Real Estate Company is Closing - Victim of Housing Slump
September 27, 2007 | Filed Under Real Estate Trends and Statistics | 1 Comment
Newsday.com reports today that a real estate company in West Long Beach, NJ is closing due to the housing market and cannot operate anymore.
Here is the full article:
WEST LONG BRANCH, N.J. - Foxtons is closing because of the slumping housing market.
The West Long Branch-based real estate company says it’s contemplating bankruptcy protection for an orderly shutdown.
It will lay off 350 of its 380 workers and intends to keep 4,400 listings on the market.
Senior vice president John Blomquist tells The Asbury Park Press the company no longer has the liquidity to operate as a going concern.
Foxtons was founded in 1999 on the principle that consumers shouldn’t pay a 6 percent commission. Agents were paid salaries and customers were charged 2 percent.
The company was sold in 2004 and eventually commissions were raised to motivate agents to show Foxtons’ homes.
A private-equity firm bought it in May.
…I don’t see it happening in Boston in the near future.
Source: Newsday.com: Real estate company closing, victim of housing slump
MAR’s August 2007 Housing Release
September 25, 2007 | Filed Under Real Estate Trends and Statistics, Boston Condos, Boston Real Estate | 1 Comment
The Massachusetts Association of REALTORS® (MAR) reported today that the number of single-family homes sold in August is up 6.6 percent compared to the same time last year, with median sales prices up slightly. Sales of condominiums were up 3.4 percent, with median sales prices up 4.8 percent.
“It is definitely a positive sign to see two consecutive months of year-over-year sales gains to end the summer,” said MAR President
There were 4,700 detached single-family homes sold this August, a 6.6 percent increase over the 4,411 homes sold the same time last year. On a month-to-month basis, there was a 7.7 percent increase compared to the 4,363 homes sold this past July.
The median selling price for single-family homes in August was $357,000, an increase of 1.4 percent compared to $352,000 in August 2006. On a month-to-month basis, the August median selling price is down 2.4% percent compared to July.
The condominium market continues to remain steady with 2,235 units sold this August, a 3.4 percent increase over the same time last year. On a month-to-month basis, condominium sales were up 15.6 percent compared to 1,933 units sold this past July.
The median selling price for condominiums is $291,250 in August, up 4.8 percent over the same time last year ($278,000 in August 2006). Compared to this past July, the median selling price of a condominium is down 0.8 percent (from $293,500). The August median selling price is the third highest level since MAR began tracking median selling prices in 2002.
Inventory and Days on Market:
The inventory of residential properties (detached single-family homes and condos) on the market as of August 31, 2007 decreased 18 percent compared to the same time last year (from 64,735 listings in 2006 to 52,989 listings in 2007). At the current sales pace, this represents approximately 7.9 months of supply, a decrease from 9.9 months of supply in August 2006. This is the seventh straight month that year-over-year inventory levels have gone down. On a month-to-month basis, the average months of supply went down from 8.6 months of supply in July 2007.
The inventory of single-family homes fell 16.0 percent from August 2006 levels (43,928 listings in 2006 to 36,846 listings in 2007) which translates into 8.2 months of supply in August 2007. This is down from 10.0 months of supply the same time last year, and down from 8.6 months of supply in July 2007.
Inventory continues to drop in the condominium market as well. August inventory went down 22 percent to 7.4 months of supply, a decrease from 9.6 months in August 2006 (20,807 listings in 2006 to 16,143 listings in 2007) and down from 8.6 months this past July. It is considered a balanced market when there is between 7.5 and 8.5 months of available housing supply.
Detached single-family homes stayed on the market an average of 127 days in August 2007 compared to an average of 114 days in August 2006, while condos stayed on the market an average of 124 days compared to 106 days in August 2006.
Sales and price data from the MAR report reflects transactions occurring through REALTOR®-affiliated multiple listing services in the Commonwealth, and account for approximately 80 percent of all real estate sales in
IBM Leases 490,000 SF Outside Boston
September 16, 2007 | Filed Under Commercial Real Estate, Boston Real Estate | Leave a Comment
Computer giant IBM has signed a 490,000-square-foot lease to completely occupy the newly renovated Littleton Corporate Center, a two-building interconnected office complex in suburban Boston.
National Development of Massachusetts and New York-based Angelo Gordon & Co. acquired the complex last April from Hewlett-Packard Co. for $25.5 million. The venture began a full-scale renovation earlier in the year that includes all-new lobbies, entry points, elevators and energy efficient building systems and upgraded parking areas.
The renovations are expected to finish this month. IBM will take occupancy on a long-term lease beginning next summer.
The complex sits on 39 acres at 550 King St. in Littleton, MA, northwest of Boston. The three-story buildings were developed in 1984 and are comprised of 270,810 square feet and 215,130 square feet.
Torin Taylor and Richard Ruggiero of Cushman & Wakefield represented ownership, while Matt Dwyer and Flory McCarthy of Jones Lang LaSalle represented the IBM.
Source: Deena Dietrich for CoStar
Forclosure rate and expectations
September 6, 2007 | Filed Under Mortgage and Finance | 1 Comment
According to AP, foreclosures and the delinquency rate (which tracks the number of homeowners behind on their payments but not yet in foreclosure) recently rose to record highs due to the problems with subprime mortgage rates (see article). Welcome to the world of adjustable rate mortgages. Creative financing with adjustable rate mortgages can be tricky. Creative financing can be smart if you have the money to put down but would rather invest it elsewhere, or you are a medical resident and expect a large pay increase in the next year or two. However, many people took adjustable rate mortgages in the past few years because they couldn’t afford the record low mortgage rates being offered. Bad move. If you took creative financing because you couldn’t afford a 30-year fixed rate of say, 5.8%…honey, you couldn’t afford the house. With millions of adjustable rate mortgages scheduled to reset this year, you may be one of many Americans facing foreclosure.
For all of you Boston buyers out there waiting to pounce and swoop up forclosure and pre-forclosure properties at discounted rates, get ready to be disappointed. Just because foreclosure rates are up nationwide doesn’t mean you will find anything in Boston’s prime neighborhoods. In fact, you probably have more chances to find a bidding war than financially distressed sellers in Back Bay, Beacon Hill or Downtown.
This is a great site to look for Mortgage Rates and Foreclosures.
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