Kathy Foran - REALTY EXECUTIVES Boston West



Posted by Kathy Foran on 11/9/2014

Is it a seller's market? A buyer's market? Depends on the day and which media outlet you happen to be listening to. One thing is sure the market is changing. Here are some ways to know what kind of market it is: These are the signs of a buyer's market High inventory or more than six months of inventory currently on the market. Sale prices are higher than active listing prices. Lower closed sale numbers. Declining median sales prices. Higher DOM or days on the market. Here are some signs of a seller's market Low inventory or less than six months of inventory currently on the market. Sale prices are lower than active listing prices. Higher closed sale numbers. Increasing median sales prices. Lower DOM or days on the market. These are signs of a balanced market Three to six months of inventory is currently on the market. Sale prices are similar to active listing prices. Stable sales numbers. Flat median sales prices. Days active on the market are approximately 30 to 45 days. If you want to know how to figure out the months of inventory there is a simple way to do that. Take the total number of active listings and the total number of sold or closed transactions on the market last month. Divide the number of total listings by the number of total sales, which results in the number of months of inventory remaining. Then you can determine what type of market it is.





Posted by Kathy Foran on 8/17/2014

More and more millennials are getting into the housing market. A survey by homebuilder PulteGroup found that 65% of those who make more than $50,000 a year reported increased interest in buying a home. The recession has forced Generation Y, roughly those age 18 to 34, to delay buying homes. Now millennials are now entering their thirties and the cost of buying a home is now becoming a reality. While student loans and financial resources are keeping some younger people from the housing market many others are realizing that in many cases owning a home is cheaper than renting. The survey also reported that millennials know what they want in a home: 84% listed storage as a priority was ample storage                 76% want space for TV and movie watching                                                                           69% desire an open living/room kitchen layout                                                                             63% look for outdoor living or a deck                                                                                               36% cited the ability to work at home Other recent studies have affirmed the PulteGroup study and have shown that 90% of millennials plan to buy a home someday keeping the dream of homeownership alive.                                                    





Posted by Kathy Foran on 6/8/2014

Whether you are a buyer or a seller it is time to get off the fence. Despite years of bad news surrounding the real estate market, the time has come when it is both a good time to be a buyer and a seller. Why Buy? Here are just a few reasons why you should get off the fence and buy: 1. When investors start gobbling up real estate you know it's a good deal. In 2011, investors upped their buying by 64%.  While it is still not time to start flipping for a profit the clock is ticking down to an uptick in prices. 2. Interest rates are historically low. You have been hearing this for a while but they are hovering right around 4%. 3. First-time buyers are in a unique position. They didn't lose money in the housing market. 4. It's a great deal! Prices are at all-time lows. So you may be saving as much as 40% off a home if you buy now. Why Sell? Here are just a few reasons why you should get off the fence and sell: 1. Inventory is shrinking. Demand is up and in certain areas and price ranges there is limited inventory so putting your home on the market now will most likely result in a sale. 2. Mortgage availability has stabilized. Mortgage restrictions are loosening and especially first-time buyers are able to get mortgages as they were not affected as much by the financial crisis. 3. Unemployment is not as bad as you think. One is 30 Americans is unemployed as a result of the recent financial crisis. There are lots of able buyers out there. 4. Houses are selling and some are even going to bidding wars. Homes that are priced according to the market are selling and selling quickly. 5. Don't wait for prices to increase. This could be a long wait.





Posted by Kathy Foran on 12/18/2011

It’s time to buy a home! That is right you heard it here, no more doom and gloom for the real estate market. The time has come to go out and buy some real estate. The only thing holding buyers back has been consumer emotion but a look at the facts should help buyer feel more confident in opening up their wallets for a great opportunity in today's housing market. JP Morgan’s Market Insights report has outlined why people looking to buy a home have never been in a better position. Here are just three important points from the JP Morgan report. The Price is Right One measure the report looked at was the ratio of personal income to home prices. “Since 1966, the median price of an existing single family home in the U.S. has varied between 150% and 251% of personal income per household. However, roughly three-quarters of the time it has been in a relatively narrow band between 185% and 230%. In September 2011, the ratio was just 153%, implying that to get back to an average price to income ratio, home prices would have to rise by about 27%.” Mortgage Rates are Right Mortgage interest rates are at historic lows as compared to personal income.  The report notes, “During the week of October 7, Freddie Mac reported that mortgage rates had fallen to an average annual level of 3.94%. Assuming the use of a fixed rate mortgage with 20% down, this would make the median mortgage payment on a single family existing home just 6.9% of per household personal income, compared with an average of 14.4% since 1966.” What this means is that it is a buyers perfect storm. Buyers who buy now will likely reap a long term financial gain by buying a home at a lower than average cost and financing it for a lower than average cost. It is a win-win situation. Home Ownership Beats Renting The report goes on to look at the cost of renting versus owning. JP Morgan predicts that by the "third quarter of this year, we estimate that the implied median mortgage payment had fallen to just 78% of the median asking rent. In other words, at current mortgage rates, home prices would have to rise by 35% just to get back to their average relationship to rents." Home buying is now more affordable than it has been in decades. Home prices are at all time lows, mortgage rates are at rock bottom and income levels remain steady. Despite what you may hear on the nightly news home ownership has never been more affordable.