Western Mass Home Sales Almost Doubled Says Latest Numbers

The anticipated sunset on the $8000 first time homebuyer’s tax credit spurred a flurry of activity in the market and resulted in a near double of the number of homes sold in three Western Massachusetts counties in November.

The RAPV announced yesterday that home sales in Hampden, Hampshire and Franklin counties were up 97.9 percent for the month this year over the numbers in November of 2008. Last year 236 units closed. This year’s tally was 467.

Further good news indicated that sales prices increased as well, with the median price rising by $500 per unit, an increase of .3 percent over the same period in 2008.  This is significant because it is the first time this year that an increase in the number of units sold did not correlate with a decrease in the median price.

Clearly the fear of missing out on the tax credit had a lot to do with this bump, but this is another serious indicator of the market making a slow and steady recovery.

In November, Congress extended the original tax credit and expanded the program to include a $6,500 credit for homeowners who are buying a different home. First-time buyers are still eligible for $8,000. But in order to qualify for either, buyers need to be under contract by the end of April and have the deal closed within 60 days.

Broken Down By County

In Hampden County, sales were up 105.1 percent from 159 in November 2008 to 322 last month. The median price was up 3.2 percent from $165,000 to $170,000.

In Hampshire County, sales were up 95.3 percent from 43 in November 2008 to 84 last month. The median price was down 4 percent from $240,000 to $230,500.

In Franklin County, sales were up 79.4 percent from 34 in November 2008 to 61 last month. The median sales price was up 14.6 percent from $157,000 in November 2008 to $180,000 last month.

Good news for sellers was also revealed in the report. News broke that the inventory for homes that continue to languish on the market is dwindling.  Its down 13.5 percent from 3,012 at the close of November last year to 2,606 at the end of last month.

Houses are moving, prices are remaining reasonable and the government is helping hand homeowners the keys. Now is the time to get in to the buyer’s market or to list that house to get it sold.  Give me a call if you have any questions or you are ready to begin the process. Let me be your Real Estate Advocate!

jason@burkins.net
413.537.2838

Information used in this post comes from the RAPV and Masslive’s Article by Jim Kenney, 12.15.09

Massachusetts Ranked 3rd Healthiest State. Vermont #1, N.H. #5.

States in New England top a new set of rankings, while the South still lags.

By Rebecca Ruiz

If you want to be healthy, live in Vermont–or at least act like you do. It is the healthiest state in the country, according to a new report from the nonprofit United Health Foundation.

The annual ranking looks at 22 indicators of health, including everything from how many children receive recommended vaccinations, to obesity and smoking rates, to cancer deaths. (The foundation is funded by the insurer UnitedHealth Group.)

Vermont ranked first this year thanks in part to its low rate of obesity, high number of doctors and a low rate of child poverty. New England in general sets a benchmark for the country, the report found: All six New England states are in the top 10. These states have favorable demographics and an excellent public health infrastructure, including a large number of doctors per capita.

Eight of the 10 bottom-ranked states are from the south, with Mississippi coming in dead last for the ninth consecutive year. Mississippi has a sky-high death rate from heart disease and high infant mortality. In general, residents of these states are more likely to be smokers or to be obese, the report found. They also have worse health insurance coverage, fewer physicians per capita and live in areas with high violent crime and more child poverty.

UnitedHealth Group Executive Vice President Dr. Reed Tuckson says the report is meant to draw attention to public health issues, particularly the twin challenges of smoking and obesity. While the smoking rate has decreased in the past 20 years, nearly one in five Americans still smoke. More than one-quarter of American adults suffer from obesity, a condition that the report estimated will cost $344 billion in annual health care costs by 2018. “We are about to deliver a tsunami of preventable chronic illness that will come pouring into the medical care delivery system,” says Reed.

The Results
Scores for each state are determined by gathering data from a variety of government and nongovernmental databases and then calculating how much each state is better or worse than the national average for each measure. The scores take into account a broad variety of health measures, including rates of infectious diseases, number of preventable hospitalizations and even levels of air pollution.

Christine Finley, the state’s deputy commissioner for public health, says Vermont’s performance in the rankings reflects its demographics. The state is 96% Caucasian, and research has shown that health outcomes can be worse for racial and ethnic populations as well as those with lower incomes and education levels. It also helps that every pediatrician in Vermont accepts Medicaid and the benefits extend to families who earn up to 300% of the poverty line.

Vermont fell short in some categories. Only 74% of children between 19 and 35 months have received recommended immunizations, compared to a national average of 78%. Vermonters also drink more than most Americans; 18% admit to binge drinking, while the national average is 16%.

For the states with the worst rankings, Dr. Tuckson says the news isn’t all bad. Mississippi’s child poverty rate decreased by 28% since last year, and its incidence of infectious disease decreased by 36% since 2003. In Louisiana, ranked 47th, preventable hospitalizations decreased by 11% since last year, and the smoking rate is down five percentage points in five years.

5 Healthiest States
1. Vermont
2. Utah
3. Massachusetts
4. Hawaii
5. New Hampshire

Springfield median home price falls 11 percent as sales increase 9.5 percent

Springfield median home price falls 11 percent as sales increase 9.5 percent

By The Republican Newsroom

September 29, 2009, 11:51PM

Associated PressThe Massachusetts Association of Realtors said Tuesday that sales of single-family homes in the state were up 0.4 percent in August, while the median selling price was down 3.1 percent

By JIM KINNEY

SPRINGFIELD – There were 680 single-family homes sold in the city of Springfield in the first eight months of 2009, a 9.5 percent increase from the 621 homes sold in the same time period of 2008.

But the median price paid for those homes fell 11.11 percent, from $135,000 in 2008 to $120,000 in 2009, according to statistics released Tuesday by The Warren Group, a Boston-based provider of real estate data.

“You are seeing both investors finding value now and first-time home buyers finding affordability,” said Robert P. Molta, president of Carlson GMAC Real Estate in Wilbraham and Chicopee.

But Molta said median prices won’t recover until unemployment improves and consumers feel more confident to spend money.

Low interest rates and the federal $8,000 tax credit for first-time home buyers is spurring demand for lower-priced homes, said Kevin M. Sears, owner and broker at Sears Real Estate in Springfield. Three-quarters of his clients in recent weeks have qualified for the credit.

But as the law stands now, that tax credit expires at the end of November. Realtors are warning that buyers should be in a purchase and sales agreement by Oct. 15 in order to make the deadline. Realtors are also lobbying for Congress to extend the program.

“Car sales fell in the wake of ‘Cash for Clunkers’,” Molta said. “I think that is the fear.”

Across the state, the number of single-family sales year-to-date through August fell 5.04 percent from 27,364 last year to 25,984. The median price fell 10.38 percent year-to-date from $318,000 to $285,000, also according to The Warren Group.

In Holyoke, as in Springfield, year-to-date sales through August increased while median prices fell. In Chicopee, Westfield and Palmer, sales and prices decreased. In Northampton, sales decreased while prices rose and in Greenfield, sales remained steady at 75 while the median prices rose 2.86 percent.

The Massachusetts Association of Realtors, which uses only transactions that go through a Realtor in calculating its statistics, said Tuesday that sales of single-family homes were up 0.4 percent in August, from 4,039 in August 2008 to 4,055 in August 2009. The median selling price was down 3.1 percent from $325,000 to $315,000.

Sears, who is also the president-elect of the Massachusetts Association of Realtors, said pending sales also increased 6 percent in August from 4,295 in August 2008 to 4,570 last month. Statewide inventory is also down for the sixth month in a row. The number of sales has been going up for months and staying even with last August can be seen as an achievement given the recession.

Regional Housing Sales Trend Up

Housing sales edge upward

Tuesday, September 15, 2009

By JIM KINNEY

Business writer

SPRINGFIELD – Single-family home sales rose 16.7 percent in August from 431 in August 2008 to 503, according to the Realtor Association of Pioneer Valley.

But the median price fell 5.5 percent from $210,000 to $198,500, continuing a pattern or strong sales and weak prices.

There were 5.9 months of supply on the market at the current rate of sale in August, compared to 7.8 months of supply a year ago. But the average home is spending longer on the market, 187 days as of last month up from 168 days in August 2008, also according to statistics released Friday by the Realtor Association.

“What I’m seeing now in September is that the market is still active,” said Linda S. Rotti of Jones Group Real Estate in Amherst and a past president of the Realtor Association.

In Hampden County, the region’s largest housing market, sales rose 26.2 percent from 260 a year ago to 328 last month . The median price fell 4.3 percent from $185,000 to $177,000.

In Hampshire County, sales were up 5.6 percent from 108 in August 2008 to 114 last month. The median price was up just 0.1 percent from $252,000 to $252,250.

In Franklin County, sales were down 3.2 percent from 63 in August 2008 to 61 last month. The median price was down 1 percent from $205,000 to $203,000.

Donald E. Thompson, a broker with Keller Williams Realty in Longmeadow and immediate past-president of the Realtor Association, said several factors are keeping the median price down despite strong sales.

Buyers drawn by the federal government’s $8,000 income-tax credit for first time home buyers are looking for modestly-priced homes, said

“We’ve also seen a lot of bank-owned properties being sold and the price is generally lower on that stuff,” Thompson said.

The top end of the market, homes priced at $400,000 or more, is very slow.

“The lenders are not lending like they were,” Thompson said. “People are sticking to the size house they can afford.”

Jim Kinney can be reached at jkinney@repub.com

Pending Home Sales Have Risen for the 6th Straight Month!

The National Association of Realtors issued a press release today announcing a great indicator that we are in a serious real estate market rebound. The numbers show that contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of Realtors®. Below is an excerpt from that press release. 

The Pending Home Sales Index,¹ a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008 when it was 87.1.  The index is at the highest level since June 2007 when it was 100.7.

Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better.  “The recovery is broad-based across many parts of the country.  Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit,” he said.

 

“Other buyers are taking advantage of low home values before prices turn higher.  Nationally, the typical mortgage payment now takes less than 25 percent of a middle-income family’s monthly income to buy a median priced home, with payment percentages so far in 2009 being the lowest on record dating back to 1970.  As long as home buyers stay within their budget, mortgage payments will be very manageable,” Yun said.

NAR estimates that about 1.8 to 2.0 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit.  Buyers have little time to act because they must complete the transaction by November 30 to qualify for the credit.  Unless extended, contracts signed but not completed by that date will not be eligible – it is taking approximately two months to complete home sales in the current market.

The Pending Home Sales Index in the Northeast declined 3.0 percent to 78.8 in July but is 4.7 percent higher than July 2008.  In the Midwest the index slipped 2.0 percent to 88.1 but is 8.1 percent above a year ago.  In the South, pending home sales activity rose 3.1 percent to an index of 103.8 in July and is 12.0 percent above July 2008.  In the West the index jumped 12.1 percent to 112.5 and is 20.0 percent above a year ago.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said Congress needs to keep the momentum going.  “Even with a good recovery taking place, the market is not yet back to normal.  With a gradual absorption of inventory, we are on the cusp of a general stabilization in home prices,” he said.

“To ensure that housing has a broad stimulus to the overall economy and stays on sound footing, we’re encouraging Congress to extend the tax credit into 2010, and to expand it to all buyers of primary residences.  The faster we stabilize home prices, the fewer families will face foreclosure and the quicker credit can be extended to other sectors of the economy,” McMillan said.

NAR’s Housing Affordability Index² stood at 158.5 in July, below the peak set in April but is still 36.0 percentage points higher than a year ago.  The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.

Yun expects existing-home sales to rise through the fourth quarter.  “Unless the tax credit is extended, no one should be surprised to see home sales drop in the first quarter of next year,” he said.  “However, the fundamentals of the housing market and the economy are trending up, and we expect home sales to generally pick up in the second quarter of 2010.  The buyer psychology may be shifting from, ‘Why buy now when I can purchase later,’ to ‘I don’t want to miss out on a recovery’.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

This Week’s News Coverage of the Local Housing Market

NEWS40 Story \”Promising News for Pioneer Valley Housing Market\”

CBS-3 – Story \”Home prices, sales stabilize in Mass.\”

Masslive Article \”Number, price of homes sold in Pioneer Valley in first half of year reported down\”

 

Happy Sunday Everyone!

The View Is Improving In Western Massachusetts!

The view from Skinner Mountain of our “Happy Valley” is breathtaking on a clear day. I remember school field trips with our lunchboxes up to the Summit House at Skinner State Park. From the porch of the old Skinner Hotel you can see the entirety of Western Massachusetts, from the Berkshires to the west, northward into Vermont, southward down to Hartford and eastward toward the Worcester area.  Its humbling to see our little corner of New England laid out all around you. With its beauty from above, its easy to forget the challenges we face here as the local economy continues to struggle and our cities and towns, not to mention our families scramble to find ways to meet difficult budgets.

Everyone knows the real estate market has been hit hard over the past few years. Bad decisions made within the mortgage industry have come back to bite us hard. The Western Massachusetts market was not immune from this crisis either. Home values took a serious hit and the industry has been scrambling to catch up ever since. 

While the market failures have seemed dire, as someone who is immersed in the local market on a daily basis, I am seeing a real positive trend. Nationally, pending sales have been up for three straight months. In our office alone in May, we sold more than 35 units, which is a significant increase over previous months. So whenever negative numbers like these hit the news, keep in mind that new trends may already be developing. The current market is a prime example of this phenomenon.