Marblehead’s property tax rate drops a penny
While I was away in London, the property tax rate in Marblehead for 2015 was approved at $11.08, down just a penny from 2014’s $11.09.
Remember that assessed values for FY2015 (July 2014-June 2015) are based upon values in 2013, so the strong market in 2014 will be reflected in the tax rate for FY2016, when I expect to see a larger drop.
(more…)
Pending Homes sales remain strong in Massachusetts
The Massachusetts Association of Realtors (MAR) reported this week that accepted offers in October for Single Family Homes (SFHs) increased 23.5% from October 2013, and for condos increased 14% year on year. These numbers represent the 20th consecutive month of year on year gains.
MAR also reports monthly changes in median prices – just under 2% year on year for both SFHs and condos. For many reasons I pay little attention to – and never report – monthly movements in prices, but I agree with the general thesis that prices have stabilized as they have returned to prior peak levels. (more…)
Million Dollar Home Sales hit new record in Marblehead
Record Sales
Sales of Marblehead homes over a Million Dollars have hit a new record in 2014. The previous peak was 36 in 2005, and this year we already have 38 closed sales with a further 5 scheduled to close before year end for a total of 43.
Sales by price bracket (more…)
Homes for sale in Essex County plummet in recent years
This week I am looking at the number of Single Family Homes (SFHs) for sale, as a follow up to last week’s Where have all the Condo sellers gone? article. In that article I pointed out that the number of condos for sale, in both Marblehead and Essex County, was down some 70% from the levels seen in the 2006/07 period, and offered some thoughts on why that might be. (more…)
Flood Insurance: “Because without it your home is a disaster waiting to happen”
It seems appropriate on this morning of another nor’easter to echo the reminder recently sent out by FEMA.
– Flood damage is not covered by most homeowners insurance.
– Flooding is the #1 natural disaster.
– People outside high-risk areas file over 20% of NFIP claims and receive one-third of disaster assistance for flooding
– In high-risk areas homes have at least a 1 in 4 chance of flooding over a 30 year mortgage
– Flood insurance is mandatory if you live in a high-risk area and have a mortgage from a federally regulated or insured lender.
For more information go to FloodSmart.gov (more…)
Where have all the Condo sellers gone?
I have noticed for some time that the number of condos for sale in Marblehead has been low compared with the days of my old Marblehead Reporter articles (2008-11) when my memory said there always seemed to be 50 or more for sale.
I checked the numbers for today and compared them over the last 10 years. The questions that came to mind were: was this just a Marblehead phenomenon? Was it maybe because of the time of the year? And if not, what was the reason for the decline? (more…)
Where are America’s most expensive zipcodes?
Read thisForbes article to find out.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or [email protected].
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty
Affiliates LLC. Each Office Is Independently Owned and Operated
Home Equity loans jump – or did they?
This week Equifax announced New credit for HELOCs increases 21% year over year. New Home Equity loans reached a 6 year high in July.
Mindful that there are a lot of 10 year HELOCs coming due in the next few years my first reaction was one of caution, tending towards concern. After all, a lot of the housing boom was financed by people using the equity in their homes. HELOCs opened between 2004-2008 account for 60 percent of outstanding loans and more than $221 billion in HELOC loans will be due for repayment or refinancing from 2014-2018.
But I read on and learned:
(a) While new loans “jumped” 21% to $66 bn, the total amount of HELOCs outstanding at the end of August was $478 billion, a 5 year low and a 4% decrease over a year ago.
(b) Total HELOC volume is only just over a third of the levels before The Great Recession.
All in all, therefore, it does not appear that new home equity loan levels are a cause for concern, nor are they an indication that we are again all glued to HGTV and borrowing freely to speculate invest in real estate. I do, however, have some concern as to the impact as the 2004-2008 loans come due.
What is the difference between a Home Equity Loan and a Home Equity Line of Credit?
A HELOC is a line of revolving credit with an adjustable interest rate whereas a home equity loan is a one time lump-sum loan, often with a fixed interest rate. A HELOC can be drawn down as and when needed and bears interest only. A Home Equity Loan, however, is more like a mortgage, with a one time draw down and payments that include Principal.
Put another way, the payments on a HELOC are a lot less than those on a Loan. Hence their popularity with homeowners.(Outstanding HELOCs are $477 bn while outstanding home equity loans are only $125 billion.)
The bad news is that after 10 years of interest only payments borrowers will have to refinance, pay off the loan or start making Principal payments over a shorter time frame. (I heard of one recently which converted into a 6 year mortgage.Ouch!).
Equifax made this comment about the classes of 2004-2008: “The financial circumstances of borrowers and the value of properties against which these lines are held may have deteriorated.” NSS!
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or [email protected].
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Fannie Mae and Freddie Mac may be bringing back 3% down mortgages
In a speech this week to the Mortgage Bankers Association, Mel Watt, the Director of the Federal Housing Finance Agency (which regulates Fannie and Freddie) announced that: “to increase access for creditworthy but lower-wealth borrowers, FHFA is …. working with the Enterprises (Fannie and Freddie) to develop sensible and responsible guidelines for mortgages with loan-to-value ratios between 95 and 97 percent.”
Earlier this year FNM discontinued its 97% Conventional Loan, which was described by Dan Green of The Mortgage Reports as: “a true, three-percent-downpayment mortgage program, for which the 3% downpayment may come as a gift. In many respects, it’s more aggressive that the FHA’s benchmark mortgage product in that guidelines are simpler and less-restrictive.”
Mr. Watt hopes that : “through these revised guidelines, we believe that the Enterprises will be able to responsibly serve a targeted segment of creditworthy borrowers with lower-down payment mortgages by taking into account “compensating factors.” Further details about these new guidelines will be available in the coming weeks as we continue to advance FHFA’s mission of ensuring safety, soundness and liquidity in the housing finance markets.”
Click here to read Mr.Watt’s remarks.
If you – or somebody you know – are considering buying or selling a home , or have questions about the market and/or current home prices, please feel free to contact me on 617.834.8205 or [email protected].
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty.
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
The Chinese are coming, the Chinese are coming
According to Bloomberg Business Week the LA suburb of Arcadia is enjoying a boom in home prices fuelled by Chinese buying.
“For buyers from mainland China, Arcadia offers excellent schools, large lots with lenient building codes, and a place to park their money beyond the reach of the Chinese government.The city, population 57,600, projects that about 150 older homes—53 percent more than normal—will be torn down this year and replaced with mansions. The deals happen fast and are rarely listed publicly.”
Ah here are a couple of obvious problems for Marblehead. I don’t think we can offer lenient building codes, while I am not sure a 6,000 sf lot in Old Town would meet the bill. Oh well, we can but dream that the Chinese will discover Marblehead one day.
Read the article Chinese home buying binge.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or [email protected].
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty.
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Marblehead’s 200th SFH sale earliest since 2004
Marblehead recorded its 200th Single Family Home sale on Friday, the earliest date that has been achieved since 2004. A further 45 SFHs are pending, with the majority likely to close this year. Total sales for 2014, therefore, are likely to be second only to 2004 this century.
Source: MLS, Oliver Reports
Who will be the next Somerville?
Contenders are vying for the on-deck slot Somerville is shedding: the hip, genuine, and affordable alternative to a more prestigious town.
Will it be Chelsea. Medford, Watertown or even Fitchburg?
Essex County Third Quarter Housing Review
The Single Family Home (SFH) market
The median price of a SFH in Essex County in Q3 2014 was flat compared with a year earlier, but Q3 2013 was the quarter with the highest median price of the year. Note that quarterly prices nearly always fluctuate to some extent during the year; it is very rare for prices to rise steadily throughout the year. Q3 has seen the highest price of the year in each of the last 4 years.
The record median price for the year was $394,400 in 2005 and it looks as though 2014 will be in the region of $385,000 so we are very close to returning to that previous peak. (more…)
Swampscott Third Quarter Housing Review
The Single Family (SFH) market
After enjoying good price gains in 2013 the median price in 2014 has been more or less flat all year. And the full year’s median price seems likely to come in as much as 15% below the peak of 2005: (more…)
Salem Third Quarter Housing Review
The Single Family Home (SFH) market
The market continued to improve in Q3 and it looks like the full year to be very close to, or even slightly exceed, the previous high of $349,000 in 2005: (more…)
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