Archive for the 'Market Trends' category

According to this past Sunday’s New York Times (Jan.8) in their end of the year round-up of mutual funds, real estate funds topped the list of all sector funds with a 4th quarter return of  14.8%.  For the year, they returned 8%, which is second only to utility funds which returned 10% for the year.   Not bad for a sector (approx. 300 funds) that is constantly barraged with “the sky is falling” media news. 

What I find myself reminding people over and over again is that real estate is heavily influenced by the specific locale.  Some towns have weathered the recession quite well, currently are doing quite well, and are likely to continue to show good activity and price stability. 

In general, the towns closer to Boston have shown a robust housing market that is relatively stable.  Meanwhile, outside routes 128 and 495, it’s a different story; be aware that each market is different.

By Adam Rosenbaum, Realtor® 617.694.8553

 2011 was another good year for Single Family home sales in Arlington, MA where home sales in general outpaced the  previous YTD sales as of December 31, 2011.   Arlington remains steadfast in the ever-changing housing market.

After reviewing the year end numbers, there is one clear message, Single Family home sales are outpacing condos and multifamily sales.  Total number of homes sold has decreased from 2010, approximately down 5%.  That said the, median and average sales prices have increased, upwards of 4%, offsetting the total home sales.  Multi-Family and Condo markets experienced drops this past year, after a large increase in 2010 believed to be spurred on by the first time home buyer tax incentives from Spring 2010.  The incentive allowed many renters on the verge of buying to take the plunge into home ownership.  This past year could be considered a market correction.   

Click here for Sold Statistics in Arlington, MA

The Housing Market

The lower than average jobless rate in the Boston area and the impact of low interest rates continue to drive growth in this marketplace.  Other housing markets, Western Massachusetts & beyond are facing upside-down mortgages and a higher rate of bank owned properties. In a recent article from Bloomberg, Federal Reserve Chairman Ben Bernanke made comments about the weakness of the housing market and the importance of its recovery to bettering the overall economic recovery.  In the article he intimates the need for protection from foreclosure, more opportunity for home buyers and addresses the surplus of foreclosed properties.

In recent years market prices were effected by the sale of foreclosed and short sale properties.  Fortunately in the Boston housing market, there was very little impact.  According to an article by the National Association of Realtors® in March 2009, 49% of total market sales in the US were foreclosures and short sales, however as of October 2011 the numbers decreased to 28%.

Arlington remains a desirable community for home buyers with its diverse housing inventory, schools, parks, access to public transportation and the proximity to Boston and the 128 belt. As a result the Arlington real estate market is vibrant while other markets remain stagnant.

Click here for "2011 Sold Statistics" Vs. "Average of 2005-2010 Sold Statistics"

By James C. Trano, Realtor® 857.209.6060