With the snow piled waist high, ice dams dripping through many homes across town, no wonder the sales volume is down in Newton, MA this February. Still estimated median value and list prices are up considerably. In this report we see 14 new listings, 9 price changes, 20 pending, 4 expireds, and 20 recently sold. Despite the winter blues, people are still moving! Just wait until the spring market! Things should be hopping!
The headline from the Washington Post reads: More home buyers are bringing all-cash offers to the table While home prices continue to rise in the Greater Boston Area, buyers are competing for houses resulting in bidding wars. When these houses close, they become the new comps which further contributes to pushing market value up. For example, Newton single family home price increased over last year. In addition, see the table below for a market snapshot of 10 Boston Area neighborhoods — prices are constantly higher while days on market have almost consistently decreased. If you would like to see more detailed data, please download the July MarketReport. Yes, this is a Sellers’ Market! But before sellers put their homes on the market, they usually want a pretty good idea of where their next home will be. Since the baby boomers are make up a huge percentage of our population (not to mention that I am in that age group), the question rings, “Where will the boomers move to, if at all?”
“National Association of Realtors® reports market share of all-cash purchases have risen and currently make up 33 percent of the market…Economists point out many reasons for this popular trend. One is restrictive lending standards have caused many buyers, especially wealthy ones, to forgo a loan. Another is the aging baby boom generation, many of whom are trading down and paying for their purchase with cash accumulated from decades of equity.” ~Excerpted from Realtor.org.
If in fact the baby boomer generation buyers are benefitting from equity earned, where are they going? If they are high-end sellers, they may be able to afford that fabulous row house in the city? Others may choose to sit tight or relocate to a state where housing values are more conservative. Where are they going?
Where is the data on where baby boomers are buying? An even bigger question for those that are hanging tight is where will boomers live in their next stage of life? I’m just asking?
Real Estate Market Indicators Show Spring is Blooming!
From my perspective, as an active real estate agent, the spring market is blooming. Out in the field, things are moving fast. Well priced properties sell within days with multiple offers. Still there continue to be overpriced properties that linger for weeks, months, and more. With all the market indicators that we use to monitor the local market, the news is positive.
In order to illustrate the overall market activity, I pulled summary data for single family and condominium sold for the past two years for 10 locations in the Greater Boston Area. The chart compares a snapshot of the period April 1, 2012 to April 1, 2013 (LAST YEAR) to the same period April 1, 2013 to April 1, 2014 (THIS YEAR). The values used for the chart are the percentage of list price to sale price. The data is compelling. In every location, all list to sale price ratios have increased.
The best way I can help sellers and buyers to make confident real estate decisions is to provide useful data relevant to their specific location and property type. Every analysis I do begins with a look at the city or town’s local market data. If you would like the detail report for this data, email me at Janet@JanetPorcaro.net.
The housing market is recovering and people are getting more positive again. What really slowed the recovery was the backlog of home owners in distress, owing more on their home that the market value. Experts agree we are nearing the end of that cycle. Here’s a quote from Celia Chen, the Senior Director at Moody’s Analytics:
“The forces pulling the homeownership rate lower are past their apex. House prices are rising, but remain affordable at 21% below peak even as rents rise. Some who lost homes early in a crisis can now qualify again for mortgage loans.” She’s talking about those boomerang buyers. “As housing recovers and consumers again see prices rising steadily, perceptions will swing back to favor homeownership.”
Even the boomerang buyers, those who went through with the worst of it, had to sell their house either as a shortsale or as a foreclosure; they’re back in the market now in droves. And there was just a recent update by HUD showing that people who lost their home through a foreclosure,short sale, and bankruptcy may be eligible to finance their home again in as little as 12 months, not that two years or three years they’ve talked about in the past. This is a reduction from the previously required minimum of 36 months from the date of the most recent event. Released August 15th, just a few weeks ago, HUD provided guidelines under the back?to?work extenuating circumstances,meant to ease the path for homeownership for many.
So what is taking place right now? Those people who lost the house to short sale, foreclosure, or bankruptcy, many of them, based on some criteria, will be able to buy a house again within 12 months of that event, cutting back that ? in some cases three years, and in some cases they could squeeze in a little over two years ? cutting that back to 12 months. And the resource section of KCM will actually give you the URLs so that you can get more information on this if you’re working with those boomerang buyers, and they are getting to be a bigger and bigger part of the market. But even that group,the group that went through the worst of the housing crisis, is back looking to buy homes.
Newton/Brookline Summer Real Estate Market is Sizzling!
Summer real estate market in Newton Brookline is sizzling!
Usually, in the spring, prices are up by about 10%. The spring market is the height of the market. As summer arrives and weather heats up, vacations begin, and the real estate market quiets down with a drop in number of units sold and average sales price. But not so far this summer!
This year all bets are off.
The frantic activity of the early spring has followed with a rigorous summer market. Curious about the number? Look at data comparing June-July sales for Newton and Brookline.
Numbers don’t lie!
The days on market have dropped by nearly 50%.
List price to sale price averages OVER ASKING.
What will happen this fall? Stay tuned for more!
Newton Brookline Real Estate Market
Data compiled from MLS Property Information Network MLSPin.