New Listings post School Vacation
Here are the new listings so far this week: (more…)
Open Houses Sunday February 25
Here are today’s Open Houses:
Marblehead Open Houses
Swampscott Open Houses
Salem Open Houses
Beverly Open Houses
Lynn Open House
What do property descriptions actually tell you?
As Mansion Global points out: “In the text of almost any real estate listing, buyers and brokers can expect an onslaught of superlatives. It’s as if every property is the best and most beautiful with top-of-the-line finishes, tranquil and lush outdoor space, and gorgeous views.
But buried in that over-dramatization is a lot of info that can clue buyers in about what to expect from a given property beyond just the number of bedrooms and bathrooms and the size of the home, which might save them time during their search or give them the upper hand during a negotiation.”
Click How to decipher the wording in listings to read the short article which will help you navigate through the hyperbole of listings.
I think we can all agree, however, that “unobstructed ocean view” is an accurate description of this property:
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact Andrew Oliver on 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Are you thinking about selling? Read Which broker should I choose to sell my house?
Andrew Oliver and Kathleen Murphy are Realtors with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports
New Listings in School Vacation week
Another weird weather week in New England: 70 degrees followed by sleet and snow. Here are the new listings during school vacation week:
Marblehead new listings
Swampscott new listings
Salem new listings
Beverly new listings
Lynn new listings
New Listings February 21
It may feel like spring but the number of new listings remains low.
Marblehead new listings
Swampscott new listings
Salem new listings
Beverly new listings
Lynn new listings
Pending $8 million sale in Swampscott
A 14,000 sf contemporary house, sitting on an acre of ocean top land, and listed for sale at $7.995 million, has just gone under agreement in Swampscott.
Assuming the sale goes through at some proximity to the list price, this sale will eclipse the previous record MLS sale in Swampscott of $3.95 million – for the house next door.
And the new owner is clearly not put off by the change in the deductibility of property taxes: they will come in this year at $114,411.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact Andrew Oliver on 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Are you thinking about selling? Read Which broker should I choose to sell my house?
Andrew Oliver and Kathleen Murphy are Realtors with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports
Open Houses Sunday February 18
Sunny and mild today after the snow for these Open Houses:
Marblehead Open Houses
Swampscott Open Houses
Salem Open Houses
Beverly Open Houses
Lynn Open Houses
New Listings week of February 16
Here are the week’s new Listings:
Marblehead new listings
Swampscott new listings
Salem new listings
Beverly new listings
Lynn new listings
What will happen to Home Prices in the Experimental Economy?
(Click here to download a pdf of this report.)
This article is a follow up to my Why have mortgage rates spiked? article published two weeks ago, and sets out some thoughts about the outlook for residential real estate as we enter an Experimental Economy.
What is an Experimental Economy?
Let’s try to compare the economy in a recession to a car pulling a trailer, with a full load of passengers, while going uphill. What does the driver do? To offset the gradient and the weight being pulled, she pushes on the accelerator pedal, the extra effort allowing her to maintain speed. And when she gets to the top of the hill? She eases off the pedal so that she can avoid speeding and the risk of losing control.
Now, let’s look at the economy. As we emerged from The Great Recession, the Federal Reserve (Fed), understanding that the economy was facing a sharp incline, had its foot hard down on the accelerator (cheap and plentiful money), dragging the car (economy) with its trailer (unemployment) up the incline.
After an initial period, the car slowly regained its speed and as it neared the top of the hill the driver started to ease off on the accelerator (raising interest rates and buying fewer Government securities – Treasuries).
And then, the car reached the top of the hill (historically low levels of unemployment, an economy growing steadily). So, what does the driver do now? Well, based upon historical evidence, the driver (Fed) raises interest rates, while the Government tries to run a budget surplus to squirrel away funds for the next recession.
The Fed has done its part, but the Government, as in Congress, has decided that it is time for an Experimental Economy. Instead of taking the foot off the accelerator, Congress has passed a series of tax cuts and spending increases which will more than double the Budget Deficit. Rather than easing up on the accelerator, Congress has decided to push its foot down even harder.
I call what we are entering now the Experimental Economy, the experiment being that we are betting that the tax cuts and spending increases will lead to faster economic growth, which in turn will reduce the budget deficit.
It’s different this time because….
During periods of strong movement, either up or down, whether in stock markets or economies, one frequently hears pundits explaining why “this time it is different.”
During the yearly years of Quantitative Easing (monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply) many economists forecast that such an unprecedented increase in the money supply would inevitably lead to renewed inflation.
That did not happen for a variety of reasons: the depth of the recession in the US and the longer recession in Europe, the emergence of the US as the world’s largest oil producer. The result was that the longer that inflation did not recur the more the experts claimed that “this time it’s different.”
But, as Winston Churchill said: “Those who fail to learn from history are condemned to repeat it.”
What could go wrong with the Experimental Economy
Those who are predicting that strong growth will follow from the major stimulus to the economy may be proved right. If not, the risk is that stimulating the economy at a time of full employment will cause the Fed to raise interest rates aggressively and choke off the hoped for economic growth.
If you have been watching the Olympics, you may have seen the bobsleigh or bobsled events. Stepping on the gas at the top of the economic hill might be compared to jumping in a bobsleigh and hurtling down the track.
In this photo of a 4 man team, the man at the back – the brakeman – appears to have his head down, as if in prayer. I am wondering if he is the Federal Reserve Chairman who has just been told that Congress has passed another spending bill.
At least the traditional bobsleigh has a sold frame, with a driver and brakeman. Let’s hope the economy resembles the 4 man bob rather than the skeleton bobsleigh below.
Why Treasury yields may continue to rise
I have written many times in recent years that the law of supply and demand has applied to home prices, in comments like: “economic growth, low interest rates, strong demand and low supply will lead to higher prices.”
Whether or not inflation does increase beyond the Fed’s 2% target, there is going to be a major increase in the amount of Treasuries that need to be sold this year to finance the sharply increased budget deficit. And this will occur when the Fed has switched from being a buyer of Treasuries to a seller, and when the projected weakness of the dollar makes buying anything in the US less attractive to foreign investors.
If the supply increases and demand decreases, then prices should go down – which in bond markets means higher interest rates.
What will happen to residential real estate prices
While many commentators have expressed the hope that rising interest rates might slow the demand for real estate, there is a converse argument that recent tax changes may encourage people to stay in their existing homes. A longer-term encouraging sign is the recent sharp increase in both housing starts and building permits, but in the short-term demand seems set to continue to outstrip supply.
And historically, real assets like homes have benefited in times of inflation.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact Andrew Oliver on 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Are you thinking about selling? Read Which broker should I choose to sell my house?
Andrew Oliver and Kathleen Murphy are Realtors with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports
Valentine’s Day New Listings Update
What would you like for Valentine’s Day? How about one of these new listings – to go along with the flowers and chocolates, of course:
Marblehead new listings
Swampscott new listings
Salem new listings
Beverly new listings
Lynn new listings
Open Houses February 11
Mild but damp weather for today’s Open Houses:
One addition to this list in Marblehead is 11 Crown Way which is open 1:30-2:30.
Marblehead Open Houses
Swampscoptt Open Houses
Salem Open Houses
Beverly Open Houses
Lynn Open Houses
Marblehead Oceanfront Open House: “Make me an Offer”
Breathtaking views all the way down to the South Shore from this gracious, restored (1998-2006), 1870s oceanfront home. The open floor plan offers an easy flow for entertaining. The house sits on a private beach, high above the Atlantic, in a wonderfully protected location (no flood insurance required.) VIEWS and VIEWS and VIEWS.
Open House Sunday 1:30-2:30 at 11 Crown Way. And here’s a link to the Video. and to the sky over the ocean at sunset.
Carriage house believed to be a stop on the Underground RaiIroad. Property featured by Massachusetts Historical Commission.
Listen to the sound of the ocean, while looking out over the rocks which provide a sanctuary for wildlife.
Just 13 miles north of Boston’s Logan Airport, while enjoying all the charms and delights of the “Yachting Capital of America”, and “New England’s Best-Kept Seaside Secret.” Huge price reduction allows for any further updating required.
Owner says “Make Me An Offer.”
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact Andrew Oliver on 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Are you thinking about selling? Read Which broker should I choose to sell my house?
Andrew Oliver and Kathleen Murphy are Realtors with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports
New Listings week of February 9
The market for new listings is a bit like the weather at this time of year, showing occasional signs of improvement, but we are still a long way from having a healthy supply:
Marblehead new listings
Swampscott new listings
Salem new listings
Beverly new listings
Lynn new listings
Million Dollar Home Sales Jump 20% in 2017
While overall sales of Single Family Homes (SFH) in the 34 cities and towns of Essex County fell 1% in 2017, it was a different story at the higher end, with a 20% increase in sales over $1 million, from 242 in 2016 to 291 in 2017.
Moving up the food chain, the number of sales of $2 million or more increased 14% from 42 in 2016 to a new record of 48, although this was only marginally better than the prior peak of 47 in 2006.
This article will look first at Essex County overall and then at individual towns.
Essex County
Two charts: sales over $1 million and sales over $2 million.
Towns
Marblehead has reported the highest number of sales over $1 million in every year except 2008. In 2017, Andover and Gloucester both showed sharp increases in sales, as did Newburyport, Beverly and Essex.
Marblehead leads again in sales over $2 million, except in 2006. In 2017, sales in Marblehead declined slightly while Gloucester saw a strong increase to tie Marblehead, with Manchester just behind.
Comment
These sales figures are not surprising given the strength of the housing market in recent years.In my 2016 year end reviews I suggested that 2017 might be the year when activity picked up at the higher end and these numbers confirm that did happen.
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