John Muscarella, Broker Owner Plymouth County/Cape Cod, MA

Since 1970 the National Association of Realtors (NAR) has tracked home affordability providing an index based on percentage for the current affordability of housing across the country. With an index of 100 percent, a family with median income has exactly the income level to qualify for a median-priced home with a down payment of 20 percent and then 25 percent of their gross income to carry a mortgage. This does not include homeowners insurance or taxes.

Recent data has the index at its highest level since the record keeping began at 206.1. It has never exceeded the 200 percent level and indicates that the median-income family or household has twice the income needed to qualify under the terms outlined above.

Still a volatile market, NAR has said it expects the index to remain at this level through 2012.

I am still finding inventory flat in the Plymouth MA and Cape Cod markets and finding homes for key client buyers has been a matter of checking the market daily for any new listings. The indication is that we are getting back to a healthy market mix of inventory vs. sales but no one I talk to will really believe this yet. If credit approvals increase and rates remain where they are – we might just see some signs of a more stable market. Nationally jobs will be a key factor as well. In Plymouth and Cape Cod the job market is a bit better than nationally.

Here’s hoping for a robust spring market for buyers and sellers.

Get FREE valuable information reports for Buyers/Sellers or contact me with any questions.

John F. Muscarella

River Farm Properties, LLC

The only thing that should matter to home sellers/buyers is how is their local market, in my case, Plymouth MA and Cape Cod - and what are the trends. Some recent reports for both credit and pricing are indicating an emergence of the housing market and some signs that we are finally headed in the right direction. To be certain there are caveats and it is a slow turn around. But data from Clear Capital, Equifax and Moody’s Analytical point to welcome news. The key is sustainability and continued growth.

Clear Capital’s Home Data Index (HDI) points to slowing home price declines nationally but in the Northeast we have actually seen an increase year-over-year of .5% to housing prices. It indicates that stability may be making its way back into the housing market The other part of this though is the increase saturation of REO (Bank-owned) real estate in the market. Other than the last quarter, the past year national REO levels have declined indicating banks may have held off releasing REOs in anticipation of the settlement with Attorneys General across the U.S. Notwithstanding this, the Northeast continues with small, positive growth in annual and 6-month values, along with low REO saturation. Realtors anticipate an uptick in REO activity for 2012 following the settlement. But this should help clear out the “shadow inventory” and add to the positive growth moving forward.

CreditForecast.com, a joint product of Equifax and Moody’s, reports credit data seem to indicate a return to pre-recession totals and consumers in general should see steady economic growth for major credit sectors which include: auto, bankcard and consumer finance. The report seems to portend the end of the housing downturn. Though housing is still working through high delinquency rates, mortgage rates remain at historic lows and refinances are high. And the majority of new loan applications are with those with credit scores of 700 or better. It is this incremental progress that is noticeable and provides some good news nationally and the Northeast seems to be faring well and this is welcome news for Plymouth MA and Cape Cod real estate.

To read Clear Capital’s HDI: http://www.clearcapital.com/company/MarketReport.cfm?month=March&year=2012

At question is the safety and health of Plymouth and Cape Cod homeowners and potentially others should there be problems with the Pilgrim nuclear plant in Plymouth, MA. Looks like the local critics and the Chairman of the Nuclear Regulatory Commission (NRC) are on the same page these days.

The Pilgrim nuclear plant's license is up for renewal and after 40 years of service there is some question as to its long-term safety. At a recent meeting on Cape Cod of the Cape and Islands Renewable Energy Collaborative this past Wednesday, a MA Sate Senator, Dan Wolf (D-Harwich) supported the closing of the plant and separately, Gregory Jaczko, Chairman of the NRC wrote a dissenting opinion on his agency's support of the plant.

What both parties and critics want is a bigger voice and perhaps more hearings to discuss the issues to renewing - for 20 years on June 8th - Pilgrims license to operate. Some have raised concerns that Pilgrim is very similar in design to Japan's Fukushima plant that was destroyed by the tsunami last year and a similar disaster could affect Pilgrim much the same way. Hmm... a tsunami in Plymouth? A 100-year storm or a wayward plane?

Kidding aside the response by Pilgrim spokespeople seemed to center on the fact that the timing of the filings were late and did not meet the standards set by the plant management for process and time. This seems like a weak argument as well considering the NRC chairman weighed in. Though the rest of the NRC voted to deny any local appeals. And moves to suspend any renewal until a more thorough study of the Fukushima Dai-chi disaster and implications seems to have fallen on deaf ears as well. I suppose if one follows the money it's clear that Pilgrim Nuclear adds some $10M to the Plymouth, MA tax fund annually and any disruption to this would have an economic impact to Plymouth. So safety vs., higher taxes. It's a risky trade-off.

What I'd like to see is public participation in more hearings and information pertinent to Pilgrim via Fukushima should be freely available. To those who live within 15 miles of Pilgrim any release of substantial radioactive material would have a significant affect on long-term health. I guess we could sell our real estate and move elsewhere. I just feel uncomfortable to see these concerns swept under the rug so easily.

Anyone have concerns, opinions they'd like to share? This affects Plymouth and Cape Cod lives, real estate and more. What would make you take action?

Reply to or use our Contact Box:

johnm@riverfarmproperies.com

Think this will affect homes and real estate in Plymouth and Cape Cod? I suspect behind closed doors following the Foreclosure Settlement Thursday; the five major banks involved are quietly celebrating the fact that they dodged the bullet on this one. To me it appears as a slap on the wrist and does little to help anyone who actually lost his or her home to foreclosure. $2,000 payable to these folks is not even enough for a down payment on another home or even enough for a deposit on most rentals. And they still have lost their credit rating!

$25 billion ends the 16 months of investigation and what was accomplished? Were the banks truly held accountable? Are the victims now able to recoup their losses? And does it prevent this behavior in future?

We Realtors are hoping this will help bring back the housing market and get it moving in the right direction. We have been living under the veil of the so-called “shadow inventory” which is all the bad debt in the form of foreclosed houses banks are holding and have yet to release on the market. This settlement may in fact help in the long run by clearing out this inventory and letting the natural market forces start rebuilding peoples equity again. Though like most settlements and large programs – this will likely take time and have some changes to work through.

Roughly it breaks down that $25 billion is designated at $5 billion payable to the states, $17 billion to those already foreclosed who will get the $2,000 each. And $3 billion to help restructure existing loans where the borrowers are underwater. That is they owe more on the mortgage than their house can be sold for in their current market. Interestingly these restructured loans will supposedly write off some of the outstanding loan amount, $20,000 or more, and both those who have not been making payments as well as those who have – will be eligible for the restructured loans. So maybe there is a bit of hope here after all?

The banks will be monitored and will face penalties if they don’t honor or execute on their commitments. And according to several articles, the fact that the banks can now put a number on their legal exposure or liabilities may help to clear the clogged pipeline of foreclosures. Not sure where the state money will end up but you can bet some of it will help suffering state budgets.

Now let’s see how this unfolds for Plymouth and Cape Cod real estate. Let me know your thoughts. And here is a peak at some local area forclosures from my website:

http://riverfarmproperties.com/?page_id=520

35 Old Shipyard Lane is located in the historic section of Hanover, MA, Plymouth County, with views of the North River. This shingle-style, custom built Colonial has architectural grade features throughout the home. 4-6 bedrooms, finished 3rd floor, 4 full, tiled bathrooms.

Built in Viking appliances, maple and cherry hardwood floors. The spacious family room has vaulted ceilings and custom built in cabinets and a wood-burning firplace.

From inside there are multiple access points to a spectacular wrap around covered porch and to the professional landscaped grounds with brick patio and walkways. Included are an irrigation system, security and whole house stereo and intercom system. With absolutely no deferred maintenance, this is the perfect home. Come see what wonderful surprises Hanover has to offer.

Offered at $945,000. Please call for more details or showings:

617.671.5711

johnm@riverfarmproperties.com

http://RiverFarmProperties.com