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Market Reports

How is the Real Estate Market in Westfield, MA? May 2017 Real Estate Market Reports

How is the Real Estate Market in Westfield, MA?

May 2017 Real Estate Market Reports

You may have noticed a change in the real estate market in Westfield, MA recently. We have not experienced anything like what is going on in almost a decade.

I started my real estate career in 1988 and it is not very often that we experience what is going on currently, but I can tell you there is a huge shift happening in Westfield right now.

I’m very happy to report that we’ve survived the most recent 9 year market downturn and right now we’re experiencing a major upturn with excellent sales activity.

 

WHY IS THIS HAPPENING ?
1. At the time of this writing, interest rates are at an all-time record low and this is inspiring people to buy.
2. Home Supply is Low and Buyer Demand is High (There are more Buyers than Sellers).
3. Consumer Confidence is at a 9 year high right now.

 

The above combination of circumstances makes now a great time to sell your home.

If you have any interest in selling your home now or in the near future, please remember “Timing is Everything”

Try to avoid the quickly changing mortgage rates and changing market conditions.

The following two market reports will give a ton of information on the real estate market in Westfield, MA right now, but of course, nothing beats an individual assessment by a seasoned professional.

If you would like to schedule a no obligation, no strings, no BS appointment with a real estate professional who has resided in Westfield for several decades and has been working in Westfield real estate for 28 years then I AM HERE FOR YOU!

Call or text Westfield real estate expert, Lesley Lambert at 413-575-3611

WESTFIELD REAL ESTATE MARKET REPORT MAY 2017

WESTFIELD NEIGHBORHOOD REPORT MAY 2017

What is UP with the Real Estate Market in Southwick, MA?



You may have noticed a change in the real estate market in Southwick, MA recently. We have not experienced anything like what is going on in almost a decade.

I started my real estate career in 1988 and it is not very often that we experience what is going on currently, but I can tell you there is a huge shift happening in Southwick right now.

I’m very happy to report that we’ve survived the most recent 9 year market downturn and right now we’re experiencing a major upturn with excellent sales activity.


 

WHY IS THIS HAPPENING ?
1. At the time of this writing, interest rates are at an all-time record low and this is inspiring people to buy.
2. Home Supply is Low and Buyer Demand is High (There are more Buyers than Sellers).
3. Consumer Confidence is at a 9 year high right now.

 

The above combination of circumstances makes now a great time to sell your home.

If you have any interest in selling your home now or in the near future, please remember “Timing is Everything”

Try to avoid the quickly changing mortgage rates and changing market conditions.

The following two market reports will give a ton of information on the real estate market in Southwick, MA right now, but of course, nothing beats an individual assessment by a seasoned professional.

If you would like to schedule a no obligation, no strings, no BS appointment with a real estate professional who was raised in Southwick and has been working in  Southwick real estate for 28 years then I AM HERE FOR YOU!

Call or text Southwick real estate expert, Lesley Lambert at 413-575-3611

SOUTHWICK REAL ESTATE MARKET ACTIVITY AS OF MAY 2017

SOUTHWICK NEIGHBORHOOD REPORT MAY 2017

The Compound Effect: Building Your Household’s Wealth in Western MA

The Compound Effect: Building Your Household’s Wealth            in Western MA

Wealth is within reach for many people; however, according to a recent study, 63 percent of Americans said it’s not likely they’ll become rich.1 While younger people are more likely to say they’ll achieve wealth one day, only 34 percent of people aged 30 to 49 and 21 percent of people aged 50 or older say the same. There is no secret to becoming rich: it takes time, sacrifice and good financial sense. Here are a few ways to build your household’s wealth.

Let Compound Interest Work for You
Compound interest is your interest earning interest. While the concept may work against you when you take out a loan to buy a car or use your credit card, it works in your favor when you’re saving money. For example, if your savings is growing at a rate of four percent, your investment will double in eight years and quadruple in 16 years. Your money will grow exponentially the longer you save: the more money you’ve saved, the more your money will grow.

Tap into Your Western MA Home Appreciation
Experts expect home prices to appreciate 3.24 percent and grow by 21.4 percent cumulatively.2 If a homeowner purchases a home this year for $250,000, they could earn more than $40,000 in equity over the next five years. Although the home value of the average American family’s home is $165,000, home values vary by market.3 If you’re curious about the value of your home, give us a call!

Build Equity in Your Western MA Home
One of the most compelling reasons to own a home is it allows you to build wealth over time. According to one study, the average homeowner has a net worth of $200,000, which is 31 to 46 times the net worth of the average renter.4 Saving for a down payment, especially if you plan to put down more than 20 percent, helps you adopt good financial habits. The more you put down when you buy, the higher your share of equity when you close. Although for the first five to seven years, the majority of your payment will go toward interest, over time more money will be applied to the principal. There are many tools online that calculate your current and future equity in your home, including this one here.

Build equity sooner by choosing a shorter amortization term. While your payment may be higher, you’ll likely qualify for a lower interest rate and will pay less interest over the life of the loan.

Build Equity Faster in Your Home
Mortgage Term 30 Years 15 Years
Loan amount $118,000 $118,00
Months to pay 360 180
Annual percentage rate 4.0% 3.0%
Monthly payment $563 $815
Total interest $84,806 $28,680
Interest savings – $56,126
Source: Federal Reserve Bank of Dallas, Building Wealth: A Beginner’s Guide to Securing Your Financial Future

Pay Down Your Mortgage…or Not
Many homeowners grapple with whether or not to pay down their mortgage. On one hand, if you pay it down, or pay it off early, you’ll save money on interest, which you can use to make other investments. On the other hand, if your goal is to be debt free, it’s better to pay off your higher-interest debt, such as credit card debt, first before paying down your mortgage debt. Additionally, if you’re saving for retirement, putting extra cash toward your retirement accounts will help you build a nice nest egg to enjoy later on.

If you decide to pay off your mortgage sooner, here are a few ways to do so:

1. Pay more money at the beginning of your amortization period and apply it to your principal.
2. If you receive a tax refund or other windfall, apply it toward your principal.
3. Make one extra payment each year. You’ll save money on interest and pay your loan off sooner.
4. Add an extra $50, or another amount you can afford, to the principal of your payment each month.
5. If you locked into a 30-year fixed loan, refinance to a shorter, 15-year fixed loan. Your payment may be higher, but you’ll pay it off sooner.

Your financial advisor can help you decide if paying off or paying down your mortgage is right for your goals.

Purchase Investment Property ADVICE FROM LESLEY LAMBERT, INVESTMENT EXPERT
Investment properties provide passive income to your growing financial portfolio. More than 25 percent of Americans say real estate is the best way to invest money you may not need for the next 10 years.5 While many people flip houses to make money—that is, they buy a home at a low price, fix it up and sell it quickly—others purchase multifamily properties to create monthly cash flow to save or to reinvest in other properties.

The longer you own a property, the better investment it becomes as you’ll continue to build equity. While rental costs rise with inflation, your mortgage will remain the same. The best part? Once you pay off the mortgage, your cash flow will increase. Remember to create a budget for maintenance each month, between 10 to 20 percent of the rent you receive, or more if the home is older. This will help you save more money in the long run and allow you to prepare for unexpected repairs.

“There are tax benefits to owning investment property as well,says Lesley Lambert, Western MA REALTOR.” “You may be able to claim deductions for depreciation, as long as it fits within the guidelines; repairs, travel expenses, interest and more. If you’re thinking of purchasing investment property, talk to your tax professional to get the details.”

Achieve More Wealth by Creating Financial Goals
Setting a goal will help you achieve your desired level of wealth. Once you achieve one goal, reassess and set the bar higher.

1. What is your idea of wealth? Your idea of wealth will change as you earn more money. That’s why it’s vital to set goals along the way. What do you want your net worth to be in 5 years, in 10 years and in 20 years?

2. Write down your short-term and long-term goals. Once you have determined your goals, write them down. This is the first step towards getting your desires out of your mind and into motion and it will be easier to refer to them later on.

3. Develop a budget to help you reach these goals. A budget not only helps you understand where your money goes each month, it may also prevent you from overspending. That way you can have more money to save and invest.

Your Budget
Income Earned $
Investments + $
Total Income = $
Daily Expenses – $
Monthly Bills – $
Total Available for Investment =

To increase the amount you can invest, make adjustments to your daily spending and monthly bills, if possible. Look for opportunities to save money and transfer that savings into your accounts.

Here is a detailed report for you to read and download:

It’s never too late to begin building your family’s wealth. Whether you’re interested in buying a first home, upgrading to a larger home or are thinking of renovating, we have you covered. Give us a call and we’ll answer all of your real estate questions and offer suggestions to help you increase the value of your home.

Lesley Lambert, Western MA Real Estate Expert

Park Square Realty 413-575-3611

Sources: 1. BankRate.com
2. Pulsenomics, Home Price Expectation Survey Q4 2016
3. Statistic Brain, August 1, 2016
4. National Association of REALTORS, Economists’ Outlook, September 8, 2014
5. The Motley Fool, July 30, 2016

Westfield, MA Real Estate Market Report January/February 2017 – Low Inventory, Less Days on Market!

As of today, February 2, 2017 there are ONLY 64 homes for sale in Westfield, MA!

As the inventory remains very low, the average days on market has dropped down 15% and the average sales price is inching up.

Normally people in Westfield, MA think that the Spring is the best time to get their home on the market, but right now that is totally FALSE. Homes that are coming on the market in Westfield right now with a fair asking price are being sold at incredibly fast rates.

Combine this information with the fact that mortgage rates are on the rise and you have the recipe for some motivated buyers, no matter the weather.

Below is a comprehensive real estate market report for Westfield, MA that covers everything you might want to know about real estate in Westfield.

In this report you will find the current market conditions, information on properties that are for sale in Westfield, information on properties that have sold in Westfield, neighborhood information, Westfield demographics, economic trends and so much more!

Everything you want to know about the real estate market in Westfield, MA presented by Lesley Lambert, Westfield REALTOR with Park Square Realty.

If you are thinking about selling your Westfield, MA home, please give me a call: Lesley Lambert, Westfield REALTOR with Park Square Realty 4131-575-3611.

Real Estate 2017: What to Expect in Western MA Real Estate Market

Real Estate 2017: What to Expect

 

One of the most common questions we get at this time of year is, “What’s going on in the Western MA real estate market?” It’s not just potential buyers and sellers who are curious; homeowners always want reassurance their home’s value is going up. The good news is the American real estate market is strong and healthy: home values are up, prices and sales are strong, and millennial first-time buyers are eager to become homeowners.

 

We often use national real estate numbers to give us a clearer view of our local market. However, real estate is local, and while statistics and predictions help us understand the overall real estate market, our local market may be different. If you’re thinking of buying or selling, or just want to know how much your home is worth, give me a call!

 

 

What to Expect in the Real Estate Market in 2017

 

The American housing market is stronger than ever! Home values, prices and sales had their strongest numbers in 2016, a sure sign the market is healthy and strong. According to the Home Price Index from the Federal Housing Finance Agency (FHFA), property values have increased in 58 of the last 62 months and have increased more than 35 percent nationally. Homeowners continue to build equity in their largest investment—their homes.

 

First-time buyers are back.

Housing forecasts from the National Association of REALTORS (NAR), the Mortgage Bankers’ Association, Freddie Mac and Fannie Mae all predict existing-home sales will surpass 6 million in 2017, higher than anticipated sales for 2016. Who’s driving the surge? According to NAR, millennials who have put off buying a home are ready to buy. While they may have avoided buying a home due to student debt and limited employment, many are entering their 30s, a time when their attention turns to marriage, family and setting roots with homeownership. They’re predicted to be the driving force behind home and condominium sales from now until into 2020. (Source: MarketWatch)

 

What does this mean to you? If you’re a millennial who’s been on the fence about buying, now is the time to act. Give me a call at 413-575-3611 to answer your questions about the market and the buying process.

 

Renters are embracing homeownership

Additionally, many renters who’ve resisted buying are starting home searches due to the economic weight of rising rents. This year’s home buyers seek to take advantage of comparatively low interest rates and, in most cases, static payments each month—an advantage of home ownership. Rental costs will only continue to rise; if you’re thinking of buying, now is an ideal time to do so.

 

What does this mean to you? Every month you pay rent, you lose the opportunity to build equity in a home of your own. Break free from the limits of renting and invest in your financial future. Come see me at Park Square Realty and I’ll discuss your options.

 

Home prices are on the rise.

According to NAR, the median existing-home price not only increased 6.0 percent year-over-year in October, it’s also the 56th consecutive month of year-over-year increases. Prices are approaching the pre-recession peak.

 

What does this mean to you? Home prices, and subsequently home values, are increasing. If you’ve been waiting to list your home until you know you can sell it for what you think it’s worth, now is a great time to do so. I will be happy to give you a comparative market assessment of your home and help you get your home in list-ready shape.

 

If you’re in the market to buy, be prepared to act.

Homes were on the market for the shortest amount of time recorded since 2009: 52 days. The increase of qualified buyers in the market along with the increasing efficiency of the real estate process means homes are selling faster than ever, and in many cases buyers are engaging in bidding wars and paying over the list price to get the home of their dreams.

 

What does this mean to you? The home you have your eye on one day may be gone the next. In competitive markets, be prepared to come to the table with a competitive bid.

 

Looking for a new home?

New-home construction will increase to an average of 1.5 million per year to 2024, according to a report from NAR. However, experts anticipate housing starts will only increase to 1.22 million in 2017, which is less than the 1.5 million new homes required to keep up with growing demand. This inventory shortage of new entry-level homes—typically purchased by first-time buyers—may drive up prices in some areas. Home builders have been focusing on multi-family construction for the last few years, but this type of construction has begun to level off providing hope that builders will once again focus on single-family home construction. However, stricter proposed immigration policies may impact new home construction and tighten inventory.

 

What does this mean to you? First-time and repeat home buyers agree—there are plenty of advantages of buying a new home. Whether you want a home customized to your family’s needs or you don’t want to bother with age-related maintenance, a new home has much to offer. Give a call to discuss your options.

 

Affordability pressures are increasing in many markets

Housing affordability in many of the nation’s largest cities has declined over the past few years, a trend that is expected to continue in 2017. However, there is hope. NAR created the Affordability Index to measure the affordability of homes across the United States. The Affordability Index assesses whether the typical family earning the median family income can qualify for a mortgage on a typical home based on the prevailing mortgage interest rate on loans closed on existing homes from the Federal Housing Finance Board.

 

The NAR Affordability Index is 170.2 (composite) and 169.8 (fixed), meaning a family earning the median family income has 170.2 percent of the income necessary to buy a median-priced, single-family home. Nationally, the qualifying income is $41,616, but it varies by region. In the Northeast, the qualifying income is $45,024. In the Midwest, it’s $32,640. In the South, it’s $36,960. In the West, it’s $61,824.

 

What does this mean to you? If you’ve had your eye on a new home, but weren’t sure if you could afford it, you may be pleasantly surprised. We may have homes in our area that meet your needs and budget. Give me a call today to discuss your home search.

 

3 Things to Do Now if You Plan to Buy This Year

  1. Get pre-approved for a mortgage. If you’re like most buyers who plan to finance part of the home purchase, getting pre-approved for a mortgage will allow you to put in an offer on a home and may give you an advantage over other buyers. The added bonus: you can see how much home you can afford and budget accordingly.
  2. Start looking. While most buyers start their searches online, be sure to look at homes in neighborhoods you’d like to live in as well. Keep a notebook to write down what you like and dislike about each home you view in person or online. This will help you narrow down where to look and what to look for in your next home.
  3. Come to our office. The buying process can be tricky. I’d love to guide you through it. I can help you find a home that fits your needs and budget. Give me a call to make an appointment today!

 

 

3 Things to Do Now if You Plan to Sell This Year

  1. Make repairs. Most buyers want a home they can move into right away, without having to make extensive repairs. While the repairs may or may not add value, making them will give your home a competitive advantage over other similar homes on the market.
  2. Get a Comparative Market Analysis (CMA). A CMA not only gives you the current market value of your home, it’ll also show how your home compares to others in the area. This will help us price your home to sell in our market. Call us for your free CMA!
  3. Start packing. Help your buyers see themselves in your home by packing up items you don’t use regularly and storing them in an attic or a storage space. This will make your home easier to stage as well as make it easier to move later on.

Are you thinking of buying or selling?

Whether you’d like to buy or sell a home this year, want to know how much your home is worth, or have general questions about our local market, give me a call! I’d love to discuss the market with you. My phone number is 413-575-3611.

 

Lesley Lambert, Western MA REALTOR with Park Square Realty