Milton, Mass. made it to CNN Money’s top 10 Best Places to live
May 9, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Real Estate Investment, Boston Real Estate | Leave a Comment
As every year, CNN Money prepares a list of the 100 best places to live in the US. This year’s list focused on smaller places that offered the best combination of economic opportunity, good schools, safe streets, things to do and a real sense of community.
Milton, MA made it to number 7 in the prestigious list, and this is why: “Just eight miles south of the heart of Boston, Milton borders the Blue Hills Reservation, a 7,000-acre park with hiking, swimming and skiing. Proximity to the city is what brings - and keeps - Milton residents where they are. Its loyal citizens do age, but even then they don’t move.”
CNN Money: 10 Markets Set For Steep Losses
May 9, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Real Estate Investment | Leave a Comment
The worst isn’t over for Miami, Phoenix, and hard hit areas of California, which are forecast to see big price drops in the next 12 months, according to Money Magazine. Here are the top 3:
Miami, FL: -29.9%
Fort Lauderdale, FL: -22.2%
Orland, FL: -20%
Boston was not on the list…
Some Housing Markets Show Improvement: Report
April 5, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Boston Real Estate | Leave a Comment
While most U.S. cities posted home price declines in January compared to a year ago, some markets are faring better, according to the latest housing market report by Radar Logic, a real estate data and analytics company. Of the 25 Metropolitan Statistical Areas (MSAs) examined, only two cities — Charlotte, N.C. and New York City — showed year-over-year appreciation with 3.9 percent and 2.0 percent, respectively. Milwaukee and Philadelphia posted virtually no change for the year, while Seattle (-1.4 percent) showed year-over-year depreciation for the first time. While 21 of the 25 MSAs showed declines compared to a year ago, nine posted returns above or equal to those recorded in December 2007.
The MSAs with the largest year-over-year depreciation in January were markets that experienced high appreciation rates during the housing boom: Sacramento, Calif. (-27.8 percent); Las Vegas (-25.4 percent); San Diego (-21.2 percent); Los Angeles (-16.6 percent); and Tampa, Fla. (-15.6 percent).
The study also showed that many MSAs posted impressive appreciation rates compared to five years ago. Leading cities were Miami (10.4 percent); Seattle (9.4 percent); Washington D.C. (9.1 percent); New York (9.0 percent); and Los Angeles (8.6 percent).
According to the report, Boston is now among the trailing metro areas.
Louisiana Home to Fastest-Growing Counties
March 23, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Real Estate Investment | 1 Comment
Two Louisiana parishes were the nation’s fastest-growing counties in 2007, according to recent population estimates by the U.S. Census Bureau. St. Bernard County, which led the nation in population loss after Hurricane Katrina in 2005, saw its population increase 42.9 percent from July 2006 to July 2007. Orleans county, also hit by Katrina, rose 13.8 percent in the same period. Nine of the top ten fastest-growing counties were located in the South or West.
Of the ten counties that had the greatest numerical increase in population, half were in Texas, two were in North Carolina, one was in California and one was in Nevada. Maricopa County, Ariz. led the pack with an increase of 102,000 residents between 2006 and 2007.
Although the population in Los Angeles County decreased by 2,000 from 2006, it remained the nation’s most populous county with 9.9 million people.
Fed cuts rates by 3/4 of a point
March 18, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Real Estate Investment, Mortgage and Finance, Boston Real Estate | Leave a Comment
The Fed threw in a change-up today, instead of its usual fastball. While the Fed funds futures market was pricing in a 94 percent probability of a 100 basis point cut today, the FOMC instead settled on a less aggressive 75 basis point cut in the Fed funds rate. Today’s action brings the Fed Funds target rate down to 2.25 percent, three percentage points lower than where it was last August. The real Fed funds rate, which adjusts for current inflation, is at a negative 1.75 percent — a highly accommodative monetary policy stance. The Fed concurrently cut the discount rate 75 basis points, bringing that borrowing rate down to 2.5 percent.
The Fed wanted to remind the market today that they are in charge of monetary policy and not the Fed funds futures market. The Fed is subtly trying to reassert itself and disabuse the markets that whatever it asks for it gets.
It is also clear that there is increasing concern among some on the FOMC that free-wheeling rate cuts are creating a significant problem with the Fed goal of anchoring inflation expectations. There were two votes against. Both Plosser and Fisher wanted less aggressive action. Every time the Fed cuts rates the U.S. dollar takes it on the chin, threatening higher import and price inflation. Moreover, record oil and gold prices seem at odds with a deflationary spiral scenario that would warrant a one-percentage point or lower Fed funds rate.
The Fed is hoping that its efforts to restore market liquidity and ease the credit crunch through more direct measures such as the TAF, TSLF and Discount window will mitigate the need for the Fed to continue to pull its most powerful, but bluntest monetary policy leaver, the Fed funds target rate.
Bottom-line: the Fed is still open to further rate cuts if the economic and credit outlook continues to deteriorate, but we are much closer to an end point on Fed easing than we were at the start of the year. We expect the Fed to cut again in April, bringing the Fed funds target rate to 2.0 percent, though beyond that there will need to be more signs that the economic and financial downturn is still intensifying and that unemployment is rising rapidly.
How Bad Is The Housing Market ‘Crisis?’
March 8, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Boston Real Estate | 4 Comments
It seems no one can avoid the negative news surrounding the real estate industry. But is the housing market really as bad as people think?
After analyzing recent foreclosure numbers from RealtyTrac and information from various government agencies, Bankrate.com and MSN Money personal finance columnist Scott Burns both conclude that the data offers some reassuring news. The national foreclosure rate did climb 79 percent between December 2006 and December 2007, with foreclosures affecting 1.2 million properties last year. But that’s less than 1 percent of all U.S. households, which number approximately 128 million, Bankrate.com reports.
Burns notes that in the top 100 housing markets, the foreclosure rate is slightly higher at 1.38 percent. But if you rank-ordered the top 100 housing markets, only 34 had foreclosure rates above the group average and 51 areas had rates of 1 percent or less.
Some analysts have warned that the number of adjustable-rate mortgages (ARMs) that are scheduled to reset this year or next year could have a big impact on the overall housing market. Bankrate.com reports that the problem will not be widespread. Approximately 1.3 million of the 3.7 million prime ARMs (35 percent) and 2 million of the 2.1 million subprime ARMs (92 percent) are scheduled to reset this year or next year. But the total number of ARM resets amounts to only 3.3 million loans, affecting just 2.6 percent of U.S. households.
In our 2007 Year End Boston Real Estate Market Report we saw a value increase in the Boston market, especially in Boston’s prime neighborhoods Back Bay, Beacon Hill, South End and Downtown.
Q4 Home Sales, Prices Fall, But 73 Cities Post Gains
February 16, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Boston Condos, Boston Real Estate | Leave a Comment
Sales of existing single-family homes and condos fell 20.9 percent during the fourth quarter of 2007, to a seasonally adjusted annual rate of 4.96 million units compared to a year ago, according to NAR. The national median sale price of an existing single-family home was $206,200 in the fourth quarter, down 5.8 percent from the previous year when the median price was $219,000. Median sale prices fell in the fourth quarter in all four U.S. regions, with declines of 3.2 percent in the Midwest; 4.8 percent in the Northeast; 5.4 percent in the South; and 8.7 percent in the West.
Still, of the 150 metro areas covered in NAR’s survey, 73 showed price gains, including 11 with double-digit increases. Seventy-seven had price declines, including 16 with double-digit drops.
Boston, according to the “Median Sales Price for Existing Condos - Coops Homes for Metropolitan Areas” survey, increased 2.4% from last year. San Fransisco increased 2.7%, Providence increased 3.6% and Chicago increased 6.4%. New York decreased 2.9%, Miami decreased 6%, Los Angeles decreased 9.7% and Las Vegas decreased 10.3%.
Source: NAR
U.S. Is Top Global Market For Foreign Investment
February 9, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Real Estate Investment, Boston Real Estate | 2 Comments
The United States was ranked the top global property market among foreign investors, but Asia is close behind, according to a new survey by the Association of Foreign Investors in Real Estate (AFIRE). China ranked second behind the U.S. for the second time in three years, and the gap between the two countries narrowed from 27 percent in 2005 to less than 5 percent in 2007.
The U.S. was also considered the most stable and secure for real estate investments by 56 percent of those surveyed, followed by Germany, the United Kingdom, Australia and Japan. New York City and Washington, D.C. were ranked the top two global cities for foreign investors’ real estate dollars, followed by London, Paris and Shanghai.
Other significant changes in 2007 where:
- Singapore, up to 6th place (tied with Tokyo) from 24th place in 2006
- Sydney, up to 9th place from 15th place in 2006
- Hong Kong, up to 10th place from 11th place in 2006
Top U.S. cities are:
- New York
- Washington DC
- Los Angeles
- San Fransisco
- Seattle
Boston was not mentioned in this survey.
Source: AFIRE
NAR Forecasts Housing Downturn to Continue in 2008
February 9, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics | Leave a Comment
Sales activity in the housing market will continue to be soft in the months ahead but should gradually improve during the second half of 2008, especially if loan limits are increased, NAR reports in its latest forecast. Sales of existing homes are projected to be at a pace of 4.9 million in the first half of the year and rise to 5.8 million in the second half before leveling off to 5.60 million for all of 2009. Existing-home sales totaled 5.65 million in 2007. Existing-home prices are expected to fall 1.2 percent in 2008 to $216,300 and rise 3.2 percent to $223,200 in 2009. National median existing-home prices fell 1.4 percent in 2007.
NAR also projects new-home sales to decline 17.7 percent in 2008 to 637,000 and then climb 7.6 percent to 685,000 in 2009. The median price of new homes is expected to fall 4.3 percent to $236,300 in 2008 and then increase 5.0 percent in 2009.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in December, slipped 1.5 percent compared to the prior month and was 24.2 percent below December 2006. The index rose in the Midwest by 3.4 percent but was 17.3 percent below a year ago. But the index fell in the other three regions. In the South, it fell 3.0 percent in December (27.0 percent below a year ago); in the Northeast, it slipped 1.7 percent (26.0 percent below December 2006); and in the West, it fell 3.1 percent (24.1 percent below a year ago).
Lawrence Yun, NAR’s chief economist, says higher loan limits for conventional mortgages could have a positive impact on sales. “If higher limits are enacted very quickly, we’ll see a faster and more meaningful recovery by expanding safe, affordable financing in high-cost areas — that, in turn, would help to stimulate overall economic activity.”
On low-balling. News from the front.
February 6, 2008 | Filed Under Real Estate Trends and Statistics, Real Estate Investment, Boston Condos, Boston Real Estate | 1 Comment
As a real estate professional watching the Suze Orman show the other night, I was disturbed to hear Suze encouraging buyers to put in low-ball offers due to the market. Now, I usually agree with most of what Suze has to say, but real estate is local and she often seems to forget that.
As a Boston real estate agent living everyday on the front lines of Boston’s real estate market, my perspective is somewhat different. First off, the Boston market has seen a slowdown, but even though fewer properties are selling, the median price continues to rise in Boston’s prime neighborhoods. Sellers also understand that if they really want to sell, they will need to price their home competitively and make sure it “shows” well. By offering a low-ball of 10-20 percent on a correctly priced home, the buyer is doing a disservice to his or herself and is most likely to get a flat “NO”. The buyer will need to either wait a good three months or come back with a higher price…a negative negotiating position. You don’t want to move twice while the other party hasn’t budged; it shows your cards.
I have seen buyer after buyer lose properties this way in the past few months. I have seen buyers shocked as their bid is not only rejected, but another competing bid is accepted within days. In order to understand if a low-ball offer is a good idea, speak with your buyer’s agent. If he or she is an Accredited Buyer’s Representative, the agent should be able to tell you if the home is competitively priced for the value, or if it is a good idea to low-ball.
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