South Boston Realty News - June 2012
Where Are The Sellers?
The South Boston Spring Real Estate market has come and there is one question on the mind of a lot of buyers… Where are the sellers? Why don’t you want to sell your South Boston home?
The numbers are astounding! At the end of May, 110 South Boston condos were currently for sale with an average market price of $451,006 while spending an average of 79 days on the market. This is a 59% decrease in homes that are currently on the market as we had 267 condos for sale in South Boston at the end of May 2011. This decrease in inventory is one of the reasons we have seen an increase in the average market price of nearly 8% from May of this year compared to May of last year.
While there has been a decrease in the amount of homes that are on the market, we have seen a surge in buyer activity! This year we have had 175 condos sell compared to 132 homes at this time last year in South Boston, This is nearly a 25% increase in home purchases! In the month of May alone we saw 72 condos go under agreement compared to the 62 condos that went under agreement in May of 2011.
The tightening in the South Boston real estate market has also increased the List to Sale Price ratios. The average sold price in May was $403,946 which was 97.63% of the seller’s asking price of $413,770. This is an increase of .86% or to think about it dollars and cents wise… For the average sale in May, seller’s received an additional premium of $3,400 when compared to May of last year!
When determining whether it is a buyers or seller’s market in South Boston, we need to calculate how many months of inventory are on the market. To do this we take the amount of homes currently available and divide it by the average for the last 4 months. Currently in South Boston we have 3 months’ worth of inventory which indicates that South Boston is a seller’s market and that sellers are enjoying pricing power in the real estate market.
Whether you are buying or selling, this is an exceptional time to make a move and moving is made easy when you Move With Chubb. Give Jeffrey Chubb of RE/MAX Select a call at 617-480-2600 or visit him online at www.MoveWithChubb.com. He is the #1 RE/MAX agent in Boston and was ranked #8 in all of New England for the first quarter of 2012.
Lowest Rates In History!
By Jason Bonarrigo of Wells Fargo
HOW LOW WILL THEY GO?!? Just when I think it is impossible for rates to get even lower… As a seasoned mortgage veteran I am still thrown for a surprise. It is hard to believe, but we broke some records in May with the lowest interest rate for a 30 year fixed rate in history. As consumers we have become spoiled with these low 3 to 4% interest rates… You don’t have to be that old to remember the days of 18 to 20% interest rates and how 7% is a (historically) fantastic rate!
The secret with low mortgage rates is that it actually stimulates the housing market because we can buy more house for less money. Being in South Boston we are a huge benefactor as our market has turned and is seeing strong growth while many other parts of the country are still trying to dig out from the housing slowdown.
So how important are interest rates and why is this one of the best times in history to buy a home? For fun, let’s say you were comfortablewith a $1,500 mortgage payment. At 4%, that $1,500 is going to be for a mortgage of $315,000. With a minimal down payment of 3.5% then the total home purchase would be $326,025. At 5%, that same $1,500 would only get you a $280,000 mortgage or a $289,800 house! Now imagine (still a historically cheap rate) 7% which only gets you a $225,000 mortgage and a $232,875 house!
As you can see, interest rates matter! Now is an opportunity of a lifetime to purchase a home and lock in your rate for the next 30 years while enjoying the rewards of homeownership which include tax benefits that can help you save $Thousands every year. The first step to home buying is the pre-approval so give Jason Bonarrigo a call at 617-363-4617 or send me an email at Jason.Bonarrigo@Wellsfargo.com for a stress free, no obligation conversation.