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Why Has Housing Supply Increased as Sales Have Slowed Down?


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

Why Has Housing Supply Increased as Sales Have Slowed Down?

Why Has Housing Supply Increased as Sales Have Slowed Down? | MyKCM

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the inventory of homes for sale this year compared to last year has increased for the last four months, all while sales of existing homes have slowed compared to last year’s numbers.

For over three years leading up to this point, the exact opposite was true; Inventory dropped as sales soared.

NAR’s Chief Economist Lawrence Yun shed some light on what could be contributing to this shift,

“This is the lowest existing home sales level since November 2015. A decade’s high mortgage rates are preventing consumers from making quick decisions on home purchases. All the while, affordable home listings remain low, continuing to spur underperforming sales activity across the country.”

Let’s take a deeper look:

Interest Rates

Since January, 30-year fixed mortgage interest rates have increased nearly a full percentage point (from 3.95% to 4.9%). Fannie Mae, Freddie Mac, the National Association of Realtors, and the Mortgage Bankers Association are all in agreement that rates will continue to increase to about 5.2% over the next 12 months.

“The rise in [mortgage] rates paired with this very strong price appreciation absolutely is slowing housing,” said Fannie Mae’s Chief Economist Doug Duncan.

Even though rates are higher than they’ve been in a decade, they still remain below the average for the 1970s, 80s, 90s, and 2000s!

Mismatch of Inventory

Elizabeth Mendenhall, President of NAR, said it best, “Despite small month over month increases, the share of first-time buyers in the market continues to underwhelm because there are simply not enough listings in their price range.”

Prices of starter and trade-up homes have appreciated faster than their higher-priced counterparts. Over the last 5 years, the lowest-priced homes have appreciated by 47% while the highest-priced homes have appreciated by only 24%.

According to the Institute of Luxury Home Market’s Luxury Market Report, the $1M-and-up price range is now experiencing a buyer’s market. This means that supply (inventory) has finally caught up with demand and buyers are in the driver’s seat when it comes to negotiations. Additionally, many listings in this price range have experienced price cuts in order to entice buyers to put in offers.

Bottom Line

Additional inventory coming to market could help normalize the housing market and allow incomes to catch up to home prices. For more information about sales and inventory in our area, let’s get together so we can help you make the best decision 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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Boston’s 10 most expensive one-bedroom condos start at $1.35M


Newton, MA. real estate, Newton’s Top Brokers, Sotheby’s Compass

Boston’s 10 most expensive one-bedroom condos start at $1.35M

Half are in just two buildings: 50 Liberty and the W Boston

50 Liberty under construction in December 2016. 
Dan Logan/Shutterstock

Half of Boston’s 10 most expensive one-bedroom condos as of late July are in just two buildings: The newish 50 Liberty in the Seaport District and the older W Boston at 110 Stuart Street in the Theatre District.

In general, these 10 priciest one-bedrooms range from $1.35 million to $2.5 million, according to real estate research site NeighborhoodX. The units range in size from 878 square feet to 1,398 square feet.

“Given that the square footage for these properties is relatively modest, the asking prices are driven by relatively high prices per square foot,” NeighborhoodX research director Constantine Valhouli said over email. “These range from $1,246 a foot (1 Charles Street South, #3 in Back Bay) to $1,853 a foot (50 Liberty Drive, #6D in the Seaport).”

Demand for Homes to Buy Continues to Climb


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

Demand for Homes to Buy Continues to Climb

Demand for Homes to Buy Continues to Climb | MyKCM

Across the United States, there is a severe mismatch between the low number of houses for sale and the high demand for those houses! First-time homebuyers are out in force and are being met with a highly competitive summer real estate market.

According to the National Association of Realtors (NAR), the inventory of homes for sale “has fallen year-over-year for 36 consecutive months,” and now stands at a 4.1-month supply. A 6-month supply of inventory is necessary for a balanced market and has not been seen since August of 2012.

NAR’s Chief Economist Lawrence Yun had this to say,

“Inventory coming onto the market during this year’s spring buying season – as evidenced again by last month’s weak reading – was not even close to being enough to satisfy demand.

That is why home prices keep outpacing incomes and listings are going under contract in less than a month – and much faster – in many parts of the country.”

Is There Any Relief Coming?

According to the CoreLogic’s 2018 Consumer Housing Sentiment Study, four times as many renters are considering buying homes in the next 12 months than homeowners who are planning to sell, “which is the crux of the available housing-supply imbalance.”

Demand for Homes to Buy Continues to Climb | MyKCM

As more and more renters realize the benefits of homeownership, the demand for housing will continue to rise.

Do homeowners realize demand is so high? With home prices rising across the country, homeowners gained over a trillion dollars in equity over the last 12 months, with the average homeowner gaining over $16,000!

The map below shows the breakdown by state:

Demand for Homes to Buy Continues to Climb | MyKCM

Many homeowners who have not thought about listing their homes may not even realize how much equity they have gained, or the opportunity available to them in today’s market!

Bottom Line

If you are one of the many homeowners across the country who hasn’t quite found their forever home, now may be a great time to list your house for sale and find your dream home!

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.

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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5 Tech Questions that Seniors Should Ask When Interviewing a Real Estate Agent


5 Tech Questions that Seniors Should Ask When Interviewing a Real Estate AgentSotheby’s Newton, MA.  Newton, MA.  Top AgentsPosted: May 21, 2015 10AM EST

5 Tech Questions that Seniors Should Ask When Interviewing a Real Estate Agent | Keeping Current Matters

 Nikki Buckelew back as a guestblogger for today’s post. Nikki has extensive experience working with seniors and is the Founder & CEO of the Senior Real Estate Institute. Enjoy!
  If you have not bought or sold a home in a few years (or maybe decades) it is likely that there are more than a few new trends in real estate that you will encounter as you begin to interview real estate agents. One particular trend now common among many real estatebrokerage firms is called the practice of “going paperless.” This can be a bit scary for some people, especially senior adults who are not accustomed to using computers in their personal or professional lives. If you are one of the many with reservations about the paperless process, you will want to talk with your agent about any concerns or questions you have. In this article we have provided some basic information about the paperless process and some key questions to ask your real estate agent. How your agent handles your questions may just help you determine if he or she is the right agent for you!

What does it mean to go paperless?

Going paperless simply means that instead of printing out every contract, form or disclosure for your signature, you may be asked to sign certain documents electronically. This could mean:

  1. Typing your name into a designated field included in a form (received via email)
  2. Signing your name on a digital touchpad (laptop, netbook, smart phone, etc.)

While some have experienced this type of technology before and are perfectly willing and comfortable using it, others are not. Frankly, the first time I was asked to sign a real estate document electronically via email I was a bit perplexed and required some guidance. If you have not been exposed to this type of technology, it can seem a little overwhelming, especially if introduced to it in the midst all of the other things going on during a move. This is why it’s important to educate yourself on the front end, mitigating potential delays, avoiding unnecessary frustration, and preventing surprises down the road.

Here are 5 simple questions you should ask before you ‘sign on the dotted line’

1. How do you typically communicate with your clients (phone, email, text, instant messaging, etc.)?

Good agents know that the best method (and frequency) of communication is the one that best serves the client, so getting this agreed upon early in the relationship is paramount — for both you and the agent. If you want to communicate strictly by phone, be sure that you and your agent agree on the protocols for leaving and returning messages, hours of availability, and which phone numbers are best for certain times of day. Similar discussion around email, text messaging, and other modes of communication should be had as well, if that is your desired method of information delivery.

2. What method(s) do you use for getting client signatures?

The goal here is to find out your options. Many agents are still in the conversion process of going paperless and they are more than willing to use “more conventional” methods of getting signatures. Some may be required, however, by their respective brokerage firms to utilize only paperless systems. If this is the case, ask the agent to show you examples of the types of things that may be asked of you during the course of working together. If after a quick tutorial, you aren’t comfortable with the electronic signature process, it’s “OK” to choose an agent who can better accommodate your preferences.

3. Can you access my devices to insure they are compatible with the systems you use?

Even if you are completely prepared to enter the paperless world with no reservations whatsoever, it can only be done if you have the right equipment. Before agreeing to a paperless process, ask the agent to do a “test run” using a non-official/non-binding document on your system to insure its functionality.

4. Will you provide technical support if I am not “techy” and need some help?

My dad (self-described “non-techy” and proud of it), has a computer, printer, smart phone, email address, and wifi. He does not, however, have the faintest idea how they work or how to pull up attachments in his email. When he decided to purchase a new home this past year using a reverse mortgage, the lender was located out of state, which meant everything was done via email — electronically. Needless to say, I was dad’s tech support in this situation. If you do not have a trusted advisor who can help you with troubleshooting potential technology issues, make sure your agent or their staff is capable, patient, and willing to personally walking you through the steps.

5. Are you flexible if I choose to use phone and paper over electronic communication and documentation?

Options are the key. While some agents are extremely flexible in how they deliver their services, others may be married to a very specific process or style. Insure the agent you are considering is willing and able to do what is right for you, based on your comfort level, knowledge, and ability.

Bottom Line

It goes without saying that it is critical to have the conversation with your real estate professional about their paperless processes and communication methods. Not only will doing so put your mind at ease regarding unfamiliar territory, but it may also provide your agent with necessary information so he or she can serve you more effectively.

Bi-Monthly Newton Real Estate Recap


Bi-Monthly Newton Real Estate Recap

Newton, MA.  10:45 EST  Newton’s Top Brokers, Sotheby’s Realty, Newton, MA.

The real estate market is busy!  There are at total of 130 single family homes currently for sale in Newton, up from 113 two weeks ago.  67 new properties came on the market across all price ranges in the past 2 weeks!  52 homes went Unger Agreement in that same time period with the 1 million to 2 million remaining the most active with 28.  The condo market remains STRONG!  Sellers’ there are so many buyers clamoring for the same house, so list yours if you are thinking about it!

 

On-Market Snapshot

Report Run: 5/11/2015 10:35:20 AM
Property Type(s): SF
Snapshot Date: 04/27/2015
Towns: Newton
 04/27/2015  5/11/2015
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
$500,000 – $599,999 4 61 5 58
$600,000 – $699,999 1 5 7 10
$700,000 – $799,999 3 21 4 10
$800,000 – $899,999 3 89 6 62
$900,000 – $999,999 5 18 3 9
$1,000,000 – $1,499,999 25 31 32 33
$1,500,000 – $1,999,999 27 68 25 67
$2,000,000 – $2,499,999 15 140 14 150
$2,500,000 – $2,999,999 20 143 18 118
$3,000,000 – $3,999,999 9 78 12 62
$4,000,000 – $4,999,999 1 12 4 23
$5,000,000 – $9,999,999
Over $10,000,000
Total Properties 113 Avg. 79 130 Avg. 66
Lowest Price: $519,000
Median Price: $1,780,000
Highest Price: $4,000,000
Average Price: $1,948,054
Total Market Volume: $220,130,153
Lowest Price: $519,000
Median Price: $1,704,999.50
Highest Price: $4,650,000
Average Price: $1,903,738
Total Market Volume: $247,485,940
Pending Statistics
Report Run: 5/11/2015 10:36:12 AM
Property Type(s): SF
Start Date: 04/27/2015
End Date: 05/11/2015
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
$500,000 – $599,999 1 1
$600,000 – $699,999 4 3 1
$700,000 – $799,999 4 1 3
$800,000 – $899,999 4 3 1
$900,000 – $999,999 6 3 3
$1,000,000 – $1,499,999 14 8 4 2
$1,500,000 – $1,999,999 14 8 6
$2,000,000 – $2,499,999 3 3
$2,500,000 – $2,999,999 2 1 1
$3,000,000 – $3,999,999
$4,000,000 – $4,999,999
$5,000,000 – $9,999,999
Over $10,000,000
Total Properties 52 27 23 0 2
Lowest Price: $595,000 Median Price: $1,287,000
Highest Price: $2,999,999 Average Price: $1,369,605
Total Market Volume: $71,219,486

 

Total Sold Market Statistics
Report Run: 5/11/2015 10:37:09 AM
Property Type(s): SF
Status: SLD
Start Date: 04/27/2015
End Date: 05/11/2015
Towns: Newton
Price Range # of
Listings
Avg. Days
on Market
Avg. Days
to Offer
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 0
$50,000 – $99,999 0 0 0 $0 $0 0 $0 0
$100,000 – $149,999 0 0 0 $0 $0 0 $0 0
$150,000 – $199,999 0 0 0 $0 $0 0 $0 0
$200,000 – $249,999 0 0 0 $0 $0 0 $0 0
$250,000 – $299,999 0 0 0 $0 $0 0 $0 0
$300,000 – $349,999 0 0 0 $0 $0 0 $0 0
$350,000 – $399,999 0 0 0 $0 $0 0 $0 0
$400,000 – $449,999 0 0 0 $0 $0 0 $0 0
$450,000 – $499,999 0 0 0 $0 $0 0 $0 0
$500,000 – $599,999 0 0 0 $0 $0 0 $0 0
$600,000 – $699,999 2 12 5 $669,750 $612,000 110 $612,000 110
$700,000 – $799,999 2 16 3 $735,000 $724,500 101 $724,500 101
$800,000 – $899,999 0 0 0 $0 $0 0 $0 0
$900,000 – $999,999 0 0 0 $0 $0 0 $0 0
$1,000,000 – $1,499,999 5 26 6 $1,273,200 $1,227,600 105 $1,227,600 105
$1,500,000 – $1,999,999 5 128 45 $1,748,794 $1,754,600 100 $1,795,600 98
$2,000,000 – $2,499,999 3 119 79 $2,102,333 $2,198,300 96 $2,231,633 94
$2,500,000 – $2,999,999 0 0 0 $0 $0 0 $0 0
$3,000,000 – $3,999,999 0 0 0 $0 $0 0 $0 0
$4,000,000 – $4,999,999 1 24 24 $4,000,000 $4,500,000 89 $4,500,000 89
$5,000,000 – $9,999,999 0 0 0 $0 $0 0 $0 0
$10,000,000 – $99,999,999 0 0 0 $0 $0 0 $0 0
Total Properties 18 Avg. 67 Avg. 29 $1,568,137 $1,593,272 101 $1,610,217 100
Lowest Price: $662,000 Median Price: $1,509,485
Highest Price: $4,000,000 Average Price: $1,568,137
Total Market Volume: $28,226,469
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