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Fall 2010 MA real estate outlook

Warren Reynolds — Fri, 03 Sep 2010 15:57:43 +0000

In the face of exceptionally weak MA home sales in July and August, Massachusetts home sellers and buyers alike may be wondering what the fall 2010 real estate market will bring. While some of the recent market stats seem a bit daunting, there are plenty of reasons for optimism about home sales in Massachusetts as we enter the fall 2010 home selling season.

Video on fall 2010 MA real estate outlook

Here’s a short video that explains why the summer 2010 real estate market was so weak in MA. It also reviews the positives supporting the market for the rest of 2010 and beyond:

August and July MA home sales exceptionally weak

Massachusetts real estate turned in a poor performance in August 2010. Homes sales were off nearly 23% from year-ago levels.

Pending sales were also well below where they were in August 2009.

Dismal July

August’s weakness came on the heels of dismal MA home sales in July.

The number of homes sold in July 2010 plunged 31.7% and pendings swooned 20.2% compared to July 2009.

Federal home buyer tax credits to blame

Lay the blame for the summer 2010 weakness on the two Federal home buyer tax credits that expired last April. The tax credit programs accelerated demand as buyers scrambled to buy homes before tax credits terminated April 30.

Home sales that would have occurred later in 2010 were pulled forward into the spring. It was only natural that home sales would slump when the tax credits were no more.

Summer slump more severe than expected?

However, it is not clear that anyone forecast such a steep fall off in market activity.

July was so bad across the US that housing policy experts immediately began calls for a resumption of a Federal home buyer tax credit program.

Reasons for optimism

There certainly is quite a lot of current uncertainty about the direction of the US economy and prospects for the national housing market.

However, there are factors that should reduce the chances for a prolonged downturn in the MA real estate market for the rest of 2010 and beyond:

1. Massachusetts economy is improving

2. MA home prices appear to have stabilized

3. Mortgage interest rates are at historic lows

What this means for home sellers and buyers

If you are thinking about buying or selling Massachusetts real estate during the rest of 2010, you might want to adopt a pragmatic strategy.

Home seller

Home sellers should price their properties very realistically. Your home is no longer worth what is was back in 2005.

Take care to treat all buyer interest with great respect and consideration.

You might find it difficult to replace a buyer lost to heavy-handed negotiation stances or an unwise insistence on an inflexible target selling price.

Home buyer

Interest rates are very low, making now a very advantageous time to buy and lock in low debt servicing costs for the long term. You will save $10,000s over the life of your mortgage at today’s historically low rates.

Resist the temptation to spurn a good deal in the hand in favor of what may prove to be a very illusive “great deal” in the bush.

Seek a home seller who is properly motivated to find a good buyer before the snows of winter close in.

Skilled help for home buyers or sellers

If you have any questions or would like solid advice on buying or selling a home in Massachusetts this fall, please contact me or call me at 508-613-2889!

First day of school 2010 in Franklin, MA

Warren Reynolds — Wed, 01 Sep 2010 17:43:41 +0000

Today was the first day of school for the public school system in Franklin, Massachusetts.

The weather was clear and warm, more like the middle of summer instead of September 1.

Video of student arrivals for first day of school

Below is a short video of how the day started at the Helen Keller Elementary School in Franklin, MA:

Lots of proud parents and excited kids!

Franklin has highly rated public schools

Did you know that Franklin, Massachusetts has wonderful public schools?

To learn more about the Franklin, MA public school system click the link.

Click the link to see why Family Circle Magazine named Franklin one of the “Top Ten Places to Raise a Family” in the United States!

Boston home prices rose 1.2 percent in June 2010

Warren Reynolds — Tue, 31 Aug 2010 18:44:49 +0000

In data released today, Standard and Poors reported that Greater Boston single family home prices rose 1.2% in June. This was the third month in row that the S&P Case-Shiller Index for metro Boston showed an increase in Boston home values.

4.2% rise from March’s lows

The 157.83 June reading represents a 4.2% rise in Boston home prices from the recent Index low set last March.

The Boston index now stands 1.2% higher than its prior spring/summer seasonal high set in back in August 2009.

June data outdated?

June home sale prices are the most recent reported on by Standard and Poors.

And because many home purchases take about 2 months to close, June price data mainly reflect purchase agreements entered into during April 2010, the last month that the two Federal home buyer tax credits were in existence.

Market slowed after tax credits expired

As widely reported in the news media, the US housing market took a pronounced turn for the worse after the expiration of those two tax credits.

July was an especially bad month for US real estate, including Massachusetts.

Some call for return of home buyer tax credit

July’s performance was so bad that it is causing some policy advisers and politicians to call for a new Federal home buyer tax credit to help support the US housing market.

The need for such a return to active stimulation will be debated over coming weeks.

Proponents and opponents alike will be looking hard at August’s housing data; early reads on August will be rolling out late this week.

Check back at 02038.com to see how MA fared in August – I’ll be posting soon!

Housing weakness spurs calls for new Federal home buyer tax credit

Warren Reynolds — Tue, 31 Aug 2010 14:06:21 +0000

There was speculation in Washington this past week that the Federal government might get back into the business of stimulating the national housing market.

CNN’s Sunday news show “State of the Union” focused on calls by some politicians and housing analysts for a new Federal home buyer tax credit in response to July’s weak housing sales data, which showed a broad based slowdown in home sales across the US.

July was a very bad month for real estate in Massachusetts, mirroring the weakness seen nationally.

Successful Federal tax credits

The new tax credit would presumably be along the lines of the tax credits that were allowed to expire earlier this year.

There were two federal tax credits for home buyers in 2009 – 2010. Both terminated at the end of last April.

One tax credit was for first time buyers ($8,000.00). The other credit ($6,500.00) was designed to help certain homeowners seeking to buy a new residence.

August data may help clarify the need

August housing sales data will start being reported later this week.

If further weakness in US home sales is widespread, expect Federal policy makers to pay more serious attention to the idea of resuming some form of home buyer tax credit.

How to spot kitchen cabinet quality

Warren Reynolds — Sun, 22 Aug 2010 16:24:58 +0000

Many homes for sale in Massachusetts come with kitchens that feature beautiful granite countertops perched on low quality cabinets. You might be surprised to know that even homes in the $600,000 – $900,000 price bracket often offer glitzy kitchen countertops that mask potential cabinet problems below.

Look beyond the countertop

So if you’re in the market to buy a home – or are thinking about renovating the kitchen or baths in your current residence – you need to know what to look for to spot true cabinet quality.

Since the National Kitchen and Bath Association estimates that roughly half of the cost of a new kitchen (70% including labor) is allocated to cabinets, it’s important to be an informed consumer whether you’re looking at a home to buy or walking through a kitchen design showroom.

Quick short cuts to judge quality

What we’ll cover in this post are simple short cuts you can use to quickly ascertain the quality of cabinets in kitchens and baths.

The video below will help you understand what to look for when you are examining cabinets in any kitchen or bathroom:

Highlights from video

We’ll review below the most important points from the video:

Look for signs of wear and deterioration on “high traffic” areas around door fronts and drawer pulls.

Scratches, abrasion and worn areas are signs of a cheap finish.

Avoid fake wood surfaces

The cheapest cabinets use photo-simulated wood grain and paper thin laminates to create the impression of real wood.

These can chip and flake away over time, exposing the press board below.

Drawer construction

Low quality cabinets have drawers that are stapled or glued together.

Better drawer joinery uses dovetailing.

Drawer slides

Another sign of lower quality drawer construction is flimsy metal drawer slides.

Look instead for heavy gauge steel slides with ball bearings.

The best of these are full-extension slides with a self-closing feature.

More information

If you want to read up on the subject, there are some very detailed resources available on the web.

Here are links to a few that are especially helpful:

Judging kitchen cabinet quality

Buying kitchen cabinets

Getting the best kitchen cabinets

Slight rise in MA homes for sale inventory points to weaker real estate market this fall?

Warren Reynolds — Sat, 14 Aug 2010 16:12:05 +0000

The supply of single family homes for sale in Massachusetts rose modestly this month, a move that might reflect lingering weakness in the MA real estate market since the expiration of the Federal home buyer tax credit. According to data maintained by MLSPIN, there were 8.4 months of homes for sale in MA in August, 2010 compared to the 9.5 months of supply carried in the Commonwealth this time last year.

It was a similar story in the Town of Franklin, MA where single family home inventory also rose a bit in August (to 6.5 months of supply), but remained significantly lower than statewide levels.

The regional market surrounding Franklin bucked the trend, experiencing a 20% decline in single family home supply this August (to 7.6 months from 9.5 months last year at this time).

July 2010 a dismal month for MA real estate

July 2010 was a particularly feeble month in Massachusetts for both home sales and pendings (homes placed under agreement but not yet sold).

The dismal performance materially contributed to August’s uptick in inventory supply numbers.

Fall home selling season traditionally strong in MA

We are now heading into the pivotal Fall home selling season in MA.

The fall usually is the second best time of year to sell a home in Massachusetts, coming as it does after the summer vacation doldrums and before focus shifts to the Holidays. (The spring is the # 1 home selling season in MA).

Fall’s performance will foretell 2011 market

Those seeking to forecast the direction of the 2011 real estate market will want to pay careful attention to home sale figures and inventory levels over the next few months.

If this fall extends July’s home sale weakness, we will likely see a pronounced rise in home inventories in Massachusetts. And 2011 may be weaker than many expect.

On the other hand, if home sales rebound during the 2010 Fall home selling season, August’s uptick in home inventories will have been an aberration and we may be able to look forward to a strong 2011 real estate market in Massachusetts.

Condo inventory figures better

The supply of condominiums and townhomes in Massachusetts continued to decline this month compared to year ago levels.

This trend may not be very significant as it reflects the absorption of excess inventory of age-restricted units (sales limited to owners age 55+).

There has been an oversupply of age 55+ condos in Massachusetts, a situation that has been especially pronounced in the Town of Franklin, MA over the past few years.

Mortgage rates at historic lows – again

Warren Reynolds — Fri, 13 Aug 2010 17:58:45 +0000

Mortgage rates in the US hit historic lows this week as fears of new economic weakness and stubbornly high unemployment drove rates down again. 30-year fixed-rate mortgages averaged a staggeringly low 4.49 percent according to the newest data released Thursday by Freddie Mac.

Lowest mortgage rates in over 50 years

Financial commentators said Friday that you’d have to go back to the 1950s to find comparably low mortgage rates.

Home buying opportunity

Home buyers might want to lock in these absurdly low rates and buy a home during the current round of economic uncertainty.

Buyers generally have more negotiating leverage at times like these when there are increasing worries about the economy.

Glut of high-end home inventory

As a real estate broker, I have been showing homes in the $700,000 – $1,200,000 price range to a relo buyer during the past few weeks.

There’s a glut of inventory in that price range in MA, at least in the middle I-495 region of Massachusetts.

So if you are fortunate enough to be a prospective home buyer in that elevated price range in the Route 495 region of suburban MA, the time to act would appear to be now!

Outlook for mortgage rates

It’s a given that no one can consistently predict the future with any accuracy.

Regarding where interest rates may be headed, the following is a quote from a report released by Freddie Mac on August 11:

“Looking ahead, fixed-rate mortgage rates may edge down further, though we think it unlikely that they would fall far from where they are today. But it is also unlikely that they will rise quickly . . .”

Please contact me to explore some of the home buying opportunities currently available in Massachusetts.

July home sales fall sharply in Massachusetts

Warren Reynolds — Wed, 04 Aug 2010 10:41:32 +0000

Home sales in Massachusetts fell 31.7% in July 2010 from year ago levels according to data maintained by MLSPIN, the largest MLS in the state. Pending sales in MA also fell dramatically last month (-20%) compared to July 2009.

Worst July in years

The 31.7% drop in sales and 20% falloff in pendings across the state makes last month the worst-performing July for many years in Massachusetts.

Results no better in Franklin, MA

July was no kinder to real estate in the Town of Franklin, Massachusetts as home sales fell a whopping 45.7% from July of last year.

Pending home sales in Franklin also swooned, dropping 30%.

What’s going on with MA real estate?

A drop-off in home sales and pendings in MA was to be expected after the expiration of the two Federal home buyer tax credits.

The tax credits worked to accelerate home buyer decision-making in 2010. The credits effectively pulled sales into the spring home selling season that would otherwise have been made in the second half of this year.

July home sale prices in Franklin muted

Here ’s how the real estate market looked in Franklin, MA during July 2010; note how relatively modest the four highest-priced home sales in Franklin were:

MA Home sellers should heed warnings from market

The large drop in sales and pendings in July was dramatic and should stand as a warning to Massachusetts home sellers for the foreseeable future: don’t expect to command the selling price for your home.

Home sellers cannot assume there will be an ever-larger pool of buyers for every property – there are a lot of homes out there competing for buyers.

Lack of inflationary expectations means home buyers are being very picky now that the Federal home buyer tax credits are history. With home prices not predicted to rise sharply in the near term, buyers do not want to make a mistake in the home they buy.

Home prices still high in MA

Home prices remain high in Massachusetts, so you the home seller do stand to sell your property for a considerable sum.

But you might be wise to reconcile yourself to the probability that you may not get your absolute top dollar dream price.

Home sellers with a rigid, unrealistic “needed money figure” face rejection and frustration in this market.

Instead treat good offers from serious buyers very seriously.

Home sellers in this market win when they grab a good buyer willing to pay a good (not to say the best) price for their home.

Pick-your-own blueberries in Franklin, Massachusetts (MA)

Warren Reynolds — Sun, 01 Aug 2010 22:17:36 +0000

The Gianettis’ U-Pick Blueberries has been a summertime staple for family fun in Franklin, MA for years! Located just off Exit 16 on I-495 , the pick-your-own farm is at 557 Union Street in Franklin, Massachusetts.

How to get there

Get off Route 495 at Exit 16.

Head east on King Street to Union Street. Turn left and drive north about 600 feet.

The Gianettis’ U-Pick is across Union Street just north of the intersection with Loretta Road.

There is plenty of free parking.

Video of a day picking blueberries

Here’s a video of a recent day at the Gianettis’ U-Pick in Franklin, MA:

Exploring the rows and finding ripe berries

The Gianettis’ U-Pick has what looks to be about 6 acres of blueberry bushes. There are 7 varieties of blueberries, each with its own distinctive taste.

The long rows of tall bushes makes for a maze-like experience.

You get to explore and wind through the rows, looking for clusters of ripe berries.

Knowing what blueberries to pick

You want to pick the firm, all blue berries. It’s wise to eat one off the bush before picking, to make sure the taste is sweet.

Skip the green, unripe berries and the over-ripe soft purple ones.

Buckets of fun, especially for the kids

The farm loans you buckets and gives you the plastic bag liners.

You supply the hands and the fun!

Limited season

Gianettis’ is open to the public only during the blueberry season which runs typically from mid-July to the end of August.

The hours are limited to Fridays and Saturdays from 8 AM to 4 PM.

It is well worth the visit – my family had a wonderful time!

Click the link to see the many recreational resources Franklin, MA residents enjoy – Franklin is a great place to call home!

How to find play groups and mothers’ clubs serving Franklin Massachusetts (MA)

Warren Reynolds — Thu, 29 Jul 2010 13:09:36 +0000

“K.G.” recently visited 02038.com and asked how she might find mothers’ clubs and play groups for young children in Franklin, MA.

One excellent resource for parents looking for ready access to play groups and robust networking and support resources for moms would be the aptly named MOMS Clubs of Franklin, Massachusetts.

MOMS Clubs of Franklin, MA

Two MOMS Clubs in Franklin

There are 2 official MOMS Clubs in Franklin: one for the north and one for the south parts of town.

Each club has a roster of active playgroups. A volunteer at each club will help match you to a play group that is right for your kids. Playgroups typically get together weekly at members’ homes on a rotating schedule.

South Franklin MOMS Club

The southern Franklin club provides services for residents who live in Franklin’s southerly elementary school districts (Jefferson, Davis Thayer, Oak, Parmenter). The website gave Emily Dixon as the person to contact for answers to questions about joining the south group: elmdixon@comcast.net

North Franklin MOMS Club

The northern Franklin club serves residents in Franklin’s northerly elementary school districts (Keller and Kennedy). Amy Mosher was cited on the site as the person to contact: apmosher@yahoo.com

Other groups in Franklin, MA

There are other support organizations for parents and children located right in Franklin, Massachusetts.

One such group is:

Franklin Newcomers and Friends

The club stresses it is not just for newcomers and provides members with a wide range of activities for kids and adults as well. The group invites anyone interested in learning more to attend a meeting or send an email to franklinnewcomers@hotmail.com

Another support network in Franklin for mothers and kids is:

Franklin Moms Meetup

This group is definitely Web 2.0 friendly! Simply join from the site or from Facebook – $25 per year membership

Other mother and children support groups for Franklin, MA residents

There are other moms’ clubs serving the central and southerns areas of Route 495 that include Franklin in their outreach services:

Mothers & More

As well as this national network with a local chapter operating out of Attleboro, MA:

Mothers of Preschoolers – MOPS

Other resources available to mothers and families in Franklin

Please remember that the many places of worship in Franklin, MA offer a variety of help, guidance and support to parents with young children.

And the Franklin Recreation Department and the YMCA and other sports and country clubs in Franklin each have a wonderful array of programs for families.