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North of Boston Real Estate Market Update March 2023

Welcome to our monthly market update! We're taking a look at single-family homes sold in Middlesex and Essex counties and comparing February of 2023 to February of 2022. The total number of active properties dropped by almost 3%. The total number of homes sold also dropped by about 21.5%. Days on market or the time that it's taking homes to sell went from 32 days on average up to 41 days; an increase of 28%. Median sales prices went from $635,000 down to $630,000, a slight decrease of about 1%.

One way we like to evaluate the current market is by looking at the amount of active properties versus what's sold over the past 12 months. It gives us a great idea of supply and demand! When we have five or six months worth of inventory, that means we're in a balanced market. When we have over six months of inventory, that means the market favors buyers. When it's under five months of inventory, that means the market favors sellers. Currently in both Middlesex and Essex counties, we have less than one month of inventory. It is a strong seller's market! Our advice to home sellers right now - don't wait! And buyers you may have more options than you think! If your budget is in alignment with your criteria, there is no reason to sit on the sideline and wait! Thinking of buying or selling a home? Give us a call for a no pressure consultation at 617-275-3379.

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

AndoverNorth AndoverNorth ReadingReadingStoneham and Wakefield

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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Is It Really Better To Rent Than To Own a Home Right Now?

Is It Really Better To Rent Than To Own a Home Right Now?

Is It Really Better To Rent Than To Own a Home Right Now? | MyKCM
 

You may have seen reports in the news recently saying it’s better to rent right now than it is to own your home. But before you let that impact your decisions, you should understand what these claims are based on.

A lot of the time, these reports are assuming things that aren’t realistic for the average household. For example, the methodology behind one of those reports says that renting is the smarter financial option because of the opportunity to invest money elsewhere. It assumes renters take the money they’d spend on costs tied to buying a home and put it in an investment portfolio.

But here’s the thing – most people who rent aren’t making those investments. Ken Johnson, Co-Author of the BH&J National Price-to-Rent Index, explains:

“One of the difficulties with the rent and reinvest model is many people . . . simply rent and spend the difference. . . . That’s wealth destroying.”

The reason homeownership is one of the best investments you can make is the wealth it helps you build. That’s why there’s a significant difference between the net worth of the average homeowner and the average renter (see graph below):

So, before you renew your rental agreement, think about the opportunity to build wealth that homeownership provides.

Bottom Line

If you’re unsure whether to continue renting or to buy a home, let’s connect to help you make the best decision.

Can you sell your home  “AS IS” In Massachusetts? 

Can you sell your home  “As Is” In Massachusetts? 

Yes you can.   The real question is .. should you?

We have met many home sellers over the years that prefer not to invest the time and/or money in making repairs to a home before or during the sales process.  The benefit of advertising a home “SOLD AS IS” is that the expectation is set for potential buyers that any repairs would be their responsibility.  Simplifying the home sales process is certainly appealing to many home sellers but may have some drawbacks. 

If a home needs major repairs, such as a failed septic system, the home may not qualify for many types of financing.  Limiting financing options can drastically reduce the amount of potential prospects. Contractors and home flippers with access to cash or alternative financing can make the process convenient and hassle free for home sellers, however typically expect a steep discount in return for sweat equity.

If a home is otherwise in decent shape, potential home buyers often interpret “AS IS” much differently than home sellers. Some potential buyers automatically think “worst case” scenario.   They may view the home as one that needs excessive repairs and get scared that there may be an underlying problem that isn’t visible.  Compared to investors, home buyers looking to live in a home are usually willing to spend a lot more money. Many of todays buyers are not savvy when it comes to home repairs and maintenance, and can be easily spooked if a home is perceived as needing lots of work.

Even if a home is listed “AS IS” a home buyer may in fact still request repairs or attempt to negotiate.   On the other hand, if a home is not listed this way, a seller typically isn’t required to make concessions or repairs.   For sellers that have leverage by attracting lots of buyers and multiple offers, selling a home “AS IS” is often enough a by-product of market conditions.

In the suburbs north of Boston, most of the homes we sell are older and often need some sort of work.  Every situation is unique, so contact us to discuss your specific situation! 

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North of Boston Real Estate Market Update February 2023

 Welcome to our monthly market update! We're taking a look at single-family homes sold in the North of Boston Market specifically Middlesex and Essex counties and comparing January of 2023 to January of 2022. The total number of active properties increased by about 11%. However, the total number of homes sold decreased by about 34%. Days on market went from 31 days up to 40, an increase of about 29%. And median sales prices went from $620,000 up to $640,000, an increase of about 3%. (Keep in mind that these stats are usually about two months behind as it takes approximately 60 days for a home to close).

 What we're seeing out there in the market today is packed open houses! Many home buyers that decided to put their search on pause have returned to the market for 2023, as we're seeing inflation and interest rates ease. Home buyers out there are now looking at a monthly mortgage payment about $400-$500 less than if they purchased in November. Our message for home buyers and sellers out there is the market is probably stronger than you think! If you're a home buyer out there and you find your dream property and you're into multiple offer situation, keep in mind that there may be someone else right behind you willing to put in a strong offer. And if you're a home seller out there you may not want to wait until the spring to put your home on the market! Sellers that decide to put their home on the market in the winter benefit from low levels of inventory and have all the buyers fighting over their home!

 

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

AndoverNorth AndoverNorth ReadingReadingStoneham and Wakefield

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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The Ternullo Teams 2023 Annual Report

The Ternullo Real Estate Team is pleased to present our 2023 Annual Reports!

This comprehensive report reviews statistics and median prices of single family, multi family and condo homes,

as well as Michelle's house and style trends for 2023! 

 

Click below to see the full report

 

              Andover/ North Andover                      Reading/North Reading                        Stoneham/Wakefield

 

 

 

 

 

 

 

 

 

 

 

 

 

Interested in buying or selling in the suburbs north of Boston?  We'd love to chat! 

Contact us here!

 

 

 

 

Should You Rent Your House or Sell It?

Should You Rent Your House or Sell It?

Should You Rent Your House or Sell It? | MyKCM
 

If you’re a homeowner ready to make a move, you may be thinking about using your current house as a short-term rental property instead of selling it. A short-term rental(STR) is typically offered as an alternative to a hotel, and they’re an investment that’s gained popularity in recent years. According to a Harris Poll survey, 28% of homeowners have considered using a rental service to temporarily rent out their home for additional income.

Owning a short-term rental can be a tempting idea, but you may find the reality of being responsible for one difficult to take on. Here are some of the challenges you could face if you rent out your house instead of selling it.

A Short-Term Rental Comes with Responsibilities

Successfully owning and renting a house takes work. Think through your ability to make that commitment, especially if you plan to use a platform that advertises your rental listing. Most of them have specific requirements hosts have to meet, and it takes a lot of work. A recent article from Bankrate explains:

Managing a rental property can be time-consuming and challenging. Are you handy and able to make some repairs yourself? If not, do you have a network of affordable contractors you can reach out to in a pinch? Consider whether you want to take on the added responsibility of being a landlord, which means screening tenants and fielding issues, among other responsibilities, or paying for a third party to take care of things instead.”

Not only is there the upfront time and cost of owning a short-term rental, but there are also risks that could come up for you down the road. Investopedia warns:

“Risks of hosting include renting your place to rude guests, theft or damaged property, complaints from neighbors, and potential regulatory violations depending on your location.”

There’s a lot to consider before taking the leap and converting your house into a short-term rental. If you aren’t ready for the work it takes, it could be wiser to sellinstead.

Your House May Not Be Ideal for Your Rental Goals

Not every house ends up being a profitable short-term rental either. One of the biggest factors is where your home is located. The less likely your neighborhood is to be a travel destination, the fewer requests you should expect from potential renters—and that impacts your bottom line. An article from the National Association of Realtors(NAR) advises:

“When it comes to the viability of profitable STRs . . . consider factors like location, amenities, and whether the property is appealing. Most people seek STRs in locations where they vacation, so proximity to attractions is important. Likewise, the property should cater to a variety of travelers.”

It’s smart to do your homework and learn how much rentals in your area go for, how much business they get throughout the year, and how this compares to your goals.

Bottom Line

Converting your home into a short-term rental isn’t a decision you should make without doing your research. To decide if selling your house is a better alternative, let’s connect today.

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10 things you should consider before buying a Massachusetts Condominium

 

Are you thinking of buying a Massachusetts Condominium?  

By Attorney Richard Carter

A condominium is defined as “a building or complex of buildings containing a number of individually owned apartments or houses”.

There are several advantages in purchasing a condominium.  First it may be a more affordable option than purchasing a single family home. Second, by purchasing a condominium all the condominium unit owners will share in the expenses and upkeep of the property. But when purchasing a condominium, you will need to remember that you are not only buying your own particular unit but you will also be buying into your percentage of the “common areas” that you share with the other unit owners.

So when purchasing a condominium  you will not only want to make sure there are no issues with your own particular unit but you should also ascertain whether there are any issues with the condominium itself.

Here are 10 things you should consider before buying a Massachusetts Condominium

  1. Make sure your review all of the condominium documents, including the monthly condominium “meeting minutes”. The meeting minutes should describe any upcoming events that might affect the condominium which may not be necessarily stated in the Master Deed or Condominium Trust.
  2. Make sure you review the Rules and Regulations of the condominium.
  3. immediately become familiar with the condominium management company. They will have important information for you including where your condominium fees are to be sent. 
  4. Review the condominium budget and condominium capital reserves to see how solid the condominium is financially. A capital reserve is a pool of money that may be needed for unforeseen capital repairs and/or operating costs, such as an increase in snow removal costs or leaky roofs. If you are buying the condominium through bank financing the lender may be requiring a minimum amount in the capital reserve. Some banks may require a capital reserve of up to 10 to 20% of the annual budget. Check with your lender on the amount they will be looking for.
  5. Check to see how much is the monthly condominium fee and see exactly what that condo fee covers. Condominium fees are used to pay for the operating costs such as insurance, snow removal, landscaping etc. Make sure you understand what is notincluded in the condominium fees. For example, does the condominium fee include water usage or is there a separate water meter?  
  6. Check to see if there are there are any upcoming assessments on the condominium unit.   
  7. Check to see if there are any current lawsuits or any anticipated future lawsuits against the condominium or the developer of the condominium. This may affect your financing.
  8. Check to see if the condominium is in a flood zone. If so, check with the condominium association to see whether their master insurance covers any required flood insurance. 
  9. If applicable, make sure any designated parking space and/or storage area is identified in 

the offer, the purchase and sale agreement, and ultimately on the deed of the unit. 

  1. Determine what the condominium master insurance policy covers. Anything that the master insurance policy does not cover, such as the person’s personal contents, should be covered through a supplemental policy or a “HO-6 insurance policy”. A HO-6 policy is commonly known as “studs in” coverage. This coverage would cover the interior of the unit and the personal property in the unit. But again, you want to make sure that through both policies you are covered for everything. 

 

Attorney Richard Carter can be reached at

Phone: (781)944-9222  | Cell: (781)944-7000  |  rcarter@carterclosings.com  |  carterrealestatelaw.com

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Just Listed in Stoneham! 7 Rose Lane Stoneham, MA 02180

7 Rose Lane Stoneham, MA 02180
3 bed | 2 baths | 2,038 sqft
Price: $685,000

Situated on a corner lot, this ranch style home offers one level living in the Robin Hood section of town, one of Stoneham's most desirable neighborhoods. The refreshed first level offers hardwood flooring, & a functional layout for everyday living as well as entertaining. The eat-in kitchen with stainless appliances is open to the dining area. In addition to the fire-placed living room, the family room off the back of the home provides comfortable space as a TV room or playroom. Add some paint & the lower level provides additional space & possibilities! With a full bath, the lower level could be ideal for the occasional guest as well as an office, exercise space, or game room. Comfortable central air! Convenient garage! This neighborhood is tucked away but only minutes from Rt 93,95 & 28 making an easy commute to Boston, beaches or skiing! This home is move in ready, well maintained & has been updated throughout the years. Add some cosmetics & enjoy this home for years to come!

Click here to learn more!

See it at an Open House! 1/28 and 1/29 from 12:00-1:30PM

 

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    North of Boston Real Estate Market Update January 2023

    Welcome to our monthly market update! We're taking a look at single-family homes sold in the North of Boston Market specifically Middlesex and Essex counties and we're comparing December of 2022 to December of 2021. The total number of active properties/inventory remain pretty much the same and only increased by about 0.5%. However, the total number of homes sold did decrease by about 30%. Average days on market went from 27 days up to 31 days, an increase of about 15%. And median sales price went from $672,000 down to $650,000, a decrease of about $22,000 or 3%.

     It still does remain a sellers' market. We are certainly seeing some homes sit on the market and eventually have price adjustments. However, homes that are priced right and look great are still attracting a lot of buyers and still receiving multiple offers. There are definitely motivated buyers out there looking and waiting for the right property to come along! In fact, we're starting to see more home buyers entering the market again that may have put their search and pause last year. This is because many believe now that the surge in interest rates are over and we are now in a new normal market! So if you are thinking about buying or selling a home in the North Boston area, give us a call to have a no pressure consultation. We could be reached at 617-275-3379!

     

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

    AndoverNorth AndoverNorth ReadingReadingStoneham and Wakefield

    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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    North of Boston Real Estate Market Update December 2022

    Welcome to our North of Boston monthly market update! We're comparing metrics from November of 2022 to November of 2021 specifically in Middlesex and Essex counties. The total number of active properties dropped by about 5%. The total number of homes sold also fell by about 28%. Days on market or the time it is taking homes to sell went from an average from 27 days up to 31 days, an increase of about 15%. Median sales prices went from $660,000 up to $715,000, an increase of $55,000 or 8%.

     So what we're seeing out there now is that some homes are still getting multiple offers and selling within a week. Other homes are staying on the market longer and we're starting to see more price reductions. Many of them are selling without multiple offers. We saw last year that many buyers just simply couldn't get an offer accepted during a period of uncertainty. This year many of them decided to sit on the sidelines and I predict that in 2023 we'll start to see those buyers return to the market. Those hoping for prices to fall however might be disappointed, as prices in the North of Boston area are remaining strong. If you are considering making a move in or out of the suburbs North of Boston, give us a call at 617-275-3379. 

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

    AndoverNorth AndoverNorth ReadingReadingStoneham and Wakefield

    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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