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.
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%.
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!
Newton,MA. Realtors, Sotheby’s, Compass, Top Agents in Newton
As more and more baby boomers enter retirement age, the question of whether or not to sell their homes and move will become a hot topic. In today’s housing market climate, with low available inventory in the starter and trade-up home categories, it makes sense to evaluate your home’s ability to adapt to your needs in retirement.
According to the National Association of Exclusive Buyers Agents(NAEBA), there are 7 factors that you should consider when choosing your retirement home.1
“It may be easy enough to afford your home today but think long-term about your monthly costs. Account for property taxes, insurance, HOA fees, utilities – all the things that will be due whether or not you have a mortgage on the property.”
Would moving to a complex with homeowner association (HOA) fees actually be cheaper than having to hire all the contractors you would need to maintain your home, lawn, etc.? Would your taxes go down significantly if you relocated? What is your monthly income going to be like in retirement?
“If you have equity in your current home, you may be able to apply it to the purchase of your next home. Maintaining a healthy amount of home equity gives you a source of emergency funds to tap, via a home equity loan or reverse mortgage.”
The equity you have in your current home may be enough to purchase your retirement home with little to no mortgage. Homeowners in the US gained an average of over $16,300 in equity last year.
“As we age, our tolerance for cleaning gutters, raking leaves and shoveling snow can go right out the window. A condominium with low-maintenance needs can be a literal lifesaver, if your health or physical abilities decline.”
As we mentioned earlier, would a condo with an HOA fee be worth the added peace of mind in knowing that you do not have to do the maintenance work yourself?
“Elderly homeowners can be targets for scams or break-ins. Living in a home with security features, such as a manned gate house, resident-only access and a security system can bring peace of mind.”
As scary as that thought may be, any additional security and an extra set of eyes looking out for you always adds to peace of mind.
“Renting won’t do if the dog can’t come too! The companionship of pets can provide emotional and physical benefits.”
Evaluate all of your options when it comes to bringing your ‘furever’ friend with you to a new home. Will there be necessary additional deposits if you are renting or moving in to a condo? Is the backyard fenced in? How far are you from your favorite veterinarian?
“No one wants to picture themselves in a wheelchair or a walker, but the home layout must be able to accommodate limited mobility.”
Sixty is the new 40, right? People are living longer and are more active in retirement, but that doesn’t mean that down the road you won’t need your home to be more accessible. Having to install handrails and make sure that your hallways and doorways are wide enough may be a good reason to look for a home that was built to accommodate these needs.
“Is the new home close to the golf course, or to shopping and dining? Do you have amenities within easy walking distance? This can add to home value!”
How close are you to your children and grandchildren? Would relocating to a new area make visits with family easier or more frequent? Beyond being close to your favorite stores and restaurants, there are a lot of factors to consider.
When it comes to your forever home, evaluating your current house for its ability to adapt with you as you age can be the first step to guaranteeing your comfort in retirement. If after considering all these factors you find yourself curious about your options, let’s get together to evaluate your ability to sell your house in today’s market and get you into your dream retirement home!
Newton, MA. December 24, 2014
Best Wishes for a very Merry Christmas. May your presence mean more than your presents in you loved one’s lives.
Boston Business Journal shared by Margaret Szerlip November 19, 2014 Newton, MA.
Some established players are teaming up to redevelop site of the former Circle Cinema at the corner of Beacon Street and Chestnut Hill Avenue in Boston.
Boston Development Group and National Development said in a news release that they’re forming a joint venture to do the work and that Charles River Realty Investors will provide the capital.
Ted Tye, managing partner of National Development, said in a prepared statement: “We are pleased to help bring development of this landmark site to fruition. There has been a great deal of effort put forth to date from the City of Boston, Town of Brookline, and the local community. Our combined team will work to move the project forward, with an anticipated mid-2015 construction start.”
BDG’s project manager on the job is John Meunier.
According to this week’s prepared statement, the project will be “similar” to a previously proposed 162-guest-room, 92-residential unit project. There also is likely be retail fronting to Chestnut Hill Avenue.
Despite proximity to Boston College, or perhaps because of it, the residential units will be off-limits to younger renters. The developers said in their news release that the project will be age-restricted “in part to address neighborhood comments.”
“We see a huge need for urban residential alternatives for active senior adults,” Tye said.
The architect for the project, according to the news release, will be Elkus Manfredi Architects. Stantec is set to do civil engineering. Cranshaw Construction of Newton is involved in early work.
Bi-Monthly Newton, MA. Real Estate Recap Newton, MA. Top Brokers, Sotheby’s Newton, MA.
Posted October 24, 2014 by Margaret Szerlip Newton, MA.
The fall market is very busy here in Newton — the reason I have not been posting as often as I’d like. Current inventory is still below normal. We have a total of 167 properties for sale vs. 175 3 weeks ago and down from a “normal” 200 homes. 83 homes have gone under contract or have accepted offers in the last 3 weeks! The hottest segment of the market is homes priced between 1 million to 1.5 million with 17 homes in contract. 9 homes priced over 2 million have also gone under contract in the same time period. That is very welcome news that the high-end of the market is starting to heat up. 26 homes have closed, again the 1 million to 1.5 million had the highest number of homes close at 9.
Remember the spring market in Newton starts the end of January early February here in Newton. So if you’re considering a sale call me for an analysis sooner than later.
|Report Run: 10/24/2014 11:41:22 AM
Property Type(s): SF
Snapshot Date: 10/24/2014
|Report Run: 10/24/2014 11:39:03 AM
Property Type(s): SF
Start Date: 10/06/2014
End Date: 10/24/2014
|Total Sold Market Statistics|
|Report Run: 10/24/2014 11:42:37 AM
Property Type(s): SF
Start Date: 10/06/2014
End Date: 10/24/2014
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.
Newton,. MA. Top Realtors, Sotheby’s Newton, MA.
We are lucky here in Boston
Newton, MA. real estate, Newton, MA. Top Brokers
|Selling Your House? 5 Reasons to Do It Now!
Posted: 21 Jul 2014 04:00 AM PDT
Many sellers are still hesitant about putting their house up for sale. Where are prices headed? Where are interest rates headed? Can buyers qualify for a mortgage? These are all valid questions. However, there are several reasons to sell your home sooner rather than later. Here are five of those reasons.
1. Demand is Strong
There is currently a pent-up demand of purchasers as many home buyers pushed off their search this past winter & early spring because of extreme weather. According to the National Association of Realtors (NAR), the number of buyers in the market, which fell off dramatically in December, January and February, has begun to increase again over the last few months. These buyers are ready, willing and able to buy…and are in the market right now!
2. There Is Less Competition Now
Housing supply is still under the historical number of 6 months’ supply. This means that, in many markets, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.
There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as prices increased over the last eighteen months. Many of these homes will be coming to the market in the near future. Also, new construction of single-family homes is again beginning to increase. A recent study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).
The choices buyers have will continue to increase over the next few months. Don’t wait until all this other inventory of homes comes to market before you sell.
3. The Process Will Be Quicker
One of the biggest challenges of the 2014 housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. As the market heats up, banks will be inundated with loan inquiries causing closing timelines to lengthen. Selling now will make the process quicker and simpler.
4. There Will Never Be a Better Time to Move-Up
If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 19% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate in the low 4’s right now. Rates are projected to be over 5% by the end of next year.
5. It’s Time to Move On with Your Life
Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?
Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market and pricing it so it sells. Perhaps, the time has come for you and your family to move on and start living the life you desire.
That is what is truly important.
Earning the Trust of Seniors in Real Estate Transactions Newton, MA. Real Estate Sotheby’s Realty Newton, MA.
Last year my 87-year-old mother-in-law decided it was time to go to an Independent Living Community. She had a few falls, which resulted in a broken hip from one fall and broken ribs from another. We tried to convince her that living alone was no longer a viable option but she would have none of it. One day I said to her wouldn’t you rather go on your own terms, pick the place you are going to live instead of us deciding? A few weeks later she decided to take the plunge, but bear in mind this conversation had been ongoing for well over a year. My husband and I went down to NJ and visited a few places that she knew about. It’s amazing how you know as soon as you walk in the door! It also didn’t hurt that her 91-year-old “friend” lived in this complex.
We met with management and we were shown a few apartments. She already knew which building she wanted to live in and why so that was a huge help. After the viewings as they were called, (seemed like a term for a wake to me) we were led back to an office. I want to caution you here – make sure you or your parents understand that this is a hard sell! My mother–in– law is no slouch but wow, she was flustered. This is a buy in option Independent Living so the dollars we are talking is not chump change. My mother-in-law wanted a specific apartment we saw and she was pressured into making a decision right there to secure her apartment. We told mom that we would go to lunch and talk it over and come back in 2 hours. Since they had no viewing appointments scheduled we thought it was unlikely that ‘her” apartment would be gone.
Mom took the apartment, has moved in, and loves it! She says she was sorry she hadn’t done it sooner. She also says she never could have made the move without us. Mom is fortunate that she could buy her new place without having to sell her current condo. Since I have lived in Boston for 20 years I didn’t know a Realtor in Morristown, NJ but the Independent Living Community recommended a Broker for mom. The Realtor showed up at the appointed time, took as mom said, the nickel tour, and immediately whipped out her measuring laser! As she was relaying this story to me, I was dumbfounded! Mom said she was very efficient! She brought her into the kitchen and handed her a contract to sign before she even did an analysis. She told her that they would fill the price in later. I was so relieved she didn’t sign! When I asked her if she liked the broker she kept saying that she was very efficient and seemed capable. I pressed further do you trust the broker? The truth was she didn’t, she said there was something pushy about her as if she just assumed she would be selling the condo. I told her to sleep on it but that she should interview other brokers. I made a call to the manager of an office in Morristown, told him where Mom lived and her personality. He immediately mentioned a Broker: Maggie Sellers.
Maggie went over to meet with mom and they hit it off beautifully. Maggie understood mom’s needs and most importantly knew the neighborhood, the complex and the town. Maggie had the analysis in 36 hours, she went over and sat with mom to make sure she understood the comps and how she came up with the price. It was now 5 days since pushy broker came and mom still didn’t have the analysis. Mom called pushy and was told she was a busy broker and highly respected by the Independent Living Community and she should be assured that she would get to her, her house would be sold and she should relax! What? After 10 days pushy dropped the analysis in the mailbox! It was considerably higher than Maggie’s analysis. I had Maggie and pushy e-mail me their comps and tried to figure out the discrepancy. I have not lived in NJ for 20 years and I never lived in Morristown but it took me two minutes to figure out the problem. Pushy used comps that weren’t comps for mom’s unit. She used new construction and single-family homes along with similar condos There had been enough sales in Mom’s complex in the past 6 months and there were two units currently listed. Pushy did not understand the market or didn’t think she needed to. After all she is the recommended broker for the Independent Living community for sellers in the greater Morristown area of which she gives 25% of her commission back to the IL Community not to the seller!
The point is mom felt an immediate connection with Maggie. Maggie asked mom if she could involve me in the process. Maggie had worked with seniors and had an elderly mother of her own. Maggie cared about her; Maggie had a list of people who bought items that the children didn’t want. (My basement is loaded with china and silver that she hopes her grandchildren will want.) Maggie recommended movers, and when an unknown problem was revealed at the inspection, she had trusted people to remedy the problem.
I asked Mom what she liked about Maggie and she was very clear. While she felt the other agent was competent and successful, she didn’t necessarily think that they were a good fit. She said she probably would have hired her if I had not gotten involved because she did not know any better. She had a list of what she liked about Maggie.
- Asked Me what I wanted
- She was prepared and did what she said she would do
- Treated me like an adult who was still capable of making decisions
- She wanted to introduce herself to my kids
- Let me make the final decision
- Had a list of companies to help facilitate the move and she had already vetted them
- Thoroughly explained the process without rushing me to sign paperwork
- I LIKED HER
As a Realtor serving seniors, it is important that I understand that what makes a great partnership is in the eyes of our clients. If you are not comfortable, there are many agents out there who will make you comfortable.