Boston Real Estate Blog

Signal Beacon 06/16/23 - Appraisals and Appraisal Gap Coverage; What you need to know

Today we're talking a bit about appraisals and appraisal gap coverage. What is it and why do you need to know about it if you are a buyer or a seller of real estate in MA. Check out the video and make sure to click any of the links below if you're looking for a cash offer on your home, want to know it's market value, OR want to take part in our amazing new Buyer Concierge program to find you an off-market deal.

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The Signal Beacon is Back 05/31/23

The Signal Beacon is back!

Hi again all.  Welcome to May's version of the Signal Beacon.  We will once again be bringing you content 1-2x a month to update you on the market trends in and around Massachusetts and to give you some insight into where we think things are generally pointing.  As always we will be presenting this information predominantly in video format.  Please check out our market update below.

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The Beacon by Signal Real Estate 10/03/2022

The Beacon

Welcome to The Beacon by Signal Real Estate.

This will strive to be a quick read about the market and my life inside and out of the brokerage. Want to us to answer a question in the next edition? Just reply and ask. Have a comment for me on something? Shoot me a reply as well.  You can read the Signal Beacon here in your email or on the web here.

Market Update

As of our last newsletter, the market was showing significant signs of slowing down as rates were nearing the high 6's. Since then we had the average rate top 7% on 30-yr conventional loans and numerous investment firms change their forecasts for 2023. Currently many of these investment firms expect a modest decline in prices next year, notably:

  • Goldman Sachs: U.S. home prices poised to fall 5-10%
  • Morgan Stanley: U.S. home prices poised to fall 7%
  • Moody's: US home prices poised to fall 5-10%

This is a great benchmark to look at, but please remember that this is on a national level. During the housing crash of 2007-2008 the Northeast performed much better than much of the country. Locally, some areas are still cruising while others are still languishing. This tracks with the update we gave last newsletter. Our team just wrote an offer $40,000 below asking on an approximately $600,000 listing and an offer $75,000 over asking on a $1,100,000 listing. Navigating this market can be a bit tough as different markets are performing VERY differently right now.

IMPORTANT SIDE NOTE: If you are getting quoted mortgage rates in the 6's from your lender please reach out. We have many options in the 5's for 30yr fixed with our lender partners. Depending on your situation, you may be able to save some significant money.

Giveaways?

I’ve been...

The Beacon by Signal Real Estate 09/23/2022

The Beacon

Welcome to The Beacon by Signal Real Estate.

This will strive to be a quick read about the market and my life inside and out of the brokerage. Want to us to answer a question in the next edition? Just reply and ask. Have a comment for me on something? Shoot me a reply as well.  You can read the Signal Beacon here in your email or on the web here.

Market Update

The market is still in the midst of some upheaval. Honestly at the current moment it is very much a boom or bust market. Some areas which we are still seeing a lot of activity:

  • Direct suburbs of Boston
  • Turnkey or updated homes
  • Highly sought after neighborhoods & towns
  • Multi-Family

 Some areas we are seeing weakness:

  • Fixer uppers
  • Central MA and suburbs further from Boston

The common thread right now seems to be that houses which buyers can see themselves in long term are still moving fast and the ‘step up’ houses are sitting as buyers wait to see which direction the market goes next. Of course there are exceptions to every rule, however, this is my general read of the market as of today.

View the market update video by clicking below.  (If you want to listen and not read this is for you!)

Long Term

The biggest question of the previous few months has been whether or not a housing crash is coming. The strange thing to me is that it does seem like the Fed is trying to cause a large correction with the interest...

Milton, MA Single Family Market Update 12/03/2019

It’s December 3, 2019 and we’re looking at the current Single Family Home market in Milton. The number of active listings right now in Milton is down 13 from this same time last year and sits at 41 total Single Family Home listings currently for sale.  Among active listings in Milton, the average current days on market is 99. Last year the average time on market for actively listed Single Family Homes was 75, down 24 days from where it currently sits. Among active listings, the average list price is $1,627,502. This is an increase of $271,514 from last year at this time, a 20.02% change.

Over the past 90 days, there have been 65 total recorded Single Family Home sales in Milton. During the same period last year, there were 58 similar sales. That's an increase of 7 from this time a year ago. The average sale price for these transactions was $910,749 that is an increase of $126,271 from last year and was, on average, 98.4% of list price. Among the sold transactions the average time spent on the market was 53 days. This is an increase of 6 days from last year.

The Signal Index
Today we're checking in on the Signal Index to see how the Milton market is currently fairing. Right now the Milton Single Family Home market's Signal Index sits at 140. This number is up 37 from last year. This means that the market getting better for buyers. The Signal Index is merely the number of Active Listings (41) added to the average days on market for these listings (99). This should reflect the general direction of a market by showing not only the current inventory but also the length of time they have been listed for sale.

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South Boston Condo Market Update 11/21/2019

Welcome to today's market update! Today we are looking at the Condo market in South Boston as of November 21, 2019. Currently, there are 131 listings active in South Boston. This is down 8 from this time last year. Among active listings in South Boston the average current days on market is 95. Last year the average time on market for actively listed Condos was 60, down 35 days from where it currently sits. The average list price currently sits at $1,017,607, which represents an increase of $45,983 from this time last year. That equates to a 4.73% change.

Looking at closed transactions there were 129 total Condo sales in the past 90 Days in South Boston. The average sale price for these transactions was $798,550 that is a decrease of $9,177 from last year and was, on average, 98.3% of list price. The average days on market was 54, an increase of 12 days from last year.

The Signal Index
Every post here we look The Signal Index to see if the South Boston Condo market is slowing down or picking up. Currently, the South Boston Condo market's Signal Index sits at 226. This is up 43 from last year indicating the market is relatively equal to last year. What is the Signal Index? It is simply the number of active listings currently available in South Boston (131) plus the average days on market for those listings (95). This number quickly reflects how many properties are for sale and for how long they have been available.

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Braintree, MA Real Estate Market Update 11/20/2019

Welcome to today's market update! Today we are looking at the Real Estate market in Braintree as of November 20, 2019. The number of active listings right now in Braintree are up 11 from from this same time last year and sit at 61 total Real Estate listings.The average days on market for the current inventory in Braintree is 62, down 5 days from this time last year. The average list price currently sits at $521,035, which represents a decrease of $30,005 from this time last year.

Over the past 30 Days there have been 34 total recorded Real Estate sales in Braintree. During the same period last year there were 41 similar sales. That's a a decrease of 7 from in a year. The average sale price for these transactions was $473,449 that is a decrease of $14,290 from last year and was, on average, 99.8% of list price. The average days on market was 45, a decrease of 6 days from last year.

The Signal Index
Every blog post here we look at The Signal Index to see if the Braintree Real Estate market is slowing down or picking up. Currently, the Braintree Real Estate market's Signal Index sits at 123. This is down 6 from last year indicating the market is getting better for sellers. What is the Signal Index? It is simply the number of active listings currently available in Braintree (61) plus the average days on market for those listings (62). This number quickly reflects how many properties are for sale and for how long they have been available.

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New Listing! 33 Eliot St in Watertown

Hi all!  We have a new listing coming on this week in Watertown at 33 Eliot St.  Check out the listing's dedicated website for more information!

A 3 Bedroom / 2.5 Bath townhouse, this listing is one that you're definitely going to love!  Easy access to the city and a great location in red-hot Watertown you won't want to miss this one.  Reach out to us today for more information on open house times and showing requests!

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The End of the Beginning

Friends, Clients, Family,

This week Signal Real Estate embarked on an exciting adventure, joining Compass as the Signal Group.  It has been with very careful consideration that we have made this move and believe wholeheartedly it will not only assist us in better servicing our clients but empower us with the tools to continue to press onward as the industry and market continues to shift and evolve.  There are four main reasons why we have decided to leave the world of boutique brokerages and join a national company like Compass.

Increased Leverage

We have loved the process of owning and operating a boutique brokerage.  We have loved building the Signal Real Estate brand and the systems our agents currently enjoy.  That being said, there has been a significant and ongoing investment made in the day to day operation of the business leaving us all with less bandwidth to do what we truly enjoy, assisting our clients in buying and selling real estate.  Through the Compass platform and the incredible agent support team, we are able to reduce the noise and focus more on a singular goal, the satisfaction of our clients.

Brand Awareness

As a small boutique, we have always struggled to remain top of mind with home buyers and sellers.  This is the existential struggle for any small business, awareness.  Over the years we have been a pioneer in the space, trying and testing new ideas and being the first in the region to pilot new programs. We have operated in this way not only because we’ve always been a forward thinking company but also out of necessity.  Even with the vast changes within the advertising landscape and the opportunities to target specific niches more efficiently we have consistently had to adapt, innovate, and...

Another Happy Client in Medfield

Another Great Review

Another great review of Signal Real Estate's Dana Ravech on her transaction in Medfield, MA!  To read more great reviews of Dana click here to view her testimonials.

"When we first started the house hunting journey, we had very little idea of what we wanted and where to settle, two very large priorities when it comes to home buying. Dana was so patient with us as we narrowed down exactly what we wanted, talked us through ideas and supported us when we went back and forth on different houses. We ultimately ended up finding the perfect house for us and I know that having Dana working with us is the biggest reason why. She treated us like friends and was always there one step ahead of what we needed. Even after the closing, she was there offering everything she could to help us get situated in our new home and town, even down to finding us a terrific house cleaner and getting our kids into a great preschool. We could not have been happier to have had Dana as our realtor and will be using her for all of our future home buying/selling endeavors."
Kristen F.
Medfield 
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Have You Saved Enough for Closing Costs?

Have You Saved Enough for Closing Costs?There are many potential homebuyers, and even sellers, who believe that they need at least a 20% down payment in order to buy a home or move on to their next home. Time after time, we have dispelled this myth by showing that many loan programs allow you to put down as little as 3% (or 0% with a VA loan).

If you have saved up your down payment and are ready to start your home search, one other piece of the puzzle is to make sure that you have saved enough for your closing costs.

Freddie Mac defines closing costs as:

“Closing costs, also called settlement fees, will need to be paid when you obtain a mortgage. These are fees charged by people representing your purchase, including your lender, real estate agent, and other third parties involved in the transaction. Closing costs are typically between 2 and 5% of your purchase price.”

We’ve recently heard from many first-time homebuyers that they wished that someone had let them know that closing costs could be so high. If you think about it, with a low down payment program, your closing costs could equal the amount that you saved for your down payment.

Here is a list of just some of the fees/costs that may be included in your closing costs, depending on where the home you wish to purchase is located:

  • Government recording costs
  • Appraisal fees
  • Credit report fees
  • Lender origination fees
  • Title services (insurance, search fees)
  • Tax service fees
  • Survey fees
  • Attorney fees
  • Underwriting fees

Is...

Selling in the Winter Attracts Serious Buyers

Selling in the Winter Attracts Serious Buyers

A recent study of more than 7 million home sales over the past four years revealed that the season in which a home is listed may be able to shed some light on the likelihood that the home will sell for more than asking price, as well as how quickly the sale will close.

It’s no surprise that listing a home for sale during the spring saw the largest return, as the spring is traditionally the busiest month for real estate. What is surprising, though, is that listing during the winter came in second!

“Among spring listings, 18.7 percent of homes fetched above asking, with winter listings not far behind at 17.5 percent. While 48.0 percent of homes listed in spring sold within 30 days, 46.2 percent of homes in winter did the same.”

The study goes on to say that:

“Buyers [in the winter] often need to move, so they’re much less likely to make a lowball offer and they’ll often want to close quickly — two things that can make the sale much smoother.”

Bottom Line

If you are debating listing your home for sale within the next 6 months, keep in mind that the spring is when most other homeowners will decide to list their homes as well. Listing your home this winter will ensure that you have the best exposure to the serious buyers who are out looking now!

The study used the astronomical seasons to determine which season the listing date fell into (Winter: Dec. 21 – Mar. 20; Spring: Mar. 21 – June 20; Summer:...

3 Questions to Ask Before Buying Your Dream Home

3 Questions to Ask Before Buying Your Dream Home

If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family will have your best interest at heart, they may not be fully aware of your needs and what is currently happening in the real estate market.

Ask yourself the following 3 questions to help determine if now is actually a good time for you to buy in today’s market.

1. Why am I buying a home in the first place?

This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money.

For example, a recent survey by Braun showed that over 75% of parents say “their child’s education is an important part of the search for a new home.”

This survey supports a study by the Joint Center for Housing Studies at Harvard University which revealed that the four major reasons people buy a home have nothing to do with money. They are:

  • A good place to raise children and for them to get a good education
  • A place where you and your family feel safe
  • More space for you and your family
  • Control of that space

What does owning a home mean to you? What non-financial benefits will you and your family gain from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.

2. Where are home values headed?

According to the latest Home Price Index from CoreLogic, home values are projected to increase by 5.3% over the next 12 months.

What does that mean to you?...

Is Getting a Home Mortgage Still Too Difficult?

Getting a Home Mortgage

There is no doubt that mortgage credit availability is expanding, meaning it is easier to finance a home today than it was last year. However, the mortgage market is still much tighter than it was prior to the housing boom and bust experienced between 2003 - 2006.

The Housing Financing Policy Center at the Urban Institute just released data revealing two reasons for the current exceptionally high credit standards:

  1. Additional restrictions lenders put on borrowing because of concerns that they will be forced to repurchase failed loans from the government-sponsored enterprises or Federal Housing Administration (FHA).
  2. The concern about potential litigation for imperfect loans.

What has been the result of these concerns?

6.3 Million Less Mortgages

The Policy Center report went on to say:

“It was so hard to get a mortgage in 2015 that lenders failed to make about 1.1 million mortgages that they would have made if reasonable lending standards had been in place. From 2009 to 2014, lenders failed to make about 5.2 million mortgages thanks to overly tight credit. In total, lenders would have issued 6.3 million additional mortgages between 2009 and 2015 if lending standards had been more reasonable.”

In an interview with DSNews, Laurie Goodman and Alanna McCargo of the Policy Center further explained:

“Our Housing Credit Availability Index (HCAI)* measures the probability that mortgage borrowers will become...