39 Virginia Road, Arlington, MA

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Cool New listing!

Another Busy day…

…in the 2009 real estate market. The government really got it right when they bought bonds to lower interest rates and to provide first time home buyers with an tax credit up to $8000 if they purchase a home before 12/1/09. Since the legislation was passed our market has picked up dramatically.

I was a guest speaker at Cambridge Savings Bank for a seminar they put on for their employees who are buying their first home. The audience was eager for information about the buying process and the tax credit benefits. A lot of fun was had by all!!

Red Sox

It’s a small world, I was at the sox game tonight and met several people that lived in Arlington!  You never know who is around you at a Red Sox game! Earlier I had dinner at Toraya across the street from the high school, Yum!

Brighams

Whew! Just came back from Brighams in the Heights. First time I’ve been in there since moving to Arlington 15 years ago. A real throwback to another era, sad though, it appears to be in serious decline. Any other ice cream stories?

Winter update

Many questions await us this year
1. Will prices rise or fall?
2. Will inventory increase?
3. How are buyers feeling?
4. How are sellers feeling?

#1 Prices: In Arlington, Lexington and Winchester prices for single family homes have moved down about 5% since 2005. Prices will most likely remain stable and could increase because of low supply.
At the moment there are fewer properties on the market than during other years at this time. The most remarkable comment about the market is that there are not very many houses that are good condition currently for sale.

#2 Inventory: Is about the same as last year in January. Market time has been decreasing which is a good thing. Which means that houses have been selling faster

#3 Buyers: We are currently working with buyers in many price ranges looking for houses that are well located in good condition. Houses that are in very good condition will command more money that houses that need work.
Buyers are engaged in the buying process they are well qualified and are ready to buy. With interest rates so low financing is very inexpensive which has buyers feeling good about buying a home!.

#4 Sellers: A lot of sellers have told us they are concerned about being able to sell their houses for less than what they are worth. They have been reading the news about how bad the real estate market is and are resisting putting their homes on the market.
We are in a much more normalized market where people are buying and selling based on what their actual needs are rather than external pressures. This makes for a market that is much more stable for buyers and sellers alike.

It’s going to be a great year!

Maybe It’s Time to Buy That First House

I saw this article in the New York Times and thought I would pass it along.

By RON LIEBER

Published: December 5, 2008

Five or 10 years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for first-time home buyers.

Then, everyone who sat on their down payment savings accounts for a few years too long will kick themselves for not taking advantage of what may turn out to be the buying opportunity of a lifetime for those who can qualify for a mortgage.

Unfortunately, we do not know when this golden age will begin, because we will be able to identify a bottom to the housing market only with the benefit of hindsight. But as it does with the stock market, the moment will probably arrive when everyone is feeling the most pessimistic.

That moment is certainly getting closer. Housing prices have fallen drastically from their peak levels in many areas of the country. Rates on 30-year fixed-rate mortgages are already close to 5.5 percent, and this week there were suggestions that the federal government might try to drive them down to 4.5 percent, a truly incredible figure to be able to lock in for three decades.

http://www.nytimes.com/2008/12/06/business/yourmoney/06money.html?partner=permalink&exprod=permalink

The Election & Arlington Real Estate

Every 4 years the real estate market takes a breather leading up to the presidential election.  This year was no different. I have spoken to many buyers and sellers and they all had been so distracted by the election (and the economy!) that they were unable to focus on buying or selling a home.  Since the historic Election of Barack Obama last week buyers have started to come back into the market.  If John McCain were elected I’m not so sure that people would be feeling more confident. After all, almost 70% of the Commonwealths voters went with the winner! In Arlington it was even higher!

Because of the state of the economy many people have been on the sidelines, in fact in Arlington  housing inventory has dropped a whopping 65%! This is good news because it means that prices are firm. In fact, prices have not moved in the past year.  The market facts are as follows; buyers are out there looking for houses to buy and are unable to because of low inventory. Banks have more money than they can lend and everyone is sitting on there hands!  The news reports sound grim but the reality is far different. At open houses this weekend I found buyers interested, engaged and ready to buy.

Have you been sitting on the fence? If so, I’d like to hear from you and listen to your ideas about the market!

New Listing Alert!!!

Wow! What a great house!

1st Open House Sun 11/2 12pm – 2pm  Don’t miss it!!

Spectacular new construction in one of Arlington’s finest neighborhoods! This understated home features a traditional layout that’s roomy and comfortable. From the formal living room to the first floor office that’s great for guests, this wonderful home will meet all of your needs!. A kitchen with everything a chef could want including a breakfast/lunch bar adjacent to the fireplaced family room awaits your culinary creations! Bonus! Finished 3rd floor!

Let’s Talk!

Trying to Make Sense of the $700 Billion Rescue Package, The Stock Market and The Election?

We know what happens outside the world in Arlington, Lexington Winchester, etc. does have and impact on us. The questions is what is it? The answer? We won’t know for a while….

This is what we do know:

1. Buyers are still out there! Yes, I know it is hard to believe but it is true. We received 3 calls today from prospective buyers about various listings that we have.

2. Mortgages are available! Yes, it is true! If you are reading and watching the news, you would have a different impression. There are many different mortgage products still available. This is a matter of qualifying for a mortgage. Until last year a buyer could have low credit scores, a low down payment, low assets and still qualify for a mortgage at competitive rates. Today, if your score is in the mid to high 700’s and have 20% for a down payment, you are able to get the best rate possible.

This mortgage market is all about pricing. Buyers are able to get mortgages, the questions is, how much will the loan cost. In the way that businesses employ peak pricing strategies (think airlines, the closer to the departure date, the more the ticket costs), the mortgage business has adopted some of the same ideas. For instance, if you are closing within 30 days the loan will be at a better rate than if you are closing in 90 days.

3. Inventories in some towns are substantially lower than last year.

Properties on the market (snapshot)
——–Last year                  This year       Difference
——–10/8/2007——-10/8/2008
Arlington      166                  102                   -39%
Lexington     143                  169                  +18%
Winchester    157                  137                  -13%

Low inventory and shorter market time bring stable prices and in some cases they are actually rising!

A Presidential election always throws uncertainty into buyers minds and this year is no different. Past history tells us that as more things become known then uncertainty melts away. We believe that there is a pent up demand for houses and that buyers will be moving as soon as there is more comfort in the market. In the meantime, stay as sane as you can through this uncertain period!

From Warren Buffett:

“I have no idea what the stock market is going to do next month or six months from now,” Warren Buffett told CNBC on Friday. “I do know that the American economy, over a period of time, will do very well, and people who own a piece of it will do well.”

Of course give us a call with your thoughts and concerns any time!

We are bullish on real estate!

Around Town: Demolition Style

Driving to work yesterday, I passed by this:

Pretty interesting stuff to watch a bulldozer take out a house in a few hours flat.  They must be making way for some new townhouses.  Who said the market is down?