Market Recap
MARKET RECAP
Last week, we mentioned that the impending expiration of the first-time homebuyer’s credit was front-and-center on many people's minds. We also mentioned that we thought chances were good the credit would be extended. Our prognostication could be materializing... maybe.
Senate negotiators reached a tentative deal to not only extend the current credit but to add a few bells and whistles: namely, a new credit of up to $6,500 (with income limits). The new credit would be available to all homebuyers who resided in their current residence for a consecutive five-year period in the past eight years (effectively excluding real estate investors). But it's not a done deal yet; a few House members have balked at the added costs.
Many property experts have cited the credit as the principal reason for the housing recovery, though that recovery was somewhat undercut by the September new-home sales, which dropped 3.6% to a 402,000-unit annual pace, substantially lower than the median forecast for 440,000 units.
Still, homebuilders could find comfort in the news that home prices continue to rise while inventory continues to fall. On the former, the median price of a new house rose 2.5% to $204,800 in September. On the latter, inventory shrunk to 251,000 houses, the fewest since November 1982. Based on the latest data, it should take only 7.5 months to sell all homes at the current sales pace.
Prices continue to firm across the housing spectrum, according to the closely watched S&P/Case-Shiller home-price index, which climbed 1% in August after posting a 1.2% increase in July. September's posting is worth anticipating; given that last week's data from Altos Research had home prices declining in September (Case-Shiller's data were for August). With any luck, the Altos data was an aberration. www.movetonewburyport.com
Crazy. . .
I helped a Buyer purchase and home 10 months ago. And I just Sold it for $40,000 more today. Down market? Call me and I will help you do the same.
Great Newburyport Information
Newburyport Stats
This site has everything you would ever need to know about Newburyport. Take a Look.
This site has everything you would ever need to know about Newburyport. Take a Look.
34 Longfellow Dr Newburyport, MA
Calling all nature lovers! Wonderfully renovated unique 3 Bed, 2 Bath, 1 Car, Contemporary Ranch in desirable Nbpt neighborhood. 1/4 ac+ lot abutting conservation land. Open concept, vaulted ceilings, skylights, wd flrs, fireplaced living rm. Newer roof, windows, elec., plumbing, baths, kitchen, flooring, paint. Generous front & back yards, deck, porch, patio, shed, landscaping. Prvt. Master Bedrm Suite; walk in closet, master bath w/ walk-in tiled shower.
$369,900
34 Longfellow Dr Newburyport, MA
We Remain Bullish
Provided by Blue Water Mortgage
There are many reasons to remain bullish on housing; none more compelling than record affordability. The average middle-income family can now spend less than 25% of monthly income to buy a median-priced home, according to NAR lead economist Lawrence Yun, who adds that house payments as a percentage of income are at a record low.
Mortgage rates continue to contribute to Mr. Yun's affordability calculations. Last week, the benchmark 30-year fixed-rate mortgage fell 12 basis points to average 5.41%, the benchmark 15-year fixed-rate mortgage shed nine basis points to average 4.74%, and the benchmark 5/1 adjustable-rate mortgage dipped one basis point to average 4.94%, according to Bankrate's latest national survey. In other words, rates remain near historical lows.
How long they will remain there is anyone's guess. We have warned that it will be difficult for rates to sustain these low levels, and we still believe that, though they might be able to sustain them longer than we initially believed. Wage-induced inflation – a significant inflation source – remains a non-issue. In fact, worker productivity – the output of work per hour – increased at an annual rate of 6.6% during the second quarter, posting its best improvement since the summer of 2003.
When the economy picks up, and it will, rates will pick up as well, so it is unreasonable to expect to purchase a home for less than 25% of monthly income into perpetuity.
8R Rolfes Lane Newbury, MA 01951
$799,900.00
8R Rolfes Ln
Newbury, MA 01951
Newbury, MA 01951
This secluded property on Rolfes Lane offers convenience to Newburyport and beautiful Plum Island. With mostly new construction this home is open and airy with plenty of room to entertain family and guests. The master bedroom, kitchen, dinning room and library are bathed in light with a southern exposure. Relax in the glow of the fireplaces after enjoying the sauna and hot tub. The "bonus" room features a loft and would be suitable for a media room, guest room or an in-home office.
View All the Greater Newburyport Real Estate at
New Real Estate Listings in Newbury MA
$1,599,900
37 Annapolis Way Newbury, MA 01951
37 Annapolis Way Newbury, MA 01951
Relax and enjoy this custom built California contemporary design ocean front home with first floor private guest quarters. Unobstructed views from every room! Direct frontage on sandy beach. Enjoy the fireplaced living room, family room, large open decks for entertaining, panoramic rooftop balcony, one car garage and a private entry guest quarters or in-law apartment. A must see!!
Call Kevin Fruh
or Visit
Newburyport real estate market on the right track
A Sign of the Times
With every passing week it becomes more difficult to argue that housing isn't in full recovery mode. This week's data makes it nearly impossible, considering that sales of new homes spiked 9.6%, in July, to an annual pace of 433,000units. The "experts" had expected sales to post at only 390,000 units. The increase was the largest since February 2005, helping to force the inventory of new homes down to a 7.5-month supply, the lowest in 16 years.
Even more encouraging, the most recalcitrant housing bear is starting to turn bullish. Robert Shiller, co-creator of the S&P/Case-Shiller home-price index, told Bloomberg that "we might be seeing a turnaround." Understated, to be sure, but that's Shiller's style. As for his index, 18 of the 20 cities tracked showed improvement in June, up from eight in May, four in April, and only one in March.
Detractors will counter that the recovery is concentrated in lower-priced homes. True, but that's changing as well. Toll Brothers, a luxury homebuilder, stated that declining cancellations and firming prices has allowed the company to reduce incentives and raise prices in selected communities. To quote Toll Brothers Chairman and CEO Robert Toll, "We believe that customers are recognizing that now is the time to get into the market to take advantage of near-record affordability in what is still, for now, a buyer's market."
More optimism can be gleaned from the fact that housing isn't the only big-ticket sector showing signs of recovery. Orders for durable goods - those meant to last several years-jumped 4.9% in July, posting the biggest increase in two years. Yes, the "cash-for-clunkers" program was a contributing factor, but even without this incentive, other durable goods orders moved ahead 0.8%.
The gross domestic product numbers also suggest that all, if not well, is getting better. On that front, the government says the economy shrank at an annual rate of 1% in the second quarter, a better-than-expected showing. The drop, while representing a record fourth consecutive decline, was for smaller than the previous two quarters. It also was stronger than the 1.4% decline that many economists had expected.
Finally, mortgage rates continue to hold steady, a sign that inflation remains a non-issue. The 30-year fixed-rate loan continues to hold at 5.5% while the 15-year fixed-rate and five-year adjustable-rate loans continue to hold at around 4.9%. Today's housing market remains a buyer's market, with low prices and low borrowing rates, but keep in mind Mr Toll's quote "for now."
Newburyport MA Numbers year over year
7/1/08 to 7/31/08
17 sold
Avg. $460,000
7/1/09 to 7/31/09
9 sold
Avg $499000
17 sold
Avg. $460,000
7/1/09 to 7/31/09
9 sold
Avg $499000
This inviting contemporary ranch offers three spacious bedrooms, two updated baths and open-concept living. The large great room provides plenty of room for relaxed living. Soaring ceilings and a two story double-sided fire place will draw visitors right in. With a well appointed kitchen, entertaining will be a joy. Sit in the living room and enjoy the natural wood burning fireplace while looking out on to a very private back yard with a large deck and mature plants.
The home is well laid out with two bedrooms on one side of the home and a Master Suite on the other. The Master Suite has large his and her closets and direct access to the large private porch. The lower level is partially finish and adds more than 600 additional square feet of living space.
Since 1995 this home has been maintained by two loving families. It's the perfect place for an active growing family or retirees looking for one story living.
Don't miss your chance to just steps away from Maudslay State Park. Walk, bike, cross country ski in this Newburyport gem. Or go and enjoy all that downtown Newburyport has to offer.
The home is well laid out with two bedrooms on one side of the home and a Master Suite on the other. The Master Suite has large his and her closets and direct access to the large private porch. The lower level is partially finish and adds more than 600 additional square feet of living space.
Since 1995 this home has been maintained by two loving families. It's the perfect place for an active growing family or retirees looking for one story living.
Don't miss your chance to just steps away from Maudslay State Park. Walk, bike, cross country ski in this Newburyport gem. Or go and enjoy all that downtown Newburyport has to offer.
Offered @ $499,990
For more information or if you would like to learn about marketing your property, please call Kevin @ 978.500.7409 or send an email to Kevin@movetonewburyport.com
Interest rates
Interest rates can vary widely and have ranged between 8.5% and 4.6% over the last eight years. If the rate for a 30 year conventional loan is 5.36%. Although not as low as two months ago, it is still at a very low point in history. But what does this mean for you?
The most important thing to understand is the amount you can save by purchasing while rates are low. For a $200,000 loan, the payment at 5.36% would be $1,118.07 (not including tax and insurance). If the rate goes up to 6.00% the payment goes up to $1,199.10. A difference of 0.64% means $81.03 savings a month, $972.36 savings a year and $29,170.80 savings over the life of the loan.
The second thing to know is that it may make sense to buy points and lock in an even lower rate. Today, buyers are looking at purchasing a home as more of a longer term investment. If you're planning on staying in your home for more than a just a few years, the fees you pay up front will be recaptured over the life of the loan.
Using the same example as above, buying two points will cost you $4,000 dollar, up front. Each point you buy will lower the interest rate by about 0.25%. Now, instead of the 5.36% rate, you have a 4.86% rate. Your payment will drop from $1,118.07 to $1,056.60 and save you $61.47 a month. After 5.4 years, you will have recouped the $4,000.00 and the rest will be savings. Over the life of the loan, you will save $18,129.20. That is HUGE.
What is Market Value for your Home
The market value for a home is what the market will bear. This means it is worth what the market values it to be worth. The market value is not what you have into it. It is not what you need out of it and it is not what it is appraised for. It's also not what your neighbor's house sold for or what the tax office says it's worth. It's not what it's insured for or what you bought it for, and it is not based on the price of your next home.
The true market value of your home is based on today's market conditions, today's competition, today's financing options, today's interest rates, buyers confidence, location, property condition, and days on market.
Visit my site to search and learn about real estate in the Greater Newburyport Area MovetoNewburyport.com
1 Curzondale Ct Newburyport MA 01950
New home for sale in Newburyport MA. This home has a great floor plan starting in the Large Great Room. This space has vaulted ceiling with a double sided fire place. One side is open and the other boost a Vermont Cast iron wood stove. This stove can be used to heat the home. Maudslay State Park is just steps from your door. Walk, bike, cross country ski in this gem of Newburyport. For more information about this home or any other home for sale in the Greater Newburyport Area Please Call Kevin @ 978.500.7409 or visit MoveToNewburyport.com Come
How lending has changed
It may seem like a tough time to be in the market for a home. In the wake of the sub-prime mortgage crisis and the related banking upheaval, lenders have tightened their purse strings and put the brakes on issuing homes loans, at least at the rates and terms that were prevalent just a year to six months ago. But not all the news is bad for today's buyers.
First, this new approach to lending can reduce the risk that you be a victim of unscrupulous lending practices. As a result, this more stringent approach may work to your benefit.
Use this time to learn as much as you can about the current lending landscape. Read articles in the newspapers and online. Reach out to your Realtor and ask for his or her interpretation of the recent developments. It is also wise to spend time analyzing your own finances including your income, assets, expenses and credit score. If you know your own budget and financial qualifications inside and out, you will know what is realistic and what is too good to be true.
Once you have identified what you want and are prepared with your own facts and figures start making some calls. Banks and mortgage companies may have reined in their lending, but it is still a free and competitive marketplace. Search for the best rates and terms available. However, if you feel you may get a better offer in a few weeks or months, and your timetable permits it, wait a bit. The advice of your real estate professional will be invaluable when making this decision.
Finally, remember that the real estate marketplace still favors buyers. The inventory of homes exceeds the current demand in most locations, so you have the opportunity to be more selective and a little more demanding at the bargaining table.
First, this new approach to lending can reduce the risk that you be a victim of unscrupulous lending practices. As a result, this more stringent approach may work to your benefit.Use this time to learn as much as you can about the current lending landscape. Read articles in the newspapers and online. Reach out to your Realtor and ask for his or her interpretation of the recent developments. It is also wise to spend time analyzing your own finances including your income, assets, expenses and credit score. If you know your own budget and financial qualifications inside and out, you will know what is realistic and what is too good to be true.
Once you have identified what you want and are prepared with your own facts and figures start making some calls. Banks and mortgage companies may have reined in their lending, but it is still a free and competitive marketplace. Search for the best rates and terms available. However, if you feel you may get a better offer in a few weeks or months, and your timetable permits it, wait a bit. The advice of your real estate professional will be invaluable when making this decision.
Finally, remember that the real estate marketplace still favors buyers. The inventory of homes exceeds the current demand in most locations, so you have the opportunity to be more selective and a little more demanding at the bargaining table.
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