Tapering Begins!

by The KCM Crew on December 23, 2013 in For Buyers, For Sellers

The Fed announced they would be pulling back some of their stimulus package which has helped the housing market by keeping long term mortgage rates at historic lows for the last few years. This should come as no surprise as the KCM Blog has been warning of this likelihood over the last several months.

We even went against the belief of the vast majority of economists who thought the Fed would wait until next year. In this month’s edition of KCM, we quoted Bill McBride of Calculated Risk:

“Although the consensus is the Fed will wait until 2014 to start to taper asset purchases, December is still possible.”

We also gave our members the following grouping of slides to help them explain the ramifications of the Fed’s decision during meetings with buyers and sellers.

 

What it Means to the Consumer

 

In an article in MarketWatch today, Lawrence Yun, the Chief Economist at NAR, explained that sellers looking to move-up (to a better school district or larger home) “need to realize that it could be more challenging a year from now.” Yun stated the average 30-year mortgage rate currently hovers at 4.3%, but that could rise to 5% or 5.5% next year.

What it Does NOT Mean to the Housing Market

 

Some reports will now claim that housing prices will have to drop as interest rates begin to rise. There is no historical evidence of this. Below is a chart showing the last four instances of mortgage rates rising dramatically and what happened to home values at the time.

Bottom Line

 

If a client is either a first time buyer or a move-up buyer, they should make the move earlier in 2014 instead of later as mortgage rates will probably increase as the year goes on.

Many people ask me when it is the right time to buy or sell. Well, the market is always moving and the right time depends on your personal circumstances. If you are  ready to move forward to that dream home, or downsize, or get a bigger house because the family is growing, or stop paying rent, or jumping into a new job to start with the new year...whatever your reason is, that is the right time for you.

If your time is right feel free to contact me so we can start a marketing campaign to get your home sold or start looking for that place you can call home.

Single Family Rentals: The New Favorite Option

Posted: 06 Mar 2013

 

Yesterday, we posted on the surge of new household formations that have occurred in the last twelve months and that are projected to reach boom numbers over the next twelve months. Will these new households be renting or buying? A recent study, The National Survey of Renters, from The Opinion Research Corporation reveals that many will be taking an option few had access to in the past – renting a single family home.

Are There Many Single Family Rentals Available?

The study reports that the number of single family house rentals has skyrocketed over the last several years:

“Single -family rental homes are the fastest growing housing option in America. Some 52 percent of all rental buildingss in the U.S. are single-family homes, housing 27 percent of all renters. Most, 3.6 million, were originally built for owner occupancy but passed into the ranks of rentals when their owners lost them through foreclosure.”

With approximately one million homes still in some form of foreclosure, these numbers will probably continue to increase.

How Do Single-Family Tenants Differ from Multi-Family Tenants?

There are distinct differences between the two different types of tenants. The report reveals:

• Single-family renters make more money as apartment dwellers. Median income for a single-family renter is $75,000-$100,000 versus $50,000-$75000 for a multi-family tenant.
• Single-family renters are nearly twice as likely to have children as apartment dwellers. 63 percent of single-family households include children; only 34 percent of apartment renters have children living with them.
• Single-family households are larger; some 65 percent have three or more members compared to 32 percent of apartment households.
• Most single-family tenants are older, aged 35-44 (53%) compared to 14-34 (46%) and 65+ (61%) for apartment dwellers.
• Compared to apartment dwellers, single-family renters value neighborhood features important to children, such as parks and playgrounds (65% to 71%), good schools (72% to 82%) and safe neighborhoods (97% to 98%).

Do These Tenants Plan to Buy a Home in the Future?

The report explains that tenants living in a single-family house ‘enjoy’ their experience more than those in multi-unit buildings. However, most do have plans to purchase a home in the future.

• 60 percent of single-family renters compared to 44 percent of apartment dwellers said they anticipate becoming homeowners in the next five years.
• Families with three or more members (64%) and children under 13 (69%) were more likely to become homeowners.
• The near term interest in becoming homeowners among single family tenants reflects the new roles single family rentals are fulfilling as a stepping stone to homeownership for first-time buyers and as a sanctuary for large numbers of families displaced by foreclosures but who plan to buy again when they can afford to do so.

It will be interesting to see how this new type of tenant adopts to renting a single-family residence.

If you are thinking of buying a home in Westport or surrounding areas please visit www.DistinctiveHomes-NE.com for a free list of homes for sale in Westport and Bristol County MA and RI.

If you are thinking of selling your home contact me for a FREE Current Market Analysis and to learn about our Market Plan to get your home SOLD!

We work with one going in mind, YOURS!

Noemi Cardoso
Local Office. Local Agents. Local Knowledge.
William Raveis Real Estate
911 Main Rd - Westport MA 02790
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
noemi@DistinctiveHomes-NE.com

10 Biggest Issues for New Construction in 2013

by The KCM Crew on January 7, 2013

 

Builder Magazine recently ran an article revealing the Top Ten Issues that will impact new construction in 2013.

1. Impact of Political Decisions
2. Energy Efficiency
3. Rebounding Prices
4. Startups and Startovers
5. Need for Land
6. Demand for Multifamily Housing
7. Foreclosures and Rentals
8. Need for Labor
9. Desire for the Micro House
10. Loss of Some Industry Leaders

You may want to take the time to read the article in its entirety.

If you are thinking of buying a home in or around Bristol County MA or RI, please visit www.DistinctiveHomes-NE.com for a free list of homes for sale in Westport MA and surrounding towns.

Would you like to receive a current market update of your specific area? Contact me with your request.

If you are thinking of selling your home contact me for a FREE Current Market Analysis and to learn about our Market Plan to get your home SOLD!

We work with one going in mind, YOURS!

Noemi Cardoso

Local Office. Local Agents. Local Knowledge.

William Raveis Real Estate
911 Main Rd - Westport MA 02790
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
noemi@DistinctiveHomes-NE.com

Westport Ma Real Estate & Homes for sale in Westport

- November 2012 -

Westport MA real estate sales remains stable. In November there were 19 homes sold in Westport compared to October  when 8 homes Sold in Westport.

SOLD HOMES:  The lowest priced house in Westport in the month of November sold for $117,000 which was a Ranch on South Berryman St and it was a Estate Sale. St. In October  the lowest priced home sold for $60,000.

The Highest priced home in Westport in the month of November sold for $1,270,000 which was a Waterfront Cape on Drift Rd with views of the Westport River. Compared to October sold for $699,000 which was a ranch on Costa Lane. One Sales was a foreclosure on Pine Hill for $155,000. There were no Condos nor Multi Families homes sold in October.

UNDER AGREEEMNT: There were 11 single family homes Under Agreement with prices varying from $135,000 to $995,000 as of November 30th.

ACTIVE LISTINGS: There are currently 101 Active listing in Westport (based on MLSPIN MA) with prices varying from $165,000  on Beechwood St up to $2,595,000 on River Road. Six units are condominiums with prices between $167,500 and $439,000, and 8 are multi families with prices from $349,000 up to $699,000. There are currently 2 Foreclosure available for sale in Westport and 1 Short Sale.

Home Sold in Westport MA - 2012 Average Prices

Average Price	January	February	March	April	May	June
List price p/SqFt	$162	$193	$182	$201	$209	$306
List Price	$345,414	$228,967	$452,670	$530,515	$370,971	$658,835
Sales Price	$329,271	$212,333	$395,740	$491,795	$331,600	$542,358
Sale price p/ SqFt	$155	$178	$171	$189	$190	$209
Days on the Market	169 days	309 days	120 days	195 days	149 days	222 days

 

Average Price	July	August	September	October	November	December
List price p/SqFt	$173	$211	$207	$151	$208
List Price	$346,535	$480,783	$328,733	$345,338	$404,532
Sales Price	$339,723	$417,150	$316,000	$327,188	$381,626
Sale price p/ SqFt	$171	$189	$202	$147	$195
Days on the Market	254 days	217 days	164 days	96 days	143 days

If you are thinking of buying a home please visit www.DistinctiveHomes-NE.com for a free list of homes for sale in Westport MA and surrounding towns. Would like to receive a current market update of your specfic area? Contact me with your request.

If you are thinking of selling your home contact me for a FREE Current Market Analysis and to learn about our Market Plan to get your home SOLD!

We work with one going in mind, YOURS!

Noemi Cardoso

Local Office. Local Agents. Local Knowledge.

William Raveis Real Estate
911 Main Rd - Westport MA 02790
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
noemi@DistinctiveHomes-NE.com