Boston Top 20

Should Boomers Buy or Rent after Selling?


Top Broker in Newton,MA. Compass, Sotheby’s

Should Boomers Buy or Rent after Selling?

Should Boomers Buy or Rent after Selling? | MyKCM

Most of my seller clients have nowhere to move.  It’s hard for older people to wrap their mind around spending 6,000 a month in rent!

In a recent CNBC article, it was reported that many baby boomers are selling their current homes and moving into rentals, rather than purchasing another home.

“Between 2009 and 2015, the number of renters aged 55 or above rose 28 percent, while those aged 34 or younger only increased 3 percent…

Meanwhile, more than 5 million baby boomers across the nation are expected to rent their next home by 2020, according to a 2016 analysis from Freddie Mac.”

This makes sense in the short term for many reasons. If you are moving to a different part of town or a new region of the country, you may decide to rent until you pick the perfect home in an area you love. However, is renting a good long-term strategy?

A mortgage payment remains fixed. Rents, however…

The Census Bureau recently released their 2017 third quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:

As you can see, rents have steadily increased and are showing no signs of slowing down. If you are faced with making the decision of whether you should rent or buy your next home, you should take this into consideration.

Bottom Line

One way to protect yourself from rising rents is to lock in your housing expense by buying a home instead of renting. Let’s get together so we can help you decide what the best step is for you and your family!

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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
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What If I Wait Until Next Year to Buy a Home?


Newton, MA. Real Estate, Top Newton Realtors,  Top20Boston, Compass, Sotheby’s

 

What If I Wait Until Next Year to Buy a Home?

What If I Wait Until Next Year to Buy a Home? | MyKCM

We recently shared that national home prices have increased by 6.7% year-over-year. Over that same time period, interest rates have remained historically low which has allowed many buyers to enter the market.

As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home.

The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Reporthome prices will appreciate by 5.2% over the next 12 months.

What Does This Mean as a Buyer?

If home prices appreciate by 5.2% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:

What If I Wait Until Next Year to Buy a Home? | MyKCM

Bottom Line

If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.

Why Home Prices Are Increasing?


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

 

Why Home Prices Are Increasing

repost from the KCM Crew
Why Home Prices Are Increasing

There are many unsubstantiated theories as to why home values are continuing to increase. From those who are worried that lending standards are again becoming too lenient (data shows this is untrue), to those who are concerned that prices are again approaching boom peaks because of “irrational exuberance” (this is also untrue as prices are not at peak levels when they are adjusted for inflation), there seems to be no shortage of opinion.

However, the increase in prices is easily explained by the theory of supply & demand.Whenever there is a limited supply of an item that is in high demand, prices increase.

It is that simple. In real estate, it takes a six-month supply of existing salable inventory to maintain pricing stability. In most housing markets, anything less than six months will cause home values to appreciate and anything more than seven months will cause prices to depreciate (see chart below).

Why Home Prices Are Increasing | Keeping Current Matters

According to the Existing Home Sales Report from the National Association of Realtors (NAR), the monthly inventory of homes for sale has been below six months for the last five years (see chart below).

Why Home Prices Are Increasing | Keeping Current Matters

Bottom Line

If buyer demand continues to outpace the current supply of existing homes for sale, prices will continue to appreciate. Nothing nefarious is taking place. It is simply the theory of supply & demand working as it should.

Newton Is Still A Seller’s Market


Newton’s Top Agent, Compass, Sotheby’s, Newton, MA., West Newton Hill

 

Newton continues to be a seller’s market with the exception of the over 2 million price points.  In the past 2 weeks, 43 new homes were listed with 47 going under agreement during the same period. Currently, there are only 127 single family homes for sale and only 15 are under 1 million dollars!!! There are 5 homes priced between 1 and 2 million, 34 between 2 and 3 million, 15 between 3 and 4 million, 5 between 4 and 5 million and a whopping 7 houses priced between 5 and 8 million dollars!  These numbers are astronomically inflated.  In the past 5 years only 67 houses have sold in Newton over 3 million dollars yet as of today there are 30 listed over 3 million.  Something has to give and my guess is it will be the price.  Only 4 houses have topped 6 million dollars, ever.

On-Market Snapshot
Report Run: 4/24/2018 4:28:31 PM
Property Type(s): SF
Snapshot Date: 4/24/2017
Towns: Newton
 4/24/2017  4/24/2018
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 1 74
$400,000 – $449,999 1 52
$450,000 – $499,999
$500,000 – $599,999
$600,000 – $699,999 1 6 3 5
$700,000 – $799,999 2 4 3 25
$800,000 – $899,999 6 18 3 113
$900,000 – $999,999 4 23 5 45
$1,000,000 – $1,499,999 22 57 20 32
$1,500,000 – $1,999,999 13 48 30 29
$2,000,000 – $2,499,999 12 54 21 131
$2,500,000 – $2,999,999 14 86 14 94
$3,000,000 – $3,999,999 14 133 15 77
$4,000,000 – $4,999,999 4 200 5 195
$5,000,000 – $9,999,999 4 291 7 101
Over $10,000,000
Total Properties 97 Avg. 81 127 Avg. 72
Lowest Price: $427,900
Median Price: $1,999,000
Highest Price: $8,980,000
Average Price: $2,369,563
Total Market Volume: $229,847,665
Lowest Price: $379,900
Median Price: $1,999,000
Highest Price: $8,300,000
Average Price: $2,351,654
Total Market Volume: $298,660,095
©2018 MLS Property Information Network, Inc.  |  Copyright Policy 3828 users online right now!

Newton’s Largest Homes


Newton Top Realtor, Compass, Top 20 Realtor

How much is too much or is there no such thing?  Take a look and do let me know.

Newton’s Largest Homes

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WHAT TO DO WITH YOUR PARENTS’ STUFF


Newton, MA. Real Estate, Downsizing 2017, Compass, Chestnut Hill and Boston

 

Three years ago, I was assigned the task of helping my mother-in-law move from her condo in Morristown, NJ to an independent living apartment in another NJ town.  She and my father-in-law had sold their “big” house in Morristown 23 years ago and moved into a way too big condo in another town.  All was fine until my father in law passed away and my mother in law was left with that way too big condo in a town she didn’t really like. We convinced her to move back to Morristown into a smaller condo, (which was probably still too big,) but she liked ALL of her things.  This was the second downsize.  I spent the better part of a week down there helping her scale back her belongings and take what she really liked and donate or give away the rest.  We lived in a bigger house in Newton at the time and there were a few pieces I liked, so my MIL decided she would ship those to me.  The TRUCK arrived one Sunday morning with the few pieces I liked and the rest of the stuff my MIL thought we should have!  Yikes!

 

Everything was smooth sailing in NJ until my then 86-year-old MIL took a few falls.  It was time to move out of the condo and into independent living.  After much cajoling, she settled on a 2-bedroom apartment that was definitely not big enough for all of her prized possessions.  Off to NJ I went to help with this downsize.  I arrived to find her sick with a fever and the condo was a nightmare.  She had completely emptied the contents of the cabinets, credenzas, side board and dressers and placed them on the dining room table, kitchen table and every other flat surface in the house.  Of course, the next day consisted of very little sorting because most of it was a trip down memory lane, (we got this on a trip to England, we bought this in China and on and on).  The second day we had arranged for antique dealers, resellers, and smaller stores to come in and buy her things.  I tried to warn her that much of her valuables were not so valuable because no one was buying this stuff anymore.  All of the dealers wanted the sterling silver, NO ONE wanted the silver plate, china, or crystal.  She had an assortment of mid-century items that she deemed as “not much” but the dealers thought they were all that, and paid handsomely for them.  After an entire day of this, I looked around and realized we hadn’t gotten rid of much.  I took phots and sent them to my kids, the other grandchildren, nieces and nephews but we had very few claimed items.  We finally called a consignment store and she GAVE much of it away and donated the rest to a local charity.  What was left had special meaning to her and I quickly realized I was traveling back to Newton with her mother’s china, silver, candlesticks, and antique collection box filled with her trinkets.  Since we had downsized, I really didn’t have the room for the influx of goodies, hence a small storage unit.

 

If you think your grown children will gladly accept these items, think again.  I debated giving my niece my mother’s silver for her wedding shower, knowing what I know about this generation and stuff.  Well, I was flabbergasted when she cried upon opening, however, she still doesn’t want my mother’s china that my sister has moved twice.

 

The good news is that I have found and vetted extremely qualified people to help facilitate your parents move.  Laurie Norden at Next Stage Associates is fantastic!  She has the patience of a saint and a soothing way with the older set.  Joan Roover, owner of A Thoughtful Move is a miracle worker.  Joan has a crew that gets your house ready for a sale as well; she has organizers, painters, handymen, and cleanup crew, etc.  When she tells me a house is ready for photography, it is! Joan will contract with the mover and be on site the day of move to facilitate, thus, you don’t even have to be there.  I have also used and recommended Everything but the House.  EBTH is an online auction house for your unwanted items; furniture, art, jewelry, collectibles, even cars.  They will organize, catalog, photograph, and list your items on their site for a week.  All items start at $0.00, although be advised, most of the action takes place on the last day of the auction.

 

My best advice when selling your home (or parents) that you have lived in for a long time and don’t have the bandwidth to handle the entire move; talk to one of the above people.  If you are selling your parents’ things, prepare them or yourself for disappointment.  For the first time in history, two generations are downsizing simultaneously; boomers and their parents.  Unfortunately, I don’t think there is a future for the possessions of our parents’ generation.  It’s a changed world.

 

I am happy to discuss the aforementioned people or the sale of a home with you or your parents.

 

 

Survey Says Millennials Want To Live In New York, What Does Research Say?


Newton, MA. Top Realtor,  Compass Massachusetts Realtor, Newton, MA. Homes for Sale

Survey Says Millennials Want To Live In New York, Research Suggests They Should Live In Philadelphia…Hmm?

Philadelphia (Shutterstock)

In a recent survey one-in-five Millennials said New York is their ideal city. Less than 1% said the same of Philadelphia. Ironically, however, the city of Ben Franklin and cheesesteaks outranks its more popular brethren when it comes to qualities the young purport to value.

Millennial-run apartment search site Abodo set out to determine what their generational-peers look for in a city to call home by surveying 2,000 people born between 1982 and 1998. Respondents rated 20 qualities on a 1 to 10 scale, with 10 connoting the highest importance.

It turns out, the top three qualities Millennials want in a city are economic in nature: a thriving job market (average score: 8.19), affordable rent (7.94) and affordable home prices (7.55). Beyond those core three, the ratings for quality of life metrics were fairly evenly dispersed. Rounding out the top third of the list were parks or hiking trails (6.52), non-chain restaurants (6.49) and quality pizza (6.11). Meanwhile, items ranging from top-rate public schools (6.07) to an LGBTQ-friendly environment (5.47) to access to music venues (5.38) all have above average ratings. In fact, the only quality not achieving a score greater than five was the presence of a local college or university (4.99).

To Sam Radbil, communications manager at Abodo, the survey shows “Millennials are career driven.” He added, “Despite Millennials’ reputation for being lazy or entitled they care about the job market and their careers. They are looking for a place that is affordable.”

Interesting distinctions arise when the group is divided by age range, comparing 18-to-22 year-olds with 23-to-28 year-olds and 29-to-34 year-olds. Employment and housing are key concerns among all three groups, though affordable rent outranks job prospects only for the youngest cohort.

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For the oldest group home purchase price becomes more important than rental prices. While unsurprising, the differences among age groups do reflect recent trends. After years of hand-wringing over whether young people would participate in this traditional rite of passage, surveys suggest Millennials do want to buy and that as they get older they are taking the ownership plunge. According to the National Association of Realtors, Millennials now make up the largest share of home buyers at 35%. The median age of a first time buyer is currently 31.

(Courtesy Abodo)

When it comes to location, nearly 20% of people surveyed list New York as their perfect city. Next up is San Francisco at 10%, Seattle and Portland at 9% and Los Angeles at nearly 8%. All of these cities have 80% or more of the 20 qualities Abodo pegged as important and most have several of the traits Millennials value highest. By Adodo’s calculations, however, several cities that barely registered with the survey-group may have more of what the generation is looking for, including Philadelphia (which got top city rating from just 0.89% of people), Washington D.C. (1.36%) and Boston (2.3%).

The company judged Philadelphia as the best city for Millennials in part due to solid marks on job market (the Philadelphia region’s unemployment rate was 20 basis points below the national average when the data was pulled) and average home prices (sale and rental) of at or below 30% of average income.

(Courtesy Abodo)

Of course, some of the metrics are subjective–a New Yorker may not agree Philadelphia has quality pizza. (Disclosure: the author of this post lives in New York, went to college in Philadelphia and has strong feelings about pizza.) But the survey’s broader point–that places you’ve never thought of may have exactly what you’re looking for–remains indisputable.

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