The Boston globe has a good article out today about how fallen prices combined with low mortgage rates and the $8,000 tax credit are luring more first-time home buyers into the market. The Globe States:
Nationally, first-time buyers accounted for about 65 percent of transactions of existing homes for the first quarter of the year - a 41 percent increase from the same period last year, according to HouseHunt Inc., a information firm based in Huntington Beach, Calif. The National Association of Realtors also reports more first-time home buyers.
"The market heals from the bottom up," said Walter Molony, a spokesman for the realtors trade group.
In the Boston area last week, 464 sales agreements were signed, a 53 percent increase from the first week in March, according to MLS Property Information Network Inc. The region's real estate market traditionally accelerates in the spring, but many wondered whether that would be the case this year, given the slowing economy and housing collapse. While MLS does not track how many of the agreements involved people buying their first homes, national data show newcomers probably generated much of the activity.
I agree with this. My activity over the past few weeks has tripled. I have definitely seen an increase with showing requests as well as hits on website. The Globe also states:
And bargain-seekers are finding more properties to choose from this spring. Over the last six months, the median price for a single-family home in Massachusetts has been below $300,000. Before that, the median price had not dropped below $300,000 since early 2003, according to Warren Group, a Boston company that tracks real estate transactions. The median condominium price fell 14 percent in February to $220,000, from $255,750 in February 2008 - the lowest it's been since February 2003.
Mortgage rates also have plunged to historic lows. Nationwide, a 30-year, fixed-rate mortgage averaged 4.78 percent for the week ending April 2, according to Freddie Mac, the lowest rate recorded since the agency began its mortgage survey in 1971. A 15-year, fixed-rate mortgage averaged 4.52 percent, also an all-time low.
People thought it was a great time to buy 5 or 6 years ago because interest rates were so low, but now rates are even lower and home prices are 20% lower or more in some areas. How can now not be a great time to buy??
Read the full story
(Source: Jenifer B. McKim, Globe Newspaper Company, April 9,2009)
Most sellers during this time of year decide to take there homes off the market or not list at all because they feel its not busy enough or they may get a better price if they wait until the spring. However, if you are serious about selling your home, the winter months could benefit you more than you think.
1) Winter prospects are more serious buyers.
2) There is less competition for buyers.
3) Your home looks better during the holiday season. (My favorite)
4) One of the highest percentages of "Listings Sold" to "Listings Taken" occur during this time of year.
5) You may receive more money for your home now because you have less competition.
6) Throughout the holiday season, you may restrict showings during your personal family events.
7) Buyers have more times to look at homes during the holidays, especially during vacations.
8) January is traditionally the biggest transfer month and you must be on the market to capture that market.
9) By selling now you can have a delayed closing or extended occupancy until the beginning of the following year if you want to.
10) When you sell during the winter you have an opportunity to buy during the spring, when many homes are on the market.
11) You may have fewer actual showings, but more qualified and motivated prospects.
12) Corporate transfers, who need to buy a home now, can't wait until the spring.
What are your thoughts?
This is finally in motion after 40 years of discussion. This project will extend existing MBTA Green Line service from Lechmere Station through the northwest Boston corridor communities of Cambridge, Somerville, and Medford, with an extension of the main line to Medford and a spur line to Union Square in Somerville. Somerville being the most densely populated city in New England is in dire need of more public transportation hubs. The Green Line will provide just that. Although the exact stops are not set in stone they are discussing potential stops in Union Square, Somerville High School & City Hall, Lowell Street, Magoun/Ball Square, Tufts, and ending in W. Medford. Neighborhoods in East Arlington will also benefit from this. The goals of the project are to increase mobility, encourage public transit usage, improve regional air quality, ensure a more equitable distribution of transit services, and support opportunities for sustainable development. The current phase for this project is scheduled to last 18 months and is focused on finalizing best route and station locations for the new transit service by moving into conceptual engineering and preparing the necessary state and federal environmental review documents. The project is expected to open by the last day of 2014 and is projected to cost $700 million. Katherine Fichter of the Office of Transportation Planning said the EOTPW “hopes to get half of the project costs from FTA grants,” and the rest will be borne by the state. If no FTA funds are granted, the state will bear the entirety of the cost.
Overall I think there is a tremendous opportunity for buyers to take advantage of investing in property near neighborhoods that will be seeing the Green Line. Just remember what the Red Line did to Davis Square back in 1984. I particularly would pay attention to the Somerville neighborhood behind Ball Square in between Broadway and Highland Ave on either side of Willow Ave. Residents in these neighborhoods will not only be walking distance from the Red line, but also the Green Line as well.
More at : Green Line Extension
Arlington, MA Real Estate is some of the best investment property available in the state. Arlington offers residential single families, multi-family investment homes, condominiums, new construction, adult living communities (55+ communities), retirement homes & facilities, land, and waterfront property. Located just 6 miles from Downtown Boston, property values in Arlington, MA have remained strong in the last several years and as many people will tell you, have a very bright future ahead of them as well. Arlington, Mass offers a magic blend of proximity to the city, respectable schools, desirable housing stock with prices notably lower than surrounding areas including Winchester, Belmont, and Lexington. There is also a theater nearby to catch a movie, or you can enjoy the bustling restaurant scene.
According to The Warren Group:
In January of 2008 the median single family home price in Arlington MA was $534,350, an increase of 15% from January 2007. In January 2008 the median price for a condominium in Arlington MA was $350,000, and 8% increase from January 2007. Year to date there have been 60 home sales, the highest price home sold for $950,000, and the lowest price sold was a condo for $160,000.
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