October 2016 Newsletter

Market Update

              You’ve heard all the talk about low inventory, well the results are in.  Check out these figures for the first nine months of 2016 as compared to the same period in 2015.             

 

Town

Avg  / Mo for Sale

Avg  / Mo Sold

 Avg Mo of

Inventory

Avg Original Price

Avg Price @ Offer

Avg Sold Price

Avg  Days

 to Offer

Gloucester 2015

108

17

6.4

$617,557

$596,680

$564,975

59

Gloucester 2016

109

18

6.1

$541,080

$523,698

$503,787

57

Rockport 2015

49

7

7.0

$754,505

$720,744

$699,370

106

Rockport 2016

40

6

6.7

$627,063

$597,690

$569,435

71

Essex 2015

28

4

7.0

$637,894

$623,864

$599,604

113

Essex 2016

23

4

5.8

$595,868

$566,638

$522,037

80

Ipswich 2015

60

11

5.5

$626,814

$614,173

$602,923

65

Ipswich 2016

61

10

6.1

$549,819

$537,568

$519,598

62

Beverly 2015

91

25

3.6

$498,994

$488,861

$477,745

46

Beverly 2016

87

31

2.8

$521,570

$507,517

$502,875

34

              There were fewer homes for sale this year in Rockport, Essex, and Beverly.  Pricing differences between Original Price and the eventual Sold Price varied the most in the communities of Essex 2016 ($73,831), Rockport 2016 ($57,728), and Gloucester 2015 ($52,582).  Now look at the Avg Days To Offer for those same communities, you can easily see how those communities are experiencing a slower market. Compare those figures to Beverly 2015 ($21,249 difference) and 46 days to offer and Beverly 2016 ($18,695 difference) and 34 days to offer—that’s a hot market!  Beverly only has 2.8 months of inventory remaining on the market as compared to 5, 6, and 7 months.

I’m enclosing the detail for your particular town/city so you can delve into the minutiae.  I have also included Sales by Price Band report. This is very important when you are a seller trying to determine the price for your property. If you want more information, please give me a call.  It’s all about understanding how your property fits within your area and how active your particular price range is.

 

High End Market—Properties Over $1M

When it comes to high-end properties (those over $1M) it differs greatly between communities. This year to date in Gloucester there were 16 sales in that range; they have another 28 more on the market—at the same rate of sale it will take another year and a half to sell them all. Rockport had sales of 6 so far; there are 12 more on the market now—that’s 2 years of inventory. Essex sold 1; has 4 more available. Ipswich sold 5, there are 10 more available.  Beverly is the only community with less than a year of inventory. Beverly sold 17 so far this year; they have only 13 more available.

 

Mortgages

Now is the time to speak with your mortgage company about refinancing your current mortgage to shorten the length of time to payoff or withdraw some equity to do household repairs.  Rates can only go up and they most likely will after the election.

I shared a success story in last May’s newsletter about a client of mine who purchased a home that needed lots of work by utilizing a Renovation Loans (FHA 203K). There are two mortgage lenders with local offices that provide this type of mortgage; both have great track records so give them a call to get the details.

Prospect Mortgage — David Snover, NE Renovation Team at (617) 283-3072

Guaranteed Rate — Katherine McNally, VP Mortgage Lending at (978) 879-9313

 

September, 2016

              One more thing to keep in mind about mortgages in a hot market like Beverly where many homes go quickly and sell for more than the asking price, if the buyer needs a mortgage, appraisals can become an issue. A property should appraise at or above the purchase price.  If it doesn’t, the buyer must come up with the extra funds to put down toward the purchase or the buyer will not be able to get their mortgage and the sale will fall apart. In some cases the appraisal is not completed until about 3 weeks before the closing.  By that time all parties are moving forward with moving plans.  This is not the time to have a sale fall through. Some homes in cities and towns closer to Boston are going for $30K to $50K or more over the asking price. Experienced Buyer Agents will work with their buyers to ensure that this situation does not happen. Experienced Seller Agents will do their best to ensure that prospective buyers are fully qualified and able to get to the closing table. This type of situation is difficult to manage on both end in a market with rising prices.

Spotlight on my Business Directory

In real estate it is absolutely necessary to have a team of people that can assist a seller or buyer with all the last minute things when moving.  I highlight a few members of my team each month just in case you have similar needs whether or not you are planning a move.

 

Organize That!: Jennifer Lyon has built a business assisting people to get organized in new spaces (offices and homes), packing for a move, decluttering and downsizing in preparation for a move, or just cleaning out old records (what to save and what to destroy). She is helping a client of mine now who will be downsizing from a small house to a much smaller apartment. You would be amazed at how much stuff can be collected through the years.  It pays to have some guidance and assistance. 

 

Ken Hanley Landscaping:  An indispensable member of my preparation team is Ken Hanley. I can call him just about any time and he can spruce up the yards for my sellers in preparation for open houses.  He can trim the overgrown bushes, clean out the garden debris, and remove it all from the property.  I’ve even had him clean out some gutters—it’s very unsightly when you see those little trees growing out of gutters. If you’d like a little help with your fall clean up this year, give him a call.

 

You will find contact information for these companies as well as many others in the Business Directory that is located on my website at www.bettypool.com.

One More Thing...

Since the death of my husband last December I have been working my way through my house, sorting, discarding, repairing, and paring down to simplify my life.  I recently had my basement cleaned out and painted.  This is a gift to my children.  This is one thing they will not have to do when my time comes. I can’t adequately convey how freeing it is to shed all this accumulated stuff. I hope that the items I’ve given to Second Glance will fulfill their purpose by brightening up someone else’s life as they did mine.

It’s fall and time to check the batteries in your smoke alarms and CO monitors.  And, it’s not just the batteries.  The effectiveness of the sensors in those devices deteriorates over time.  Pushing the test button just tests the batteries and the sound that’s generated.  It does not test the sensors and if they don’t detect the smoke or CO the alarms will not sound.  The state of Massachusetts has an excellent booklet (Guide to Massachusetts Smoke & Carbon Monoxide Requirements) that you can find on their website.  It includes the current codes.  Please review it and review the systems you have in your home. If they are older than 7-10 years, you should replace them ASAP so you will not be awakened at 1:00 AM some night.  It is very upsetting to say the least and hard to get back to sleep.

 

 

I welcome your feedback on this newsletter and I am never too busy for your referrals.

Questions?

Email me at betty@BettyPool.com or call at 978.290.1736 (cell).  Visit my website—http://www.BettyPool.com.

RE/MAX Advantage Real Estate  —  224 Washington St, Gloucester, MA 01930  —  978-283-8005