Boston

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!

Mass. single-family home sales post best July in seven years


Newton, MA.  Top Agent, newtonmasshomesforsale.com, newton, ma. realtor

Warren Group: Mass. single-family home sales post best July in seven years

By Chris Reidy, Globe Staff

July sales of single-family Massachusetts homes rose 27 percent on a year-to-year basis, the best July in seven years, the Warren Group reported Wednesday morning.

A total of 4,979 single-family homes statewide sold last month, the best July for sales volume since 2005, the firm said.

The median price of single-family homes inched up about 1 percent to $318,000 from a year ago, added the Warren Group, a Boston firm that tracks real estate activity.

July condo sales in Massachusetts were up 34 percent to 1,994 units sold, and the median condo selling price was $295,000, down 0.3 percent from July 2011, the Warren Group said.

“There are a lot of good signs pointing toward a real estate recovery,” Cory S. Hopkins, editorial director of the Warren Group, said in a statement. “But we are comparing sales to a very depressed market last summer, so it’s important to step back and realign expectations.”

The Massachusetts Association of Realtors issued a separate monthly report Wednesday morning on the Massachusetts housing market. The association uses a different method to measure local real estate activity.

The association noted that July was the 13th straight month of year-to-year increases for sales of single family homes.

“While we’ve hit a ‘baker’s dozen’ with months of sales increases now at 13, prices continue to stabilize,” association president Trisha McCarthy said in a statement. “The probability that home prices will begin a more steady increase is good if the combination of higher buyer activity and lower inventory levels continue. What is needed are more sellers at all levels to insure that price increases happen at a more reasonable pace than during the bubble years.”

Boston is 4th Worst City to Rent in the Country


Best And Worst Cities For Renters

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Worst Cities, No. 4: Boston, Mass.

Average Monthly Rent: $1,625
Change in Rent year-over-year: 3.6% increase
First Quarter Vacancy Rate: 4.6%
Mortgage Payment v. Rent Payment: $598 cheaper to rent

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