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The New Normal in Western MA Real Estate for 2021
| As we head towards a new year many people are wondering what the local real estate market will look like in 2021. Take a read here and let me know if you have any questions or real estate needs! |
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| The New Normal: A Strong Housing Market Expected to Continue into 2021Most of us would have expected the housing market to suffer from circumstances like a once-in-a-hundred-years pandemic and historic inventory shortages. But, rather than a slowdown, we are continuing to experience a surprisingly robust real estate market across the country. And experts estimate that these conditions are likely to last well into the new year.Market conditions like fewer available listings, changing criteria for desired homes, and record-low mortgage rates are changing the way people buy and sell homes, most likely in a lasting way. But this sustained activity, even in the uncertainty that is 2020, proves that our country still views real estate as a sound investment.The only question now is how you can take advantage of the housing market’s “new normal.” |
| FEWER LISTINGS EQUALS A SELLER’S MARKETInventory (e.g., number of homes for sale) has been dwindling in the country’s top 100 metro markets since early 2020. It is currently about 1.47 million units, which is a decline of 19.2% from one year ago—and the lowest point since 1982.Fewer listings creates an advantageous housing market for sellers right now because buyers have to act fast to snap up available homes. As a result, most properties only stay on the market for about 21 days before they are sold.And thanks to tough competition for homes (often resulting in bidding wars between buyers), sellers are enjoying higher net returns on their listings. The nationwide median home price in September rose to $311,800, which translates to about $40,000 (15%) more than just a year ago. |
| LOW MORTGAGE RATES, BIGGER PLAYING FIELD BENEFIT BUYERSPeople used to base their next home purchase on commute times and school districts. Now, thanks to the pandemic shifting the locus of jobs and work, they are free to consider how and where they truly want to live. Surveys show that quieter neighborhoods, home offices, updated kitchens, and access to the great outdoors are preferred.The search for these criteria is driving residents out of densely populated metropolitan areas and into the suburbs, which opens more inventory possibilities than buyers could consider pre-pandemic.Now that 30-year fixed-rate mortgage rates dropped to 2.81% in mid-October, buyers are afforded the opportunity to buy nearly $32,000 more home than they could one year ago. Similarly, a 15-year fixed-rate mortgage can be had for as low as 2.35% compared to 3.15% a year ago. So even though home prices are high now, it’s more affordable to buy a home now than it was last year. |
| RECORD-SETTING YEAR FOR HOME SALES IS JUST THE BEGINNINGDespite the seemingly adverse buyer conditions, 2020 experienced a 14-year high number of home sales, NAR reports. Existing-home sales (including single-family homes, townhomes, condominiums and co-ops) rose 9.4% across the nation in September to a seasonally adjusted annual rate of 6.54 million. That’s a 21% increase from a year ago!All of the aforementioned factors indicate that the housing market is poised to remain strong as we head into the new year. And experts believe they could “buoy the housing market for years to come.” |
| REAL ESTATE IS A SAFE BET Today’s housing market is competitive and strong, which makes it a sound investment for your future. If you’re considering buying or selling a home before the new year or in early 2021, contact us now to schedule a free consultation. |
| If you have any questions please don’t hesitate to call or text 413-575-3611! |
Do You Care What Your Realtor Wears?
Yesterday we had our Park Square Realty company 2010 kick off meeting. We discussed many real estate trends in Western Massachusetts and other statistical information that I will be sharing with you along the way. Then we discussed, at length, the dress code at the office. Specifically that there should be no jeans in the office unless you are participating in the Friday Charity Dress Down Day.
Now, I tend to dress business casual, so the no jeans thing doesn’t really affect me too much, but I did get to wondering what the public expects of us.
My boss made an analogy about going to a doctor and having him do your consultation wearing jeans. First off, I personally wouldn’t care as long as he was still well kept and not wearing dirty or torn clothing, I would be ok with the jeans, but that may be just me. Secondly, while I WISH the public perceived real estate agents on the same level as doctors, I don’t believe that to be the case.
Personally, the only time I wear jeans is when I am showing land or bank owned properties in the winter. Then and only then I will show up to an appointment in my Ugg boots and jeans. I love real estate, but not enough to literally freeze my fanny off.
Typically this is how I look when I do business:
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That being said, I think more important that wearing fancy suits or expensive business attire, we should consider our clients when we dress. I work with clients from all professions. I have a pretty good feeling for those that are very formal and would expect and respect my wearing a suit on appointments vs. those that are very casual and a fancy suit would make them uncomfortable.
What do you think? How do you want your real estate agent to dress? What expectations do you have? I would love to hear your opinions!
Does “as is” in Foreclosure sales REALLY MEAN “as is”?
I wrote an article on my experiences with foreclosure sales and the likelihood of the lender making repairs to the property for the buyer.
To see the full story visit my Agent Genius Magazine page!
Angels and Demons
Last year I decided to work as a home retention consultant. This was one of the most difficult things I had ever taken on because I was going to have to show up unannounced and knock on the doors of people who were in pre-foreclosure and in danger of losing their home.
Not the most comfortable feeling, but since I had just been through the process I knew that I could help people if I got over my fear of knocking on doors.
Day one arrives and I pull up to the first house. I steel myself with reassurances that I have a service and a will to help. The nerves don’t subside, but I find the strength to knock on the door.
The woman that comes to the door is a beautiful, petite latina and is obviously not expecting me. She meets me on the porch and as I explain to her why I am there and what I hope to help with-she starts crying. The story that I hear includes a cheating husband she is kicking out, an attempt to finish her college degree, a tenant that doesn’t pay rent and all of this is her secret.
We make an appointment to fill out the loss mitigation paperwork and she reaches out to hug me. I have to paraphrase, but she said something like: “I will always remember this day and the way you looked when you showed up to help. You are my angel.”
Inflated and excited by the success of my first stop, I head to my next home.
This time I am met by a short middle aged man with lots of tattoos and a military buzz cut. I begin by explaining that I have an already designated loan modification that will reduce his principle, reduce his rate, restart the loan with no foreclosure and knock $600 a month off the payments. He responds with a tirade and the words “shotgun, burn the *&#()0($#’ing house down and they will have to get me first”.
He tells me to leave and I say that I am sorry I couldn’t help. I head back to the car to program the GPS and I see him heading towards my car. NOW I am nervous as can be. I roll down the window a half inch and let him talk.
He apologizes: I am collateral damage after he has spent countless hours on the phone trying to resolve his issues. He says, “I am sure I am the last person you would want to help after my outburst, but if you would accept my apology and come in, I sure would appreciate that.”
An hour, a pile of paperwork and a phone call later and his loan modification was in process and his house saved.
Every door is answered by a new story, but they are all so real and they all need help. These are two of the families that will be able to stay in their home because of the home retention program… it is a wonderful feeling to be part of that mission.
