Property

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.

copy-of-lifestyle-1-e1538500648730.jpg

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!

Home Sales Expected to Continue Increasing in 2019


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

Home Sales Expected to Continue Increasing in 2019

Freddie MacFannie Mae, and the Mortgage Bankers Association are all projecting that home sales will increase nicely in 2019. Below is a chart depicting the projections of each entity for the remainder of 2018, as well as for 2019.

Home Sales Expected to Continue Increasing in 2019 | MyKCM

As we can see, Freddie MacFannie Mae, and the Mortgage Bankers Association all believe that homes sales will increase steadily over the next year. If you are a homeowner who has considered selling your house recently, now may be the best time to put it on the market.

Use the buttons below to share with your Personalization Profile…
       
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.

Leave a Reply

Logged in as Margaret SzerlipLog out?

Comment

How to Recognize a House with Good Bones


Newton, MA.  Realtor

Please take the time to read this article that Paul Morse from Morse Construction shared with me….an excellent read!

 

How to Recognize a House with Good Bones
By Paul Morse
Owner, Morse Constructions Inc.

 
In a buyer’s market, it is particularly difficult to sell a home when its charm is disguised by outdated décor or some ill-considered updates. If you have a house that just hasn’t shown well, it may be because buyers have trouble recognizing the home’s potential. All they see is the less-than-ideal  surface without considering the strength of what lies beneath.
How can real estate agents recognize a house with “good bones” and help clients envision the possibilities of these hidden gems? When I tour properties with clients who are considering buying and remodeling a new home, we look for the following:
Quality construction – A house with good bones is well-built.  I “walk” a building looking for fundamental structural problems. How does it feel? Does it bounce or list, or does it “feel” solid? I look for cracks above doorways or in stairways.  Are things tight? When I go to the basement, I look along the bottoms of the floor joists. Do they seem to be in a flat plane or do they sag in the middle of their span? Are the joists notched into the sill or resting on their full depth? Can you see cracks between the ends and the sill or are they still tight? When looking down along the foundation wall, does it look plumb or is it listing outward? When outside the building and stepping back looking at it, do the walls have bows or are they straight? Does the house lean to one side or the other? Does the roof of the front porch sag? Are there sways to the roof or is it in one plane?
Solid infrastructure – It’s relatively simple to replace aging roofing shingles or update plumbing fixtures, but it is far more complicated if the basic infrastructure of the home is lacking. If the foundation, roof, heating, plumbing and electrical systems are in good shape, renovations become much easier.
Good floor plan – Is there good flow between frequently used rooms? Are rooms arranged logically?  Look at how traffic travels through the house as a whole. You can renovate to make particular rooms more livable, but it is far more costly and complex to make fundamental changes because the entire home’s floor plan just does not work.
If you are trying to sell a home with a floor plan that feels awkward, try to envision the space with walls moved or taken down entirely. I recently worked on a center entrance colonial in which the small dining room and kitchen made the entire first floor feel disjointed and tiny. By removing the walls between the dining room and kitchen, and the dining room and hallway, we created a sense of spaciousness without changing the footprint of the house. You may be able to get clients excited about a hard-to-sell home by helping them envision the house’s potential with a few, relatively straightforward changes.
Well-proportioned rooms – Are the home’s rooms a useful size and shape, or can they be easily changed? Many older homes have small rooms that are unsuited to modern lifestyles. It is often possible, however, to move walls and open up spaces relatively easily. Removing walls, adding a beam and creating an open a floor plan can make a separate kitchen, dining room and living room a great entertainment area or family space. On the other hand, sometimes there are fundamental problems that are not easy to correct. When I recently toured a newly renovated condo, I was surprised that I had to duck at the last step when entering the third floor master suite. The walls sloped so steeply that the “walk in closet” had almost no useable space. The room’s underlying structure was so limiting that it would have been very expensive to create space that worked well for the homeowners.
Character — Look for unique architectural details that set the home apart. Today’s homeowners are moving away from the cookie-cutter feeling of McMansions in favor of spaces that feel handcrafted and authentic. Look for special architectural touches that may currently be hidden, but could serve as a focal point with a little attention.  In one Cambridge home, we took a steep attic stairway and added a skylight and delightful handrailing to create an eye-catching, artistic feature that doubled as a  welcoming entrance to a nanny’s bedroom and owner’s office.
Natural light – A sunny, airy home feels more spacious and inviting, but don’t automatically give up on a house because it is dark. Help your client consider small changes that could bring in more light. We’ve added skylights, transom windows and even cut openings in wall and floors to help light spread throughout a home.
When our Realtor friends are having trouble selling a particular home, we suggest walking through the property without clients and studying the features and traffic flow. Analyze whether the home is a treasure with good bones that are being overlooked, or just a tough sell. If the bones are good and the price is right, a well-timed suggestion about ways to renovate the home or highlight architectural features may be just what is needed to spark renewed interest from your client.

Paul Morse is owner of Morse Constructions Inc., a Boston-area design/build firm that has been crafting distinctive home renovations and additions for more than 35 years. 617.666.4460 morseconstructions.com

5 Reasons You Should Sell Your House Today!


Great Post from KCM Crew I’d like to share….5 Reasons You Should Sell Your House TODAY!Selling your house in today’s market can be extremely difficult. It is for that reason that every seller should take advantage of each and every opportunity that appears. Each fall, such an opportunity presents itself. This fall, that opportunity may be just too good to pass up.

Below are five reasons you should consider when pricing your house to sell in the next 90 days. Meet with your real estate agent and mortgage professional today and see whether it is the right move for you and your family.

1. Entering this time of year, the buyers are more serious.

We all realize that buyers are not quick to pull the trigger on the purchase of a home today. There is no sense of urgency with the supply of eligible properties at all time highs. However, at this time of year, the ‘lookers’ are at the stores doing their holiday shopping. The home buyers left in the market are serious and are more apt to make a purchasing decision. Less showings – but to more motivated purchasers.

2. If you are moving up, you can save thousands.

The Chicago Tribune stated in an article last week that sellers who want to ‘trade up’ should act now:

It could be a bigger house, different neighborhood or a better school district, but it comes with a higher price tag. Do the math; this might be the right time.

A home that was once worth $300,000 may now be worth $240,000 in a market where prices have fallen 20 percent. Wow, you think, the seller is taking a bath. But that seller may also be a prospective buyer who wants a house that once was valued at $400,000. With an equivalent market drop and a realistic listing price, that house may now sell for $320,000. So, in effect, the person is losing $60,000 on the sale of one home but coming out ahead $20,000 on the purchase of another.

Keep in mind the spread may be even greater. There’s a smaller pool of potential buyers for more expensive homes, so sellers may be more willing to cut their price to get a deal done.

3. Interest rates just fell again – to 4.19%.

Professor Karl E. Case, the founder of the Case Shiller Pricing Index in an article in theNew York Times last month actually did the math for us:

Four years ago, the monthly payment on a $300,000 house with 20 percent down and a mortgage rate of about 6.6 percent was $1,533. Today that $300,000 house would sell for $213,000 and a 30-year fixed-rate mortgage with 20 percent down would carry a rate of about 4.2 percent and a monthly payment of $833 … housing has perhaps never been a better bargain.

4. You beat the rush of inventory that is coming next year.

Every year there is an increase of inventory which comes to market from January through April as homeowners put their houses up for sale in preparation for the spring market. As an example, here is the number of listings available for sale in each of those months in 2010.

  • January – 3,277,000
  • February – 3,531,000
  • March – 3,626,000
  • April – 4,029,000

You won’t have to worry about this increasing competition if you sell now.

5. You have less ‘discounted’ inventory with which to compete.

This year, sellers of non-distressed properties have been given an early holiday present. With banks declaring a suspension on the sale of many distressed properties (foreclosures), there has been a large supply of discounted properties removed from competition. No one knows how long this self imposed moratorium will last. However, while it does, every homeowner has a better chance of selling their property.

Bottom Line

If you are looking to sell in the near future, there may not be a more opportune time than this fall. Serious buyers, great move-up deals and less competition from foreclosures creates the perfect selling situation. Don’t miss it!

Steve Blank

Entrepreneurship and Innovation

247NewsFinance

247 News Finance

Szerlip's Real Estate Blog

Realtor: Newton, West Newton Hill, Brookline, Chestnut Hill, Weston and Wellesley, MA. Real Estate

TechCrunch

Startup and Technology News

Koke's Journal

Mobile Engineer @ Automattic, making WordPress for iOS

The Wellesley Real Estate Blog

Everything You Wanted to Know About Wellesley, Weston, Dover, Needham, Metrowest

Comments for Elements of Style Blog

Realtor: Newton, West Newton Hill, Brookline, Chestnut Hill, Weston and Wellesley, MA. Real Estate

Panning The Globe

Food Blog with great recipes from around the world

SvR Designs

Decorative painting, faux finishing and design.

MassLawBlog.Com

This site focuses on Gesmer's practice areas (IP, business litigation, Internet Law, antitrust and practice in the Massachusetts state and federal courts).

Project Instead

What's Your Instead?

Wmontero's Blog

Just another WordPress.com site

Gardeninaday's Blog

Just another WordPress.com site

newtonmassrealestate

Just another WordPress.com site

My Blog

Just another WordPress.com site

Allison Blank Real Estate

newton and brookline home and life

The Gates Report

Free advice for companies and their customer service

%d bloggers like this: