This spring real estate market is the most active since 2007. The market has reached the precipice of a sellers’ market in many communities, and in others it has completely transitioned. This is a significant time in the overall recovery for real estate and The Attias Group Real Estate has been predicting this for some time.
The buzz right now revolves around inventory levels, or lack there of. In most communities the number of homes available sits at near record lows. A key metric for evaluating a community’s overall heath is the saturation rate, or number of months of inventory available. It is easy to look at the macro number and make a snap judgment about any given location; however, when you dissect the numbers on a quartile-by-quartile basis interesting trends start to emerge.
“Massachusetts has many diverse communities and within those communities there is often incredible discrepancy from quartile-to-quartile,” said Zur Attias broker/owner of The Attias Group Real Estate. “What is true for the bottom of the market is rarely true for the high end and vice versa. You have to look at each quartile individually to really understand the overall health of any given community,” said Attias.
The Attias Group has analyzed several communities and Middlesex County as a whole. Several interesting trends have surfaced. A sellers’ market is typically defined by less than 6-8 months of inventory available, and almost every community surveyed had less than 5 months of real estate available. When you analyze each quartile individually, a strong trend emerges. In almost every case, the high end has more than 8 months of inventory. “This doesn’t surprise me as the high end is the last to depreciate and the last to recover after a down turn,” said Attias.
For advice and guidance in real estate or representation contact our office 978.371.1234 or email info@theattiasgroup.com.
*Note: First quartile = top 25% of properties, Second Quartile = Upper Middle 25% of properties, Third = Lower Middle 25% of properties, Fourth = Least Expensive 25% of properties
As the spring real estate market flowers into full bloom, The Attias Group Real Estate is taking a closer look at the condominium market in several communities. Condominium statistics are often discussed as part of the overall housing market, but The Attias Group understands the needs of the condominium buyer are different from the single-family buyer. This buyer pool is looking for amenities and services that are unique to condos; therefore, a specific analysis of this segment of the market is worth a closer look.
According to Altos Research Market Action Index which measures the rate of sale versus the amount of inventory, the following towns are all considered to be a distinct sellers’ market: Acton, Bedford, Boxborough, Concord, and Hudson. Lexington is considered to be a sellers market but the trend is not as strong as the other communities listed, according to Altos, though single family homes in Lexington are trending well.
Taking a closer look at the numbers, the independent figures gathered by The Attias Group prove a sellers’ market; however, opportunities still exist for buyers. “The average consumer hears a sound bite and forms an instant opinion, but the real estate market cannot always be summed up in 2 words,” said Zur Attias broker/owner of The Attias Group Real Estate. “Savvy buyers and sellers demand the statistical truth and want to hear more than a two word summary. Diving into the numbers and finding the truth is what sets our firm apart,” said Attias.
The Attias Group lead buyer agents dissect numerous data points when looking for the best opportunities in any market. If you are considering buying or selling, now is the time to come in and speak with one of our real estate professionals.
For advice and guidance in real estate contact us at info@theattiasgroup.com or call 978.371.1234.
The Attias Group Real Estate firmly believes the lending community and real estate industry must maintain a solid partnership since this relationship serves as the foundation of the housing recovery and its continued current upward trend. Statistics released recently by The Warren Group indicate the relationship is exceeding expectations. According to the Warren Group, total residential mortgage activity rose almost 38 percent from 2011 to 2012 in Massachusetts. Purchase mortgages spiked more than 25 percent, and refinance mortgages rose almost 41 percent. 2012 marks the best year on record since 2007.
“There is a strong foundation in place for the housing recovery, and I am extremely encouraged by these recent numbers,” said Zur Attias broker/owner of The Attias Group Real Estate. “Right now, with the housing inventory levels at record lows, consumers who are wise enough to pull the trigger have easy access to capital,” said Attias.
In addition, the federal government has announced that it will be extending the Home Affordable Refinance Program (HARP) by two years to December 31, 2015. According to a statement released by the FHFA, the extension of this program will continue to provide borrowers opportunities to refinance, give clear guidance to lenders, and reduce risk for Fannie Mae, Freddie Mac, and taxpayers. Approximately 2.2 million loans have gone through the HARP program since its inception in April of 2009.
According to MLS Property Information Network (MLSPIN), there are 23% fewer homes on the market in Massachusetts today than a year ago. Additionally, the average price of a home for sale in Massachusetts has increased by 6% year-over-year.
“There is serious pent up buyer demand. In addition, I firmly believe in order to keep the housing markets momentum from stalling, the appraisal industry needs to fully acknowledge the current market trend and keep up. Assets are starting to appreciate,” said Zur Attias.
For expert advice and guidance in real estate, or representation, call our office at 978.317.1234 or email info@theattiasgroup.com.
