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26 South Main Street
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Real Estate Market Update The current state of the market Winter-Spring 2010. Current Real Estate Market ConditionsAs a real estate broker/appraiser with over 25 years experience I have a great understanding of the local real estate market. My personal opinion is that we are ”bouncing along the bottom”. The period between 2001 and 2004 saw significant growth and significantly increased values. It was a sellers market and as a broker, knowing the inside track of a home coming on the market almost guaranteed an instant sale. Buyers greatly outnumbered sellers. Those days are a distant memory. Currently the short sales and foreclosures have not had a real impact in our market although they are more common that most people would think. The days of using your real estate as an “ATM” are gone and many homeowners have a mortgage that is more than their home is worth. Our office has listed and sold several short sales in Cohasset and Hingham in recent months. This inventory can impact values, and ultimately market stability. Towns of Weymouth, Hull, Rockland, Quincy and Abington are much more effected by short sales. A generally slow December saw an up tick in activity for our office with two closings over $2,000,000 and several under $500,000. This seems to be the trend. The higher end and first time home buyer segments of the market have more strength. The $800,000 to $1,300,000 (non waterfront) are much more difficult to sell. Buyers of these homes are often via relocation The uncertain stock market, lack of job security, lean or no bonuses has effected buyers of these homes. Only an improvement in the local economy will improve this market segment. First time home buyers can still buy a home in Scituate and Norwell under $350,000. A converted 2 bedroom 1,000 square foot condominium in a 3 family home in South Boston, Charlestown, or the Fenway will cost between $325,000 and $375,000 (no parking). So you now can buy a nice home in a coastal community with good schools and the train to Boston for the same price as a condo in Boston. That is a new phenomenon. New construction and speculative building is almost non-existent. There is some opportunity especially in Norwell to buy lots at a discount. As a Real Estate BuyerIn my opinion now is the time to buy. No one will have the ability to predict the exact time that the market will hit bottom. We are seeing buyers who have been sitting on the sidelines starting to look and make offers. Investors and those who flip homes locally (buy, fix up and sell for a profit) are buying properties We have even seen some european buyers who are looking for investment property. These buyers have been non-existent from 2007-2009. That tells me we are at bottom. There are some exceptional buys in the $800,000- $1,300,000 price range as there is still an oversupply of inventory in these markets. Find a seller who is divorced, unemployed or relocating and you can get an unprecedented deal. As a result of the $8000 tax credit, the lower end inventory is limited especially in Hingham where homes priced under $500,000 are selling typically under 30 days. Our market when compared to Weston, Wellesley, Dover, and even Marblehead is a bargain when you compare prices. There are some short sale bargains for the patient buyer. On the high end there is really an unrealistic expectation that many sellers have regarding the value of their home. We see many waterfront estate homes lingering on the market as a result of poor price strategy. A good water front or water view home in good condition will sell quickly if priced right. People forget that our market value are down 30% from 2005 highs. There will always be value in prime waterfront real estate and what people are willing to pay for it. As a Real Estate SellerThe best advice I can give is that if you home is priced correctly it will sell with 90 days and maybe sooner depending on what market segment you are in. The days of adding 5-7% to the asking price and testing the market are over. Sellers must be realistic about the price. And please hire a broker who understands VALUATION. Most brokers don’t have a clue how to price a home, they tell the seller what they want to hear. That strategy means no sale! Right now it is all about price, period. Other common sense factors include making sure that your home is in the best condition possible, fix any deferred maintenance, remove clutter etc. etc. Our office will be happy to recommend specifics. So the bottom line is that if you have to sell, have realistic value expectations and hire a full time experienced broker who knows the local market.
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