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Social Distancing and The North of Boston Real Estate Market Week 9

We continue to monitor the effects of social distancing on the north of Boston real estate market.  

Last week's numbers were similar to what we saw the first week of social distancing in Massachusetts.

See table below.

*This week Governor Baker restricts gatherings to 25 people or less.

**This week Governor Baker restricts gatherings to 10 people or less.

Watch the video to learn more!

 

 

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2 Collins Road Wakefield MA 01880 For Sale!

                           

Why live in the same home as everyone else?  Welcome to 2 Collins Road!  Located on a cul-de-sac, behind the circular driveway you'll find this cool contemporary home is packed with style and offers a layout fit for todays lifestyle.  The cherry and stainless kitchen seamlessly opens to the dining and family room.  The open concept layout allows the enjoyment of time with others while cooking meals.  The first floor also offers essential work space for a home office.  All the bedrooms are located up the spiral stairs on to the second level.  The master suite includes a master bath, walk in closet, and the outdoor space on the balcony provides a refreshing way to start the day or, a  perfect place to unwind in the evening. Hardwood flooring throughout.  Heated 2 car garage comes complete with electric car charging station!  Convenient to the commuter rail, highways, Breakhart Reservation and Lake Quannapowitt!

Click here to learn more about this property!

Send us a message for details or contact us at (617) 275-3379.

Watch the video virtual tour for 2 Collins Rd. Wakefield, MA 01880 below!

Click brochure for more info!

 

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Social Distancing and The Real Estate Market Week 7

 

Buyer demand decreased slightly within the first 5 weeks of social distancing measures across the north of Boston suburbs.  However, it still remained a seller's market.  During the last two weeks buyer demand has increased indicating a STRONG seller's market.  

Check out the video for details!

If you're considering a move in the suburbs north of Boston we'd love to hear from you!

Call us at 617-275-3379 or Contact us here.

Curious about the numbers for your area?  Click the link for your town!

AndoverNorth AndoverNorth ReadingReadingWakefield and Stoneham

Be sure to like us on Facebook and follow us on Instagram for a behind the scenes of our day to day and favorite happenings north of Boston!

 

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Will Surging Unemployment Crush Home Sales?

Will Surging Unemployment Crush Home Sales? | MyKCM
 

Over ten million Americans have lost their jobs over the past few weeks. The next announced unemployment rate on May 8th is expected to be in the double digits. Because the health crisis brought the economy to a screeching halt, many are feeling a personal financial crisis. James Bullard, President of the Federal Reserve Bank of St. Louis, explained that the government is trying to find ways to assist those who have lost their jobs and the companies which were forced to close (think: your neighborhood restaurant). In a recent interview he said:

“This is a planned, organized partial shutdown of the U.S. economy in the second quarter. The overall goal is to keep everyone, households and businesses, whole.” 

That’s promising, but we’re still uncertain as to when the recently unemployed will be able to return to work.

Another concern: how badly will the U.S. economy be damaged if people can’t buy homes?

A new concern is whether the high number of unemployed Americans will cause the residential real estate market to crash, putting a greater strain on the economy and leading to even more job losses. The housing industry is a major piece of the overall economy in this country.

Chris Herbert, Managing Director of the Joint Center for Housing Studies of Harvard University, in a post titled Responding to the Covid-19 Pandemic, addressed the toll this crisis will have on our nation, explaining:

“Housing is a foundational element of every person’s well-being. And with nearly a fifth of US gross domestic product rooted in housing-related expenditures, it is also critical to the well-being of our broader economy.”

How has the unemployment rate affected home sales in the past? 

It’s logical to think there would be a direct correlation between the unemployment rate and home sales: as the unemployment rate went up, home sales would go down, and when the unemployment rate went down, home sales would go up.

However, research reviewing the last thirty years doesn’t show that direct relationship, as noted in the graph below. The blue and grey bars represent home sales, while the yellow line is the unemployment rate. Take a look at numbers 1 through 4:Will Surging Unemployment Crush Home Sales? | MyKCM

  1. The unemployment rate was rising between 1992-1993, yet home sales increased.
  2. The unemployment rate was rising between 2001-2003, and home sales increased.
  3. The unemployment rate was rising between 2007-2010, and home sales significantly decreased.
  4. The unemployment rate was falling continuously between 2015-2019, and home sales remained relatively flat.

The impact of the unemployment rate on home sales doesn’t seem to be as strong as we may have thought.

Isn’t this time different?

Yes. There is no doubt the country hasn’t seen job losses this quickly in almost one hundred years. How bad could it get? Goldman Sachs projects the unemployment rate to be 15% in the third quarter of 2020, flattening to single digits by the fourth quarter of this year, and then just over 6% percent by the fourth quarter of 2021. Not ideal for the housing industry, but manageable.

How does this compare to the other financial crises?

Some believe this is going to be reminiscent of The Great Depression. From the standpoint of unemployment rates alone (the only thing this article addresses), it does not compare. Here are the unemployment rates during the Great Depression, the Great Recession, and the projected rates moving forward:Will Surging Unemployment Crush Home Sales? | MyKCM

Bottom Line

We’ve given you the facts as we know them. The housing market will have challenges this year. However, with the help being given to those who have lost their jobs and the fact that we’re looking at a quick recovery for the economy after we address the health problem, the housing industry should be fine in the long term. Stay safe.

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    Looking to the Future: What the Experts Are Saying

    Looking to the Future: What the Experts Are Saying | MyKCM
     

    As our lives, our businesses, and the world we live in change day by day, we’re all left wondering how long this will last. How long will we feel the effects of the coronavirus? How deep will the impact go? The human toll may forever change families, but the economic impact will rebound with a cycle of downturn followed by economic expansion like we’ve seen play out in the U.S. economy many times over.

    Here’s a look at what leading experts and current research indicate about the economic impact we’ll likely see as a result of the coronavirus. It starts with a forecast of U.S. Gross Domestic Product (GDP).

    According to Investopedia:

    “Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country’s economic health.”

    When looking at GDP (the measure of our country’s economic health), a survey of three leading financial institutions shows a projected sharp decline followed by a steep rebound in the second half of this year:Looking to the Future: What the Experts Are Saying | MyKCM

    A recent study from John Burns Consulting also notes that past pandemics have also created V-Shaped Economic Recoveries like the ones noted above, and they had minimal impact on housing prices. This certainly gives hope and optimism for what is to come as the crisis passes.

    With this historical analysis in mind, many business owners are also optimistic for a bright economic return. A recent PricewaterhouseCooperssurvey shows this confidence, noting 66% of surveyed business owners feel their companies will return to normal business rhythms within a month of the pandemic passing, and 90% feel they should be back to normal operation 1 to 3 months after:Looking to the Future: What the Experts Are Saying | MyKCMFrom expert financial institutions to business leaders across the country, we can clearly see that the anticipation of a quick return to normal once the current crisis subsides is not too far away. In essence, this won’t last forever, and we will get back to growth-mode. We’ve got this.

    Bottom Line

    Lives and businesses are being impacted by the coronavirus, but experts do see a light at the end of the tunnel. As the economy slows down due to the health crisis, we can take guidance and advice from experts that this too will pass.

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      Social Distancing and The Real Estate Market Week 6

      The amount of new listings over the past weeks has been increasing, so for sellers its a good time to come on the market to stay ahead of the competition.  For buyers, many desirable homes are going under contract within a few days, so if you see something you like you'll want to go after it quickly.  

      Watch the video to learn more!

      If you're considering a move in the suburbs north of Boston we'd love to hear from you!

      Call us at 617-275-3379 or Contact us here.

      Be sure to like us on Facebook and follow us on Instagram for a behind the scenes of our day to day and favorite happenings north of Boston!

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      Social Distancing and The Real Estate Market North of Boston Week 5

      If we take a look back at the market from the past three weeks, it hasn't changed much and it's still a seller’s market.  However, we are noticing a change in the numbers compared to where we were in the Spring of 2019 

       

      Watch the video below to learn more!
      Please don't hesitate to reach out if you have any questions or concerns.

      If you're considering a move in the suburbs north of Boston we'd love to hear from you!

      Call us at 617-275-3379 or Contact us here.

      Be sure to like us on Facebook and follow us on Instagram for a behind the scenes of our day to day and favorite happenings north of Boston!

       

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      April 2020 Real Estate Market Update for the Suburbs North of Boston

      “This unprecedented pandemic has unleashed marvelous creativity when it comes to selling property,” reports Linda O’Koniewski, CEO of Leading Edge.  “We are seeing buyers make offers on homes they have only seen virtually. Witness the stunning adaption by attorneys, title companies and all of the important people who are involved in a sale to work digitally. We are seeing virtual stagers “de-clutter and stage homes” and home inspectors are using FaceTime with buyers during a home inspection.  It has taken a crisis to move the industry in new and previously unheard-of ways. This will change the way real estate is conducted in the future.  Professionals previously rooted and stuck in the ways they conduct business are forced to think differently.  It’s refreshing, but not always ideal.

      Meanwhile, despite the economic conditions, people always need to move. People always need a place to live, and now they are re-thinking how their current space works for the new work at home environment,” concludes O’Koniewski.

       

      If you're considering a move in the suburbs north of Boston we'd love to hear from you!

      Call us at 617-275-3379 or Contact us here.

      Curious about the numbers for your area?  Click the link for your town!

      AndoverNorth AndoverNorth ReadingReadingWakefield and Stoneham

      Be sure to like us on Facebook and follow us on Instagram for a behind the scenes of our day to day and favorite happenings north of Boston!

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      434 Essex Street Unit 2L, Salem, MA 10970 Condo For Sale!

      This sun-filled and spacious home is located just outside of all the amenities of downtown Salem. This second floor unit offers an eat-in kitchen, hardwood floors, an abundance of windows, and in unit laundry! Bonus room offers a great space for a home office. Pet - friendly! Move in ready with, opportunity for personalization and additional upgrades. One parking spot included and the condo fee includes heat! Convenient to train, restaurants, libraries, museums, hospitals, YMCA and shopping!

      Click here to learn more about this property!

      Click here for a 3D tour!

      Send us a message for details or contact us at (617) 275-3379.

      Watch the video virtual tour for 434 Essex Street Unit 2L Salem, MA 01970 below!

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