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Westfield, MA REAL ESTATE MARKET REPORT, November 2021 by Lesley Lambert, REALTOR

Westfield, MA Real Estate Market Report, November 2021 by Lesley Lambert, Westfield REALTOR

You may be curious to know what has happened in the real estate market in Westfield, MA over the past twelve months. I have taken the time to create a report that shows you the market statistics and changes over the past year.

If you are considering selling or buying a home I would love to have a personal consultation with you to determine how to best meet your goals and needs.

Take a look at the current report and let me know if you have questions. Lesley Lambert, Westfield REALTOR with Park Square Realty 413-575-3611.

Understand What Goes into House Prices in a Competitive Market | Western MA Real Estate

Understand What Goes into House Prices in a Competitive Market | Western MA Real Estate

Article From HouseLogic.com

By: Erica Christoffer
Published: May 13, 2021

Even in a seller’s market, home sales depend on certain factors that may require you to be flexible.

You may be selling a home in a competitive market — for example, with low inventory and high demand. And you may be thinking “Yay!” or at least “Whew.” You know you’re likely to have more interested buyers, better offers, and a quicker trip to contract than you’d have otherwise. But along with that good news comes the need to manage your expectations by understanding what determines house prices and home sales. Factors include the right real estate agent, local market conditions, buyer preferences, seasonality, and mortgage rates versus inventory.

 Work with the Right Real Estate Agent to Sell Your Home

 House prices come down to the micro real estate market, says Jasen Edwards, a real estate coach and former member of REALTOR? magazine’s 30 Under 30. “What’s going on in the U.S. as a whole is different than what’s going on in Austin, Texas. [And both are] different than what’s going on in your neighborhood,” he says. “You might hear that it’s a strong seller’s market, but you might be in a micro buyer’s market.”

 Edwards advises researching your market on your own, then interviewing real estate professionals to find the best person to work with. Sellers should approach working with an agent as though they’re forming a team. You’ll be creating a plan together on how to maximize home pricing, Edwards says.

 Bernadette Inez and her broker created such a team. Inez, who had lived in the same southwest Chicago home for 26 years, needed to sell last fall when she was going through a divorce. She wanted a real estate professional who could give her strong guidance in determining an asking price.

 Inez learned about Erika Villegas, managing broker and co-owner of RE/MAX In The Village in Oak Park, Ill., through Villegas’ community sponsorships and networking events. After an initial consultation, Inez hired Villegas to list her home.

 Consider Local Market Conditions that Affect House Prices

 Villegas did a hyper local market analysis and found the price of houses similar to Inez’s to be about $229,000. She recommended listing at $239,900, mainly because of the area’s lack of inventory and extremely low days on market. It was the right call. The house had 35 showings in the first 48 hours and generated five offers at $10,000 above the asking price.

 Sometimes home improvements are needed to maximize the price. When Inez decided to put her home on the market, she opted to do some updates to appeal to more buyers. The 1950s tile in one of her bathrooms was showing its age, so she hired a contractor to install a vinyl covering. She hired someone to reglaze the tub in her other bathroom and replace all faucets, including in the kitchen. She also repainted her living room.

 Think about Buyer Preferences that May Affect Your Home Pricing

 In addition to home condition, other factors, including buyer preferences, affect price. Being located on a busy street or alley, for instance, may deter some buyers.

“I put myself in the buyers’ shoes [about] what they’re seeing in the home,” Villegas says. “For instance, many are home schooling right now. That is influencing which features buyers want in a home.”

 Know that Seasonality May Be a Factor

 Seasonality has historically been a factor, but 2020 was an exception, when strong home sales extended into late fall and early winter. Existing-home sales in November were up almost 26%, and sales prices nearly 15% from the previous year, according to the National Association of REALTORS?. Transactions and house prices nationwide traditionally trend up in the summer, when home shopping activity is high. They slow in the winter, when demand wanes. Demand also correlates with Americans’ higher mobility rates in the summer, when school is out. However, seasonality is also regional, with markets in the Northeast and Midwest peaking more significantly in the summer than the South and West, NAR reports.

“Listed homes have been going under contract on average at less than a month due to a backlog of buyers wanting to take advantage of record-low mortgage rates,” says Lawrence Yun, NAR’s chief economist.

 Weigh Mortgage Rates Against Inventory

 Low interest rates can of course make purchasing a home more affordable for buyers. However, the lack of homes on the market has created stiff competition among buyers. In fact, it often puts them in bidding wars, nullifying the benefit of the low rates. According to Redfin, record low interest rates have increased home buyers’ purchasing power by 6.9%. But higher home prices have cancelled out the effect.

 In multiple offer situations, Villegas creates a spreadsheet outlining the terms and pricing of each offer for her clients. She then calls the loan officers of the potential buyers to make sure their information has been verified. After that, Villegas goes through each offer one by one with her sellers. Together, they evaluate which one is not only the best, but also the most secure. She also helps her sellers prepare for the appraisal by creating a list of the home’s updates from the past few years.

 Why You May Need to Be Flexible

 Flexibility is a plus, even when circumstances seem to favor sellers. Low inventory and aggressive house prices are compromising many buyers’ ability to afford a home. Sellers should be prepared to make adjustments if necessary.

“No one has a crystal ball,” says Edwards. Ideally, the seller should list at a price that gets attention and triggers a lot of interest, he adds.

 When buyers are continuing to take advantage of ultra-low interest rates, a seller’s market will remain in areas with sought-after price points and a low inventory of homes for sale.

If you want to discuss this in greater detail specific to our Western MA real estate market, I would love to meet with you! Lesley Lambert, Western MA REALTOR with Park Square Realty 413-575-3611

Could Rising Home Prices in Western Massachusetts Impact Your Net Worth?

Could Rising Home Prices in Western Massachusetts Impact Your Net Worth?

Learn how to determine your current net worth and how an investment in real estate can help improve your bottom line.

Among its many impacts, COVID-19 has had a pronounced effect on the housing market. Low home inventory and high buyer demand have driven home prices to an all-time high.1 This has given an unexpected financial boost to many homeowners during a challenging time. However, for some renters, rising home prices are making dreams of home ownership feel further out of reach.

If you’re a homeowner, it’s important for you to understand how your home’s value contributes to your overall net worth. If you’re a renter, now is the time for you to figure out how home ownership fits into your short-term goals and your long-term financial future. An investment in real estate can help you grow your net worth, build wealth over time, and gain a foothold in the housing market to keep pace with rising prices.

What is net worth?

Net worth is the net balance of your total assets minus your total liabilities. Or, basically, it is what you own minus what you owe.2

Assets include the cash you have on hand in your checking and savings accounts, investment account balances, salable items like jewelry or a car and, of course, your home and any other real estate you own.

Liabilities include your total debt obligations like car loans, credit card debt, the amount you owe on your mortgage, and student loans. In addition, liabilities would include any other payment obligations you have, like outstanding bills and taxes.

How do I calculate my net worth?

To calculate your net worth, you’ll want to add up all of your assets and all of your liabilities. Then subtract your total liabilities from your total assets. The balance represents your current net worth.

Total Assets – Total Liabilities = Net Worth

Ready to calculate your net worth? Contact us to request an easy-to-use worksheet and a free assessment of your home’s current market value!
email: realestate.lesleylambert@gmail.com for your worksheet

Keep in mind that your net worth is a snapshot of your financial position at a single point in time. Your assets and liabilities will fluctuate over both the short term and long term. For example, if you take out a loan to buy a car, you decrease your liability with each payment. Of course, the value of your asset (the car) will depreciate over time, as well. An asset that is invested in stocks or bonds can be even less predictable, as it’s subject to daily fluctuations in the market.

As a homeowner, you enjoy significant stability through your monthly real estate investment, also known as your home mortgage payment. While the actual value of your home can fluctuate depending on market conditions, your mortgage payment will decrease your liability each month. And unlike a vehicle purchase, the value of your home is likely to appreciate over time, which can help to grow your net worth. Right now, your asset may be worth significantly more than it was this time last year.3

If you’re a homeowner, contact us for an estimate of your home’s market value so that you can factor it into your net worth calculation. If you’re not a current homeowner, let’s talk about how homes in our area have appreciated over the last several years. That way, you can get an idea of how a home purchase could positively affect your net worth.

How can real estate increase my net worth?

When you put your real estate dollars to work, it’s possible to grow your net worth, generate cash flow, and even fund your retirement. We can help you realize the possibilities and maximize the return on your investment.

Property Appreciation

Generally, property appreciates in one of two ways: either through changes to the overall market or through value-added modifications to the property itself.

  1. Rising prices

This type of property appreciation is the one that many homeowners are enjoying right now. Buyer demand is at an all-time high due to a combination of record-low interest rates and limited housing inventory.4 At other times, rising home prices have been attributed to different factors. Certain local conditions—like a new commercial development, influx of jobs, or infrastructure project—can encourage rapid growth in a community or region and a corresponding rise in home values. Historically, home prices have been shown to experience an upward trend punctuated by intermittent booms and corrections.5

  • Strategic home improvements

Well-planned and executed home improvements can also impact a home’s value and increase homeowner equity at the same time. The type of home improvement should be appropriate for the home and in tune with the desires of local buyers.

For example, a tasteful exterior remodel that is in keeping with the preferences of local home buyers is likely to add significant value to a home, while remodeling the home to look like the Taj Mahal or a favorite theme park attraction will not. A modern kitchen remodel tends to add value, while a kitchen remodel that is overly expensive or personalized may not provide an adequate return on investment.

Investment Property

You may be used to thinking of investments primarily in terms of stocks and bonds. However, the purchase of a real estate investment property offers the opportunity to increase your net worth both upon purchase and year after year through appreciation. In addition, rental payments can have a positive impact on your monthly income and cash flow. If you currently have significant equity in your home, let’s talk about how you could put that equity to work by funding the purchase of an investment property.

  1. Long-term or traditional rental

A long-term rental property is one that is leased for an extended period and typically used as a primary residence by the renter. This type of real estate investment offers you the opportunity to generate consistent cash flow while building equity and appreciation.6 

As an owner, you don’t usually have to worry about paying the utility bills or furnishing the property—both of which are typically covered by the tenant. Add to this the fact that traditional tenants translate into less time and effort spent on day-to-day property management, and long-term rentals are an attractive option for many investors.

  • Short-term or vacation rental

Short-term rentals are often referred to as vacation rentals because they are primarily geared towards recreational travelers. And as more people start to feel comfortable traveling again, the short-term rental market is poised to become a more popular option than ever. In 2020 alone, in the thick of widespread travel bans, the short-term rental platform Airbnb’s market share of the hospitality industry reached as high as 41 percent.6

Investing in a short-term rental offers many benefits. If you purchase an investment property in a top tourist destination, you can expect steady demand from travelers while taking advantage of any non-rented periods to enjoy the home yourself. You can also adjust your rental price around peak demand to maximize your cash flow while building equity and long-term appreciation.

To reap these benefits, however, you’ll need to understand the local laws and regulations on short-term rentals. We can help you identify suitable markets with investment potential.

WE’RE HERE TO HELP

Ready to calculate your personal net worth? Contact us for an easy-to-use worksheet and to find out your home’s current value. And if you want to learn more about growing your net worth through real estate, we can schedule a free consultation to answer your questions and explore your options. Whether you’re hoping to maximize the value of your current home or invest in a new property, we’re here to help you achieve your real estate goals.

Lesley Lambert, Western MA REALTOR with Park Square Realty 413-575-3611

The above references an opinion and is for informational purposes only.  It is not intended to be financial advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

  1. National Association of Realtors –
    https://www.nar.realtor/newsroom/housing-market-reaches-record-high-home-price-and-gains-in-march
  2. Forbes –
    https://www.forbes.com/advisor/investing/what-is-net-worth/
  3. The Washington Post –
    https://www.washingtonpost.com/business/on-small-business/your-net-worth-is-americas-secret-economic-weapon/2020/08/20/70df5b92-e2d4-11ea-82d8-5e55d47e90ca_story.html
  4. Bloomberg –
    https://www.bloomberg.com/news/articles/2021-04-09/home-prices-soar-in-frenzied-u-s-market-drained-of-supply
  5. Federal Reserve Economic Data –
    https://fred.stlouisfed.org/series/MSPUS
  6. Propmodo –
    https://www.propmodo.com/what-the-growing-short-term-rental-market-means-for-multifamily-real-estate/

The Real Estate Ladies of Western MA: Unexpected expenses after you purchase a home

In this episode Lesley and Aimee share some advice about potential home owner expenses that come up after you buy a home.  If you are looking to purchase a home in Western Massachusetts you can reach Aimee and Lesley at: therealestateladiesofma@gmail.com 

You can reach Lesley Lambert, Western MA REALTOR with Park Square Realty at 413-575-3611

The Real Estate Ladies of Western MA | Sellers What Happens After The Offer Is Accepted?

In this video Aimee and I discuss what happens after a Western MA seller accepts an offer. We give the step by step with advice and timelines to help you better navigate your home sale. Often, getting a buyer isn’t the hard part of the transaction: it is keeping the deal together as you navigate things like home inspections, appraisals, coordinating the move and much more!

Take a look at this video for some great advice and tips on how to handle your Western MA home sale after the offer is accepted!

You can reach Aimee and Lesley at: realestateladiesofma@gmail.com or comment on the video.

Aimee Tomkins and Lesley Lambert, Western MA REALTORS with Park Square Realty