Newton

Is Newton Heading Towards A Buyer’s Market?


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

Buyer and seller sign

Is Newton Heading to A Buyer’s Market?

The real estate market in Newton is starting to feel a bit different.  New things are coming to market and homes are going under agreement but it all seems — different.’

We’ve listed 3 properties in the past month and happily had over asking offers, some substantially over asking.  4 of our buyers purchased properties this month. One purchased 100k under asking, one 6o under asking and one at asking.  All of these wold be considered hot properties and yet none had multiple offers.  I’ve decided to dig into the numbers and see what I can decipher.

This is the market as of today:

ON Market                                      Average Price                            Days on Market

130 single families                          $2,091,980                                          101

59 Condos                                           $948,146                                         64

 

UNDER AGREEMENT

61 single families                            $1,449,334                                            32

19 condos                                          $726,809                                             27

 

SOLD

38 single families                                $1,249,858                                    29

16 condos                                             $650,000                                       34

 

These numbers tell a story.  The average list price at $2,091, 980 is 40% higher than the average sold price of $1,249,858. It took an average of 29 days to sell vs. the 100 days for the current unsold inventory.  This is a supply and demand business and when new inventory outpaces under agreements a declining market is usually forecasted.  I do not expect to see a significant drop in prices but there will be pushback on price which we are already seeing.  Mortgage rates are up about a 1/2 point and another rate increase is expected before year-end. These increases affect the below 1.2 million dollar buyer the most.

My advice is to seek a Realtor who understands the market trends and acts before everyone else.  You do not want to chase the market down.

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Margaret Szerlip 617.921.6860

 

 

 

 

Newton Home Prices Have Appreciated 8.4% vs. a Gain of 6.9% Nationally.


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

Newton Home Prices Have Appreciated 8.4% in 2018.

Home Prices Have Appreciated 6.9% in 2018 | MyKCM

Between 1987 and 1999, which is often referred to as the ‘Pre-Bubble Period,’ home prices grew at an average of 3.6% according to the Home Price Expectation Survey.

Every month, the economists at CoreLogic release the results of their Home Price Insights Report, which includes the actual year-over-year change in prices across the country and their predictions for the following year.

The chart below shows the forecasted year-over-year prices for 2018 (predictions made in 2017). According to their predictions, the average appreciation over the course of 2018 should be 4.8%, which is still greater than the ‘normal’ appreciation of 3.6%.

Home Prices Have Appreciated 6.9% in 2018 | MyKCM

If we layer in the actual price appreciation that has occurred this year, we can see that over the course of 2018, home prices have appreciated by an average of 6.9% and have outpaced projections all year!

Home Prices Have Appreciated 6.9% in 2018 | MyKCM

What does this mean?

The tale of today’s real estate market is one of low inventory, high demand, and rising prices. The forces at work can be simply explained with the theory of supply and demand. That being said, if a large supply of inventory were to come to the market, prices may start to appreciate closer to the forecasted rate which would STILL be greater than the historic norm!

Bottom Line

If you are a homeowner whose house no longer meets your needs, now may be a great time to list your home and capitalize on the equity you have gained over the last year to make a significant down payment on your next home!

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).”

Home Prices: The Difference 5 Years Makes


Home Prices: The Difference 5 Years Makes

Home Prices: The Difference 5 Years Makes

The economists at CoreLogic recently released a special report entitled, Evaluating the Housing Market Since the Great Recession. The goal of the report was to look at economic recovery since the Great Recession of December 2007 through June 2009.

One of the key indicators used in the report to determine the health of the housing market was home price appreciation. CoreLogic focused on appreciation from December 2012 to December 2017 to show how prices over the last five years have fared.

Frank Nothaft, Chief Economist at CoreLogic, commented on the importance of breaking out the data by state,

“Homeowners in the United States experienced a run-up in prices from the early 2000s to 2006, and then saw the trend reverse with steady declines through 2011. After finally reaching bottom in 2011, home prices began a slow rise back to where we are now.

Greater demand and lower supply – as well as booming job markets – have given some of the hardest-hit housing markets a boost in home prices. Yet, many are still not back to pre-crash levels.”

The map below was created to show the 5-year appreciation from December 2012 – December 2017 by state.

Home Prices: The Difference 5 Years Makes | Keeping Current Matters

Nationally, the cumulative appreciation over the five-year period was 37.4%, with a high of 66% in Nevada, and a modest increase of 5% in Connecticut.

Where were prices expected to go?

Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts, and investment and market strategists and asks them to project how residential home prices will appreciate over the next five years for their Home Price Expectation Survey (HPES).

According to the December 2012 survey results, national homes prices were projected to increase cumulatively by 23.1% by December 2017. The bulls of the group predicted home prices to rise by 33.6%, while the more cautious bears predicted an appreciation of 11.2%.

Where are prices headed in the next 5 years?

Data from the most recent HPES shows that home prices are expected to increase by 18.2% over the next 5 years. The bulls of the group predict home prices to rise by 27.4%, while the more cautious bears predict an appreciation of 8.3%.

Bottom Line

Every day, thousands of homeowners regain positive equity in their homes. Some homeowners are now experiencing values even higher than before the Great Recession. If you’re wondering if you have enough equity to sell your house and move on to your dream home, contact a local real estate professional who can help!

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 Real Estate Bi-Monthly Recap


Newton Real Estate Bi-Monthly Recap

Newton, MA.  11:OOAM EST

Oh my there is no inventory and we will have the latest spring market in decades.  I have said many times that the average number of homes for sale in Newton during a “normal” market is about 200.  That gives us a 4-6 month supply.  I cannot remember the last time there were a mere 66 homes for sale across all price ranges in Newton.  There are only 11 homes for sale under 1 Million dollars!  The most inventory is in homes priced between 2 million and 2.5 million.  Let me say that if your home is listed under 1.5 million dollars for more than a week without an offer, your price is too high.  It’s not your agent’s fault or the weather; it’s the price!

15 Homes went under contract in the past 2 weeks about 25% of the market.  Interestingly, the most active segment was between 2 million and 2.5 million.  There are buyers in every price point from the most inexpensive homes (for Newton) to the most expensive.  Buyers are desperately waiting for more homes to hit the market.  If your home has not sold and you have not received any offers, you are in fact helping to sell your competition.

So repair your ice dam damage and get your home ready for a sale.  Call me at 617-921-6860 or margaretszerlip@gmail.com

 


On-Market Snapshot
Report Run: 3/9/2015 10:31:27 AM
Property Type(s): SF
Snapshot Date: 03/09/2015
Towns: Newton
 03/09/2015  3/9/2015
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 3 119 3 119
$600,000 – $699,999 2 68 2 68
$700,000 – $799,999 2 155 2 155
$800,000 – $899,999 2 99 2 99
$900,000 – $999,999 2 59 2 111
$1,000,000 – $1,499,999 11 63 11 63
$1,500,000 – $1,999,999 13 114 13 114
$2,000,000 – $2,499,999 15 162 15 162
$2,500,000 – $2,999,999 8 152 8 152
$3,000,000 – $3,999,999 7 224 7 225
$4,000,000 – $4,999,999 1 76 1 76
$5,000,000 – $9,999,999
Over $10,000,000
Total Properties 66 Avg. 130 66 Avg. 132
Lowest Price: $580,000
Median Price: $1,919,500
Highest Price: $4,300,000
Average Price: $1,988,507
Total Market Volume: $131,241,474
Lowest Price: $580,000
Median Price: $1,919,500
Highest Price: $4,300,000
Average Price: $1,988,507
Total Market Volume: $131,241,474

 

Pending Statistics
Report Run: 3/9/2015 10:56:13 AM
Property Type(s): SF
Start Date: 02/20/2015
End Date: 03/09/2015
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
$600,000 – $699,999 1 1
$700,000 – $799,999 1 1
$800,000 – $899,999
$900,000 – $999,999 1 1
$1,000,000 – $1,499,999 7 3 4
$1,500,000 – $1,999,999 2 1 1
$2,000,000 – $2,499,999 5 3 2
$2,500,000 – $2,999,999 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 18 10 8 0 0
Lowest Price: $669,000 Median Price: $1,435,000
Highest Price: $2,650,000 Average Price: $1,645,333
Total Market Volume: $29,616,000

 

Total Sold Market Statistics
Report Run: 3/9/2015 10:35:22 AM
Property Type(s): SF
Status: SLD
Start Date: 02/23/2015
End Date: 03/09/2015
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 1 8 8 $520,000 $489,000 106 $489,000 106
$600,000 – $699,999 1 4 4 $604,500 $598,000 101 $598,000 101
$700,000 – $799,999 0 0 0 $0 $0 0 $0 0
$800,000 – $899,999 3 24 17 $884,667 $866,333 102 $866,333 102
$900,000 – $999,999 0 0 0 $0 $0 0 $0 0
$1,000,000 – $1,499,999 2 11 11 $1,347,750 $1,377,000 98 $1,377,000 98
$1,500,000 – $1,999,999 3 97 75 $1,798,333 $1,865,667 96 $1,899,333 95
$2,000,000 – $2,499,999 1 45 45 $2,280,000 $2,399,000 95 $2,399,000 95
$2,500,000 – $2,999,999 1 310 310 $2,560,000 $2,995,000 85 $3,500,000 73
$3,000,000 – $3,999,999 1 100 74 $3,650,000 $3,795,000 96 $3,795,000 96
$4,000,000 – $4,999,999 0 0 0 $0 $0 0 $0 0
$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 13 Avg. 65 Avg. 57 $1,566,077 $1,632,769 98 $1,679,385 97
Lowest Price: $520,000 Median Price: $1,395,500
Highest Price: $3,650,000 Average Price: $1,566,077
Total Market Volume: $20,359,000

Real Estate 101 — Supply and Demand


 

Two Graphs that Scream – List Your Home Today!

Real Estate 101 — It’s a supply and demand business.

Two Graphs that Scream - List Your Home Today | Keeping Current Matters

We all learned in school that when selling anything, you will get the most money if the demand for that item is high and the inventory of that item is low. It is the well-known Theory of Supply & Demand. If you are thinking of selling your home, here are two graphs that strongly suggest that the time is now. Here is why…

DEMAND

According to research at the National Association of Realtors (NAR), buyer activity last month (January) was three times greater than it was last January. Purchasers who are ready, willing and able to buy are in the market at great numbers.Buyer Demand | Keeping Current Matters

SUPPLY

The most recent Existing Home Sales Report from NAR revealed that the months’ supply of housing inventory had fallen to 4.4 months which is the lowest it has been in over a year. Months Inventory of Homes for Sale | Keeping Current Matters

Bottom Line

Listing your house for sale when demand is high and supply is low will guarantee the offers made will truly reflect the true value of your property.


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