Real Estate Information Archive

The median price for Massachusetts single-family homes sold in January rose 9.6 percent to $285,000 from $260,000 in January 2009, the second consecutive month that median prices for single-family homes increased by about 10 percent on a year-to-year comparison basis, the Warren Group, a Boston firm that tracks the local housing market and publishes Banker & Tradesman reported today.

On a volume basis, the number of Massachusetts single-family homes rose 11.8 percent to 2,153 from 1,926 in January 2009; that was the fourth consecutive month of double-digit percentage increases, said the Warren Group.

Despite these positive statistics, there are concerns.  Most Realtors will tell you that recent buyer activity has been energized by the first time homebuyer tax credit and historically low mortgage rates.  As lenders begin to rumor that mortgage rates are expected to rise this week and stay elevated coupled with the tax credit expiring at the end of April, the fear is that the buying activity may drop off.  Homeowners have to some degree held back from putting their homes on the market due to beliefs that they will garner more money in the future.  This notion may be true in 5-10 years but no data suggests that prices will rise substantially in the immediate future.

Massachusetts Association of Realtors president Kevin Sears explains it this way.  "To get back to a more normal market we still need to see more homes for sale than we currently have. If not, prices will continue to go up to the point where it will impact sales and drive the market back down."

If you are thinking of selling and want to know what your home is worth, give me a call.  I will provide you a market analysis report that gives you a likely selling price based on comparable sales data.

Since the topic of conversation with Franklin, MA and Boston area agents has recently centered on the lack of available housing inventory for prospective buyers, I decided to take an informal survey of the situation.

I individually asked ten Franklin Realtors how many buyers they had who would likely purchase a home priced between $250,000 and $450,000 on or before April 30^th, 2010.  I chose April 30^th since move-up or first time buyers looking to take advantage of the homebuyer tax credit must have a signed contract on a home by this date.  The agents did not know any explanation other than I was gathering information for a future blog post.  The data I collected cannot be viewed as statistically significant but rather just a small snapshot of the current Franklin, MA market conditions.

The respondents indicated the following:

• Six agents expect five buyers will buy
• One agent expects three buyers
• One agent expects eight buyers
• Two agents expects four buyers

This was very interesting to consider that potentially a total of 20 buyers –connected to ten different Realtors-- are expected to purchase a home during the next three months.  The harsh reality is that currently there are only 57 homes for sale in the entire town in every price range.  This group was only a fraction of the buyer agents who will likely have prospective buyers for Franklin homes over the next three months.  Most every full-time agent has distinct memories of the endless bidding wars during 2009 in which some buyers were not able to find a home as they attempted to meet the (then) November 30^th, 2009 deadline.

Buyers need homes to purchase now.   Sellers, despite it still being a buyer’s market, can rest assured that the low inventory of homes means a likely higher selling price for their home.  The time it takes to sell a home may also be reduced as buyers feel the pressure to find the best home as soon as they can. Homes do need to properly appraise with the bank agreeing with the selling price but valuations may begin to rise.

It really is a good time to sell or buy a home! 

Please give me a call or email if you need more data or have questions about this information…

So your home never did sell after many months or maybe a year or more of keeping it neat and ready for prospective buyers.  It is easy to blame the economy and the down real estate market but the truth is that all homes will sell for the right price.  Proper pricing makes up the majority of reasons that homes do not sell, followed by incorrect marketing.  It is critical that sellers price correctly from the start especially in a downward trending market.  The price should take into account the likely depreciation over the next 30-60 days. 

A good Realtor explains this to homeowners and does not accept listings that are over-priced for the comparable market data.  It will not benefit anyone to list a home whose price is not supported by recent data and only leads to a seller's inconvenience, wasted time and money as well as frustration.

If you are still thinking of selling, please give a call or email and I would be happy to provide an accurate analysis of your proper pricing and outline my comprehensive marketing plan for sure results.

Jerry Howard, president and chief executive officer for the National Association of Home Builders, just released his views on the current state of the economy and interestiingly it echoes much of what the Franklin, Massachusetts area Realtors have found.  (Howard has spent 25 years in the housing industry as lobbyist, real estate lawyer and tax counsel.)

Howard believes that first-time homebuyers show that housing is worth pursuing and that the tax credit plan so far can be viewed as a successful experiment that the government should seriously consider extending into 2010.  In the metrowest of Boston area, this has been one of the busiest summers any local Realtor can recall as first time buyers have flocked to find their perfect starter home.  The promise of tax credit money seems to have been the impetus for this flurry of activity during an otherwise quiet time of the year. 

Howard states this historically this is one of the best times to buy a home but qualifies it this way: "a prospective home buyer who is currently employed and your own financial conditions are stable, this is the best possible time to buy. Inventories are at a point where you'll be in a better position to negotiate with the seller. Sellers are in a position where they really want to unload their inventory, and interest rates are still at almost record lows. So if you're in a position, personally, to buy and of the mind-set to buy, this is absolutely the time."

If you need help as you are getting ready to buy a home, give me a call or email me with your questions at 508-369-5131 or franklinmahomes@comcast.net.

A review of the latest data shows that the Franklin, Massachusetts real estate market is holding its own and actually fared quite well this summer so far.  The data from May 2009 until the present shows the following:

• there are 124 single family homes for sale total
• prices have changed by 5% from initial asking price
• 36 homes are pending, waiting to close
• the average list price is $459,057 with an origiinal price of $470,781
• the average sale price is $445,147
• 102 days is the average days on market until closing

If you have questions about your home, the buying or selling process or this data, please feel free to call or email me at 508-369-5131 or franklinmahomes@comcast.net.

Lately I have been a buyer's agent for a number of buyers and what I have found is that contrary to some reports real estate is extremely hot in the under $350,000 range.  My frame of reference most recently is the metrowest of Boston area towns, especially Franklin, Wrentham, Plainville, North Attleboro, and Mansfield.  Every listing is getting MANY showings on a daily basis and multiple offers usually within the first week. 

Some agents advise their sellers that gathering all offers for one week then discussing them at the end of the week is a strategy to obtain as many offers as possible.  This can be helpful as long as some buyers don't get anxious thinking that they will have to overbid by a large amount.  Overbidding is not necessarily acceptable now either since the house must appraise by the bank and too high a selling price could be rejected by the bank.

It is very interesting to see this urgent buying scenario where 6 months ago this was not the case.  Maybe the homebuyer tax credit money is prompting buyers to buy now to claim their possible $8000 refund?

Please call or email me if you have questions about the buying process at 508-369-5131 or franklinmahomes@comcast.net.

The general public seems to be hearing that the real estate market may be improving but the average consumer does not experience what REALTORS like myself see every day.  Not only is the market improving, in some cases it could be considered a hot market. 

The key is homes that are priced right will sell VERY quickly but those that are overpriced, even by $20,000, will be passed by and soon forgotten by prospective buyers.  In the Franklin, Massachusetts market we are seeing homes put on the market with showings starting at an open house.  These open houses are often getting 50 or more people through the door with 7-9 offers by the time the day is done!  I can personally attest to this occuring in at least 3 recent instances, but only when the home is priced to sell.  The offers will come in at different prices and some may be far under the desired price but usually a home will sell near or OVER asking price IF PRICED TO SELL originally.

I know of another instance in which a least expensive home in a desirable neighborhood was overpriced and the open house did indeed get 40 people in the door but the house is still sitting because its price was not in line with its actual value--it was really priced for the upscale neighborhood instead.

Sellers can expect a good response with this marketing technique--the beauty lies in getting the sale wrapped up so there is no need for endless months of showings.  On the flip side, buyers who have done their homework and have pinned down what they are looking for can move forward to make an offer on the home.  There will be competition but the bank will not allow the home to sell for more than its value anymore so that issue is not a factor.

If you are getting ready to sell and need marketing advice, give me a call.  Or if you are trying to sort throught the buying process I can help make sense of that as well.  Call me at 508-369-5131 or email franklinmahomes@comcast.net

More good news for the greater Boston area.  A Forbes.com article last week analyzed the latest housing data from the S&P/Case-Schiller Home Price Index and ranks metropolitan Boston as one of the strongest housing markets in the U.S.  Boston ranks seventh nationally thanks to a slowing rate of price decline, a modest foreclosure rate compared to other U.S. cities, and the fact that the Boston market does not have an overabundance of new construction.  In fact, a quick look at the local Multiple Listing Service shows that Franklin only has 14 new construction homes that are priced under $600,000 however there are a number of newer homes, built within 15 years that are currently for sale.