Market Info

Social Distancing and The North of Boston Real Estate Market Week 26

Here’s a look at the north of Boston real estate market, for Middlesex and Essex counties.  So last week we had 2,424 homes available on the market a decrease of 7% compared to the week before. New listings had a huge increase of 74% as 965 homes came on the market last week. Now that's most likely due to many home sellers deciding not to put their home on the market right before Labor Day and wait until after the holiday weekend.  Pending homes decreased by 18% from the week before.  Overall 25% of the market did get absorbed through pending listings which shows that it's still a strong seller's market.  Although those numbers dipped from what we saw the previous week, we are anticipating that that is due to the holiday weekend.  We’ll continue to watch the numbers to see if that is a seasonal trend.  We are still seeing multiple offers out there and the market does remain strong.

So the total number of units sold went down 5% compared to August of 2019, that's due to the lack of inventory. Homes available for sale went down by about 19%. It's taking less times for homes to sell as days on market is down 5.5%.  However, homes are selling for more money as median prices are up 12.1%.

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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Social Distancing and The North of Boston Real Estate Market Week 25

We hope you had a great Labor Day weekend! As anticipated new listings slowed slightly, likely due to the Labor Day weekend in the suburbs north of Boston.  

Last week we had 2619 homes available on the market, very similar to the week before.  For new listings, 554 homes came on the market last week, a decrease of 18% compared to the week before.  716 homes went pending last week a very slight increase of 1% from the previous week. Overall 27% of the market last week did get absorbed through pending listings which shows that it remains a very strong seller's market. It’s very consistent to what we saw over the past couple of months.

If you are considering a move to the suburbs north of boston give us a call at 617-275-3379.

 

 

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How Will the Presidential Election Impact Real Estate?

How Will the Presidential Election Impact Real Estate? | MyKCM
 

The year 2020 will be remembered as one of the most challenging times of our lives. A worldwide pandemic, a recession causing historic unemployment, and a level of social unrest perhaps never seen before have all changed the way we live. Only the real estate market seems to be unaffected, as a new forecast projects there may be more homes purchased this year than last year.

As we come to the end of this tumultuous year, we’re preparing for perhaps the most contentious presidential election of the century. Today, it’s important to look at the impact past presidential election years have had on the real estate market.

Is there a drop-off in home sales during a presidential election year?

BTIG, a research and analysis company, looked at new home sales from 1963 through 2019 in their report titled One House, Two House, Red House, Blue House. They noted that in non-presidential years, there is a -9.8% decrease in November compared to October. This is the normal seasonality of the market, with a slowdown in activity that’s usually seen in fall and winter.

However, it also revealed that in presidential election years, the typical drop increases to -15%. The report explains why:

“This may indicate that potential homebuyers may become more cautious in the face of national election uncertainty.”

Are those sales lost forever?

No. BTIG determined:

“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.”

In a separate study done by Meyers Research & Zonda, Ali Wolf, Chief Economist, agrees that those purchases are just delayed until after the election:

“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.”

Will it matter who is elected?

To some degree, but not in the overall number of home sales. As mentioned above, consumer confidence plays a significant role in a family’s desire to buy a home. How may consumer confidence impact the housing market post-election? The BTIG report covered that as well:

“A change in administration might benefit trailing blue county housing dynamics. The re-election of President Trump could continue to propel red county outperformance.”

Again, overall sales should not be impacted in a significant way.

Bottom Line

If mortgage rates remain near all-time lows, the economy continues to recover, and unemployment continues to decrease, the real estate market should remain strong up to and past the election.

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Homes Are More Affordable Right Now Than They Have Been in Years

Homes Are More Affordable Right Now Than They Have Been in Years | MyKCM
 

Today, home prices are appreciating. When we hear prices are going up, it’s normal to think a home will cost more as the trend continues. The way the housing market is positioned today, however, low mortgage rates are actually making homes more affordable, even as prices rise. Here’s why.

According to the Mortgage Monitor Report from Black Knight:

“While home prices have risen for 97 consecutive months, July’s record-low mortgage rates have made purchasing the average-priced home the most affordable it’s been since 2016.

How is that possible? 

Black Knight continues to explain:

“As of mid-July, it required 19.8% of the median monthly income to make the mortgage payment on the average-priced home purchase, assuming a 20% down payment and a 30-year mortgage. That was more than 5% below the average of 25% from 1995-2003.

This means it currently requires a $1,071 monthly payment to purchase the average-priced home, which is down 6% from the same time last year, despite the average home increasing in value by more than $12,000 during that same time period.

In fact, buying power is now up 10% year-over-year, meaning the average home buyer can afford nearly $32,000 more home than they could at the same time last year, while keeping their monthly payment the same.”

This is great news for the many buyers who were unable to purchase last year, or earlier in the spring due to the slowdown from the pandemic. By waiting a little longer, they can now afford 10% more home than they could have a year ago while keeping their monthly mortgage payment unchanged.

With mortgage rates hitting all-time lows eight times this year, it’s now less expensive to borrow money, making homes significantly more affordable over the lifetime of your loan. Mark Fleming, Chief Economist at First American, shares what low mortgage rates mean for affordability:

“In July, house-buying power got a big boost as the 30-year, fixed mortgage rate made history by moving below three percent. That drop in the mortgage rate from 3.23 percent in May to 2.98 percent in July increased house-buying power by nearly $15,000.”

The map below shows the last time homes were this affordable by state:Homes Are More Affordable Right Now Than They Have Been in Years | MyKCM

In six states – Arkansas, Iowa, Kentucky, Louisiana, Maryland, and West Virginia – homes have not been this affordable in more than 25 years.

Bottom Line

If you’re thinking of making a move, now is a great time to take advantage of the affordability that comes with such low mortgage rates. Whether you’re thinking of purchasing your first home or moving into a new one and securing a significantly lower mortgage rate than you may have on your current house, let’s connect today to determine your next steps in the process.

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Social Distancing and the North of Boston Real Estate Market Week 21

Welcome to week 21 of social distancing and its effect on the north of Boston real estate market, specifically Middlesex and Essex counties. We’re also taking a look at how July compared to last July of 2019. Last week we had 2709 homes available on the market, a slight decrease of 2% compared to what we saw the week before.  There were 735 new homes on the market last week which was an increase of 6% from the previous week. As for pending homes, 746 homes went pending last week which is a slight decrease of 1% from the week before.  Overall 28% of the market did get absorbed through pending listings, which shows that it remains a strong seller's market.

For the month of July the number of units sales did go down slightly by about 5% due to inventory being down close to 27.5% .  We have less homes on the market in July of 2020 than what we saw in 2019. The days our market, the time is taking homes to sell, remains the same and overall.  Median prices from July 2020 compared to July 2019 are up 5.1%. 

The real estate market for Middlesex and Essex counties remains strong.  We are continuing to see multiple offers on homes and many homes are going for way over asking. There are plenty of buyers out there and there is little inventory. Usually during this time things start to tick down a bit until we get to labor day but that is not the case this year.

If you have specific questions on the market feel free to reach out to us at 617-275-3379

 

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Social Distancing and The North of Boston Real Estate Market Week 20

For week 20, 2770 homes were available on the market, a slight decrease of 2% compared to what we saw the week before.  There were 695 new listings to come on the market last week which is also a slight decrease of 2% compared to the week before.  751 homes went pending last week which is a decrease of 6%. And overall 27% of the market went pending last week, which still indicates that it is a strong seller's market.   So if you have any questions on the market, if you're looking to buy or sell in the north of Boston suburbs feel free to give us a call at 617-275-3379.

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Social Distancing and The North of Boston Real Estate Market Week 19

We are now in the 19th week of social distancing in the Boston area.  Here are the numbers for single-family homes and condominiums in Middlesex and Essex counties.  The amount of homes available on the market mostly remained the same at 2823.  We did have 705 listings come on the market new last  week, which is a decrease of 12% compared to  the week before. 798 homes went pending last week which is a decrease of 4% compared to the week before.  Overall 28% of the market did get absorbed last week through pending listings, which again shows that it is a strong seller's market.  Currently there are no signs of the market slowing down. Typically as we move into August things tend to slow down slightly.  However, there is no indication, as of now, that the market is slowing down at all.  If you're considering a move or selling your home and debating on whether it makes sense to go on the market now or next year, the answer is clear that this is one of the best times to sell in our lifetime. If you have any questions on the market feel free to  reach out to us at 617-275-3379!

    

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Social Distancing and The North of Boston Real Estate Market Week 18

        

We're taking a look at week 18 and the effect of social distancing on the north of Boston real estate market. Specifically Middlesex and Essex counties, for single-family homes and condominiums. Last week we had 2,893 homes available on the market which is an increase of 8% compared to what we saw the week before. New homes to hit the market only had a slight increase of 1%, with 801 homes. Pending homes jumped up to 53% compared to the week before with 834 homes now pending. However, last week's numbers dropped due to the fourth of July weekend and that was in line of what we saw before the holiday weekend. Overall last week, 29% of the homes did get absorbed through a pending listings which does show it is still a very strong seller's market. So the obstacle that we've been running into lately is appraisals. The market has been moving a lot quicker than what the comps are suggesting. A lot of comps show homes that sold within the past six months, some from January and February of this year. The market's moving a lot quicker than that and we're finally starting to see some of these under agreement homes actually close. Which will make it a lot easier for appraisals in the near future. We do expect more closings by the end of the month to reflect today's market. If you are looking to buy or sell in the north of Boston market feel free to give us a call at 617-275-3379!

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Social Distancing and The North of Boston Real Estate Market Week 17

  We're taking a look at week 17 and the effect of social distancing on the north of Boston real estate market specifically Middlesex and Essex counties for single-family homes and condominiums. Last week we had 2609 homes available on the market which was a decrease of 15% compared to what we saw the week before.  We had 793 new listings come on the market, that was an increase of 232% compared to what we saw the week before.  However, it was more in line of what we saw the week before fourth of July. We had 544 homes go pending last week which is a decrease of 48%. However, again probably a result of fourth of July weekend. Overall we had 21% of the market go pending last week which does indicate it is still a strong seller's market.  Overall how did June compare to last June?  The amount of units sold went down close to 29% however inventory also went down close to 30%. The number of units sold went down likely because we have less inventory.  Days our market did go up close to 12%.  Median sale prices went up close to 3%.  Keep in mind what we saw the last week in June was closer to the ninth week of social distancing in mid-May.  Great news for sellers, as it remains a very strong seller's market.  For home buyers, it's been tough.  Low inventory means that many buyers are fighting over the same properties.   For strategies on moving to the suburbs north of Boston give us a call at 617-275-3379.  

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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Social Distancing and The North of Boston Real Estate Market Week 16

  During week 16 we had 3,079 homes available on the market which is an increase of 2% compared to the week before.  Only 341 homes were newly listed last week, which was a huge decrease of 61%.  This was mostly due to the fourth of July holiday weekend.    Buyers were still out though and we had 873 homes go pending last week.  That is the third highest that we've seen all year and is an increase of 13% compared to what we saw the week before. Overall 28% of the market last week did get absorbed through pending listings which shows that it is a strong seller's market.   

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