Leominster, MA 01453 Market Update for Q3 2008

Here is the RealtyMan Market Update for Leominster, MA 01453 from Full Year 1999 through the first 3 Quarters of 2008

The number of Single Family Units (not including condo) in Leominster has decreased over 15.5% for the 1st 3 Quarters as compared to 2007 from 199 units to 168.  See Graph below:

As you will see below, the average sale price has fallen as well, but not quite as dramatically. It declined a little over 12.3% over the 1st 3 Quarters as compared to the same period of 2007 (from $266,371 to $237,610).

However, diving into the statistics a little more will show that 'Same House Sales' have declined more than these averages show.  Is it going to get better?  Economics 101 tells me that we need to see Units recover before Prices will.  Given the state of the economy, do you think we will see units increase?

For a more specific analysis on the market as it pertains to your specific property, please feel free to contact the top selling Realtor in Leominster, MA Every Year since 1999! 

Why Now Is A Good Time to Buy

We all know of that the economy is a mess (thank you Wall Street & Congress), however I find that I've been Very Busy over the past 2 weeks.  I've been negotiating offers in the $200K range all the way up to the High $800K range (with a few in between).  You may be wondering Why anyone is buying right now.

Well, think about this:

First, let me go through the assumptions:

30 Year Fixed Rate Conforming Loan (Principal & Interest Only)

A $300,000 loan at 6% is approximately $1,798 per month.

A $300,000 loan at 8% is approximately $2,201 per month.

Guess how much the value of a property would need to drop in order to get the payment back to what is would have been at 6% instead of 8% in this example.

Approximately $55,000!

$245,000 at 8% over 30 years is just over $1 per month in payment.

So... Given all of the economic BS going on out there, do you think Mortgage Rates will be going up or down?

Remember Fannie Mae & Freddie Mac?  Do you think investors are lining up to buy Mortgage Backed Securities right now? If the demand for MBS's goes down the return must go up in order to lure the investors back in (supply/demand).

Not to mention that it is harder to get a mortgage right now than it was before, and it appears that it will continue to get more difficult.

So if you are looking to buy a home to live in (not to flip) then Now may be one of the best times.

What do you think??

Leominster, MA For Sale $347,500

North Leominster Home For Sale - $350,000

You Don't Need A Realtor!

OK, I know this one that you have been thinking about. Why Do you need a Realtor?
I mean really, why do you?

First of all, there are 2 sides of a real state transaction: the Buying side and the Listing side. Lets start with the buying side...

You can get listings just about anywhere. There is all kinds of data online. You can just call the listing agent to see the house (oh, whos job by the way is to take all of your money and give it to the seller - their client). You can navigate the current changes in the mortgage market. And all other kinds of fun. And if you are moving from another part of the state or the country, it is even more fun.

And if you are a seller...
You can research comps online (if you can find them they are probably outdated). You can check Zillow (to see what your house probably Isn't worth - up or down).
You can check Trulia and get incomplete data (at least as of this post).
You can put an FSBO sign on your lawn and post on the FSBO sites (ensuring that you'll see most of the 'bottom feeders' looking to steal your house).

Hmm, maybe you do need us?

One of the Finest Homes in Massachusetts

Foreclosure Deeds in MA Reach A Record in April, 2008

I received an email this morning from Banker and Tradesman (a publication of The Warren Group) indicating the following:

"Massachusetts foreclosure deeds soared to their highest recorded level in April, according to The Warren Group, Banker & Tradesman’s parent company. The number of deeds so far this year outpaced those in the first four months of 2005 by 1,165 percent."

Sounds bad doesn't it? But here are some points to consider:
These foreclosures are largely a result of activities that took place 2 to 4 years ago.

Since then:

• Lending Standards Have Tightened significantly (and in my opinion; TOO much).
• 100% financing is no longer available to 'Just Anyone' anymore.
• Prices have adjusted.
• Conventional Fixed Mortgage are still Historically 'Good'.
• Conforming Loan Limits in some counties have been increased (unfortunately Not in Worcester County).

So what does it mean for Sellers?

• You MUST price your property correctly for The Current market we are in!
• You MUST have your properties Marketed aggressively!
• Your property MUST be Better than every other that you are directly competing against!

So what does it mean for Buyers?

• You have a Great Opportunity right now!
• Mortgage Rates are Historically LOW!
• There are Many Homes for you to choose from!
• You are 'Buying Into a Down Market'!
• Your lender does NOT want to put you in a situation where you will face foreclosure!
• The Real Estate Market will go up again - not sure when - but it will!

So Remember The Following:

• ALL Real Estate is LOCAL!
• Nobody will see 'The Bottom' until we are past it!
• Mortgage Interest Rates Cannot stay this low Forever!
• The Real Estate Market is Worse in some parts of the country and is Better in others!
• The "media" cannot sell 'The Middle' of any story. Only extremes can sell papers/tv/etc... so they always report on the worst!
• Always use the most Knowledgeable and Reputable Realtor that you can find to assist you if you are selling OR buying!

It's a Busy Day at Towne & Country, Realtors...

One of the reasons why Towne & Country, Realtors is successful in this market: We Work!

T&C is #1 in Leominster Jan 1 - Apr 30, 2008

Towne & Country, Realtors is the top selling Real Estate Firm in closed $ volume according to data from MLSPIN for the following criteria: Single Family, Condo, Multi-Family & Land sales from January 1, 2008 through April 30, 2008 (as posted through today). T&C is leading in closed $ volume market share by over 13% to the next closest firm.

As for units, 1 firm closed 12 while T&C is tied with 3 others having 11 units.

Gerry Bourgeois is Quoted in the Sentinel & Enterprise

I was quoted on Sunday - April 27th, 2008 in the Leominster/Fitchburg Sentinel & Enterprise.

http://www.sentinelandenterprise.com/local/ci_9074609

When is a Clause Not a Clause...

Language is Very important; in life, in love and in real estate. For those who are not represented by Legal Counsel (read: Attorney, Lawyer, etc.) a keen understanding of Language is extremely important! So is the importance of having legal counsel.

Read this clause for example:
"Subject to the Seller entering into an accepted offer on a property within 'X' days of acceptance of this offer."

If the Seller enters into an accepted offer on their new property within the specified time frame but the Seller's deal on their new property falls apart at some point before closing, what happens:
A) The sale on the Seller's house they are in now terminates.
B) The Seller must go through with the sale to the current buyer on their present property.

What do you think (and why)?

Realtyman's Vehicles - Past & Present

Have You Seen one of the Finest Homes in Central MA?

There are Few homes like this one... And even fewer Opportunities to be able to Own One!

Leominster, MA 01453 Real Estate Market Update Dec 2007

Real Estate Statistics for Leominster, MA 01453 from Leominster's Top Selling Real Estate Agent Every Year since 1999:

Single Family Homes in Leominster are seeing a gain in activity as evidenced by the increased number of sales (both in the MLS as well as other sources) over last year (YTD ending 12/31/07):The average sales price in Leominster has fallen to $266,454 (a decline of 5.62% over 2006's year-end number).

However, as of the same period, the number of single family sales has INCREASED 12.16% to 249 units! (Data source MLSPIN).

One other interesting fact is that we have seen a decline in the number of available Single Family Homes as well in 01453. If we continue with this pattern of Increasing sales and Decreasing inventory levels, prices should stabilize at some point! Yes, it is not the same market as it was in 2004 & 2005, but despite the media's negative outlook, HOMES ARE STILL SELLING!! (Well, at least Single Family Homes are in Leominster - More about the Multi-Family and Condo market later).

IMPORTANT TIP: Rates are Great right now, and with a reasonable good credit rating, financing is available! Be careful not to get caught trying to 'time the market'! Also, don't forget the fundamentals of Economics - 'Supply and Demand'. (Notice that single family sales are increasing in Leominster...)

ZIP Code: 01453Location Characteristics: Located approximately 46 miles from Boston, Leominster is one of the first affordable communities within a 'reasonable' commute. There is great access to all major employment areas via Route 2 and I-190 as well as the MBTA Commuter Rail which stops in Leominster on its way into North Station in Boston! It's A Great Place to Live!