Buyers

3 Reasons to Be Optimistic about Real Estate in 2021

3 Reasons to Be Optimistic about Real Estate in 2021 | MyKCM
 

This year will be remembered for many reasons, and optimism is one thing that’s been in short supply since the spring. We’re experiencing a global pandemic, social unrest, an economic downturn, and natural disasters, just to name a few. The challenges brought on by the health crisis have also forced many homeowners to reevaluate their space and what they need in a home going into 2021. So, experts are forecasting that next year is one in which we can be optimistic about real estate for three key reasons.

1. The Economy Is Expected to Continue Improving 

Tim Duy from the University of Oregon puts it this way:

“There is nothing fundamentally ‘broken’ in the economy that needs to heal…there was no obvious financial bubble driving excessive activity in any one economic sector when the pandemic hit…With Covid-19 cases surging again, it is understandably hard to look optimistically to the other side of this winter…Don’t let the near-term challenges distract from the economic stage being set for next four years.” 

2. Interest Rates Are Projected to Stay Low 

In the latest projections from Freddie Mac, interest rates for a 30-year fixed-rate mortgage are expected to remain at or near 3% next year. These low rates will continue to make homes more affordable, driving demand for housing in 2021.3 Reasons to Be Optimistic about Real Estate in 2021 | MyKCM

3. Future Home Sales Are Forecasted to Grow

While the economy improves and interest rates remain low, homes are also expected to continue appreciating as more people buy in the coming year. Danielle Hale, Chief Economist at realtor.com, says:

“We expect home sales in 2021 to come in 7.0% above 2020 levels, following a more normal seasonal trend and building momentum through the spring and sustaining the pace in the second half of the year.”

Bottom Line

Experts forecast that buyers and sellers are going to be active in 2021. If you’ve thought about buying or selling your home this year but have held off, now may be the time to take advantage of this market. Let’s connect to take the first step toward your new home today.

The Holidays Aren't Stopping Homebuyers This Year

The Holidays Arent Stopping Homebuyers This Year | MyKCM
 

Black Friday and Cyber Monday are behind us, yet finding the perfect holiday gifts for friends and family is certainly still top of mind for many right now. This year, there’s another type of buyer that’s very active this holiday season – the homebuyer.

Each month, ShowingTime releases their Showing Index which tracks the average number of appointments received on active U.S. house listings. The most recent index notes:

“The Showing Index reported a 60.9 percent jump in nationwide showing traffic year over year in October, the sixth consecutive month to see an increase over last year.”

Here’s the breakdown of the latest activity by region of the country compared to this time last year:

  • The Northeast increased by 65.5%
  • The West increased by 64.7%
  • The Midwest increased by 55.7%
  • The South increased by 54.7%

Why is the traffic so active?

The health crisis definitely put homebuying plans on pause for many earlier this year. Buyers, however, are in the market and making moves well past the typical busy homebuying seasons of spring and summer.

One of the main reasons buyer traffic has continued to soar in the second half of 2020 is how dramatically mortgage rates have fallen. According to Freddie Mac, the average mortgage rate last December was 3.72%. Today, the rate is a full percentage point lower.

Bottom Line

There are first-time, move-up, and move-down buyers actively looking for the home of their dreams this winter. If you’re thinking of selling your house in 2021, you don’t need to wait until the spring to do it. Your potential buyer is very likely searching for a home in your neighborhood right now.

Is Buying a Home Today a Good Financial Move?

Is Buying a Home Today a Good Financial Move? | MyKCM
 

There’s no doubt 2020 has been a challenging year. A global pandemic coupled with an economic recession has caused heartache for many. However, it has also prompted more Americans to reconsider the meaning of “home.” This quest for a place better equipped to fulfill our needs, along with record-low mortgage rates, has skyrocketed the demand for home purchases.

This increase in demand, on top of the severe shortage of homes for sale, has also caused more bidding wars and thus has home prices appreciating rather dramatically. Some, therefore, have become cautious about buying a home right now.

The truth of the matter is, even though homes have appreciated by a whopping 6.7% over the last twelve months, the cost to buy a home has actually dropped. This is largely due to mortgage rates falling by a full percentage point.

Let’s take a look at the monthly mortgage payment on a $300,000 house one year ago, and then compare it with that same home today, after it has appreciated by 6.7% to $320,100:Is Buying a Home Today a Good Financial Move? | MyKCMCompared to this time last year, you’ll actually save $87 dollars a month by purchasing that home today, which equates to over one thousand dollars a year.

But isn’t the economy still in a recession?

Yes, it is. That, however, may make it the perfect time to buy your first home or move up to a larger one. Tom Gil, a Harvard trained negotiator and real estate investor, recently explained:

“When volatile assets are facing recessions, hard assets, such as gold and real estate, thrive. Historically speaking, residential real estate has done better compared to other markets during and after recessions.”

That thought is substantiated by the fact that homeowners have 40 times the net worth of renters. Odeta Kushi, Deputy Chief Economist for First American Financial Corporation, recently said:

“Despite the risk of volatility in the housing market, numerous studies have demonstrated that homeownership leads to greater wealth accumulation when compared with renting. Renters don’t capture the wealth generated by house price appreciation, nor do they benefit from the equity gains generated by monthly mortgage payments, which become a form of forced savings for homeowners.”

Bottom Line

With home prices still increasing and mortgage rates perhaps poised to begin rising as well, buying your first home, or moving up to a home that better fits your current needs, likely makes a ton of sense.

Comments

  1. No comments. Be the first to comment.

EasyKnock

 

Our new normal during this pandemic means that we are all spending a lot more time at home.  It also means that many of us are realizing that our home just doesn’t quite fit our needs anymore.  Its been a seller’s market for some time now and with strong buyer demand it makes sense to take advantage of today’s market.  

So, do you buy first or sell first?  Contingencies in today’s market simply don’t work.  If you buy first, that could mean taking on two mortgages.  If you sell first, are you willing to rent, or do you have a place to go?  With the time and effort it takes to move, would you want to move twice?  Typically these were the only two options available to homeowners. Now there is a third option.  

We’ve partnered with a company called EasyKnock.  Through EasyKnock you can unlock the equity of your home, allowing you to put in a competitive offer without the contingency of selling your home first.  EasyKnock will buy your home and allow you to then rent it back.  You can then search for your dream home without worrying about your current value.  When you are ready to sell you can put it on the market to get full value.  Contact us to learn more about how this option might work for you!

 

North of Boston Real Estate Market November 8-14, 2020

Here's a look at the real estate market in the suburbs north of Boston specifically Middlesex and Essex counties, for single-family homes and condominiums, during the week of November 8th through the 14th. Not much has changed since the previous week. Last week we had 2,802 homes available on the market just a slight decrease of 2% compared to the week before. We had 531 homes come on the market last week that is a decrease of 7% compared to the week before. 616 homes went pending last week, that is a very slight decrease of 1% compared to the week before. And overall 22% of the market did get absorbed through pending listings which shows it remains a seller's market. That number has been very consistent over the past three weeks.

If you're currently searching for a home this is not the time to put your search on hold. Although we are seeing a decreasing in the amount of new listings come on every week, interest rates remain very 
low and competition from other buyers who may decide to put their search on pause during the holiday season, may be low. So keep at it and keep looking. For home sellers out there although the market isn't what it used to be in late summer, the market remains very strong and there is still a lack of inventory. As we mentioned before, we are seeing a decrease in the amount of new listings coming on the market. So although every situation is a little bit different, to discuss timing feel free to give us a call at 617-275-3379.

 

 

 

4 Reasons Why the Election Won't Dampen the Housing Market

4 Reasons Why the Election Wont Dampen the Housing Market | MyKCM
 

1. Demand Is Strong among Millennials

The nation's largest generation began entering the housing market last year as they reached the age to marry and have children - two key drivers of homeownership. As the Wall Street Journal recently reported:

“Millennials, long viewed as perennial home renters who were reluctant or unable to buy, are now emerging as a driving force in the U.S. housing market’s recent recovery.”

2. Mortgage Rates Are Historically Low 

All-time low interest rates are also driving demand across all generations. Strong demand created by this rate drop has countered other economic disruptions (e.g., pandemic, recession, record unemployment).

In addition, Freddie Mac just forecasted mortgage rates to remain low through next year:

“One of the main drivers of the strong housing recovery is historically low mortgage interest rates…Given weakness in the broader economy, the Federal Reserve’s signal that its policy rate will remain low until inflation picks up, and no signs of inflation, we forecast mortgage rates to remain flat over the next year. From the third quarter of 2020 through the end of 2021, we forecast mortgage rates to remain unchanged at 3%.”

3. Prices Continue to Appreciate

The continued lack of supply of existing homes for sale coupled with the surge in buyer demand has experts forecasting strong price appreciation over the next twelve months.

4. History Says So

Though it’s true that the market slows slightly in November when it’s a Presidential election year, the pace returns quickly. Here’s an explanation as to why from the Homebuilding Industry Report by BTIG:

“This may indicate that potential homebuyers may become more cautious in the face of national election uncertainty. This caution is temporary, and ultimately results in deferred sales, as the economy, jobs, interest rates and consumer confidence all have far more meaningful roles in the home purchase decision than a Presidential election result in the months that follow.”

Ali Wolf, Chief Economist for Meyers Research, also notes:

“History suggests that the slowdown is largely concentrated in the month of November. In fact, the year after a presidential election is the best of the four-year cycle. This suggests that demand for new housing is not lost because of election uncertainty, rather it gets pushed out to the following year as long as the economy stays on track.”

Bottom Line

There’s no doubt this is one of the most contentious presidential elections in our nation’s history. The outcome will have a major impact on many sectors of the economy. However, as Matthew Speakman, an economist at Zillow, explained last week:

“While the path of the overall economy is likely to be most directly dictated by coronavirus-related and political developments in the coming months, recent trends suggest that the housing market – which has basically withstood every pandemic-related challenge to this point – will continue its strong momentum in the months to come.

For Sale! 51 Hopkins St., Reading, MA 01867

Welcome to 51 Hopkins Street in Reading! A sun-filled Cape style home with an updated interior and a great layout. The bright kitchen offers stainless steel appliances, granite counters and a place to gather at the center island. Completely open to the dining room, the layout is ideal for entertaining and family gatherings. The living room has built in bookcases surrounding the wood burning fireplace, perfect to take the chill out of winter nights. Upstairs there are two generous sized bedrooms with plenty of room for kids to share a room. The 3rd bedroom is downstairs and can also be used as an office. The garage is essential during New England winters. There is even additional potential in the walk out basement! Conveniently located with easy access to 93, 95 and Reading's commuter rail.

See more photos here!

Check the virtual tour here!

 

Comments

  1. No comments. Be the first to comment.

8 Auburn St Medford, MA 02155 Off Market Listing

Welcome to 8 Auburn Street in West Medford! This Gambrel Style colonial offers a generous eat-in kitchen with plenty of storage and space to gather at the breakfast bar as well as a dining area for family dinners.  The family room boasts handsome details including crown moulding, beamed ceiling and fireplace. The front nook is an ideal space for virtual learning, or office work.   Upstairs, there are 3 spacious bedrooms, as well as a bonus space on the 3rd level, great for storage and a fun place as a kids playroom!  The backyard contains a perfect patio for backyard relaxing and entertaining, a yard for games and play and a shed for storage.   Convenient 1 car garage.  Located across the Street from Brooks Elementary and minutes away from so much including Whole Foods, restaurants, shopping, library, playground, & hiking at the Fells. The commuter rail provides easy access to Boston!

Click here for more details about this home!

Watch the video tour below!

Comments

  1. No comments. Be the first to comment.

For Sale! 45 17th Avenue, Haverhill, MA 01830

Welcome to 45 17th Avenue!

This home offers classic curb appeal along with character, charm and a spacious layout  . The first level offers plenty of space to entertain in the dining room and space to relax in the living room.  The eat in kitchen offers plenty of room for everyday living and adjacent to a covered porch, ideal for morning coffee with some fresh air.   Upstairs, there are 3 bedrooms and a bonus room with just enough space for  for a desk for homework.   The master bedroom is anything but typical!  The extended space could be a dressing room, tv room, or home office.  The deck, also attached to the master bedroom, provides a great place to unwind! The partial finished basement also offers additional flexibility, as a playroom or additional workspace. Convenient to shopping and restaurants downtown and minutes away from tax free shopping in NH!

More information here!

Click here for a 3D virtual tour!

Check out the video virtual tour below!

View brochure here!

Comments

  1. No comments. Be the first to comment.

156 Green Street, Woburn, MA 01801 For Sale!

Great Bones! Great Location! Excellent potential!  Welcome to 156 Green Street. Sure this home needs work, however it remains fully functional and provides a blank slate not only for cosmetics but for layout as well.  Whether work is done immediately or over time, there is equity to be earned!  The first level consists of kitchen, living room, bedroom and dining room (that used to be a bedroom).  Upstairs, the master bedroom consists of the entire 2nd level and was once used as 2 bedrooms.  The finished basement offers additional living area.  The flat back yard is easily manageable with plenty of room for games and play. Convenient to public transportation, Route 93/95 and the trails at the Tri- Community Greenway!

Click here for the 3D tour!

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 156 Green Street, Woburn, MA 01801 below!

Comments

  1. No comments. Be the first to comment.