According to the January 28 issue of Banker & Tradesman, there were 50,435 home sale transactions in Massachusetts in 2007, down 8% from 2006 levels, and the lowest annual figure since 1992.
Median sale prices statewide also dropped, from $325,000 in 2006 to $310,000 last year. The median price in 2007 was 10% below peak levels, which reached a record $345,000 in 2005.
As you review these figures, it's important to note that these are for the entire state of Massachusetts, and that there is WIDE variation from region to region and even from town to town.
Bristol and Plymouth Counties were particularly hard hit last year, with total sales declining by more than 10% and median prices falling approximately 8%. In Norfolk County, however, sales fell by less than 5% and the median price dropped 3%.
To learn more about the current market conditions in your town, contact Shep, Bob, or Florence at 781-767-5550. We'd be happy to answer any questions you have.
Wednesday, January 30, 2008
Friday, January 25, 2008
Boston Market Better Off than Most?
At least one analyst thinks the Boston housing market is better positioned for a recovery than other areas of the country, according to an article in the January 21 Banker & Tradesman.
Economist Robert Denk predicts that income growth and low unemployment will help the Boston market rebound. "The key fundadmental drivers for housing are income, employment, and population," Denk said. "If you're not doing disastrously bad on any of those points, then you're going to have a solid housing market."
According to Denk, the markets that will struggle the most are those that saw extreme price growth in short amounts of time, as well as heavy sub-prime lending, such as California, Florida, Las Vegas, and Phoenix. While the Boston area did see a sharp increase in prices over the last decade, those increases still pale in comparison to other areas of the country, which experienced gains of up to 20% PER YEAR.
Denk also cautioned against paying too much attention to national real estate trends and statistcs. "What's going in national trends is important, and it's valuable, and it's meaningful, but it's not always going to help people in the local markets to really understand what's going on there."
If you're thinking of buying or selling on the South Shore in 2008, give The Stikeleather Team a call. We'd be happy to meet with you to discuss what's happening right now in our local market, and to answer any other questions you may have.
Economist Robert Denk predicts that income growth and low unemployment will help the Boston market rebound. "The key fundadmental drivers for housing are income, employment, and population," Denk said. "If you're not doing disastrously bad on any of those points, then you're going to have a solid housing market."
According to Denk, the markets that will struggle the most are those that saw extreme price growth in short amounts of time, as well as heavy sub-prime lending, such as California, Florida, Las Vegas, and Phoenix. While the Boston area did see a sharp increase in prices over the last decade, those increases still pale in comparison to other areas of the country, which experienced gains of up to 20% PER YEAR.
Denk also cautioned against paying too much attention to national real estate trends and statistcs. "What's going in national trends is important, and it's valuable, and it's meaningful, but it's not always going to help people in the local markets to really understand what's going on there."
If you're thinking of buying or selling on the South Shore in 2008, give The Stikeleather Team a call. We'd be happy to meet with you to discuss what's happening right now in our local market, and to answer any other questions you may have.
Friday, January 18, 2008
Final 2007 Numbers Are In
Here are the final 2007 sales figures for various local towns as reported in the January 14 issue of Banker & Tradesman. Data is for single-family homes only.
Median Sale Price
Abington - $290,500 (-6% from 2006)
Avon - $267,500 (-9%)
Braintree - $355,000 (-4%)
Brockton - $223,000 (-17%)
Holbrook - $266,000 (-12%)
Randolph - $282,000 (-12%)
Weymouth - $310,550 (-6%)
Total Number of Sales
Abington - 115 (-4%)
Avon - 44 (-12%)
Braintree - 288 (-15%)
Brockton - 641 (-30%)
Holbrook - 103 (-31%)
Randolph - 275 (-26%)
Weymouth - 444 (-10%)
As you can see, every town saw a decline in both the median sale price AND the total number of homes sold. Our hometown of Holbrook was particularly hard hit, with prices down 12% and the total number of sales down 31%.
Median Sale Price
Abington - $290,500 (-6% from 2006)
Avon - $267,500 (-9%)
Braintree - $355,000 (-4%)
Brockton - $223,000 (-17%)
Holbrook - $266,000 (-12%)
Randolph - $282,000 (-12%)
Weymouth - $310,550 (-6%)
Total Number of Sales
Abington - 115 (-4%)
Avon - 44 (-12%)
Braintree - 288 (-15%)
Brockton - 641 (-30%)
Holbrook - 103 (-31%)
Randolph - 275 (-26%)
Weymouth - 444 (-10%)
As you can see, every town saw a decline in both the median sale price AND the total number of homes sold. Our hometown of Holbrook was particularly hard hit, with prices down 12% and the total number of sales down 31%.
Friday, January 11, 2008
Great Rates!
Mortgate rates are at their lowest point in more than two years, according to bankrate.com. The average rate in the US for a 30-year fixed rate mortgage dropped to 5.88% this week, the lowest it's been since September 2005.
If you're in the market for a new home, now is a GREAT time to buy. Rates are low, and you'll have plenty of properties to choose from. The only trick is making sure you qualify for a loan. According to one estimate, 60% of buyers who got mortgages last year couldn't qualify for those same loans today, thanks to tighter lending and appraisal standards in the mortgage industry.
If you're in the market for a new home, now is a GREAT time to buy. Rates are low, and you'll have plenty of properties to choose from. The only trick is making sure you qualify for a loan. According to one estimate, 60% of buyers who got mortgages last year couldn't qualify for those same loans today, thanks to tighter lending and appraisal standards in the mortgage industry.
Tuesday, January 8, 2008
Looking Ahead
What's the real estate forecast for 2008? According to Banker & Tradesman (a weekly newspaper that focuses on the Massachusetts real estate market), it's mixed.
In a January 7 article, B&T reported that "those hoping for a housing market recovery in 2008 may be disappointed." A particular area of concern is steadily increasing foreclosure activity, which increases the supply of available homes, and puts additional downward pressure on prices.
In the same article, however, the head of the Massachusetts of Association of Realtors (MAR) was quoted as saying "the Massachusetts market has good underpinnings and is poised to recover." Officially, MAR projects that 2008 sales and prices will be about the same as they were in 2007.
How accurate are these projections? Well, let's just say that if anyone could REALLY predict what the real estate market would look like in 6, 12, or 24 months, they'd be very rich and living on an island in the Caribbean already.
From our vantagepoint, we are already seeing more activity this winter (in terms of showing appointments, offers, and actual sales) than is typical for December and January. Prices aren't increasing (yet), but as more buyers decide that it is finally time to buy, they should begin to stabilize.
Stay tuned...
In a January 7 article, B&T reported that "those hoping for a housing market recovery in 2008 may be disappointed." A particular area of concern is steadily increasing foreclosure activity, which increases the supply of available homes, and puts additional downward pressure on prices.
In the same article, however, the head of the Massachusetts of Association of Realtors (MAR) was quoted as saying "the Massachusetts market has good underpinnings and is poised to recover." Officially, MAR projects that 2008 sales and prices will be about the same as they were in 2007.
How accurate are these projections? Well, let's just say that if anyone could REALLY predict what the real estate market would look like in 6, 12, or 24 months, they'd be very rich and living on an island in the Caribbean already.
From our vantagepoint, we are already seeing more activity this winter (in terms of showing appointments, offers, and actual sales) than is typical for December and January. Prices aren't increasing (yet), but as more buyers decide that it is finally time to buy, they should begin to stabilize.
Stay tuned...
Friday, January 4, 2008
The Year in Review
How was the local real estate market in 2007? That depends on who you ask.
If you were selling a home, 2007 was a challenging year. Sale prices were down. Average time on market was up. And the total number of homes sold was down. For buyers, however, 2007 meant lots of properties to choose from, more affordable prices, and mortgage interest rates near historic lows.
So, if 2007 was such a "Buyer's Market", why weren't more people buying? Some buyers seem to be waiting for prices to drop even further, while others have discovered that tighter mortgage rules mean they can no longer qualify for the loan they need - either because their income or credit scores are too low. or they do not have enough saved for a down payment. (We'll post more on the mortgage mess in the coming weeks.)
No matter how you slice the data, 2007 was a down year for real estate sales. Here's a quick look at the 2007 median sale price in several local communities, and how that figure compares to 2006:
Avon - $290,500 (-7.8% from 2006)
Braintree - $367,500 (-3.3%)
Brockton - $245,00 (-10.9%)
Holbrook - $285,900 (-7.5%)
Randolph - $303,000 (-7.9%)
Weymouth - $330,000 (-1.5%)
It's also important to keep in mind that sale prices are only part of the picture. In Holbrook, for example, there were only 92 single family homes sold in 2007, down from 119 in 2006. As a result, TOTAL market volume in Holbrook fell 27% from 2006 to 2007.
(All data in this section is from the Multiple Listing Service Property Information Network (MLSPIN) and is for single-family homes only.)
If you were selling a home, 2007 was a challenging year. Sale prices were down. Average time on market was up. And the total number of homes sold was down. For buyers, however, 2007 meant lots of properties to choose from, more affordable prices, and mortgage interest rates near historic lows.
So, if 2007 was such a "Buyer's Market", why weren't more people buying? Some buyers seem to be waiting for prices to drop even further, while others have discovered that tighter mortgage rules mean they can no longer qualify for the loan they need - either because their income or credit scores are too low. or they do not have enough saved for a down payment. (We'll post more on the mortgage mess in the coming weeks.)
No matter how you slice the data, 2007 was a down year for real estate sales. Here's a quick look at the 2007 median sale price in several local communities, and how that figure compares to 2006:
Avon - $290,500 (-7.8% from 2006)
Braintree - $367,500 (-3.3%)
Brockton - $245,00 (-10.9%)
Holbrook - $285,900 (-7.5%)
Randolph - $303,000 (-7.9%)
Weymouth - $330,000 (-1.5%)
It's also important to keep in mind that sale prices are only part of the picture. In Holbrook, for example, there were only 92 single family homes sold in 2007, down from 119 in 2006. As a result, TOTAL market volume in Holbrook fell 27% from 2006 to 2007.
(All data in this section is from the Multiple Listing Service Property Information Network (MLSPIN) and is for single-family homes only.)
Thursday, January 3, 2008
Happy New Year!
And welcome to The Stike Report - the official "blog" of Stikeleather Real Estate.
One of our resolutions for 2008 is to improve our Internet presence, through our own website (www.stikehomes.com), email newsletters, and this blog, which will provide up-to-the-minute information about news and trends in the Boston-area real estate market, and more specifically in Holbrook and around the South Shore.
Check back often, and feel free to pass along this link to anyone else you think might be interested. And if you have any comments or questions, feel free to post them here.
Happy New Year, and best wishes for a prosperous 2008!
One of our resolutions for 2008 is to improve our Internet presence, through our own website (www.stikehomes.com), email newsletters, and this blog, which will provide up-to-the-minute information about news and trends in the Boston-area real estate market, and more specifically in Holbrook and around the South Shore.
Check back often, and feel free to pass along this link to anyone else you think might be interested. And if you have any comments or questions, feel free to post them here.
Happy New Year, and best wishes for a prosperous 2008!
Subscribe to:
Posts (Atom)
