Salem, MA

Salem MA Real Estate Homes Sold Report for 2010 Quarter 2

Salem Massachusetts Single Family Home Sales

The Salem, MA 2nd quarter homes sold report indicates that there were 34 homes sold in Q2 2010 as compared to 48 in 2009. This represents a 29% decrease in the number of homes sold. The average sales price changed from $309217 in 2009 to $291325 in 2010, a 6% decrease in value. The days on market changed -14 % from 129 to 111.

Go to the Salem MA Q2 2010 homes and condos sold report to compare the changes in market conditions.

Visit Salem MA real estate for information about the community, relocation, demographics, MLS search, home buying and selling guides.

Go to Salem MA homes for sale to view current listings of homes, condos, multi-family and land listings.

The Salem MA homes sold Q2 2010 report was compiled by Virtual Homes Real Estate. The data was extracted from the MA MLS (MLSPin) and is not guaranteed to be accurate.

Good Mexican food is hard to find on the North Shore, No Longer! The Howling Wolf Taqueria located across Derby Street from the Central Fire Station is a needed and great addition to Salem's growing selection of "to-die-for" restaurants. This amazing eatery has an upbeat atmosphere with lots of bright colors, high ceilings, paintings, great music and friendly service.

It's a perfect Mexican South West style taqueria with no tablecloths, self service, and great prices. A Carne Deshebrada Burrito (shredded beef in a spicy tomato sauce) comes with rice, beans, cheese and a choice of salsas all for only $6.75 and that price certainly should leave room in your budget for one of their great white sangrias. The Green Chile Chicken Stew also for $6.75 is a huge bowl-full perfect to take the chill off a cool evening and warm your belly, click here to check out their delicious menu.

The open space has a small full service bar at one end great for socializing and grabbing a beer or glass of wine with friends. At the other end of the room is where all the great food is prepared and served, in the middle just pull up a chair at a table with your meal and refreshment and you are on your way to a wonderful Mexican South West style experience.

They are open daily until 11:00pm except Sundays when they are open until 10:00pm
To-Go Orders call 978-744-9653

John R. Crosby, Realtor

Real Property, Inc.
19 Linden St., Marblehead, MA 01945
781-479-4177 phone & fax
John@MoveWithCrosby.com

Salem MA market stats for condominium home sales as of 9/30/2010 shows the median sale price stabilizing but the overall sales volume declining in year to year quarterly comparisons.

As both a residential real estate appraiser and broker in the Salem market area I enjoy crunching the numbers to keep on top of the local market trends. Recently I've anxiously been waiting to analyze the 1st quarter data since the end of the home buyer tax incentives on 6/30/2010 for the condominium market here in Salem (zip code 01970).

According to MLSPIN in the Salem Zip Code 01970 all condominium sales are as follows:

• July 1, 2010 to Sept. 30, 2010 - 48 sales, sale priced $40,000. to $525,000., avg. list price $233,712., avg. sale price $224,122., avg. days on market 160.33.
• July 1, 2009 to Sept. 30, 2009 - 71 sales, sale priced $25,000. to $345,000., avg. list price $238,235., avg. sale price $227,519., avg. days on market 113.01.

After reviewing the data and comparing the 2010 to the 2009 quarters are my following observations:

• The median condo. price in Salem rose a modest 1.33% from $226,000. to $229,000. - Good News!
• The average list to sale price per cent ratio rose modestly from 95.5% to 95.9% - Good News!
• The average days on market increased substantially from 113.01 days to 160.33 days - Not Good News.
• There was an approximate 32.4% decline in sales volume from 71 sales to 48 sales - Not Good News.
• As of 9/30/2010 there were 178 condo listings active on the market in MLSPIN or approximately 11.125 months of inventory on the market - Great News for Buyers - Not Good News for Sellers.

My observations are food for thought and discussion. Did the end of the home buyer tax credit have an effect on the Salem condominium market? Where is the Salem home market trending? Time will tell.

John R. Crosby, Realtor - Real Property, Inc. - Marblehead, MA 01945 - www.RealProInc.com - John@RealProInc.com - 781-639-1155

Massachusetts Certified Residential Real Estate Appraiser #1048

Salem MA market stats for single family home sales as of 9/30/2010 show good and not good news in year to year quarterly comparisons.

As a residential real estate appraiser and broker in the Salem market area I love to crunch the numbers to keep abreast of our market trends. I've anxiously been waiting to analyze the 1st quarter market data since the end of the home buyer tax incentives for the single family home market here in Salem (zip code 01970).

According to MLSPIN in the Salem Zip Code 01970 all single family sales are as follows:

• July 1, 2010 to Sept. 30, 2010 - 31 sales, sale priced $74,000. to $836,500., avg. list price $369,739., avg. sale price $353,226., avg. days on market 112.35.
• July 1, 2009 to Sept. 30, 2009 - 61 sales, sale priced $85,000. to $825,000., avg. list price $317,820., avg. sale price $308,580., avg. days on market 75.44.

After reviewing the data and comparing the 2010 to the 2009 quarters are my following observations:

• The median single family sale price in Salem increased approximately 19.65% from $285,000. to $341,000. - Very Good News!
• The average list to sale price per cent ratio declined from 97.09% to 95.53% - So-So News.
• The average days on market increased by 36.91 days - Over 1 month longer, Not Good News!
• There was an approximate 49.2% decline in sales volume from 61 sales to 31 sales - Not Good News!
• As of 9/30/2010 there were 106 single family listings active on the market in MLSPIN or approximately 10.26 months of inventory on the market - Not Good News!

My observations are food for thought and discussion. Did the end of the home buyer tax credit have an effect on the Salem single family home market? Where is the Salem single family home market trending? Time will tell.

John R. Crosby, Realtor - Real Property, Inc. - Marblehead, MA 01945 - www.RealProInc.com - John@RealProInc.com - 781-639-1155

Salem MA Short Sales - Pre-foreclosure Purchase

As a home buyer looking for value in the purchase of real estate you may consider a Salem MA short salee as a viable option. Buying a short sale is a difficult and often a frustrating process and should not be confused with a foreclosure. To have success, hire experienced professionals that understand all aspects of the transaction. Utilize the services of Realtors, attorneys, accountants, mortgage lenders and home inspectors as they all provide expert advice.

A Salem Short Sale Defined

Homeowners that have financial hardships may pursue a short sale prior to foreclosure. The property value is less than the outstanding liens on the property (mortgages and insurance premiums) and the homeowner does not have sufficient resources to pay the difference. Negotiating a short sale may be a preferable option to preserve their credit and limit their debt exposure. If approved by the lender(s) they are willing to accept less than what is owed to them.

Massachusetts law often presents the lender with incentives to offer the homeowner other alternatives. The foreclosure process takes time and money and may prove to be more costly to the lender. Under the Home Affordable Foreclosure Alternative (HAFA) offered in 2010 by the Treasury Department, lenders and homeowners have additional incentives to consider a short sale. Buyers also benefit as the Salem MA short sale listing may have been pre-approved and will allow for a more typical negotiation and transaction.

The first step to a successful Salem MA short sale transaction requires the negotiation of an acceptable contract with the Seller subject to lender approval with no guarantees that your offer will be approved. If the contract is not approved by the lender then the Seller may not have sufficient time to sell to another party and avoid foreclosure. The following tips will increase your chances of negotiating a successful Salem MA short sale transaction:

You Must be Credit Approved

As a home buyer you must provide evidence that you qualify to purchase the property. The Seller is not likely to accept your offer without a valid credit approval as the lender will not grant approval. Get pre-approved from a reputable lender or if a cash buyer provide proof of funds. The approval must not contain conditions such as selling an existing property as this is an issue for the lender.

Finding Salem Listings That Qualify

Homeowners in financial distress typically have a limited amount of time to find a qualified buyer. If they have not connected with their lender(s) and started the process, there may not be sufficient time to affect a sale. Consider all Salem MA real estate listings and surrounding communities. As your real estate agent, I can identify properties that you may consider. Information I will obtain includes:

• Is the seller's short sale package prepared for submission to the lender?
• Does the property have multiple liens? If more than one, what are they?
• Is there a plan to obtain releases from all the lien-holders?

If you pursue a property that is not "short sale ready" you may be restricted from buying other properties of interest. A Salem MA short sale may not be your best option so consider all listing availabe at Salem MA homes for sale.

Offer and Acceptance by the Seller

The first step is to negotiate a contract with the Seller and you will be competing against other buyers. Some real estate agents market the property substantially below market value to entice buyers. Others price the property at the bottom of fair market value. Price, terms and your qualifications will be the deciding factors for Seller acceptance. Sellers and lenders prefer offers with fewer contingencies.

1. Your Deposit - Sellers will not be likely to accept your offer with a low deposit. A buyer that has little to lose can easily pursue another property and "walk away". To demonstrate good faith offer the Seller a strong deposit.
2. Home Inspection - It is customary to conduct the home inspection prior to submitting to the lender. A seller can't take the risk of allowing the inspection after lender approval. The buyer can easily "walk" from the home inspection and lenders normally will not approve them.
3. Flexible Closing Date - Lenders often approve short sales with quick closings. You must be prepared to comply if you want to consummate the sale.
4. Subsequent Offers -As a rule, real estate agents must present all offers. A contract with a higher sales price may have a better chance of being approved by the lender. The lender will give the Seller direction as to submitting additional offers and in most cases they will be treated as back-up offers. In addition, arrange for your lender to lock your interest rate for your mortgage so that you qualify whenever the closing is required.

Lender Approval

Lenders have no set formula for determining the value of the property other than to substantiate values through due diligence. However, Freddie Mac (one of the largest secondary market lenders) has a value range of 88% of one or more broker price opinions (BOP). Have realistic expectations of the time-frame for approval as it may take between 30-180 days and property values can change.

If the lender and the Seller are participating in the HAFA program, these timelines will be streamlined for a quicker response. Once the homeowner has started the process, the documents for lender approval may have already been reviewed and a projected selling price established. Many Salem MA foreclosures are the result of an unsuccessful short sale.

If you are interested in pursuing a Salem MA short sale or other listings currently on the market, please contact Virtual Homes Real Estate at 800-856-2479.