5 Reasons to Buy a Home NOW in Wellesley and Metrowest Boston

 

This article was written by Michael Deery

http://www.michaeladeery.com/blog/5-reasons-to-purchase-a-home-soon/ Why you Should Buy Your New Home Now!

 

In 2013 alone, the cost of paying a mortgage has climbed 13%, which means a buyer has lost 13% in purchasing power.
Mortgage rates were at 3.25% in April and today sit at 4.5%.
So if you were approved at $500k at the beginning of the year, this means you can now only afford $435k using the same monthly payment.

With home prices also surging between 10%-20% in most housing markets during 2013, the cost of waiting to purchase a home has increased considerably.
Here are 5 reasons to purchase a home soon:

1.) The Cost of a Mortgage Increased 13% in 2013.

It has been a rough ride for mortgage rates over the past 9 months. 30-year fixed mortgage rates have increased from 3.25% to 4.5% during 2013.

2.) Home Prices are Continuing to Rise Everywhere.

Home Prices are on the rise everywhere, as limited inventory is driving prices up. It is the old law of supply and demand, with limited supply demand will rise, and this is why we are seeing bidding wars for properties going on in most local markets, and this in turn is driving prices up.

3.) Tougher Underwriting Rules are Coming in January 14th 2014.

On January 14th the CFPB, (the Consumer Financial Protection Bureau), is due to enforce new tougher qualifying rules for mortgages.These new laws will be known as “Qualified Mortgage” (QM) and the “Ability to Repay” (ATR).

4.) As Mortgage Rates Increase in 2014, Your Purchasing Power Will Fall.

A question that all buyers have is, where will rates be in a year and how will this affect my affordability? There have been several experts out in the past few weeks who are convinced the Fed will taper their bond purchases early next year, now that economic data is improving, and predict mortgage rates will be north of 5% by this time next year.

5.) Buy A Home When the Fed is Offering Money at a Discount.

I think a great time to buy a home is when the Fed is applying monetary stimulus into the economy, via their Quantitative Easing or “QE” program, which essentially is giving people the opportunity to borrow money at a discount. But now that recent economic data has been improving, The Fed will start to pull back on their monetary stimulus soon, which will automatically increase the cost to borrow money.

Bottom line,
All evidence above suggests that rates and home prices are going to continue to increase over the next 12 months. This means the cost of purchasing a home is going to increase and it looks like qualifying for a mortgage may get more difficult as well.
The positive side,
You should know that the average 30 year fixed mortgage rate over the past 40 years has been 8.7%, and 6.5% over the past decade! So for any of you who are still on the fence about buying a home, a 4.5% rate is still a terrific rate to get on a home loan.

Staging Matters! 5 Tricks to Sell Your House

staging

staging

1. Upscale furniture makes your house feel more upscale (corollary: large, outdated, bulky furniture.. you know, the “watch tv with your feet up type” makes your house feel old and outdated) .Grab one good piece from Homegoods or a similar store, decorate around it with acrylic tables so there is nothing to stop the eye

2. Use the holiday season to create a soft gentle atmosphere with holiday lighting.

3. keep all papers out of sight: newspapers, magazines, personal papers

4. Think of new uses for old spaces: turn your dining room into an office, your family room intoa dining room, your living room into several small sitting areas

5. Everything should wear a coat of new paint in one of today’s newest color trends: greys, light tones of any color, but especially anything like beige, “putty”, gentle sages or any warm color. AVOID DARK heavy tones such as forest green (avoid almost all greens), deep red, dark blue.

 

HOLIDAY SEASON: LIST MY HOME NOW OR WAIT TIL SPRING? 5 REASONS TO LIST NOW!

 

1. Fewer homes are on the market so yours will stand out! Here’s your chance to shine when  the choices are limited!

2. The weather isn’t always bad. People will come to look if they can move around easily.

3. Weaker properties often look their best during the holiday season. Use lights to enhance your home’s appearance.

4. Buyers who are looking during the holidays are often desperate and don’t have a choice to move, either due to relocation or they have sold their current property and need a place to live.

5. If you want to sell your home don’t keep it a secret!

 

 

Real Estate Recovery is Happening in Many Markets!

Data recently released by Realtor. com suggest most of the housing market continues to be in a stabilization and  recovery mode. Compared to a year ago, the total for-sale inventory is down by -23.2 % on the national level, declining in 145 of the 146 markets tracked by  Realtor.com. The national median age of the inventory is down -4.8% compared to  January 2011. While U.S. median list prices declined for the second month in a  row, this decline appears to be largely seasonal; on a year-over-year basis, the  U.S. median list price was also up 3.69% in January. Although several major  markets—including Chicago, Atlanta, Detroit and Las Vegas—continue to be on a  downward trend, a growing number of metropolitan areas appear to be recovering,  with Florida leading the way. Recent employment gains and record-low interest  rates provide additional positive signs that improvements will continue into  2012. However, the large overhang of pending foreclosure actions in states such  as Florida, New Jersey and New York could easily reverse recent gains, putting  the nascent recovery at risk in many areas.
Read more: REALTOR.com Real Estate Trends for January 2012 (DATA) | REALTOR.com® Blogs

to get local housing data for the metrowest Boston area, Wellesley, Weston, Dover, Natick, Newton, lexington and Concord and other metrowest towns, click here to search.

Home Price Scorecard Year-Over-Year % Change

 Here’s a brief description (in no particular order) of each index included in this feature:

  • S&P/Case-Shiller looks at repeat sales in 20 metro areas, using a three-month moving average.
  • The LPS repeat-sales index tracks sales each month in more than 13,500 zip codes.
  • Federal Housing Finance Agency’s purchase-only index looks at repeat sales, based on data from Fannie Mae and Freddie Mac.
  • The FNC index has data from 100 major metro areas, and excludes foreclosed properties.
  • CoreLogic produces a monthly repeat-sales index.
  • Radar Logic tracks values for 25 metro areas. Monthly data reflect the 28-day value of the Radar Logic Daily Prices.
  • The Clear Capital index looks at repeat sales for several property types, including condos, across metros.
  • The Zillow Home Value Index is the median Zestimate valuation for an area and includes single-family homes, condos and co-ops, regardless of whether they sold in a given period.

WSJ Dec. 2011 ,

Go to www.propertiesbybarbara.com to search for properties and read the Metrowest real estate blog