Flood Insurance: Senate to vote Monday on bill to delay flood premium increases
According to an article in the Times-Picayune of New Orleans, the US Senate is finally scheduled to vote on Monday to allow debate to proceed on legislation to delay flood premium increases .
To summarize my previous posts on this subject:
– only a small percentage of homes in flood zones carry insurance
– the NFIP has worked well with the exception of major catastrophes
– Congress passed the Biggert-Waters Act without understanding the consequences
– FEMA was supposed to complete an affordability study before implementing new rates, but didn’t
– an independent study suggests that FEMA “used a mapping method fit for the Pacific coast, where the wave periods are much longer and the beaches are straighter, instead of developing a correct approach for New England.”
Other than that….. (more…)
How will a wind turbine affect my home’s value?
A recent study Relationship between Wind Turbines and Residential Property Values in Massachusetts by the University of Connecticut and the Lawrence Berkeley National Laboratory analyzed more than 122,000 home sales between 1998 and 2012 occurring near the current or future location of 41 turbines in densely-populated Massachusetts communities.
While “weak evidence suggests that the announcement of the wind facilities had a modest adverse impact on home prices….. those effects were no longer apparent after turbine construction and eventual operation commenced. The analysis also showed no unique impact on the rate of home sales near wind turbines.” The study “found no net effects due to the arrival of turbines in the sample’s communities.” (more…)
Marblehead Oceanfront Open House Sunday 12-2
THERE WILL BE ONLY ONE BUYER. Will it be you?
Dutch auction: the price is reduced $25,000 every Friday on this 11CrownWay 1850 Marblehead Oceanfront family compound.The first person to hit the bid buys the house! (more…)
Can reverse auction move Marblehead mansion?
Boston.com posted this article today.
Here’s a link to the property’s website 11 Crown Way
If you are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 781.631.1223 or andrew@HarborsideRealty.com.
Andrew Oliver is a Realtor with Harborside Realty in Marblehead
THERE CAN BE ONLY ONE BUYER
Dutch auction: the price is reduced $25,000 every Friday on this Marblehead Oceanfront family compound. The first person to hit the bid buys the house! (more…)
The best time to buy or sell a home in Massachusetts
(Note: this article was updated in February 2016 at When is the best time to buy or sell a home in Massachusetts?)
Ok, I know, you don’t own a home – or are not thinking of buying a home – in “Massachusetts” but in Marblehead, or Swampscott, or Salem or Beverly.
But… as a commentator on a blog article I wrote last year pointed out, it is always useful to know what is going on beyond one’s immediate neighborhood. That may mean the state of the economy, which will affect mortgage rates, or geopolitical developments, which affect general confidence.
We all spent 2013 reading of bidding wars and dire warnings of “a new bubble”. I freely admit to greeting bubble warnings with disdain, even with that well known refuge of the desperate – or at least the British – sarcasm.
Well, the results are in: the housing “bubble” in Massachusetts in 2013 produced just a 5% increase in the median price of a Single Family Home (SFH), as sales increased by 8%. Bubble? I don’t think so. (more…)
New mortgage rules raise costs for borrowers
Carl Edwards, V-P Lending for National Grand Bank in Marblehead, made a presentation at the offices of Harborside Realty this week. His main message was that the new rules, designed to “protect” the consumer, would have the effect of increasing the cost of mortgages.
The new rules, which are part of Dodd- Frank: generally require creditors to make a reasonable, good faith determination of a consumer’s ability to repay any consumer credit transaction secured by a dwelling …… and establishes certain protections from liability under this requirement for “qualified mortgages.”
The concept of requiring a lender to determine if a borrower can repay a loan may seem like basic common sense, but with regulation comes additional costs. For example, a borrower with a credit score of 700 making a deposit of 30% on a loan sold to Fannie Mae or Freddie Mac will now pay 1.50% in upfront fees. (more…)
Is the 30 year fixed rate mortgage an endangered species?
Discussion about mortgage rates normally focuses on the 30 year fixed rate mortgage (FRM). As the table below shows, the US is unique in developed countries in having FRMs as the dominant product:
Only Denmark and France have significant FRM markets and their products differ from the US in certain ways. (more…)
Swampscott 2013 Housing Review and 2014 Outlook
I will start with the Single Family Home (SFH) market and comment on the condo market at the end of this post.
2013 was a strong year for the Swampscott SFH market in terms of both sales and median price increase.
Sales jumped 38% to a level exceeded only once – in 2004, and then by only 7 units – this millennium.
The median price increased for the second year in a row, by 11% to $442,000, although it is still below the 201o level and 15% below the peak level of 2005 which increasingly looks like an anomaly. (more…)
Marblehead Housing Review 2013 and Outlook
I concluded my 2012 review with these words: “clearly 2012 was the year when the market nationally turned up. More importantly, perhaps, it also marked the turn in sentiment, with the view becoming widespread that the market has bottomed and is improving, in some cases sharply.”
There is no doubt that 2013 was a year when the headlines about the housing market were dominated by stories of rising prices and bidding wars, with many, many properties throughout the country – and in Marblehead at the lower levels – selling above list prices.
The median price for a Single Family Home (SFH) in 2013 was $535,000,up from $510,000 in 2012 and from $524,950 in 2011. Sales, at 227 were unchanged from 2012, largely because the shortage of available properties for sale, a factor all year, really took hold in Q4.
Let’s look at the numbers. (more…)
Marblehead Condo Market 2013 Review and Outlook
After several years of high inventory the condo market in Marblehead turned around sharply in the second half of 2013.
At mid-year there were 24 condos available for sale after just 12 sold in the first half of the year.
In the second half of the year, however, there were 34 sales, the highest number in any six month period since 2005, and as of today there are just 9 condos for sale in Marblehead, and 3 of those are priced at $625,000 or higher.
The law of supply and demand suggests that 2014 will be a good year for condo prices in Marblehead.
Reasons for the turnaround include:
1. Condos are often bought by first time, younger buyers, who may be feeling more confident about their job prospects.
2. At the higher end, condos are bought by people down-sizing or wanting a summer property.
3. As mortgage rates moved up during 2013, Adjustable Rate Mortgages (ARMs), which are often used by condo buyers, became more attractive as the benchmark interest rate used to price ARMs did not move up as much as that used in pricing 30 year mortgages.
4. The days of converting 2/3 unit apartment buildings and calling them condos are gone. Today’s condo buyer wants a purpose-built or professionally converted condo, and there is a limited supply of these in Marblehead. (more…)
Year end reviews
I shall be publishing year-end reviews over the course of this weekend. The best way to know when they are published is to sign up on www.OliverReports.com to receive email alerts of new articles. Here’s a screenshot showing where you can sign up on the home page.
If you are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 781.631.1223 or andrew@HarborsideRealty.com.
Andrew Oliver is a Realtor with Harborside Realty in Marblehead
Foreclosures and Short Sales plummet in 2013
Foreclosures (FC) and Short Sales (SS) in Essex County accounted for 8% of Single Family Home (SFH) sales in 2013, down from 14% in 2012. In condos FCSS were 10% of the market, down from 21% in 2012.
While Lynn still had the highest percentage of FCSS sales in 2013, the numbers there dropped from 30% to 12% for SFHs and from 49% to 25% for condos.
Here are the numbers by city and town for the North Shore, and for Essex County and Massachusetts overall. First SFHs:
Source: MLS, Oliver Reports
and for condos:
Source: MLS, Oliver Reports
If you are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 781.631.1223 or andrew@HarborsideRealty.com.
Andrew Oliver is a Realtor with Harborside Realty in Marblehead
Sharp jump in home sales in 2013
As the housing market improved in 2013 we heard less about the impact of foreclosures (FC) and short sales (SS) on the market. Because of the well documented pricing difference between FCSS, collectively known as distressed sales, I have excluded FCSS from my analyses of median prices since I first started reporting housing statistics in 2008. I do, however, include FCSS sales in total sales figures.
Overall sales, including FCSS, in Essex County increased 11% for Single Family Homes (SFHs) in 2013 and by 12% for condos. But excluding FCSS sales, non-distressed sales jumped 18% for SFHs and 27% for condos.
Here are the numbers:
Source: MLS, Oliver Reports
FCSS are often bought by professional investors. Traditional buyers, who want to occupy the home, normally buy non-distressed properties. Thus, despite the inventory shortages, buying by owner occupiers showed a very sharp increase in 2013.
If you are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 781.631.1223 or andrew@HarborsideRealty.com.
Andrew Oliver is a Realtor with Harborside Realty in Marblehead
Seasonal slump in housing inventory
Much like the temperature, housing inventory is extremely low at the start of the New Year in Essex County. Overall, the number of available Single Family Homes (SFHs) is down 3% from a year ago, but down a whopping 34% since the beginning of October.
Needless to say, as in everything else in New England, the weather is a major factor in the seasonal slump. How many people went house-hunting after the storm? But with inventory so low, a period of mild weather in the next couple of months could trigger a buying rush much as we saw last winter.
If you are thinking of selling in the spring, it may be a good idea to start getting ready now.
Here are the inventory numbers for each quarter over the last year, earliest to latest. The last two columns show the percentage change year over year (YOY) and since October (Q4). Note that Marblehead’s inventory is down 29% YOY and 41% Q4:
Source: MLS, Oliver Reports
While condo inventory for Essex County is down 7% YOY (and 28% Q4), on the North Shore it has dropped 20% YOY and 30% Q4. Ipswich and Marblehead have both seen drops of 50% or more YOY. Going the other way is Swampscott, which saw a number of new developments come to market in 2013.
Source: MLS, Oliver Reports
These numbers confirm last week’s post about the tightness of the condo market in Marblehead, where sales in the second half of 2013 were the highest in any six months since 2005.
In a general article such as this I do not have room to post a more detailed break-down by price or location, so if you have any questions please contact me.
If you are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 781.631.1223 or andrew@HarborsideRealty.com.
Andrew Oliver is a Realtor with Harborside Realty in Marblehead.
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