Catherine Hamilton, MBA, Realtor

Just when I thought I could I knew how to read the market, things change. Although Cambridge has been one of those fortunate areas that have seen property prices holding somewhat steady. I had been telling my buyers, that they surely have an advantage in this market. After doing some research on home sales in comparison to last year, I realize that it isn't the case.

Yes the media has been saying, there is so much demand and foreclosures that have hit the market have for many areas of Massachusetts have taken their toll on prices. But when you look at how much inventory is active on the market at this point in time. You can clearly see that the market is really changing in Cambridge. What may have sold in the past 12 months is far from what is selling now. We may have had 4 - 5 months of inventory in the last 12 months in these price ranges, but now we have at the most 2 months of inventory. Demand is high because buyers are looking closely for value.

So why could it be a great time to sell now? Well here are a few reasons that seem to resonate with some savvy sellers in Cambridge.

• Less inventory can equal more attention to your home on the market
• Less competition can mean more focus on your style of home and its features
• Lots of qualified buyers can often mean, more offers coming
• Low interest rates can also mean that if you’re trading up, now is the time to sell and get into a bigger home

The reason all this information is important is that when I go on listing appointments now I have lots of ammunition to present sellers on why they need to move fast. Last weekend our office had more than 300 buyers attend our Open Houses. So many buyers with so little inventory, can easily translate into multiple offers for any well-priced home on the market.

So now you know...

I just saw information on Realtor.com regarding historic low rates for mortages. Everyone has been saying that now is the time to buy and it is really really true. With interest rates at their lowest in several years and the inventory being priced now at the most attractive for homes to sell, this is truly a buyers market. Sellers should not feel that their home's value will be lost, homes that are priced competitvely can move quickly because true gems don't stay on the market long. Homes that are priced too high for the area will increase days on market. My advice to my buyers is now is the time to really start looking, don't wait for the spring market because the rates may not support your search.

Here is what I found on Realtor.com

30-Year Rates Fall Below 5 Percent
Mortgage rates dropped to their 11^th straight weekly decline, reaching new record lows, according to Freddie Mac.

Interest rates on 30-year, fixed rate mortgages averaged 4.96 percent this week, down from a previous week's 5.01 percent.

The low rates have caused a spike in home refinancing loans and a welcome relief to cash-strapped home owners facing a slowing economy and rising unemployment rates.

"The fact that interest rates have dropped to a record low is an important development since more affordable home financing could help bring buyers back to the market and prevent some of these foreclosures," says Lawrence White, professor of economics at New York University's Stern School of Business.

Other rates were mixed for the week:

• 15 year fixed rates: averaged 4.65 percent, up from 4.62 percent.
• 1-year adjustable rate mortgages: fell slightly averaging 4.89 percent from 4.95 percent last week.
• 5/1 ARMs: averaged 5.25 percent compared with 5.49 percent last week.

Mortgage rates have continued to drop ever since the Federal Reserve announced a plan in December to buy up $500 billion of mortgage securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae—the government-sponsored enterprises. Freddie Mac started recording mortgages in 1971.

Source: Reuters, Julie Haviv (1/15/09)

I think its going to be an exciting week next week. I would encourage everyone to witness a historic event and remember where you are. Hopefully it will be the start to pointing the country to more positive than negative. As a realtor, and a business person we are facing very difficult times with real estate, job losses, businesses losing ground. Consumers have to learn they can't spend more than they earn, and saving if and when you can is the best way to make a dream possible. For those who have always been saving, my hat's off to you. Now is your time to find the best deals around in real estate so you can have a home. Have a great weekend and a reflective holiday.

Yes we Can!

I just saw a blog from a realtor in Maryland that put a great list together of top ten things she learned this year. I feel that it would be a great time to put my own list together of what I learned this year. Working in the Cambridge market has been challenging and yet homes and condo's have sold well. If I listened to the media, I would have stayed home all day. Surprisingly, open houses had a great traffice before the holidays and yes buyers were looking for deals. I realized that I need to pre-approve my buyers before showing lots of homes. And even then, really clarify why someone is looking so that valuable time isn't wasted. I would love to hear the top ten things other agents learned this year so we can compare.

1. Buyers will buy very different homes than what they told you they wanted, keep checking on wants and needs
   
2. All mortgage firms are not equal, so using a local bank or mortgage broker is best
3. It's a great time to buy no matter what the media says
4. Agents who can work together to get the deal done make life grand
5. Anyone can be a real estate agent, so not everyone is professional
6. Every visitor to an open house is a potential sale, don't pre-judge anyone
7. Check every step in the process and recheck so that you can eliminate surprises
8. Don't take the listing if the seller won't come to terms with a recommended sale price
9. Accompanied showings can be better than putting the listing on lock box
10. Craigslist and Trulia can help spread the word about your listing

Now that the election has been decided and interest rates are dropping, I feel as though it's time to roll up our sleeves. As a realtor I believe there is no better time than now to start looking at the great inventory of homes on the market. So many of my clients are anxious to get on with their lives and find a home. Many of my first-time home buying clients have taken a long time to make a decision on a home. Here are some statistics that might motivate those on the fence to jump in:

Here are some statistics for October: Active Sold

Total number of listings were 263 42

Average days on market for all listings 98 62

Average price of listings: $568,034 $517,582

Median Price of listings: $475,000 $418,750

Now these statistics are only for condominiums in all of Cambridge. But I've found that for most buyers, condo's are the easiest market entry point. The decision to move from rental to owning property can have a quicker turnaround when looking at condo's. For many buyers they have to understand that the Cambridge market is one of the few areas where the value is holding its own. Last year average days on market was 90 days, compared to this past October showing an average of 62 days. This faster turnaround means that all buyers must be ready to make the offer more quickly if they desire a particular condo on the market. Pre-approval is going to be one area that can delay the whole process. From what we're seeing more stringent lending requirements means that buyer really need to do their homework and shop around for the best interest rates with a stable mortgage provider. My sleeves are rolled up and I'm ready.