A Holiday Greeting to my readers!

Christmas Comments
Myspace Comments - Upload Photos



I would like to wish you and your family a Happy Holiday season and good wishes in the New Year!
Often the new year is a time for people to make resolutions and move on projects that they had put off until after the holidays. Maybe you or someone you know has been hesitating on buying or selling a home. I just wanted to share with you a few reasons why the current economy is prime for buyers, and sellers who want to buy up. I’ll even share my own story.

With the continued downturn of the economy, a few options have opened up for buyers. Interest rates are extremely low and are falling. The good news is that if you were waiting for home prices to come down, the drop in interest rates has essentially made home prices lower.
There is more good news: Home prices are falling. With the lingering inventory, (i.e. more choice for buyers) sellers are getting realistic about what the market will yield for their house. They are willing to not only drop price, but also negotiate. If you locked in on an interest rate that was somewhere in the 5% range, and rates continue to drop, speak to your mortgage officer about refinancing. You’ll be sitting pretty when the market and interest rates start heading back up.

Unfortunately for some home owners, but in favor of buyers, are a number of homes which are short sales or bank owned. These can take more time to buy, but often a real bargain for savvy (and patient) home shoppers.

So, how does all of this help sellers who want to buy up? If you price your home aggressively, it will likely sell within a reasonable amount of time. (my marketing skills will help this process along!) Even if you get less than what you paid for, as long as you still have equity in your home, you can use the equity as a down payment to buy up. It worked for me. My story is below.

I would like to invite you to begin your home search with me. I think 2009 is going to be a huge year for buyers and then the market will begin to shift back toward sellers, meaning fewer homes to choose from, higher prices and interest rates.

Enjoy your holiday, and give me a call in the new year. I am excited to help you find your perfect new home! Please let me know of anyone you know who is thinking about making a real estate move in 2009! I would love to give them info and answer any questions they may have. I think it is going to be a big year for home sales!

Cheers,
Jen

P.S. Here is the story I promised you:

On October 21 I put my condo on the market, by October 27 we had accepted an offer and closed on November 24. I had multiple offers, and others who wanted to come back for second and third looks. When they heard that we had accepted an offer they asked me to let them know if the deal ever fell through so that they could make an offer as well. Meanwhile, my husband and I had submitted an offer on a short sale of a nice single family home. We waited three weeks for the offer to be accepted. We closed yesterday, December 23. Not all short sales move that quickly. Some are slower, some are faster. The point is that real estate is moving because of the lending environment, and we were able to buy up from a 1600 square foot condo to a 2300 square foot house with a two car garage and a private yard for less than what we paid for the condo four years ago.

Spotlight on Beverly

The city of Beverly was once George Washington's naval base and the first US Navy ship sailed from Beverly Harbor.
With its revitalized downtown, unique shops, and restaurants Beverly is seeing a boom in the housing market. Many old factory and warehouse buildings have been converted to modern, chic, affordable condos.

Follow the link to read about the city of Beverly.

Good news for First-timers

Check out this article from the The New York Times. It is encouraging news for first time home buyers. It in nearly impossible to predict the bottom of the market, but if enough buyers take advantage of low interest rates and low prices and scoop up the homes that are listed, they can create the bottom and start turning the market up.

What does this mean in a few years? You buy a house at a bargain price. Inventory dries up. Demand exceeds supply. Prices are driven up. You sell at a profit, or use your equity to make improvements.

Buying now is an excellent investment for the future.

The bottom?

We've all heard the media reports. We've all listened to the news and we have heard that the country is in a recession. Some pundits who have been whispering the word "depression" are speaking a little louder and the phrase, "just like the conditions during the Great Depression" has been tossed around.

I was in the car the other day half listening to the talk on NPR, and I heard someone say, that the catalyst that ended the Great Depression wasn't a government program, but was the start of World War II.

All of this talk is alarming, but here is what I have seen in the local real estate market since the experts' admission of a recession:

I have seen lots of houses that are priced correctly and agressively being sold quickly, and often with multiple offers. I've seen it on my own condo. I put it on the market on October 21, had multiple offers by October 25 and went under agreement by October 27. We closed on November 24. We're buying a new house, a short sale, (a topic for a different post, on another day) waited only 3 weeks for an answer, and are under agreement on the property with a scheduled closing of December 23. There were multiple offers on this house as well. Another house just down the street from the short sale was on the market, and once the price was adjusted to meet market demands, had multiple offers on the evening of its first open house at the new price.

Interest rates have dropped significantly, essentially making more expensive houses more affordable for more people.

There is no way to predict the bottom of the market until it starts to rise again. There have been subtle and obvious gains starting in the North Shore market lately. Now is the time to take advantage of low interest rates, and high inventory.

Drop me an email or give me a call. I'd love to help you find your new home.

How's the Market?

It depends. It depends on your outlook. It depends on what you want to do in the market. Is it a good time to buy? According to Gary Keller, the founder of Keller Williams, any time is a good time to buy the right piece of real estate.

Read this article from The Wall Street Journal. It was published in March, but in my opinion it is even more true now.

By the way, if you are on the fence about buying a piece of real estate, or if you want to buy up, call me. Even if you have to sell something that won't see the price that you originally paid for it, as long as you aren't upside down, it is the right time to buy. Your new investment will likely make up the difference.

If you know anyone who is thinking of buying or selling, let me know. I'd love to help.

Spotlight on Peabody

With one of the lowest tax rates around and its easy access to shopping and Route 128/95, Peabody is becoming a popular choice for home buyers.

Read about its vibrant history in the leather industry, (That's why the sports teams are called the Tanners) and its community amenities and government structure.

Enjoy exploring Peabody

Slump? Not in Beverly

According to an article in last week's Salem News, Beverly ranked pretty high on the scale of home sales and prices. Other towns fared well too.

Read the Article