Market Info

Social Distancing And The Effect On The Real Estate Market

It's been over a week since Governor Baker closed schools and restricted gatherings to no more than 25 people.    Now restrictions have gone even further.  We wanted to look at the specific data to see how this effected our local market in the Suburbs North of Boston.  Since new information is coming out daily, including Monday's Stay at Home Advisory, we will be looking at the data on a weekly basis to report the state of our local market. Watch the video below for John's review on the market from the past two weeks. 
Please don't hesitate to reach out if you have any questions or concerns!
 

Watch the video below to learn more!

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March 2020 Real Estate Market Update For The Suburbs North of Boston

“How will coronavirus affect real estate?  Some folks will be afraid to make decisions,” reports Linda O’Koniewski, CEO of Leading Edge.  “Remember what Warren Buffet famously said, ‘Be fearful when others are greedy, be greedy when others are fearful.’  It applies now.  Meanwhile, there aren’t enough properties to meet buyers demand in many markets and especially at affordable price points.  Interest rates plummeted this week, so the feeding frenzy is on in hot neighborhoods for desirable properties.”

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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How the Housing Market Benefits with Uncertainty in the World

How the Housing Market Benefits with Uncertainty in the World | MyKCM
 

It’s hard to listen to today’s news without hearing about the uncertainty surrounding global markets, the spread of the coronavirus, and tensions in the Middle East, just to name a few. These concerns have caused some to question their investment plans going forward. As an example, in Vanguard’s Global Outlook for 2020, the fund explains,

“Slowing global growth and elevated uncertainty create a fragile backdrop for markets in 2020 and beyond.”

Is there a silver lining to this cloud of doubt?

Some worry this could cause concern for the U.S. housing market. The uncertainty, however, may actually mean good news for real estate.

Mark Fleming, Chief Economist at First American, discussed the situation in a recent report,

“Global events and uncertainty…impact the U.S. economy, and more specifically, the U.S. housing market…U.S. bonds, backed by the full faith and credit of the U.S. government, are widely considered the safest investments in the world. When global investors sense increased uncertainty, there is a ‘flight to safety’ in U.S. Treasury bonds, which causes their price to go up, and their yield to go down.”

Last week, in a HousingWire article, Kathleen Howley reaffirmed Fleming’s point,

“The death toll from the coronavirus already has passed Severe Acute Respiratory Syndrome, or SARS, that bruised the world’s economy in 2003…That’s making investors around the world anxious, and when they get anxious, they tend to sell off stocks and seek the safe haven of U.S. bonds. An increase in competition for bonds means investors, including the people who buy mortgage-backed bonds, have to take lower yields. That translates into lower mortgage rates.”

The yield from treasury bonds is the rate investors receive when they purchase the bond. Historically, when the treasury rate moves up or down, the 30-year mortgage rate follows. Here’s a powerful graph showing the relationship between the two over the last 48 years:Popular Perspective Delivers Gift to U.S. Housing Market | MyKCM

How might concerns about global challenges impact the housing market in 2020? Fleming explains,

 

“Even a small change in the 10-year Treasury due to increased uncertainty, let’s say a slight drop to 1.6 percent, would imply a 30-year, fixed mortgage rate as low as 3.3 percent. Assuming no change in household income, that would mean a house-buying power gain of $21,000, a five percent increase.”

Bottom Line

For a multitude of reasons, 2020 could be a challenging year. It seems, however, real estate will do just fine. As Fleming concluded in his report:

“Amid uncertainty, the house-buying power of U.S. consumers can benefit significantly.”

 

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February 2020 Real Estate Market Report for the Suburbs North of Boston

“Homeowners who are planning to sell should consider getting their property on the market immediately while buyers are flooding open houses, interest rates are low and consumer confident is ebullient,” said Linda O’Koniewski, CEO of Leading Edge.  “It’s been over a year since we’ve seen the dynamism of this market. It’s gonna be a rock fight for homes that are updated tastefully, show well and are priced right in some neighborhoods.”

 

 

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

 

“Bidding wars are coming back,” said Linda O’Koniewski, CEO, Leading Edge. “While the market softened in the last half of 2019, low inventory remains a challenge, and as long as mortgage rates stay low, I expect sellers to continue to be in the driver’s seat. Buyers face increased competition in many pockets.  Hot neighborhoods like Melrose and Arlington are already experiencing this uptick in competitive offers and we haven’t even hit the busy season yet. If you’re thinking of selling, now is the time to begin preparing your home for the Spring market. Trash day and recycling day are holidays for those who need to declutter.”

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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North of Boston December 2019 Real Estate Market Update

 

“Prices are flat-lining,” said Linda O’Koniewski, CEO, Leading Edge. “Cambridge saw the most exuberant growth into 2019 but condo prices in Cambridge are the same as they were last year. The condo growth spurt in South Boston has soured prices in that neighborhood by nearly 6%.  Arlington and Melrose captured headlines for being the hottest towns in the country.  Prices have remained fairly stable year-over-year in both those towns.  We are going to return to normal appreciation, 2-3%, not the double-digit historic rise in prices we’ve experienced since 2012.  In every town and neighborhood there is a price band that attracts the most buyers, we call it the sweet spot. Throughout Greater Boston, those sweet spots are still tight for inventory and continue to fetch competition if priced on the money.”

 

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

 

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North of Boston November 2019 Real Estate Market Update

“For the first time, median home prices cracked $400,000 in Massachusetts and are now at $409,000, which doesn’t make sense to anyone looking for homes in Greater Boston,” reports Linda O’Koniewski, CEO, Leading Edge. “The average property in the Berkshires is $217,000, while purchasing a home in Middlesex County averages $570,000, and Suffolk county is clocking in at an additional $18,000. Swanky Nantucket is $1,520,000, and Martha’s Vineyard is just over half that at $831,000. We see the same disparity in prices from town to town and neighborhood to neighborhood within and beyond Route 128.

“While so many home buyers put their house hunt on hold for the holidays, this is always the best time of the year to buy. Look for properties that were not snatched up when they launched on the market and have been languishing. They are likely over-priced and those sellers may be more realistic when faced with a fair offer,” advises O’Koniewski.

October sales of single-family homes in the Leading Edge service area decreased -14.7% year-over-year. Inventory decreased -23.1%. The number of days on market over the last 12 months increased +9.1% while median sale prices remain up +1.6% at $625,000.

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!

Andover, North Andover, North Reading, Reading, Wakefield, Stoneham

 

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North of Boston Real Estate Market Update for October 2019

 

 

“This is a mixed housing market where it can be a buyer AND seller’s market in the same neighborhood,” reports Linda O’Koniewski, CEO, Leading Edge. “Affordable properties are moving swiftly if priced right and high-end and luxury homes are starting to sit on the market. One thing is clear, this generation of buyer has little appetite for fixing up homes.  Homes that are updated, on trend and well-staged at the right price are still flying off the shelf. Properties with older kitchens, baths, wallpaper, heavy drapes, furniture and carpet are more challenging to sell.  HGTV and Pinterest has influenced today’s buyers.”

 

Watch the video below to learn more!

September 2019 Housing Market Update

 

“Lower interest rates have fueled the stabilizing housing market,” reports Linda

O’Koniewski, CEO of Leading Edge. “Rates have dropped so much that mortgage

lenders are refinancing people who bought as recently as March. We expect the

interest rate boost to keep the market strong through fall.”

 

 

If you're looking to buy or sell in the suburbs North of Boston Contact us!

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A Recession Does Not Equal a Housing Crisis

(Photo by Tom Rumble on Unsplash)

Recently, there's been a lot of news surrounding an impending recession. However, the same experts predicting an economic slowdown also believe it will not be caused by the housing market. If you're thinking of buying or selling a home, there's no need to panic- let's get together to address your concerns and talk about what's really happening.  

Contact us to chat more!

Watch the video below for more insights.

Sources used for data:

 

 


 

 

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