Posts Tagged ‘realtor’
National Real Estate Market Update
September 4th, 2019 by Michael Mahoney
National Snapshot: What’s Ahead for Real Estate
The U.S. unemployment rate is at a 50-year low, and consumer confidence remains high. In fact, the University of Michigan’s latest Surveys of Consumers found that Americans have their most positive personal finance outlook since 2003.1
However, if you follow national news, you’ve probably heard speculation that we could be headed toward a recession. Global trade tensions and a slow down in the GDP growth rate has sparked volatility in the stock market, leading to economic uncertainty.
Given these differing signals, you may be wondering: How has the U.S. housing market been impacted? Where is it headed? And more importantly … what does it mean for me?
Mortgage Rates Are Near Historic Lows
In August, Freddie Mac reported that the average 30-year fixed mortgage rate hit its lowest level since November 2016, falling to 3.6%, down a full percentage point from a year earlier.2 Variable mortgage rates also fell when the Federal Reserve cut interest rates at the end of July for the first time since 2008.3
This was welcome news for many in the real estate industry. Freddie Mac predicts that low interest rates and a robust job market will help the housing market remain strong despite the threat of recession.
“There is a tug of war in the financial markets between weaker business sentiment and consumer sentiment,” said Sam Khater, Freddie Mac’s chief economist. “Business sentiment is declining on negative trade and manufacturing headlines, but consumer sentiment remains buoyed by a strong labor market and low rates that will continue to drive home sales into the fall.”2
See the report on mortgage rates from last week by Freddie Mac
What does it mean for you?
If you’re looking to buy a home, now is a great time to lock in a low mortgage rate. It will shrink your monthly payment and could save you a bundle over the long term. Or if you plan to stay in your current home for a while, consider whether it makes sense to refinance your mortgage at today’s lower rates.
If you would like a referral to a qualified mortgage partner for a referral, please reach out.
Prices Continue to Rise at a Modest Pace
According to the S&P CoreLogic Case-Shiller Indices, housing prices continue to rise. But the rate at which prices are rising is slowing down. For May 2019, the National Home Price Index rose by 3.4%, down from 3.5% the previous month.4
Of course, national averages often don’t present the whole picture. Some markets have seen modest declines, while other areas are witnessing double-digit increases. The key differentiating factor in most cases? Housing affordability.5
Since 2012, home prices have increased at about three times the pace of wages, according to National Association of Realtors chief economist Lawrence Yun.6
“Housing unaffordability will hinder sales irrespective of the local job market conditions,” said Yun. “This is evident in the very expensive markets as home prices are either topping off or slightly falling.”5
But what about all this talk of a recession? Will we see housing values plummet like they did in 2008? Economists say no.
If we look at history, the real estate crash experienced during the Great Recession isn’t typical.
The recent Housing and Mortgage Market Review report from Arch Mortgage Insurance provides data to support this. “What we found is that the next recession is likely to be far less severe on the housing market than the last one. It’s not that this time is different; it’s that last time was really different from historic norms.”6
“A large decline in national home prices is unlikely in the next recession,” Arch economists write. “A persistent housing shortage should help cushion home price declines.”6
Real estate is a local business and you need to look at the picture being painted locally. If you are considering a purchase or sale, you will want to drill down to the local market level or even perhaps the neighborhood. National news is one thing, but things vary from neighborhood to neighborhood.
What does it mean for you?
If you have the ability and desire to buy a home now, don’t let the threat of a recession hold you in limbo. The market is cyclical, and it will experience ups and downs. But over the long term, real estate has consistently proven to be a good investment.
Now is is amazing time to purchase a home. Rents are at record highs. There are plenty of options in the market where you could work with a good Realtor to negotiate a purchase with a very small down payment and possibly a closing cost credit which would allow you to make a purchase with same amount of money it would take to sign a lease on a rental property.
Starter Inventory Remains Tight While Luxury Market Softens
As we’ve seen in the past, it’s become a tale of two sectors.
The low-end of the market remains highly competitive as buyers compete for affordable housing. A lack of new construction during the last recession led to an undersupply of starter homes. This trend continues—despite growing demand—due to a lack of skilled workers, rising land and material costs, and a slow permitting process in many areas.7
The result? There’s a shortage of homes for sale that Americans can actually afford to buy.
The luxury market, on the other hand, has softened. Economic uncertainty, changes to tax laws, and rising prices have slowed demand. Plus, to recoup their higher costs, builders flocked to this segment—causing an overabundance of supply in some areas.
“If you’re selling an entry level home, you’re probably still looking at a pretty competitive market in most places,” according to Danielle Hale, chief economist at Realtor.com. “But if you’re selling a more expensive home you probably have to adjust your expectations.”8
What does it mean for you?
Move-up buyers, you’re in luck! If you’re ready to trade in your starter home for something more luxurious, you may get the best of both sectors. We’re still witnessing strong demand for entry-level homes, giving sellers the upper hand. At the same time, buyers of high-end homes are finding a greater selection (and more negotiating power) than they’ve had in years.
Investors Are Buying Homes at Record Levels
There’s one group that hasn’t been slowed down by lack of affordability or economic uncertainty: investors.
According to CoreLogic, investors are purchasing homes at a record pace. In 2018, the share of U.S. homes bought by investors reached 11.3%—the highest level since the company began tracking nearly 20 years ago.9
Notably, this increased activity wasn’t led by institutional investors, but instead by small and individual investors focused on the starter-home segment.7 Declining interest rates and an uncertain stock market has led investors to flock to real estate as they seek out greater stability and higher returns.
“With declining mortgage rates … they’re searching for a better return for their money,” said NAR chief economist Lawrence Yun.10
What does it mean for you?
If you’re looking for a way to “recession proof” your money, you might want to consider investing in real estate. People will always need a place to live, and (unlike the stock market) a rental property can provide a steady source of cash flow during uncertain economic times.
We Are Here to Guide You
While national real estate numbers can provide a “big picture” outlook, real estate is local. As local market experts, we can guide you through the ins and outs of our market and the issues most likely to impact sales and home values in your particular neighborhood.
If you have specific questions or would like more information about how market changes could affect you, contact us to schedule a free consultation. We’re here to help you navigate this shifting real estate landscape.
Sources:
- University of Michigan Surveys of Consumers – http://www.sca.isr.umich.edu/
- Freddie Mac – https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-drop-significantly?_ga=2.29332539.689041222.1565464527-928629548.1565464527
- CNN – https://www.cnn.com/2019/07/31/business/fed-rate-cut-july-meeting/index.html
- S&P Dow Jones Indices – https://us.spindices.com/documents/indexnews/announcements/20190730-965771/965771_cshomeprice-release-0730.pdf?force_download=true
- National Association of Realtors – https://www.nar.realtor/newsroom/metro-home-prices-increase-in-91-of-metro-areas-in-second-quarter-of-2019
- Forbes – https://www.forbes.com/sites/alyyale/2019/04/18/with-a-recession-looming-is-now-the-time-to-sell-your-home/#7d3a21665bce
- CNN – https://www.cnn.com/2019/08/09/economy/mortgages-home-buyers/index.html
- Forbes – https://www.forbes.com/sites/carolinefeeney/2019/07/01/halfway-into-2019-how-is-the-housing-market-holding-up/#7e656e3ec5d8
- CoreLogic – https://www.corelogic.com/blog/2019/06/special-report-investor-home-buying.aspx
- Fox Business – https://www.foxbusiness.com/economy/investors-snapping-up-homes-at-record-levels
A Tale of Two Cities
June 13th, 2019 by Michael Mahoney
Tale of Two Cities and the American Dream
This is a series of posts that will highlight sales of the most expensive and least expensive homes sold in the metropolitan Boston are in the last week. My focus on homes tends to be along the 95 corridor from Dedham to Wrentham.
The goal of the post is really to show the wide range of available real estate options in the area. If you are thinking of making your first purchase, there are plenty of options to have you stop being part of the landlord’s payroll each week.
Here is this week’s most expensive and least expensive home sold in this area.
Least Expensive Home Sold: 70 Chestnut in Wrentham MA
The least expensive home was a Fannie Mae foreclosure. These are great options for developers and investors. Some of these properties can also turn out to be great buys for 1st time buyers as long as there has not been long term deferred maintenance.
70 Chestnut Street, Wrentham, MA 02093 (MLS # 72477727)
(all data current as of 12/12/2019)
| Price | $220,000 |
|---|---|
| Beds | 4 |
| Baths | 2 full, 1 half |
| Home size | 2,778 sq ft |
| Lot Size | 2.00 ac |
Unique 4 bed, 2.5 bath Contemporary on 2 wooded acres. Features large rooms, hardwood floors, fireplace, spacious decks, walkout basement and much more. Also, this home surrounds a 13'x13' courtyard, which adds a special view from the interior rooms. Country setting, yet convenience location. Good highway access. Easy show!
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Listing provided by Tom Piantadosi, RE/MAX Town & Country
Most Expensive Home Sold: 78 Village Avenue in Dedham MA
This home was a classic New England Greek Revival style home.
78 Village Avenue, Dedham, MA 02026 (MLS # 72458972)
(all data current as of 12/12/2019)
| Price | $1,340,000 |
|---|---|
| Beds | 5 |
| Baths | 2 full, 1 half |
| Home size | 3,403 sq ft |
| Lot Size | 14,652 sqft |
Precinct 1! The circa 1845 Greek Revival sits majestically two blocks from Dedham Square. The covered front door opens to a generous high ceiling hallway with detailed bay window. The original front parlor with fireplace, now a dining room, has floor to ceiling windows, and the columned divider leads to the living room with fireplace and french doors to yard. Progress from the family room with a large bay window, fireplace and bookcases into the updated expansive country kitchen with adjoining butler's pantry and generous mudroom.The second floor is accessed by front and rear stairs, and is comprised of a master suite and bath, lots of linen storage, a family bath, three additional bedrooms, and an office/exercise area. The fifth bedroom, bonus room and storage room fill the third floor. The house wraps around an extensive outdoor living area with deck, patio, and enclosed ornamental garden. The two-story barn is currently used as a garage and workshop; it could also be a home office.
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Listing provided by Linda Dwinell Logan, Gibson Sotheby's International Realty
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Massachusetts Real Estate: What’s Happening Today?
May 16th, 2019 by Michael Mahoney
Massachusetts Real Estate: What’s Happening Today?
The quarterly report on the entire State of Massachusetts for Q1 has been released.
The amount the sellers achieved against their asking prices was down slightly in all counties with the exception of Berkshire County.
Buyers You are Not Going Swindle Your Way In
I know some of my buyer clients will read into the report and be rubbing their hands together with a big greedy smile like a wolf eyeing a lap dog. Buyers – The sky is not falling. Prices are still up. It’s not the case in every town and it’s going to vary town by town.
If you are the Wolf of Wall Street type, there seems to be a few more foreclosures available lately. See some Boston area foreclosures here
Please make sure you are working with an experienced Realtor who has been in shifting and emerging markets. Hint hint…
Bad purchase decisions usually show up when exiting the property. If you don’t make a good purchase, you will pay when you sell.
Whatever you do, please don’t rely on Zestimates.
Our latest reports breaks down 3 Greater Boston counties zip code by zip code. If you own, rent or invest in real estate you will not want to miss this report. In this report, we cover Suffolk, Norfolk and Bristol County
If you want the entire state report, reach out to me.
www.RealtorMikeMahoney.com – Click here to get the full report
March 2019 Report on Greater Boston Residential Real Estate Activity
May 7th, 2019 by Michael Mahoney
March 2019 Report on Greater Boston Residential Real Estate Activity
Michael Mahoney, Realtor®
eXp Realty
617-615-9435
mike@mmahoney.com | www.RealtorMikeMahoney.com
The median sales price of single-family homes continued to increase last month to a new record-high for the month of March at $595,000. This reflects a 3.4 percent increase in median sales price from March 2018 of $575,500. The condo market experienced a very modest 0.2 percent increase in median sales price, increasing to $550,00 last month, up from $549,000 in March 2018.
“We’ve yet to see these record-high prices quell any buyer enthusiasm, and sellers should take advantage of
these higher price points and growing buyer population,” added Major. “With inventory levels as they are, we
should expect a robust spring market, as we’ve also seen an influx of pending sales which we can anticipate
will close in April and May.” James Major – Greater Boston Association of Realtors
Download the Report Now
Detached Single-Family Homes Sold in Greater Boston
The 793 homes sold it was the sixth highest sales volume for the month and was a 6.9 percent increase from the 742 homes sold in March 2018.
The median sales price reached a record high for the month of March at $595,000, as is rose 3.4 percent from the March 2018 median sales price of $575,500.
Condominiums Sold in Greater Boston
With 691 condos sold, it was the tenth most active March on record in Greater Boston, and a 9.9 percent decrease in sales from the 767 units sold in March 2018. The median sales price of condos experienced a very modest increase, up 0.2 percent from $549,000 in March 2018 to $550,000 this year, a new record-high for the month.
Multi-Family Homes Sold in Greater Boston
This month, there were 150 multi-family units sold in Greater Boston,which reflects a 1.3 percent increase in sales volume from the 148 multifamily units sold in March 2018.
Realtor Michael Mahoney on Facebook
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Michael Mahoney | Greater Boston Realtor with EXP Realty
Some of the area Michael Mahoney Covers Includes:
Ashland, Attleboro Bellingham Boston Canton Dedham Dorchester Dover Foxboro Framingham
Franklin Holliston Hopedale Hyde Park Mattapan Medfield Medway Milford Millis Milton Natick
Norfolk North Attleboro Norwood Plainville
Quincy Randolph Roslindale Sharon Sherborn Stoughton Walpole Wellesley
West Roxbury Westwood Wrentham
Get the value of Any Boston Area Property Now @ www.HomeValueBoston.com
Fed Reserve Bank will be slow with increasing the interest rate – good for the 2019 home buyer.
January 15th, 2019 by Michael Mahoney
The Fed Reserve Bank will be slow with increasing the interest rate. This is good for the 2019 home buyer.
“At a December news conference, Fed Chairman Jerome H. Powell said the economy remained strong, and the Fed expected to continue to raise rates in 2019. But upset investors had driven down asset prices and prompted a market slump. The Fed has since lightened its tone and has emphasized that it’s taking note of investors’ concerns.”
Here is the full article on Realtor Magazine
September/October 2018 Market Pulse in Greater Boston
October 10th, 2018 by Michael Mahoney
September/October 2018 Market Pulse Boston: Should We Get the Crash Cart?
According to the National Association of Realtors, the pace of existing home sales is expected to decline slightly by the end of 2018. I will not argue that overall the economy is great with population and economic growth up and that these should be great things for the real estate market, however we are seeing an impact on the market with mortgage rates rising above 5%. Although this is still low compared to when I purchased my 1st home in 2001, the increase is affecting buyers. Declining affordability is the issue.
The market has been cooling off a bit in recent weeks, as more homes are available and demand is less. We’re already seeing prices move lower as a result. Expect this trend to continue especially if the market moves closer to a buyer’s market.
Boots on The Ground: What Did You Hear on the Frontline?
I don’t like to working in vacuum, so I often solicit real time data from people in and around my business. The most obvious place for a Realtor® to get an understanding would be from a loan officer. I recently had a meeting with Adam Bibber, a loan officer with Loan Depot and asked him what he was seeing with buyers and loans. Here is what he had to say:
“A lot of potential buyers seem to have become fed up with the super high sales prices this year, and losing out to cash buyers. A lot of them are sitting out – waiting for prices to go down – which creates a shift in the market as there is now less demand.”
The only thing I would add is that if you wait too long, then you will pay a higher interest rate. You can always buy a less expensive home, but chances are you will not be able to change the interest rate too much. To get the latest on rates and loans, please reach out to Adam Bibber at The Loan Depot
Why “Well If Thinking” Leads to the Slaughterhouse?
Is the Market Slowing or are People Just Being More Realistic?
I think that we see a typical run up in prices in the 2nd and 3rd quarter in any given year. Each year sellers eyewitness what their neighbors homes sell for and then randomly add some factor onto the value of their house and find a real estate agent who is dumb enough to listen to them. This moved is based largely on their own personal perspective and what I like to call “well if thinking”. “Well if thinking” is simply a stance that sellers take which essentially says well if the neighbor’s house is worth that, then mine is certainly worth more.
If you base your pricing on “well if thinking” and not true market value, then you will certainly become one of the 13 of 15 homes on the market who have to reduce their price by 4.6% just to get interested parties to look at it.
Properties seem to be taking a little longer than they had been taking to get under agreement. In my opinion, it’s not crashing – it’s simply balancing out.
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A Real Snapshot: Market Pricing in Walpole Massachusetts
To put this into context, I recently was working on property in Walpole, Massachusetts which is a suburb just outside of Boston by about 15 miles. The property I was working on was priced under 500k. This property should have gone under agreement rather quickly based on where the market has been in the last year or so. It actually took about 30 days to get an offer on the property.
As of today, there are 15 properties on the market in Walpole with a list price under 500k. The average time these have been on the market is 57 days. Of the 15 properties on the market, 13 properties have been reduced.
In a couple of instances, some of properties were reduced twice. The average price adjustment was about 4.6% or just around $20,000.
The Bottomline
Regardless of interest rates and “buyer frustration” families are created everyday and people need to live somewhere. The right house in the right condition with the right price sells everyday. In the United States, 5.5 million homes sell on average per year. Essentially, 15,068 homes sell per day in the United States. If you are planning on making a move, it’s always best to get the advice of professional.
Have a question about the value of your house?
EXP Realty Realtor Michael Mahoney Realtor Michael Mahoney on Facebook
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Michael Mahoney | Greater Boston Realtor with EXP Realty
Some of the area Michael Mahoney services:
Ashland, Attleboro Bellingham Boston Canton Dedham Dorchester Dover Foxboro Framingham
Franklin Holliston Hopedale Hyde Park Mattapan Medfield Medway Milford Millis Milton Natick
Norfolk North Attleboro Norwood Plainville
Quincy Randolph Roslindale Sharon Sherborn Stoughton Walpole Wellesley
West Roxbury Westwood Wrentham
Get the value of Any Boston Area Property Now @ www.HomeValueBoston.com
Boston Home For Sale By Owner
September 14th, 2018 by Michael Mahoney
Boston Realtor Michael Mahoney on Why He enjoys Boston Homes Being Sold For Sale By Owner
I love the opportunity that the for sale by owner affords the buyer clients. I am often able to locate and broker deals that significantly allow the buyer to purchase under the market value. Many of the for sale by owners mis-price their homes or don’t market their homes properly. This allows for smart agents to find real deals in the Greater Boston area for our clients.
If you see a FSBO and you have an interest in it, please reach out. I would be happy to assist.
Homes with Pools in Norfolk County
March 24th, 2018 by Michael Mahoney
Homes with Pools in Norfolk County
Homes with Pools in Norfolk County
What are Homes and Condos Selling for in Dedham MA
March 23rd, 2018 by Michael Mahoney
Home and Condo Prices Dedham MA
Buyers Need to Be Ready for Tight Inventory This Spring
March 12th, 2018 by Michael Mahoney
Buyers Need to Be Ready for Tight Inventory This Spring
With the Spring market coming, you need to make sure you have your ducks in order and be prepared to have your heart broken in the housing market as inventory is extremely low.
I would say that one the first things a buyer’s agent in Boston needs to do with a client is set expectations. We need to offer clients a realistic outlook on today’s marketplace, and explain what it will mean for them.
With the inventory as slim as it is, a buyer’s agent needs to prepare clients for facing limited inventories. In short, you may not get everything on your wish list. There is high competition for many properties and you need to be ready to act fast and possibly face bidding wars for properties currently on the market. Also with lower inventory comes rising prices. You need to get your finances in order before you shop and understand that mortgage rates are expected to keep rising, which could add to your borrowing costs if you delay buying. As rates rise, your borrowing power is diminished.
From a recent Realtor® Magazine article on the current state of the market in the United States, Here is what Rob Mehta a Realtor in Minnesota had to say:
“Preparing buyers for the reality of a seller’s market is important,” Mehta says. “Some buyers may have to face the heartache of losing at least one house and having to go through that one loss before heading into the second offer more prepared and pickier about what contingencies they include in order to submit a cleaner offer to the seller.”
Be ready to act fast. Forty-three percent of the existing homes sold in January were on the market for less than a month, according to the NAR. Buyers who have a preapproval letter and who attach limited contingencies to their offer may have the best chances of getting their offers accepted. Preapproval—a step beyond getting “prequalified”—is an analysis from a lender of the buyer’s credit and assets that indicates how much financing the buyer has been approved for. A preapproval letter can be submitted with offers to add some assurance to sellers that there won’t be any hold-ups in financing. Also, a preapproval reminds buyers what they can afford to pay. In bidding wars, buyers can get caught up in the emotional process of the back-and-forth within negotiations, but there’s a lot of risk to that. “We need to share with our buyers that they could overpay and get caught up in the emotional aspects of the process,” Mehta says. “Our fiduciary responsibility is to provide the positives and negatives of a property and to advise clients accordingly in a transaction. We need to be upfront with our valuations and help them make smart decisions, and we watch the contracts carefully so that our buyers are protected.”
October 21st, 2017 by Michael Mahoney
64 Percival Street Unit 1 | Two Bedroom | 1 Bath | Condominium | Set on Ronan Park
Open Houses this Weekend SAT and SUN
See more about this condo here
Open Houses This Weekend at 64 Percival Street Unit #1 Dorchester 02122
October 20th, 2017 by Michael Mahoney
Open Houses This Weekend at 64 Percival Street Unit #1 Dorchester 02122
2 Bedroom condo
MLS#: 72241055
385k
Address: 64 Percival St U:1, Boston, MA : Dorchester
Open House SAT 11-1230
Open House SUN 12-1
See all Dorchester Condos for Sale Here
Mike Mahoney
Realtor with Keller Williams
Get the value of your home instantly at:
www.homevalueboston.com
P.S. We are looking to hire and mentor two real estate agents in Norfolk County around Dedham,Canton,Milton,Norwood,Walpole,Medfield,Sharon,Norfolk – Interested check out http://www.realtormikemahoney.com/hiring
Amazing Condos in Boston’s West End
October 17th, 2017 by Michael Mahoney
Click Above to See Amazing Condos in Boston’s West End
New Listing at 64 Percival Street #1 Boston MA Two Bed Condominium on Ronan Park
October 11th, 2017 by Michael Mahoney
New Listing at 64 Percival Street #1 Boston MA Two Bed Condominium on Ronan Park in Dorchester
Condo for Sale at 64 Percival Street #1 Dorchester MA 02122
Great new two bedroom condo in the area next to Ronan Park. Super convenient for people who want to access the city. Many neighbors walk from the neighborhood to the Fields Corner Redline Station. You can see more about 64 Percival Street Unit 1 in Dorchester, MA 02122 below.
Interested in knowing what your property is worth? Get the value of your home now
See all condos for sale in Dorchester now
64 Percival St, Unit 1, Boston, MA 02122 (MLS # 72241055)
(all data current as of 12/12/2019)
| Price | $350,000 |
|---|---|
| Beds | 2 |
| Baths | 1 full |
| Home size | 927 sq ft |
| Lot Size | 927 sqft |
We have a loan program from as little as 3% down to make a purchase on this condo. ***Open Houses 11/4 & 11/5 1-3 PM Both Days*** You can get the landlord off of your back and become an owner instead of a renter. The one you have been looking for. A two bedroom with lots of updates. Investors & Savvy folks take note...There is a place to cut in a third bedroom making more rent or room for more people.Converted in 2013. At that time, a new kitchen and bath was installed. There is a waterview of Dorchester Bay from the rear deck. Recent updates include a roof that was installed last 3 years, new porches and a new front door. Private Laundry & Storage in the basement. PET FRIENDLY! This area is conducive to a pedestrian lifestyle. Many residents in the area walk to the Redline. Association has a healthy 7k in the reserves. City of Boston 2018 estimated property tax is $253.10 reflective of residential exemption. Currently all three units owner occupied. Quick close possible.
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Listing provided by Michael Mahoney, Keller Williams Realty - Foxboro/North Attleboro