Question: Is the Massachusetts real estate market on the rebound?

• Although nationally the economy, especially the jobs market, is still in tough shape, here in Massachusetts we have added 30,000 jobs so far this year.
• According to the Warren Group and the Case-Shiller Index prices in Massachusetts, both for condominiums and single family homes, stabilized at the end of last summer.
• Foreclosures are slowing and we appear to be at the beginning, state-wide, of a rebound.

Question: What does the aging population of Massachusetts really mean?

• Between now and 2018 Massachusetts will add 244,000 additional residents over the age of 55.
• Recent trends in housing indicate they will sell off their large suburban homes and opt for planned communities outside of Boston and for condominiums in downtown Boston.

Question: Was the recent real estate buyer’s tax credit effective?

• In Massachusetts we have now seen 10 straight months of increases in the number of sales.
• Likewise, we have witnessed 6 consecutive months of price increases. April ’10 over April ’09 saw a 7% increase to $295,000 in the median statewide sale price. For the city of Boston for the same time period that number rose to $440,000.
• This spring market we have witnessed a 46% increase in the number of sales over last spring.
• In a word, YES, the credits were effective!

Question: What effect is a rebound in the real estate market having on the economy?

• Currently there are 30,000 homes for sale in Massachusetts
• For each sale economists estimate that $57,000 are added into the economy by way of realtor fees, furniture sales, renovations, etc.
• The effect of these sales will thus be very positive news for the economy.

Question: Are mortgage rates going to rise soon?

• Rates should remain at or new historic lows for most of this year.
• Current instability in the European economy is keeping rates down.
• But this will not last forever and we can expect interest rates to rise in the coming year.

Question: Is this a good time to be buying and selling in Massachusetts?

• Prices in Massachusetts are stable to rising depending on what local market you are in.
• Rates are at or near historic lows.
• There is available inventory.
• The general economy and the real estate market are on the rebound.  

  Mortgages are cheaper today than they’ve been in a half-century. Rates are at their lowest since the mortgage company began keeping records in 1971. The last time they were any cheaper was the 1950s, when most long-term home loans lasted just 20 or 25 years. Rates have fallen over the past two months as investors have become nervous about Europes debt crisis and the global economy and have shifted money into safe Treasury bonds. The demand has caused Treasury yields to fall. Mortgage rates track those yields. Lower rates and low home prices have brought affordability to levels not seen for years and increased demand for refinances. Source: Associated Press

  Companies are changing and expanding relocation policies to accommodate employees who otherwise are refusing transfers because they don’t believe they will be able to sell their homes for enough money. Worldwide ERC, a trade organization for human resource associations that oversee, manage, or support employee transfers, surveyed 129 companies in 2009. The survey found: 28 percent of employers are requiring transferred employees to list their homes within a reasonable range based on an appraisal in order to qualify for assistance; 26 percent have added incentives for employees to find their own buyers for their homes; 26 percent have extended the time they will pay for temporary living assistance; 20 percent have added a requirement that employees use selected real estate professionals to market their homes; 17 percent have added loss-on-sale assistance. Source: The Atlanta Journal-Constitution