painful," it has begun.
"It will take another year - perhaps two - to work off all that inventory, but at least it is no longer rising," Zandi said. "The housing crash is not over, but the bottom is finally coming into view."
Increased foreclosure sales appeared to have an effect on home prices during the second quarter of the year. Standard & Poor's Case-Shiller National Home Price Index, which covers all nine census divisions, showed a record 15.4 percent drop in the quarter, compared with the same period in 2007.
The Office of Federal Housing Enterprise Oversight reported a 4.8 percent drop for the nine divisions for the second quarter year-over-year.
Economists attribute the difference in Case-Shiller and Housing Enterprise Oversight measurements to the fact that Case-Shiller's national index is weighted to more expensive markets, while the federal agency's is weighted to lower-cost ones, making Case-Shiller price declines greater.
Case-Shiller's regular June index, which covers 20 metropolitan areas, but not Philadelphia, showed prices 15.9 percent lower than in June 2007.
"The good news is that while year-on-year price declines continue to set records, the steepest price declines are behind us, and some markets have moved up over the past few months," Gault said.
For the financial sector to recover and the economy to revitalize, Naroff said, the market has to stabilize and home prices have to stop falling.
--------------------------------------------------------------------------------
Contact real estate writer Alan J. Heavens at 215-854-2472 or aheavens@phillynews.com.
Thursday, August 21, 2008
Area Fair Schedule
I don't know about your family but my family's fall traditions include visiting many of the fairs that take place across Massachusetts in the Fall. They are a warm welcome by summer's end and mark the beginning of the fall season. Now that I have children of my own it is even more important for me to carry on the tradition and fun that these place have to offer.
Below is a list of some of our favorite fairs to attend and all are in good travel distance to the general central MA area.
So pack the kids up or find the inner kid in you this Fall!
Michelle
The Spencer Fair in Spencer
LABOR DAY WEEKEND Aug. 29th - Sept. 1st 2008
The 3 County Fair in North Hampton
LABOR DAY WEEKEND Aug. 29th - Sept. 1st 2008
The Woodstock Fair in Woodstock CT
LABOR DAY WEEKEND Aug. 29th - Sept. 1st 2008
The Big E in West Springfield
2008 Dates: September 12-28
Hillview Estates in Grafton
Rare Hillview Estates re-sale townhome featuring stainless steel, granite kitchen. Hardwood floors throughout 1st floor. Cozy corner gas fireplace. Wainscoting & crowns. Bedroom on 2nd floor w/private bath perfect for guests. Stunning master suite w/skylight, his & hers walkin closets. Large private bath w/whirlpool tub & 4'shower. Basement w/high ceilings, roughed for bath, calls to be finished!Sunny, spacious, central air, privacy behind unit.Convenient to all including Highfields Golf Course! Offered exclusively by Sandi and Michelle at RE/MAX Executive Realty for $289,900
Call or e-mail Sandi or Michelle for a showing. (508) 839-9219 or sales@sandiandmichelle.com
Call or e-mail Sandi or Michelle for a showing. (508) 839-9219 or sales@sandiandmichelle.com
View all interior photos at www.SandiandMichelle.com
An End in Sight?
From Bankers and Tradesmen
End To U.S. Housing Market Meltdown In Sight?
August 18, 2008
The United States is still suffering the worst housing market downturn since the Great Depression, but a slew of factors suggest the worst may soon be over.
Among the strongest signs that the hard-hit sector could be recovering, home prices in many regions of the country are now falling at a slower rate, after two years of declines, and in some areas prices have actually risen.
The battered housing market is critical to the U.S. economy, with impact from the construction industry to the sale of appliances and furniture. After hurting growth in recent quarters, an improvement in the housing market could portend a turnaround for the world’s largest economy, which many say is either on the brink of a recession or already in one.
“Anybody who tells you they know when the housing market will bottom is delusional, but anybody who denies there are some positives out there that could make the housing market bottom fairly soon is equally delusional,” said Karl Case, the co-developer of a widely watched gauge of the housing industry and an economics professor at Wellesley College in Massachusetts.
The Standard and Poor’s S&P/Case-Shiller Home Price Indices, which Case co-developed, has shown a slowdown in the fall-off in home prices in recent months.
Other data also show signs of a bottom in house prices.
New housing starts fell to 975,000 in April from a peak of 2.27 million in January 2006. In the past 35 years, in the three other times that starts fell from more than 2 million to under 1 million, housing market activity rebounded within a quarter, Case said.
Residential construction as a percentage of real gross domestic product, however, is below the historical bottom, Case noted.
Case, whose research has focused on real estate markets and prices for over 20 years, said certain regions of the country now look similar to when they bottomed in past down cycles.
A bottom in the battered U.S. housing market may emerge first in California, one of the states hardest hit by foreclosures and where home prices are dropping to a point where the cost of a mortgage and taxes equals rent.
“The key is to try is to get some stability in the price of homes, which appears to be happening in California,” said veteran banking analyst Charles Peabody, of Portales Partners in New York.
And as goes California, the most populous state, so goes the rest of the United States, according to Peabody.
“California is the linchpin and so if the region flattens, that changes everything,” Case said.
Among the signs of a turn in the housing market, on a year-over-year basis, the S&P/Case-Shiller 20-City Composite Index was down 15.8 percent in May, but on a month-over-month basis home prices only fell 0.9 percent, the smallest monthly drop since September 2007.
And while on a year-over-year basis all 20 metro areas surveyed reported a decline in home prices, on a month-over-month basis home prices actually increased in eight metro areas in April and in seven metro areas in May. In March, only two metro areas showed prices rising month-over-month. (Reuters)
End To U.S. Housing Market Meltdown In Sight?
August 18, 2008
The United States is still suffering the worst housing market downturn since the Great Depression, but a slew of factors suggest the worst may soon be over.
Among the strongest signs that the hard-hit sector could be recovering, home prices in many regions of the country are now falling at a slower rate, after two years of declines, and in some areas prices have actually risen.
The battered housing market is critical to the U.S. economy, with impact from the construction industry to the sale of appliances and furniture. After hurting growth in recent quarters, an improvement in the housing market could portend a turnaround for the world’s largest economy, which many say is either on the brink of a recession or already in one.
“Anybody who tells you they know when the housing market will bottom is delusional, but anybody who denies there are some positives out there that could make the housing market bottom fairly soon is equally delusional,” said Karl Case, the co-developer of a widely watched gauge of the housing industry and an economics professor at Wellesley College in Massachusetts.
The Standard and Poor’s S&P/Case-Shiller Home Price Indices, which Case co-developed, has shown a slowdown in the fall-off in home prices in recent months.
Other data also show signs of a bottom in house prices.
New housing starts fell to 975,000 in April from a peak of 2.27 million in January 2006. In the past 35 years, in the three other times that starts fell from more than 2 million to under 1 million, housing market activity rebounded within a quarter, Case said.
Residential construction as a percentage of real gross domestic product, however, is below the historical bottom, Case noted.
Case, whose research has focused on real estate markets and prices for over 20 years, said certain regions of the country now look similar to when they bottomed in past down cycles.
A bottom in the battered U.S. housing market may emerge first in California, one of the states hardest hit by foreclosures and where home prices are dropping to a point where the cost of a mortgage and taxes equals rent.
“The key is to try is to get some stability in the price of homes, which appears to be happening in California,” said veteran banking analyst Charles Peabody, of Portales Partners in New York.
And as goes California, the most populous state, so goes the rest of the United States, according to Peabody.
“California is the linchpin and so if the region flattens, that changes everything,” Case said.
Among the signs of a turn in the housing market, on a year-over-year basis, the S&P/Case-Shiller 20-City Composite Index was down 15.8 percent in May, but on a month-over-month basis home prices only fell 0.9 percent, the smallest monthly drop since September 2007.
And while on a year-over-year basis all 20 metro areas surveyed reported a decline in home prices, on a month-over-month basis home prices actually increased in eight metro areas in April and in seven metro areas in May. In March, only two metro areas showed prices rising month-over-month. (Reuters)
Something New
Hi everyone and welcome to our new (and first) blog. We will try to provide subjects that we hope will be of interest to you. A lot will be Real Estate related (that’s what we do, in case you didn’t know….) but also what we experience on a day to day basis. Hence, “On the Road with Sandi and Michelle”!
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