Pending Homes Sales Down in May after Tax Credit Deadline Passes
6/2/2010
WALTHAM, Mass. – June 2, 2010 – The Massachusetts Association of REALTORS® (MAR) reported today that the number of single-family homes put under agreement in May were down 3.0 percent over the same time last year, while condominiums were down 6.0 percent. May is the first month since July 2009 that the number of both single-family homes and condominiums put under agreement has decreased compared to the year before.
“The decrease in pending sales in May is direct result of buyers making a final push to get homes put under agreement prior to the April 30 tax credit deadline,” said 2010 MAR President Kevin Sears, broker/co-owner of Sears Real Estate in Springfield. “While we would have liked to have seen increases in pending sales in May, low interest rates and more affordable prices continue to be the foundation for a stable market.”
The number of single-family homes put under agreement in May was down 3.0 percent compared to the same time last year (4,802 homes in 2009 to 4,663 homes in 2010). On a month-to-month basis, single-family homes put under agreement were down 16.4 percent from 5,580 homes in April.
The number of condos put under agreement in May was down 6.0 percent compared to May 2009 (2,025 units in 2009 to 1,894 units in 2010). On a month-to-month basis, condos put under agreement were down 17.4 percent from 2,292 units in April.
Misconception: If you pay list price, you're paying too much.
If you don't know what the current market value is for homes in the area and whether the market is appreciating or depreciating, you don't know what a fair price is and you're likely to miss out on a great deal by trying to low ball a house that's already priced well. Statistics show us that asking price to sale price ration for ACCURATELY priced homes is running about 97-98%. That means the properties that are selling in the current market are priced correctly and selling on average very close to their asking price (and yes - some even higher)
If the house meets your goals, is within your budget, and is priced competitively, it's a bargain and you should make a strong offer. Get assistance from a professional to help you recognize a good deal and grab it before it's gone.
Misconception: Foreclosures and short sales are the best buys.
Many buyers find out the hard way that foreclosures and short sales are full of headaches, may need extensive repairs which banks and/or short sale homeowners won't or can't afford to do, require great patience over an extended period (short sales can take up to 6 months or more to get a decision from the 3rd party investor), often don't have the criteria that's most important to you, and may never close.
Unfortunately short sales are plentiful in the Merrimack Valley and Southern New Hampshire markets. Buyers are trending toward skipping short sales them because of the uncertainty of them and even in successful cases the length of time they can take. Foreclosures can be less troublesome, but often in poor condition with challenges that may take longer than normal to resolve. We are expecting another burst of foreclosures in the upcoming months.
Misconception You get a better price if you buy directly from the owner.
Bargain hunters sometimes avoid Realtors, thinking that they will get a better price if they buy directly from a FSBO. Meanwhile, the sellers are also trying to save on the commission, so they're not getting expert advice either and often price their homes above market value.
The end result is often that a buyer pays too much or the FSBO is unable to get the house sold. A savvy Realtor working on the buyer's behalf as a buyers agent, armed with market data and great negotiation skills, is much more likely to get a great deal than buyers can by trying to negotiating for themselves.
To find out the value of your home visit HomeValuesMA for instant over the internet valuation of your home.
To find your next home visit our MLS All Access Pass for Merrimack Valley MA and Southern NH real estate
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Mark Gracy - The Gracy Team - Keller Williams Realty Andover (978) 861-4016 www.GracyTeam.com
The Massachusetts Association of REALTORS / Massachusetts REALTOR News
New State Smoke Detector Requirements Andover, North Andover and the Merrimack Valley Real Estate Resource
3/8/2010
A new regulation regarding the installation and maintenance of smoke detectors goes into effect April 5, 2010.
These new regulations were enacted by the Massachusetts Department of Fire Services and will apply to single and multi-family homes built or most recently substantially altered prior to Jan. 1, 1975 and sold on or after April 5, 2010. Homes built or substantially altered on or after Jan. 1, 1975 are governed by the State Building Code, which already imposes the same requirements & restrictions.
The regulations currently require two different types of smoke detectors to be in place depending upon the location in the home. In zones within 20 feet of a kitchen or bathroom, smoke detectors using photo-electric only technology will be required. Outside of the 20-foot kitchen and bath zone(s), both ionization and photoelectric technology must be installed. The battery/hard-wire rules are not changing at the state level.
These requirements were developed, in part, based upon research that shows that ionization smoke detectors tend to give false alarms due to fumes given off from typical cooking or steam from a shower. Frequent false alarms often lead residents to disable smoke detectors by removing their batteries.
527 CMR 32.00: Approved Smoke Detectors
32.01: Purpose and Scope
32.02: General Requirements
32.03 Installation of smoke detectors in the vicinity of a kitchen, bathroom or other areas
32.01: Purpose and Scope
Pursuant to the Board’s authority under M.G.L. c. 22D, s. 4 to develop a comprehensive fire safety code and under the general regulatory authority of M.G.L. c. 148, sections 10 and 28, the purpose of 527 CMR 32.00 is to enhance public safety by providing further technical qualification to the definitions of “Approved monitored battery power smoke detector” and “Approved primary power smoke detector”, as those words are used in M.G.L. c. 148, sections 26D, E and F.
This regulation shall be effective as of April 5, 2010, and shall be the applicable standard for sellers to comply with the provisions of M.G.L. c. 148, s. 26F upon sale and transfer of certain buildings or structures occupied in whole or in part for residential purposes.
31.02 General Requirements
(1) Except for smoke detectors located in the vicinity of areas regulated by 527 CMR 32.03, an approved monitored battery power smoke detector, shall consist of a working device, as defined in M.GL.c148, s. 26D, that employs both ionization and photoelectric technology, in either a single unit or by means of two separate units.
(2) Except for smoke detectors located in areas regulated by 527 CMR 32.03, an approved primary power smoke detector, shall consist of a working device, as defined in M.GL.c148, s. 26D, that employs both ionization and photoelectric technology, in either a single unit or by means of two separate units.
32.03 Installation of Smoke Detectors In the Vicinity of a Kitchen, Bathroom or Other Areas
No smoke detector employing ionization technology shall be installed within 20 feet of an entryway to a kitchen, or bathroom containing a bathtub or shower. The 20-foot measurement shall include and extend into common areas of a multi-family dwelling, if applicable.
North Andover, MA real estate update - Merrimack Valley Real Estate Update on the $8,000 tax credit for homebuyers.
I have been getting a lot of questions lately on the homebuyer tax credit so I thought I would take a moment and give everyone an update. The clock is ticking on the $8,000 credit AND there is still time to take advantage and qualify for this opportunity. Here are the revised criteria:
Home Buyer Tax Credit Revised in November 2009
First-time Buyer -
Amount of Credit
$8,0 00 ($4,000 married filing separate)
First-time Buyer
Definition of Eligibility
May not have had interest in a principal residence for 3 years prior to purchase
Current Homeowner - Definition of Eligibility
Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
Deadline for Tax Credit
Purchases after April 30, 2010 (Binding contract must be written by this date. Purchaser has until July 1, 2010 to close on the property.)
There are some additional income and property purchase price limitations. Give me a call of shoot me an email for details. Don't hesitate. Interest rates are at an all time LOW and will be going up, home prices have never been more affordable and the tax credit will be going away SOON. Don't miss this historic opportunity to capitalize on your real estate investment. SEARCH FOR ALL MLS PROPERTIES IN MA AND NH today and find your perfect home. Mark Gracy - Your Real Estate Resource in the Merrimack Valley (978) 861-4016 (tel &fax) Visit our website for FREE Homebuyer reports
North Andover, MA real estate update - Merrimack Valley Real Estate Update on the $8,000 tax credit for homebuyers.
I have been getting a lot of questions lately on the homebuyer tax credit so I thought I would take a moment and give everyone an update. The clock is ticking on the $8,000 credit AND there is still time to take advantage and qualify for this opportunity. Here are the revised criteria:
Home Buyer Tax Credit Revised in November 2009
First-time Buyer -
Amount of Credit
$8,0 00 ($4,000 married filing separate)
First-time Buyer
Definition of Eligibility
May not have had interest in a principal residence for 3 years prior to purchase
Current Homeowner - Definition of Eligibility
Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
Deadline for Tax Credit
Purchases after April 30, 2010 (Binding contract must be written by this date. Purchaser has until July 1, 2010 to close on the property.)
There are some additional income and property purchase price limitations. Give me a call of shoot me an email for details. Don't hesitate. Interest rates are at an all time LOW and will be going up, home prices have never been more affordable and the tax credit will be going away SOON. Don't miss this historic opportunity to capitalize on your real estate investment. SEARCH FOR ALL MLS PROPERTIES IN MA AND NH today and find your perfect home. Mark Gracy - Your Real Estate Resource in the Merrimack Valley (978) 861-4016 (tel &fax) Visit our website for FREE Homebuyer reports
North Andover, MA real estate update - Merrimack Valley Real Estate Update on the $8,000 tax credit for homebuyers.
I have been getting a lot of questions lately on the homebuyer tax credit so I thought I would take a moment and give everyone an update. The clock is ticking on the $8,000 credit AND there is still time to take advantage and qualify for this opportunity. Here are the revised criteria:
Home Buyer Tax Credit Revised in November 2009
First-time Buyer -
Amount of Credit
$8,0
00 ($4,000 married filing separate)
First-time Buyer
Definition of Eligibility
May not have had interest in a principal residence for 3 years prior to purchase
Current Homeowner - Definition of Eligibility
Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
Deadline for Tax Credit
Purchases after April 30, 2010 (Binding contract must be written by this date. Purchaser has until July 1, 2010 to close on the property.)
There are some additional income and property purchase price limitations. Give me a call of shoot me an email for details. Don't hesitate. Interest rates are at an all time LOW and will be going up, home prices have never been more affordable and the tax credit will be going away SOON. Don't miss this historic opportunity to capitalize on your real estate investment. SEARCH FOR ALL MLS PROPERTIES IN MA AND NH today and find your perfect home. Mark Gracy - Your Real Estate Resource in the Merrimack Valley (978) 861-4016 (tel &fax) Visit our website for FREE Homebuyer reports
North Andover, MA real estate update - Merrimack Valley Real Estate Update on the $8,000 tax credit for homebuyers.
I have been getting a lot of questions lately on the homebuyer tax credit so I thought I would take a moment and give everyone an update. The clock is ticking on the $8,000 credit AND there is still time to take advantage and qualify for this opportunity. Here are the revised criteria:
Home Buyer Tax Credit Revised in November 2009
First-time Buyer -
Amount of Credit
$8,0 00 ($4,000 married filing separate)
First-time Buyer
Definition of Eligibility
May not have had interest in a principal residence for 3 years prior to purchase
Current Homeowner - Definition of Eligibility
Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
Deadline for Tax Credit
Purchases after April 30, 2010 (Binding contract must be written by this date. Purchaser has until July 1, 2010 to close on the property.)
There are some additional income and property purchase price limitations. Give me a call of shoot me an email for details. Don't hesitate. Interest rates are at an all time LOW and will be going up, home prices have never been more affordable and the tax credit will be going away SOON. Don't miss this historic opportunity to capitalize on your real estate investment. SEARCH FOR ALL MLS PROPERTIES IN MA AND NH today and find your perfect home. Mark Gracy - Your Real Estate Resource in the Merrimack Valley (978) 861-4016 (tel &fax) Visit our website for FREE Homebuyer reports
Fewer Sellers Are Cutting Prices
The prices on 19 percent of homes for sale as of March 1st have been reduced at least once, the lowest percentage in the last year, according to Trulia.com.
In October and November, when the market was feeling the effect of the tax credit, 26 percent of sellers cut their asking prices.
“Better pricing is leading to less time on the market, less price reduction, and in a lot of markets we're starting to see bidding wars on lower end properties," said Ken Shuman, spokesperson for Trulia.
Trulia calculates that these U.S. cities experienced the biggest decline in price reductions from Feb. 1, 2010 to March 1, 2010:
Charlotte, N.C.
Colorado Springs, Colo.
Houston
Raleigh, N.C.
Jacksonville, Fla.
Albuquerque, N.M.
Tucson
Omaha, Neb.
San Antonio, Texas
Source: Trulia.com (03/09/2010)
