Peggy Dinger Blogs On. . . .

Buyers and Sellers be forewarned–there are hazards in the road ahead.   We all wish for the ideal transaction between a buyer and a seller which each party leaves with a feeling of satisfaction and fairness.   However, in the current market where items in the house, work to be completed on the home and bank appraisals can rear up and become dragon-sized obstacles we have to use all resources available.   We do our best to negotiate these pitfalls and to warn our clients of what might be ahead.   We try to handle some problems and head them off before they become issues.   But sometimes. . . they become significant negotiable issues.  

Both parties have strong reasons for their stances.   Understanding the motivation of the issues (is it merely an inconvenience or a potential crisis?) is foremost.   Most times there is a path that makes both parties feel like they have “won”.   Think outside of the box and come up with suggestions that you would appreciate if you were on either side of the issue.  

Negotiating isn’t just winning–it is finding success while accommodating contrasting opinions to the benefit of the transaction.   Keep that in mind and try to prepare yourself to give as well as get.

While reading a breakdown of the current statistics from the previous post may be dry for most people, they highlight some growth that I want to point out.   There are buyers out there in all price ranges.   The inventory is low and days on the market have steadily retreated.   April 30th will mark the end of the stimulus for home buyers as we know it.   All indications from the Realtors in the trenches that I know and from my own experience is that it is a good time to buy or to put your home on the market.   If you wait until April or May when the market starts exploding with listings you will receive less attention than you would sooner.   Price is still the most important factor in selling your home, but a fair price will allow you to re-purchase and receive more house for your money on the other end.   Banks are not allowing people to finance risky purchases, so your new budget will most likely be set by someone for you.   Thankfully, we are surrounded by many truly devoted mortgage brokers and bankers in our area that always seem to “do the right thing”.   They have been continually pointing out to us that the rates will probably go up at some point in the future.   What is appealing right now might not be at a 5.5% or 6% rate.    Consider all of your options and use the stats as a general guide.  

Massachusetts Home Prices Up for Second Straight Month in January  

Condominium median prices experience largest annual increase since the association began tracking median prices

   WALTHAM, Mass. “ February 23, 2010 “ The Massachusetts Association of REALTORS ® (MAR) reported today that median prices of single-family home sales were up 14.1 percent compared to January 2009 while condominiums experienced 26.5 percent increase compared to the same time last year.   The jump in median condo prices in January is the largest annual increase since MAR has been tracking median prices.   Home sales were up 9.1 percent compared to the same time last year while condominium sales were up 35 percent.    œAnother month of positive sales is a nice way to start off the new year as buyers are continuing to take advantage of the favorable market conditions, said 2010 MAR President Kevin Sears, broker/co-owner of Sears Real Estate in Springfield.   œHowever, to get back to a more normal market we still need to see more homes for sale than we currently have.   If not, prices will continue to go up to the point where it will impact sales and drive the market back down.  There were 1,896 detached single-family homes sold this January, a 9.1 percent increase from the 1,738 homes sold the same time last year.   On a month-to-month basis, home sales were down 37 percent from 3,010 homes sold this past December.   On a month-to-month basis, it is not uncommon to see large decreases in sales from December to January.      The median selling price for single-family homes in January was $300,000, an increase of 14.1 percent compared to $263,000 in January 2009.   This is the second straight month of year-over-year gains.   On a month-to-month basis, the January median selling price was down 1.6 percent from $305,000 in December 2009.  The January condominium market was up 35.0 percent compared to the same time last year (from 629 units sold in 2009 to 849 units sold in 2010).   On a month-to-month basis, condominium sales were down 31.6 percent compared to the 1,242 units sold this past December.   Similar to single-family market, it is not uncommon to see large decreases in sales from December to January.        Condominium median selling prices in January were up 26.5 percent from $204,000 in 2009 to $257,980 in 2010.   This is the largest monthly year-over-year gain since MAR has been tracking median prices.   On a month-to-month basis, the median selling price of a condominium was up 1.2 percent from a December 2009 median of $255,000.    Inventory and Days on Market: The inventory of single-family homes as of January 31, 2010 decreased 9.0 percent from January 2009 (24,822 listings in 2009 to 22,707 listings in 2010) which translates into 12.0 months of supply in January 2010.   This is down from 14.3 months of supply last year and up from 8.8 months in December 2009.   January supply was at its lowest level since January 2001 and down 33 percent from the January peak of 33,627 homes in 2006.   This is the 22^nd straight month that inventory has gone down compared to the year before.  The condominium market saw January inventory decrease by 12 percent from last year (10,637 listings in 2009 to 9,386 listings in 2010), which translates into 11.1 months of supply, which is down from 16.9 months in January 2009 and up from 5.6 months this past December.   This is the 22^nd straight month that inventory has gone down compared to the year before.  Detached single-family homes stayed on the market an average of 130 days in January 2010 compared to an average of 146 days in January 2009, while condos stayed on the market an average of 144 days, down from an average of 179 days in January 2009.  On a month-to-month basis, days on market for single-family homes were up from 125 days and condos were up from 136 days in December.    About the Massachusetts Association of REALTORS ®: Organized in 1924, the Massachusetts Association of REALTORS ® is a professional trade organization with more than 20,000 members.   The term REALTOR ® is registered as the exclusive designation of members of the National Association of REALTORS ® who subscribe to a strict code of ethics and enjoy continuing education programs.

The Mass Association of Realtors just published some interesting information regarding sales of  properties during this past year.   It is very informative.   I  am hoping that by sharing this with you, you will  visualize the continued growth in the housing market.    

 Massachusetts Association of Realtors2009 Year end Statistics

§   The 10.9% increase in median home prices for both single-family homes and condominiums is the first double-digit increase since 2005.

§   December was the sixth straight month of year-over-year increases.   Momentum continued from record levels in November as buyers began taking advantage of the extended and expanded homebuyer tax credit.

§   With the extension and the expansion of the first-time homebuyer tax credit, now more than just first-time homebuyers have the opportunity to benefit.   Good information at www.marealtor.com

§   Buyers have until April 30, 2010 to sign a P&S (or a legally binding offer to purchase) and then have until June 30 to close to take advantage of the tax credit.

§   While prices are more affordable, they are starting to increase.   Interest rates continue to be low, but the lack of inventory is moving the market from one the favors the buyer, to one that will favor the seller.  IMPORTANT POINTS §   Median prices up double digits for the first time since 2005. §   Single-family homes had their 6th consecutive month of positive year-to-year sales increases. §   Single-family median prices are up $52,500 since the 2009 low of $252,500 in February (20%) §   In 2009, median prices were down as much as 19% (March) compared to the same time last year.   §   December is the 21st straight month that year-over-year inventory has continued to go down.   §   This December had the fewest number of homes for sale since Jan 2001.   There were 24,276 fewer homes for sale today since the all-time high in May 2006 (46,019). §   2009 closed the year up with 4.1% more sales than 2008, but median prices were down 6.8% overall.      

 2009 Year-end Data

 Q4 2009 Data

   REALTOR ®VALUE:
Choice of REALTOR ® continues to be vital in this market.     REALTORS ® remain well-informed about changes in market, consumer attitudes, interest rates and other critical factors.     -                   Real estate is the most important investment for most consumers¦and one where you spend most of your life.     Whether a buyer or seller, finding the right professional is your first and best choice to manage the process.-                   Not all real estate licensees are REALTORS ®.      

-                   The term REALTOR ® is a trademark and is used exclusively to identify members of the National Association of REALTORS ® who subscribe to a strict code of ethics.

Hope this information is helpful.   Be sure to check back often.  

The Plymouth and South Shore Association of Realtors just distributed these facts about how the year  unfolded.   It definately seems as though the market is on an upswing–albeit a slow one.   With the interest rates at the current level and the tax credit which has been extended to current homeowners–what  better time to buy!  

• Sales of single family homes and condos “ up 32% (from 240 sold in December 2008 to 316 sold in December 2009)
• Prices “ Median price up 8.48% (from $303,250 in December 2008 to $329,000 in December 2009)
• Inventory “ down 15.86% (from 2,491 on December 30, 2008 to 2,096 on December 30, 2009)
• Supply “ At the end of December 2008 there was 9.6 months supply at the current rate of sale.   At the end of December 2009, there was 6.6 months supply at the current rate of sale.   The market is considered balanced when there is between 7.5 and 8.5 months of supply.
• Days on Market “ The average days on market for single family homes and condos decreased from 224 days at the end of December 2008 to 218 days at the end of December 2009.
• Pending – The number of single family homes and condos put under agreement in December of 2009 was up 1.92% over the same time the previous year.

   *Based on information provided and compiled by MLS Property Information Network, Inc., covering the periods December 1, 2008 through December 31, 2008 and December 1, 2009 through December 31, 2009

Thanks for reading–

Peggy

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Winter is often considered a relatively slow time of year when it comes to buying and selling real estate. In colder regions, trekking through snow and ice to visit open houses isn™t the way most people tend to spend their free time. Winter weather conditions can also make packing up and moving into a new home more difficult.

But for those who do choose to house-hunt during this time, the market can be a virtual winter wonderland of opportunity.    According to the Plymouth and South Shore Association of Realtors (PASS) winter home shopping offers strong benefits that may ultimately work to a buyer™s advantage.  

œThere is less activity and therefore reduced competition in the winter, Mary Beth Muldowney, President of PASS said. œSerious buyers have more room to negotiate with motivated sellers and have a solid chance at achieving some great deals.  

Another key benefit of winter home buying is less competition for financing, according to Muldowney. œFewer buyers means fewer people looking for loans, she said. œLenders tend to be less busy in the winter so they can often provide more personal attention to the smaller pool of borrowers.    

Colder weather can help buyers determine how well a home is insulated.  If a house is drafty “ a sign it might need new windows or have leaks that will need to be sealed “ buyers may not notice it in the middle of summer.  While inside the house, check to see how high the thermostat is set. If it is set low and the indoor temperature is still comfortable, the house is probably well-insulated and won™t have excessively high heating bills.

Another important incentive to shop during the winter this year is the extended and expanded home buyer tax credit. Current homeowners who buy a new primary residence may qualify for as much as a $6,500 tax credit, and first-time home buyers can qualify for up to $8,000, but buyers must have a signed contract in place by April 30, 2010, and close on the home by June 30, 2010, to receive the credit.

œHomeownership is an investment in your future, and there has never been a better time to be a buyer, Muldowney said. œThere are more reasons than ever to take advantage of slower activity during the winter season and shop for a home. Serious buyers should contact a Realtor ^® to help them start their home search today.

Welcome to Peggy Dinger’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Cohasset.