Month: September 2014

Case Schiller: Home Price Gains Decelerate Rapidly


Case-Shiller: Home Price Gains Decelerate Rapidly

Newton, MA. Top Realtors, Sotheby’s Newton, MA

Biggest drop in HPI since November 2012

home prices money
While I agree that the market is not as frenzied like last year the under 1 million market is still insanely busy.  Listings that have come on in the last few weeks for the fall market looked VERY expensive to me.  There have been a few price drops.  The over 2 million mark is STARTING to move but there is a lot of inventory to clear out before we see any appreciation in that segment.  At one point buyers will move away from “only brand new” mindset to a restored late 19th and early 20th century houses being back in vogue.  That will be a welcome return to quality over shiny and new.

The Case-Shiller home price index fell 0.5% in July, the drop the biggest since November 2011 and the third month in a row of declines, according to the latest Case-Shiller Home Price Index.

Annualized growth printed at 6.75%, well below analyst expectations and the slowest rate of growth since November 2012.

The national Case-Shiller HPI printed at a disappointing 5.6% in the 12 months ended in July, down from 6.3% in June and well below analyst expectations.

Home prices were growing at a double-digit annualized pace as recently as February 2014.

“While the year-over-year figures are trending downward, home prices are still rising month-to-month although at a slower rate than what we are used to seeing over the past couple of years,” said David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices.

The 10-city home price index grew just 6.7% in the year ended in July. The 20-city price index was also up 6.7%.

“The housing market has been giving us a lot of mixed signals lately. New home sales are up big, but existing home sales are down. Case-Shiller and other housing indices continue to show a general slowdown in home price appreciation, even as some local markets remain very hot. Inventory is up, but sales volume is down,” saidZillow chief economist Stan Humphries. “What all of this is really telling us is that the housing market we’re beginning to see emerge from the ashes of the recession is one that is finally transitioning away from being fueled by internal factors like low mortgage interest rates, low inventory and low prices.

“Instead, it is increasingly being fueled by more traditional outside factors like wage growth, an improving job market and household formations. This transition won’t be seamless, however, and I expect to see more conflicting data as the recovery continues,” Humphries said.

The national HPI increased 0.2% in July, while the 10-city and 20-city HPI composite dropped 0.5%.

“The slower pace of home price appreciation is consistent with most of the other housing data on housing starts and home sales,” Blitzer said. “The rise in August new home sales – which are not covered by the S&P/Case-Shiller indices – is a welcome exception to recent trends.”

Cities in the South and West, the two largest housing markets, saw the biggest price drops and are still seeing the bulk of the price increases today.

“Slow but steady is this year’s theme when it comes to home price increases,” said Quicken Loans vice president Bill Banfield. “Unless we see a significant change in the economy, I don’t see this changing in the near future.”

 

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Seniors’ Housing Cost Burden on Rise


Seniors’ Housing Cost Burden on Rise

Newton Real Estate Top Brokers, Sotheby’s Newton, MA.

For a growing share of older Americans, housing expenses have become an increasingly large financial burden.

Chart: Housing burdenOne in three Americans over age 50 were carrying a severe or moderate housing cost burden in 2012, up from one in four in 2000, according to a new study by Harvard’s Joint Center for Housing Studies and AARP. The Center defined a severe burden as housing costs that consume more than half of household income; a moderate housing burden takes between 30 percent and 50 percent of income.

The Center’s report, Housing America’s Older Adults – Meeting the Needs of An Aging Population,” warns that the nation is unprepared for both the financial and non-financial housing challenges that will accompany the coming explosion in the elderly population. Aging baby boomers will require better access to public transit, handicap access, assisted living facilities and other special services and amenities, and many will need subsidized housing.

Housing is often an older person’s largest single expense. And because housing costs are largely fixed (think mortgage payment, taxes, insurance, upkeep and utilities), they can become a growing burden for people as they age and become more vulnerable to reductions in income. Incomes often decline toward the end of their working years and decline again when they enter retirement. Pensions and Social Security benefits fall again when one spouse dies.

The report finds that:

  • Nearly 17 percent of people over age 50 are moderately burdened, spending from 30 percent to 50 percent of their income on housing.
  • Another 16 percent spend more than half of their income on housing.
  • Some 3.9 million households over age 62 are eligible for rental assistance – but only 1.4 million receive it.
  • In 2010, about three out of four homeowners ages 50 to 64 were still paying off a mortgage, up from about two in three in 1992.
  • Housing costs are especially challenging for minority groups: 39 percent of older Asian households, 43 percent of older Hispanic households, and 46 percent of older black households have moderate or severe house cost burdens.  The figure for older white households is 29 percent.

Housing reliably consumes a large chunk of retirees’ monthly income. As baby boomers prepare for retirement, many should consider reducing their housing costs so they fit their new retirement budgets.

Luxury Real Estate Headlines: Third Week in September 2014


 

Luxury Real Estate Headlines: Third Week in September 2014

Top Brokers, Newton MA.  Sothebys Realty Newton, MA. Margaret Szerlip September 22, 2014

Highlights from this week’s top news stories on luxury and global real estate, art, collectibles and home.

2014_9_19_Cape Town_SAR 49 000 000 | Cape Town, South Africa | Lew Geffen Sotheby’s International Realty

Africans purchase for exactly the same reason as Europeans, because Cape Town is an exceptionally beautiful city with world-class food and services,” said Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty

Decline in the Rand Helps Push Cape Town SalesThe New York Times

House of the Day: A Hong Kong RetreatThe Wall Street Journal

House of the Day: An English Manor in DallasThe Wall Street Journal

Florida Property Once Owned by Ivan Lendl Will List for $21.5 MillionThe Wall Street Journal

On the Market: Rhineland-Palatinate, GermanyArchitectural Digest

Smooth Jazz Meets Stormy DesignThe Wall Street Journal

House Hunting in … the Dominican RepublicThe New York Times

Home of the Day: Midcentury rambler in AltadenaThe Los Angeles Times

Unusual Sowden Residence in Los Feliz asking $4.875 millionThe Los Angeles Times

FHA Fees Are Holding Back First-Time HomebuyersAmerican Banker

Georgia O’Keeffe Museum to Auction 3 PaintingsThe New York Times

Born in a MinuteSotheby’s

 

22 Lenox Closed $2,241,000


Top Brokers, Newton, MA.  Sotheby’s Realty Newton, MA.  September 22, 2014

Congrats to the sellers (Credere Ventures LLC) of 22 Regent Street, West Newton…Best wishes to Sean and Dao…we wish them much happiness in their new home.

Chic and Stylish Total Renovation

Chic and Stylish Total Renovation

Newton Bi Monthly Real Estate Recap


Newton Bi Monthly Real Estate Recap Margaret Szerlip, September 22, 2014, Newton, MA.  Top Agents

 

I must say I am a bit disappointed with the results of the past two weeks.  Inventory is building, we have 180 homes currently listed vs. 140 a month ago.  During the same two-week period in August, 65 homes went under agreement vs. 24 in the September time frame.  We will have to see if this trend continues.  I will say that prices seem to be much higher than even six months ago.  1 million is the new 750-800K.  The Jewish holidays are upon us and that does impact the number of transactions completed.  Perhaps buyers are finally saying enough with the price increases.  There is some movement at the above 2 million mark.

 

CURRENTLY LISTED

Report Run: 9/22/2014 10:57:31 AM
Property Type(s): SF
Snapshot Date: 09/22/2014
Towns: Newton
 09/22/2014  9/22/2014
Price Range Number of
Listings
Avg. Days
on Market
vs. today Number of
Listings
Avg. Days
on Market
Under $50,000
$50,000 – $99,999
$100,000 – $149,999
$150,000 – $199,999
$200,000 – $249,999
$250,000 – $299,999
$300,000 – $349,999
$350,000 – $399,999
$400,000 – $449,999
$450,000 – $499,999 2 71 2 71
$500,000 – $599,999 8 37 8 37
$600,000 – $699,999 10 64 10 67
$700,000 – $799,999 9 40 9 40
$800,000 – $899,999 13 52 13 54
$900,000 – $999,999 13 37 13 37
$1,000,000 – $1,499,999 34 51 34 52
$1,500,000 – $1,999,999 31 120 31 121
$2,000,000 – $2,499,999 23 126 23 126
$2,500,000 – $2,999,999 19 99 19 99
$3,000,000 – $3,999,999 11 198 11 198
$4,000,000 – $4,999,999 3 115 3 115
$5,000,000 – $9,999,999 4 119 4 119
Over $10,000,000
Total Properties 180 Avg. 88 180 Avg. 89
Lowest Price: $465,000
Median Price: $1,545,000
Highest Price: $6,950,000
Average Price: $1,805,159
Total Market Volume: $324,928,784
Lowest Price: $465,000
Median Price: $1,545,000
Highest Price: $6,950,000
Average Price: $1,805,159
Total Market Volume: $324,928,784

UNDER AGREEMENT

Report Run: 9/22/2014 11:00:10 AM
Property Type(s): SF
Start Date: 09/08/2014
End Date: 09/22/2014
Towns: Newton
Went Pending Current Status
Price Range # of
Listings
# UAG # CTG # Sold # Other
Under $50,000
$50,000 – $99,999
$100,000 – $149,999
$150,000 – $199,999
$200,000 – $249,999
$250,000 – $299,999
$300,000 – $349,999
$350,000 – $399,999
$400,000 – $449,999
$450,000 – $499,999 1 1
$500,000 – $599,999 6 3 1 2
$600,000 – $699,999 1 1
$700,000 – $799,999
$800,000 – $899,999 1 1
$900,000 – $999,999 4 4
$1,000,000 – $1,499,999 8 6 2
$1,500,000 – $1,999,999 2 2
$2,000,000 – $2,499,999 1 1
$2,500,000 – $2,999,999
$3,000,000 – $3,999,999
$4,000,000 – $4,999,999
$5,000,000 – $9,999,999
Over $10,000,000
Total Properties 24 17 5 0 2
Lowest Price: $495,000 Median Price: $979,500
Highest Price: $2,399,000 Average Price: $1,171,450
Total Market Volume: $28,114,800

SOLD

Total Sold Market Statistics
Report Run: 9/22/2014 11:00:57 AM
Property Type(s): SF
Status: SLD
Start Date: 09/08/2014
End Date: 09/22/2014
Towns: Newton
Price Range # of
Listings
Avg. Days
on Market
Average
Sale Price
Average
List Price
SP:LP
Ratio
Average
Orig Price
SP:OP
Ratio
$0 – $49,999 0 0 $0 $0 0 $0 0
$50,000 – $99,999 0 0 $0 $0 0 $0 0
$100,000 – $149,999 0 0 $0 $0 0 $0 0
$150,000 – $199,999 0 0 $0 $0 0 $0 0
$200,000 – $249,999 0 0 $0 $0 0 $0 0
$250,000 – $299,999 0 0 $0 $0 0 $0 0
$300,000 – $349,999 0 0 $0 $0 0 $0 0
$350,000 – $399,999 0 0 $0 $0 0 $0 0
$400,000 – $449,999 1 5 $445,000 $499,900 89 $499,900 89
$450,000 – $499,999 2 22 $476,000 $452,000 105 $452,000 105
$500,000 – $599,999 1 108 $595,000 $659,000 90 $699,000 85
$600,000 – $699,999 2 82 $662,500 $699,000 95 $699,000 95
$700,000 – $799,999 0 0 $0 $0 0 $0 0
$800,000 – $899,999 2 18 $829,850 $819,000 101 $819,000 101
$900,000 – $999,999 3 40 $944,833 $922,000 103 $966,000 98
$1,000,000 – $1,499,999 3 97 $1,286,667 $1,232,667 106 $1,274,667 103
$1,500,000 – $1,999,999 3 74 $1,606,083 $1,732,633 93 $1,949,667 83
$2,000,000 – $2,499,999 1 103 $2,115,000 $2,250,000 94 $2,250,000 94
$2,500,000 – $2,999,999 0 0 $0 $0 0 $0 0
$3,000,000 – $3,999,999 0 0 $0 $0 0 $0 0
$4,000,000 – $4,999,999 0 0 $0 $0 0 $0 0
$5,000,000 – $9,999,999 0 0 $0 $0 0 $0 0
$10,000,000 – $99,999,999 0 0 $0 $0 0 $0 0
Total Properties 18 Avg. 61 $1,033,581 $1,056,156 99 $1,108,883 96
Lowest Price: $445,000 Median Price: $927,250
Highest Price: $2,115,000 Average Price: $1,033,581
Total Market Volume: $18,604,450

Sotheby’s International Realty Rolls Out New Marketing


Sotheby’s International Realty Rolls Out New Marketing

Sotheby’s Realtor Newton, MA.  Top Agent, Newton, MA.

I attended the Fall Regional Marketing Event yesterday in Beverly.  What an informative session!  The new Sotheby’s marketing plan is amazing, there is no other Real Estate company in the world with the reach of Sotheby’s.  The Search Marketing is constantly evolving and Sotheby’s is implementing a very forward thinking plan through a combination of organic and paid ads.  The SIR mobile site is a simple but powerful interface to connect buyers and sellers anywhere at anytime.  There is an exclusive global real estate search – 45 counties world-wide.  The exclusive deal we have with the NY Times at INYT.com  WSJ Digital Network, Architectural Digest, Hong Kong Tatler, Luxury Estate.com etc. will enable our listings to reach our ever-expanding global buyers.  HomeFinder, Yahoo, Zillow, trulia,boston.com and too many others will all interface seamlessly now.  As many sellers and agents know the information provided on trulia, Zillow and the other sites is not always accurate and not easy to fix.

Social Media will also connect homes through Facebook, Twitter, Google+, Pinterest, youtube.sothebysrealty, and SIR Mobile.

Check out sothebysrealty.com to view some amazing properties.

30 Year Fixed Rate Mortgage Rate Spikes 14 Basis Points


Newton, MA. top Brokers, Sotheby’s Newton, MA.

30-Year Fixed Mortgage Rates Spike 14 Basis Points, Largest Rate Hike Since November 2013; Current Rate is 4.19%, According to Zillow Mortgage Rate Ticker

 

MEANING

SEATTLE, Sept. 16, 2014 (GLOBE NEWSWIRE) — The 30-year fixed mortgage rate on Zillow® Mortgages is currently 4.19 percent, up 14 basis points from this time last week. The 30-year fixed mortgage rate rose steadily last week, peaking at 4.30 percent on Sunday before easing down to the current rate.

“Last week, rates hit a five-month high on anticipation that the Fed’s policy statement might suggest an earlier than expected hike in the federal funds rate,” said Erin Lantz, vice president of mortgages at Zillow. “This week, any significant movement in rates will stem from the Fed’s Wednesday announcement, which could reveal how quickly the federal funds rate will rise after the stimulus program ends.”

Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgages site, and reflect the most recent changes in the market. These are not marketing rates, or a weekly survey.

The rate for a 15-year fixed home loan is currently 3.26 percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 3.03 percent.

Purchase Mortgage Application Activity

Zillow predicts tomorrow’s seasonally adjusted Mortgage Bankers Association Weekly Application Index will show purchase loan activity decreased by 4 percent from the week prior. Zillow combines loan requests made on Zillow Mortgages last week with the previous week’s Mortgage Bankers Association (MBA) Weekly Application Index to predict the MBA’s Weekly Application Index for purchase loans, which will be released tomorrow. For more information about this prediction, visit http://www.zillow.com/research/mortgage-app-index-part-one-7016/.

Below are current rates for 30-year fixed mortgages by state. Additional states’ rates are available at:http://www.zillow.com/mortgage-rates.

State Current
30-Year
Fixed Rate
(09/16/14)
Last Week’s
30-Year
Fixed Rate
(09/09/14)
Change in
Basis
Points
California Mortgage Rates 4.18% 4.08% +10
Colorado Mortgage Rates 4.17% 4.07% +10
Florida Mortgage Rates 4.19% 4.07% +12
Illinois Mortgage Rates 4.20% 4.08% +12
Massachusetts Mortgage Rates 4.26% 4.10% +16
New Jersey Mortgage Rates 4.14% 4.01% +13
New York Mortgage Rates 4.28% 4.12% +16
Pennsylvania Mortgage Rates 4.19% 4.08% +11
Texas Mortgage Rates 4.18% 4.02% +16
Washington Mortgage Rates 4.15% 4.04% +11