First-time home buyers at near 30 year low
According to a recent National Association of Realtors (NAR) report, the share of first–time buyers declined for the third consecutive year and remained at its lowest point in nearly three decades,
The share of first-time buyers declined to 32% from 33% a year ago and remains well below the historical average of 40%.
According to the NAR’s chief economist, Lawrence Yun: : “there are several reasons why there should be more first–time buyers reaching the market, including persistently low mortgage rates, healthy job prospects for those college–educated, and the fact that renting is becoming more unaffordable in many areas.”
Mr. Yun continues: “Unfortunately, there are just as many high hurdles slowing first–time buyers down. Increasing rents and home prices are impeding their ability to save for a down payment, there’s scarce inventory for new and existing–homes in their price range, and it’s still too difficult for some to get a mortgage.”
“First–time buyers reported that debt (all forms) delayed saving for a down payment for a median of three years, and among the 25 percent who said saving was the most difficult task, a majority (58 percent) said student loans delayed saving,” he said. “With a median amount of student loan debt for all buyers at $25,000, it’s likely some younger households with even higher levels of debt can’t save for an adequate down payment or have decided to delay buying until their debt is at more comfortable levels.” (more…)
Who is the Typical Home Buyer and Seller?
The National Association of Realtors (NAR) has released its report on the profile of the typical home buyer and seller nationally. The infographics below show the highlights of the report:
Why Boston is better than San Francisco
While Boston.com’s Why Boston is better than San Francisco for software engineers refers to software engineers, it helps to explain the influx of such people into the Boston area: “Boston is a really interesting market. Some markets have a lot of great companies, but not enough talent or vice versus. Boston has a vibrant community of both.”
Earlier this year the job site Glassdoor wrote: “It’s clear Boston is home to a very vibrant job market right now with many thriving industries, spanning education, healthcare, tech, and more. Job seekers should know that Boston is a great city to find a variety of jobs and new opportunities.”
The influx of people is, of course, a major factor in driving up both rents and home prices. (more…)
The Miracle of Christmas in Marblehead
Read The Miracle of Christmas about the 35th annual Old North Festival Chorus concerts this weekend, offered as part of the Marblehead Christmas Walk . The concerts take place at Old North Church, 35 Washington Street. (more…)
Sales and home prices rise in Essex County
In the first 11 months of 2015 sales and prices of both SFHs and Condos in Essex County and Massachusetts have increased at generally similar rates:
The sales increase for condos seems to be the one out of sync between Essex County and the State as a whole so I have looked at the breakdown by County, showing that sales were flat in the two largest Counties:
MLS, Oliver Reports
Overall, these numbers confirm the reports all year of a market that has returned to the normal condition of gently rising prices. (more…)
Lynn, Lynn, city of……. revitalization
Gov. Charlie Baker traveled to Lynn to announce the Lynn Economic Advancement and Development Team, according to this Baker sees Lynn revitalization article in the Marblehead Reporter.
A new working group will facilitate the revitalization of the city of Lynn, using expedited permitting and coordinating development of sites with cross-jurisdictional issues, the Baker administration announced.
Baker said the collaboration would be a “great opportunity” to “do some great things” in Lynn.
Lynn Mayor Judith Flanagan said she would like a hotel on the waterfront, cleanup of polluted sites, including a former drycleaner, and better marketing of available land near the water. (more…)
A new look at seasonality in house prices
I have written many times about the seasonality in median selling prices by quarter in Massachusetts. Because sales take place around 2 months after an offer is accepted, sales are a lagging indicator. In this report I look at the median list price of offers that have been accepted each month to gauge more current information about what is selling.
First, let’s look at the median sales price for the year in Marblehead. Note that the highest price has been achieved most frequently in Q3, followed by Q4,Q2 and Q1.
The chart below shows the median list price of houses with accepted offers monthly for the last two years. I think it shows how prices of houses that are selling in Marblehead have increased from last year.
Finally, through today the median price of homes sold in Q4 is $540,700, so it looks certain that 2015 will be another year when the highest median price occurs in Q3. (more…)
Open Houses
There are only a few Open Houses today, but if you are interested in any of them and can go you will likely find less competition than usual. And houses are still selling briskly. (more…)
Massachusetts “best State in the country” to live
Yes that’s right, number 1, according to a report by 24/7WallStreet, a financial website, which ranked States using an index composed of three socioeconomic measures: poverty rate, the percentage of adults who have at least a bachelor’s degree, and life expectancy at birth.
This is what is has to say about Massachusetts:
“As in many of the other best states to live in, Massachusetts residents are quite wealthy. A typical household earns $69,160 each year, the sixth highest annual median household income in the nation. Similarly, the state’s poverty rate of 11.6% is one of the lowest in the nation. As in most states with low poverty rates and high incomes, the average Massachusetts resident will enjoy a relatively long life. The life expectancy at birth in Massachusetts is 80.5 years, versus the national life expectancy of 79 years. Massachusetts’ nation-leading college attainment rate of 41.2% — it is the only state where more than two in five adults have a bachelor’s degree — is a major driver of the state’s strong economy and high quality of life. Students in the state also score well above average on standardized tests. (more…)
We live in Yankeedom
According to Colin Woodard, a reporter at the Portland Press Herald and author of several books, North America can be broken neatly into 11 separate nation-states, where dominant cultures explain our voting behaviors and attitudes toward everything from social issues to the role of government.
We live in Yankeedom, which Woodward describes as follows: “Founded by Puritans, residents in Northeastern states and the industrial Midwest tend to be more comfortable with government regulation. They value education and the common good more than other regions.”
Um, I am not sure about the comment about government regulation, but am glad that I live where education and the common good are highly valued. (more…)
New Listings come almost to a halt
Not surprisingly in Thanksgiving week there were no new listings in Marblehead,Beverly or Swampscott, and just 6 – 2 SFHs and 4 condos – in Salem: Salem new listings. (more…)
El Nino is good news for housing market
Back in July I wrote No snow this winter, a somewhat optimistic comment about the effect El Nino might have on our weather this winter.
Yesterday I read El Nino seen warming Us economy on Bloomberg, with economists quoted as saying “a milder winter supports growth in housing and consumer spending”.
The last two winters have seen unusually cold (think polar vortex) and snowy weather, and in both years the real estate market in New England got off to a slow start. With the economy growing strongly in Massachusetts (forecasts put 2015 growth at 5%), 2016 could be a very good year in the housing market, with the possibility that the gains seen in Metro Boston in the last few years will extend further outwards. (more…)
Open Houses: take your umbrella
Just a few showers so take an unbrella when you visit these Open Houses: (more…)
When was Marblehead’s 200th SFH sale?
The very first post I wrote on this blog, 3 years and 539 posts ago, pointed out that sales of Single Family Homes in Marblehead in 2012 had reached 200 for the first time since 2007. One of the ways I tracked the pace of sales was to list the date on which the 200th sale occurred. (more…)
Guess who is selling Julia Child’s French home?
The French home of Julia Child is for sale through….. Sotheby’s International Realty.
Take a moment to look through the photographs of the house and note their high quality. This same high quality of photographs is a feature of all the homes listed by Harborside Sotheby’s International Realty.
Since 90% of home buyers search online and the first “showing” of your house is online, presentation is absolutely vital. If you want buyers to see your home in such clear and splendid detail, contact me for more information about the way we will present your home to the market.
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