Real Estate Information

Existing-home sales rose again in December, closing out a record-breaking year in real estate amid a pandemic, a recession and historic unemployment levels.

According to the latest report from the National Association of Realtors, total existing-home sales in December rose 22.2% year over year. Looking at the entire year of 2020, sales totaled 5.64 million, up 5.6% from 2019, the highest level since before the Great Recession. 

“Home sales rose in December, and for 2020 as a whole, we saw sales perform at their highest levels since 2006, despite the pandemic,” said NAR Chief Economist Lawrence Yun in a press release. “What’s even better is that this momentum is likely to carry into the new year, with more buyers expected to enter the market.”

Although mortgage rates are projected to increase, Yun said they will continue to hover near record lows at around 3%. “Moreover, expect economic conditions to improve with additional stimulus forthcoming and vaccine distribution already underway,” he added.

Each of the four major regions of the country recorded double-digit year-over-year growth in December.

In the Northeast, existing-home sales rose 4.5% in December, a 27.4% increase from a year ago. The median price in the Northeast was $362,100, up 19% from December 2019.

Amid the demand, total housing inventory at the end of December fell 16.4% from November and 23% year over year.  Unsold inventory now sits at a 1.9-month supply, down from 2.3 months in November and 3.0-months a year ago.

“To their credit, home builders and construction companies have increased efforts to build, with housing starts hitting an annual rate of near 1.7 million in December, with more focus on single-family homes,” Yun said. “However, it will take vigorous new home construction in 2021 and in 2022 to adequately furnish the market to properly meet the demand.”

First-time buyers were responsible for 31% of sales in December, unchanged from the same time in 2019, but down from 32% in November 2020

For more information call Greater Boston Realty 617-347-5589.

 People who look at property during the holidays are serious buyers and are more ready to make a decision.

    - Serious buyers have fewer houses to choose from during the holidays, so property has less competition.

     -  Houses “show better” when decorated for the holidays with the wonderful lights and festive colors associated with the season.

     -  Buyers are more emotional during the holidays and often base their decision on the warmth and good feeling they receive when viewing your house

      - Buyers have more time to look for a house during the holidays because they have designated time off from work to purchase a home.

       For more a free consultation or more information call Greater Boston Realty

 617-347-5589

Despite continued unemployment struggles, expired CARES Act supplements, political uncertainty, and protests against racial inequality, Americans say now is a good time to buy a home.

That’s according to the latest Fannie Mae Home purchase Sentiment Index which rose 3.3 points in August to 77.5, rebounding after July’s dip.

Five of the six HPSI components increased month over month in August, as savvy consumers increasingly recognize that now is an optimal time to buy and sell a home.

“The HPSI rose modestly in August, recovering the ground it lost in July,” said Fannie Mae Senior Vice President and Chief Economist Doug Duncan in a press release. “The HPSI’s recovery was driven by near-record low mortgage rates that helped restore much of consumers’ positivity on whether it is a good time to buy a home, while also improving the good-time-to-sell sentiment.”

Some 59% of respondents said now is a good time to buy a home, up from 53% in July, and another 48% said now is a good time to sell, up from 45% in July.

The majority of potential buyers see no benefit in waiting for mortgage rates to go down further — only 17% expect that to happen, a slight increase from 16% in July.

According to the latest Mortgage Bankers Association’s Weekly Applications Survey, demand for loans to buy homes is 40% higher than it was at the same time last year.

But low interest rates aren’t the only thing driving demand.  Some 33% of respondents said they expect home prices to rise in the next year, down only slightly from 35% in July.

Surprisingly, the majority of respondents — 78% — said they were not concerned about losing their jobs in the next 12 months, compared to 77% who said they weren’t concerned a year ago.

Another 25% said their household income is significantly higher than it was 12 months ago, down slightly from 31% who reported higher incomes in August 2019.

However, it’s undeniable that the pandemic has had an impact on sentiment. In August 2019, the Home Purchase Sentiment Index was at a whopping 93.8, more than 16 points higher than it is today.

Source: Boston Agent Magazine, Kerrie Kennedy
 

1. Toss the Trash We often become “clutter blind” to things that collect in our homes. If you have mail waiting to be sorted, handled, and discarded, magazines and newspapers you intended to read (but probably won’t), and things that need to be recycled, donated, or thrown away, do that now. Go through every room in your house with a garbage bag and a donation bag. (Be sure to shred any sensitive documents so this information doesn’t fall into the wrong hands!)

 2. Pare Down Furniture If you have rooms overstuffed with furniture, they’ll appear too small and unwelcoming to potential buyers. Eliminate all unessential furniture and any upholstered items that are threadbare or excessively worn. It’s better to have less and use your best pieces to stage your home.

3. Depersonalize Your home probably contains your favorite collections, cherished photographs, children’s artwork, postcards, and memorabilia. These items should be placed in specially marked boxes and tucked away for your move or to give to family members. This will help potential buyers imagine how the home will look with their items.

4. Clear the Surfaces Look at every flat surface in your home. Things tend to collect on countertops, tables, and shelves, making a home look crowded and giving buyers the impression there’s no room for their life to unfold in this space. If a surface has more than a single decorative item (or a related grouping of three things), it’s too “busy” to be inviting to a potential buyer.

5. Unstuff the Closets Before listing your home, every closet should appear spacious and airy. Crowded closets look too small to use. In bedrooms, remove everything except for the in-season clothes you often wear and enjoy most. Everything else should be packed up or donated. Linen closets should be organized with a maximum of two fresh changes of sheets and pillowcases for each bed. Keep only your nicest towels and washcloths. Retire the ratty ones to the rag box. The hall closet should hold jackets and coats for the current season and have enough room to accept visitors’ coats.

For more a free consultation or more information call:  Greater Boston Realty 617-469-4040

Here are several reasons why choosing to sell your home now may be a better decision than waiting until the spring:

Less Competition

One way that you can tell the spring real estate market has arrived is by driving down a street in your local community. In all likelihood there will be For Sale signs up all over the neighborhood! One great reason to sell your home now and not wait until the spring market is there is sure to be less competition.  The fewer number of comparable homes for sale, the greater the probability that a buyer will look at your home.

Simply put, it’s the supply and demand theory. If there are less homes for sale, there are less homes that a potential buyer can choose from, therefore increasing the demand for your home. Not only will less competition increase the probability for showings, but it will also increase the probability that an offer will be received and you will get the maximum amount of money for your home.

Serious Buyers Are Out There

Homes are sold and bought 365 days a year, period!  Many homeowners believe that buyers aren't out there during the fall and winter months. This simply is not the case. Serious buyers are always out there!  Some buyers may stop their home search because it is the fall or winter, but serious buyers will continue to look at homes, no matter what time of year it is.

The fall and winter months are also a great time for a potential buyer to see what a specific neighborhood is like.  Do your neighbors have pumpkins on their front step?  Are there lots of Trick-or-Treaters wandering the neighborhood on Halloween?  Do any of your neighbors have any light displays for the holidays?  There are buyers out there who will look at these types of things when determining whether your home is in the right neighborhood for them or not.

The Best Agents Are Always Up To The Challenge 

Any real estate agent who tells you that the fall or winter months are a bad time to sell is not someone you want selling your home! A great real estate agent will know how to adapt to the current season and market their listings to reflect that.  A great real estate agent can make suggestions and give some of their tips on how to sell a home during the fall or winter seasons. If a real estate agent doesn't have any suggestions on making your home more desirable for the current season, you should be concerned about the creativity they are going to use when marketing your home.

Staging For The Holiday Season

Many sellers believe staging a home is the main reason a home sells.  While staging certainly helps sell homes, some buyers have a difficult time envisioning themselves in a home no matter what you do. However, there are some buyers who can easily be "sold" on a home because it is staged.  Simple “seasonal” staging such as adjusting the color of the decor or having an aroma in the air that is relative to the time of year can go a long way with some potential buyers and possibly be the difference between a home selling or not.

Quicker Transactions

Right now, there are fewer real estate transactions than there will be in the spring.  The fewer number of transactions means the mortgage lenders have less loans to process, attorneys have less closings to do, and home inspectors have fewer inspections to do.  All of these factors should lead to a quicker transaction and closing for all the parties involved.  One of the most frustrating things for a seller to deal with while selling their home is not getting answers in a reasonable amount of time. A quicker transaction is going to be less stress for you.

By considering all of the reasons above, you will be able to determine whether now is a good time to sell or if you should wait until the spring.

For more information or a free consultation call Alisa Coyle at Greater Boston Realty 617-347-5589.

Thinking about remodeling your bathroom? Before you start the often-pricey process, consider these tips to help avoid flushing hard-earned cash down the drain.

Plan ahead. While hiring an architect or designer may seem like a costly move, having an expert help with remodel plans may be for the best. Working with a professional will help ensure that your budget and design are sensible, along with constructing a realistic timeline for the project.

Don’t mess with pipes. You may be tempted to move sinks and toilets around, but that can be extremely expensive. Consider using existing plumbing fixtures to help rein in spending, as new pipelines can cost up to $5,000 each.

Try open shelving.  Bathrooms have some of the smallest square footage of any room in your home. To open the room up, add open shelving units instead of installing expensive cabinets.

Salvage away. A great way to save money is to use salvaged materials or furniture to upgrade your bathroom. Check out flea markets, garage sales, antique stores, resellers and auctions to get great deals on older, unused items. A salvaged piece of furniture makes a great focal point for your bathroom without breaking the bank.

Investing in real estate can be fruitful. Now, after years in the workforce, more millennials are taking the leap. Many are first-time investors who need helpful tips about how to get started in the real estate game.

 1. Improve your credit. Investors need a good credit score to get certain loans—especially first-time investors. Money lenders comb through your finances to ensure you’re a good risk, so pay off previous loans to bump up your score.

2. Build your savings. Having a stable savings stream puts you in good standing with lenders. Save a percentage of your paychecks to store funds for your first purchase and create a smart and consistent plan to pay off your high interest debts first.

3. Study up. Research can help you build a strong portfolio and learn about the industry. Calculate how much you can spend and how long it takes to renovate and sell homes in your price range. Use comparisons for similar real estate in the area to save time, money and stress. 4. Use your brain. Emotion can get in the way of real estate investment. What may seem too good to be true often is. Consult an inspector prior to making a purchase. And learn from any failures to become a stronger, smarter investor.

When searching for the next house to call home, there's a lot to consider. Opening your home search to older constructions can increase your options, however older homes may be harboring issues beneath the surface. Here are some things to consider (and have inspected) when purchasing an older home. 

Foundation and Structural Issues: Due to their age, older homes should be inspected thoroughly for foundation and structural damage. Cracks or unevenness in the foundation can lead to moisture damage, dry rot, corrosion, and shifting of the house. According to Safewise, "Foundation repairs can escalate to over $10,000, depending on the extent of the structural issues - and homeowners insurance won't cover these costs." If you suspect structural damage, be sure to have the building inspected by a licensed structural engineer. 

Electrical and Plumbing Issues:  Many older homes have their original plumbing and wiring, as updating these systems can be costly. Keeping the original knob-and-tube wiring or the original cast-iron pipes, however, can be a serious safety hazard. Old electrical systems can cause a fire, and old pipes can cause leaks or weak water pressure. 

Hazardous Materials: The older a home is, the more likely it is to contain hazardous materials, such as asbestos and lead. Lead is commonly found in paint applied before 1978 and in plumbing installed before 1985. Asbestos can be found in gas fireplaces, roofing, and insulation that was installed before 1980. 

Outdated Heating and Cooling Systems:  Older homes were likely designed for oil, coal or wood heating systems and later retrofitted with newer HVAC systems, so it's important to understand when and how these upgrades were made. Even a more up-to-date heating system can be inefficient and unsafe if it hasn't been maintained properly. 

Houses with cooling systems are likely to be a bit newer, but outdated cooling systems are known to have their own issues.  Common problems with older AC units include improperly working fans, reduced efficiency, refrigerant leaks, and electrical problems. 

Termites and Bugs:  Depending on where the home is located, termites and other bugs could be a major issue. The National Pest management association claims that termites alone cause around $5 billion in property damage yearly. The older the home, the longer it has been exposed to the chance of infestations.

When you’re looking to purchase a home, you know that you need to get your financial affairs in order so that you can get approved for a mortgage. One of the things that you will need to do to get your dream home is to make sure that your credit score is as high as possible. There are several ways to do this – which methods you use will depend on how much time you have before you want to purchase your home.

For those of you that are just in the starting stages of buying a home, raise your credit score by using a third or less of your available credit. In addition, ensure that you are paying your bills on time to eliminate negative marks for late payments. Hold off on opening new credit accounts or making large purchases until after your purchase is complete.

If you’re further along in the process, there is one more thing that you can do that might raise your score. Check your current credit scores and check for errors. Credit bureaus aren’t perfect, and you may be able to find and clear up a mistake. This could raise your credit score a few points, if any faults exist.

If you want more information about the mortgage process, call the Greater Boston Realty office and ask to be referred to a mortgage professional. We have many contacts in the West Roxbury, Roslindale, and Jamaica Plain areas that will be able to help you on your journey.  And, of course, when you’re ready to look for your next home, we’ll be here for you!

1. You won't be the only listing for long
The top reason sellers have been in the catbird seat for the past several years? Inventory. There simply weren't enough homes on the market to keep up with buyer demand. And when a "For Sale" sign did go up, you can bet a bidding war would soon follow.   "You might have been the only listing in your neighborhood, and you could put your home up at a certain list price and you would likely see multiple offers at or above that list price," Hale explains. That tide is turning this year, Hale says. That's because the number of homes for sale is finally increasing, albeit slowly. For now, buyers still outnumber inventory. But if you're thinking about selling and don't want to compete with your neighbors, it'll pay off (literally) to list earlier rather than later. (This is particularly true in pricier markets, where inventory is increasing at a faster rate than more affordable areas.)   "It's going to depend on what neighborhood you're in, but we expect it to be more common this year that you won't be the only listing," Hale says.

2. You still stand to make a 'handsome profit'
Home prices have been on a meteoric rise for the past seven years. In January 2012, the U.S. median home price was $154,700. Today, that figure has nearly doubled—to $289,300—and sellers have rejoiced.   Now comes a twist: 15% of all home listings saw price cuts in January, according to realtor.com data.   That might sound like bad news if you're thinking of selling. But hear us out: Those moderating prices, combined with today's mortgage rates (more on that below), mean increased buyer demand for your house.   Plus, it's not that home prices aren't still increasing—they're just not increasing at the frenzied pace of previous years, which often featured multiple offers at or above asking price, Hale says. So even though you might have some more competition as a seller, things are still looking pretty sweet for you when it comes to cold, hard cash.   "Even if you don't get an offer above your asking price, you're probably still going to come away with a handsome profit from being a seller in 2019," Hale says. But again, it'll pay to put your home on the market as soon as you can—before conditions change.  "Sellers who list their homes earlier in the year tend to get a higher sales price, often above list, and shorter days on market," says Ali Wolf, director of economic research at Meyers Research.

3. Mortgage rates are at a new low
Something strange has been happening over the past few months. Experts predicted mortgage rates would rise—and at the end of 2018, they were indeed ticking upward as expected.  But since the start of the year, rates on a 30-year fixed mortgage (the most popular home loan) have been falling, sliding last week to a new 12-month low of 4.37%.   And of course, those historically low mortgage rates mean you could have more buyers knocking on your door.  Plus, this temporary dip in rates creates an opportunity for trade-up buyers as well. After all, if you're selling your home, there's a good chance you'll need to buy another one.   Bottom line: Now's the time to hustle and get both transactions done.   "Sellers need to take advantage of low rates as much as buyers do," Wolf says. "Sellers don’t want to get stuck in their homes when rates go up and the math no longer makes sense to move." 

4. Millennials are flooding the market
Historically speaking, people tend to buy their first home around age 30. And guess what? We've got a whole bunch of people turning 30 in the next two years—nearly 5 million, in fact, according to realtor.com data. So you can count on those millennials to be a driving force in the housing market.  "Millennials want to own a home as much as prior generations," Wolf says. "We saw millennial shoppers scooping up homes in 2018—and 2019 will be no different."  What's more, Hale adds, is that you won't just be seeing demand from first-time buyers. Older millennials in their middle to late 30s have already owned a home for a few years, and could be looking at now as a prime time to trade up. "From a seller’s perspective, you’re going to have possibly more interested buyers," Hale says. "So that’s motivation to put your house on the market."

Source: Realtor.com