Wednesday, November 25, 2009

Happy Thanksgiving!

Here is something to chew on besides that drumstick...

As you are probably aware, the upcoming few months pose the greatest obstacle to sellers from a purely cyclical perspective. Think of the process from a common-sense approach. Who wants to travel from town to town and house to house in the middle of winter? The question is rhetorical, but the answer is: nobody! It is miserable outside...snow...cold. People are out straight...holidays...school vacation...

That is why only motivated sellers and serious buyers are normally out there in the market during the tail end of November, December and January. However, this season may deviate from the norm, as the extension and expansion of the tax credit (see prior post) should create a sense of urgency for many buyers.

My thought is that those of you who are thinking of waiting for the spring market to put your properties up for sale - while normally the prudent course of action - will be making a mistake given the time constraints of the tax credit. Moreover, as confident as I was that this extension would be enacted (see prior posts), I am equally confident that the credit will not be extended further. If it is extended, it will be limited in scope as compared to its current form so as to be phased out over time.

For those of you interested in statistical data for Massachusetts (Source: Massachusetts Association of Realtors 10/24/09), read on.

October sales numbers, year over year:

Single family home and condominium sales were both up 17-18%
Single family home selling prices decreased 2.4%
Condominium selling prices decreased 4%

Inventory on market, October 31, 2009 as compared to October 31, 2008:

Both single family home and condomium inventory decreased to just over 7 months from slightly over 10 months.

As always, feel free to contact me at your convenience with regard to any real estate needs.

Saturday, November 7, 2009

Chance of a Lifetime!

For those of you who do not know me personally, I am not one to overstate the importance of things. With that said, the fact that a new homebuyer tax credit was enacted Friday is a tremendous win for anyone looking to buy or sell a home.

For buyers who qualify, it cannot possibly get any better than this: a significant tax credit to buy a home at a time when interest rates and home prices are at historic lows.

For sellers, buyers should be coming out of the woodwork to take advatage of this opportunity. The fact that the credit - although at a slightly reduced rate - now applies to current homeowners should open the market considerably for new purchases.

If you are even considering buying and/or selling a home, I urge you to click here for a detailed breakdown of the new credit promulgated by the Massachusetts Association of REALTORS. As always, for any real estate needs, please contact me at 978-423-9309 (cell) or john@jw-realestate.com.

Monday, November 2, 2009

Tax Credit Status

As you may have seen, a tremendous amount of information (and misinformation) has been circulated since the middle of last week regarding an extension of the $8,000 first-time homebuyer tax credit. Here is my understanding of where things stand.
 
Last week, Senators agreed in principle on an extension of the $8,000 credit for first-time buyers, as well as an expansion of the same to include a $6,500 tax credit for homeowners who are selling a primary residence that they have owned and occupied for at least five years. For either credit, buyers would need to close on their new homes by the end of June 2010 and have a signed "purchase agreement" by the end of April 2010. (Source: USA Today 10/29/09)

Please keep in mind that the above is a work in progress and no extension has been enacted. As is standard operating procedure, Senators are negotiating the details and what pet projects will be included in order to secure the necessary votes to pass the legislation. Assuming legislation passes, I will provide the relevant information once I am confident in my understanding of the particulars.

As an aside, be very cautious as to timing issues. For example, buying a home in Massachusetts is generally a 2-step process with respect to the contracts. Would a "Contract to Purchase" executed by the end of April suffice, or would a "Purchase and Sale Agreement" need to be executed? Further, the $6,500 credit will no doubt include parameters for the purchase of another primary residence. It will be crucial to understand the timing and/or trigger mechanisms necessary to qualify for the credit. With that said, if you are considering buying and/or selling property in Massachusetts or New Hampshire, I am always happy to assist you through the process.