On May 16th, 2008 FNMA (otherwise know as Fannie Mae) has repealed the reqirement that borrowers in 'Declining Markets' put an Additional 5% down payment on top of the typical down payment required for the program Effective June 1st, 2008. This is GREAT NEWS for Worcester Country, MA which was declared by FNMA as a declining market (FNMA's definition of a declining market is 2 consecutive quarters showing 1% or more decline in value).
This provision was pretty unreasonable given the current climate and has further aided in the slowdown in the market in 'declining markets'. In addition, FHA Lons have gained in popularity over the past few months due to low downpayment requirements and the realative ease of qualifying borrowers (especially first time borrowers) - In essence FHA was eating Fannie's lunch!
More lending opportunities can only help this market which still is ripe with opportunity.
Could it be that 'common sense' is now starting to prevail in the mortgage lending markets?
What do you think?
Wednesday, May 21, 2008
Monday, May 12, 2008
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.
As for units, 1 firm closed 12 while T&C is tied with 3 others having 11 units.
Monday, May 5, 2008
Massachusetts - They get you Coming - AND Going!
The Commonwealth of Massachusetts derives revenue (read: Money) from the sale of real estate through the sale of State Tax Stamps (yes, many years ago they were actual 'stamps' affixed to the deed. Now, they are just numbers on the deed which shows the amount removed from the Seller's wallet).
The amount of the excise tax stamp differs from time to time depending on the action of the State General Court. In Worcester County and Northern Worcester County, the seller, by custom, is obligated to pay for the amount of this stamp tax (excise tax) just as the buyer is accountable for paying the recording fee for the deed and his/her mortgage.
The money paid for the tax stamps is income to the Registry and is forwarded to the Commonwealth of Massachusetts Department of Revenue. The current tax stamp rate is $2.28 per $500.00 of sale price (or $4.56 per $1,000.00 of sale price).
Lets assume you sell your house for $400,000 in Massachusetts: You must pay the State of Massachusetts (what is in essence) an Excise Tax in the amount of $1,824.00 for the privelidge of selling your property in the Commonwealth of MA.
As I said in the title - Tax-achusetts gets you both coming and going!
The amount of the excise tax stamp differs from time to time depending on the action of the State General Court. In Worcester County and Northern Worcester County, the seller, by custom, is obligated to pay for the amount of this stamp tax (excise tax) just as the buyer is accountable for paying the recording fee for the deed and his/her mortgage.
The money paid for the tax stamps is income to the Registry and is forwarded to the Commonwealth of Massachusetts Department of Revenue. The current tax stamp rate is $2.28 per $500.00 of sale price (or $4.56 per $1,000.00 of sale price).
Lets assume you sell your house for $400,000 in Massachusetts: You must pay the State of Massachusetts (what is in essence) an Excise Tax in the amount of $1,824.00 for the privelidge of selling your property in the Commonwealth of MA.
As I said in the title - Tax-achusetts gets you both coming and going!
Tuesday, April 29, 2008
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
http://www.sentinelandenterprise.com/local/ci_9074609
Wednesday, April 23, 2008
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)?
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)?
Tuesday, April 22, 2008
Stonegate Village in Sterling, MA 01564
OK... I am very glad to have the opportunity to represent Fossile Builders with their Townhouse complex of 14 Units in Sterling, MA 01564! This is an amazing opportunity to live in Sterling for Under $240,000!
Located just minutes from I-190 and Route 2, easy access to shopping as well as major employment areas make this opportunity one that is not to be missed!
10 of 14 units are still available. 3 are "ready To Go"!
Sunday, April 20, 2008
Wednesday, April 16, 2008
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!
Friday, March 28, 2008
Spring Market is Upon Us...
More Real Estate Words of Wisdom from Gerry 'Realtyman' Bourgeois:
Well... The Spring Market is upon us. What's happening in North Central MA, you ask? Nobody really knows for sure. Mortgage rates are still very low (historically) - around 6% for a 30 year fixed rate. 100% financing is all but gone. OK, 100% LTV may be available in SOME instances, however they are few and far between. FHA is making a 'comeback' but buyers still need to bring Money to the table (quite a novel concept).
Sales are actually increasing (units, that is) but there is still quite a bit of pricing pressure. Homes which are priced correctly relative to the current market (not 2004 values) can - and DO - Sell!
We are seeing more activity in the lower end of the market for single family homes. However, we are also seeing the 'upper-end' getting cherry picked. The good upper-end homes are selling. The real challenge is in the middle of the market. It is very hard for the middle to find any direction right now. Also, many who are in the middle are reluctant to make a decision.
Due to pricing in addition to financing constraints, the condo and multi-family markets are faring Far Worse than the Single Family market. And until the supply/demand curve shifts - I don't see that part of the market getting better (price wise) any time soon.
In the 18 years of selling homes in North Central MA I have yet to see a better time to 'trade up' to a "better" single family home as I do now. This is a result of the current pricing pressure combined with the low cost of mortgage money. (Remember: at 6% over 30 years - $100,000 costs only $600 per month (P&I)).
Only time will tell when we hit bottom. Unfortunatley we will only know that we have hit bottom once we are about 6 months past it. At that point, mortgage rates will most likely be higher - and the only one who wins there are the banks.
Here's to hoping that the Spring Market units continue to remain strong!
Well... The Spring Market is upon us. What's happening in North Central MA, you ask? Nobody really knows for sure. Mortgage rates are still very low (historically) - around 6% for a 30 year fixed rate. 100% financing is all but gone. OK, 100% LTV may be available in SOME instances, however they are few and far between. FHA is making a 'comeback' but buyers still need to bring Money to the table (quite a novel concept).
Sales are actually increasing (units, that is) but there is still quite a bit of pricing pressure. Homes which are priced correctly relative to the current market (not 2004 values) can - and DO - Sell!
We are seeing more activity in the lower end of the market for single family homes. However, we are also seeing the 'upper-end' getting cherry picked. The good upper-end homes are selling. The real challenge is in the middle of the market. It is very hard for the middle to find any direction right now. Also, many who are in the middle are reluctant to make a decision.
Due to pricing in addition to financing constraints, the condo and multi-family markets are faring Far Worse than the Single Family market. And until the supply/demand curve shifts - I don't see that part of the market getting better (price wise) any time soon.
In the 18 years of selling homes in North Central MA I have yet to see a better time to 'trade up' to a "better" single family home as I do now. This is a result of the current pricing pressure combined with the low cost of mortgage money. (Remember: at 6% over 30 years - $100,000 costs only $600 per month (P&I)).
Only time will tell when we hit bottom. Unfortunatley we will only know that we have hit bottom once we are about 6 months past it. At that point, mortgage rates will most likely be higher - and the only one who wins there are the banks.
Here's to hoping that the Spring Market units continue to remain strong!
Monday, February 11, 2008
Buyer Activity Increasing in Central MA
As of the past week I, as well as my agents at Towne & Country, Realtors, have seen an uptick in buyer activity. Internet inquiries as well as phone inquiries have increased significantly. Showings are up across the board and offers are not only being seen but several have been accepted or are in negotiations.
It appears that buyers are taking advantage of the combination of low mortgage rates and soft prices.
Properly priced homes will still sell in this market.
Keep educating yourself on the market because when it turns we will be past 'the bottom' of the market before anyone will see that we were 'there'.
It appears that buyers are taking advantage of the combination of low mortgage rates and soft prices.
Properly priced homes will still sell in this market.
Keep educating yourself on the market because when it turns we will be past 'the bottom' of the market before anyone will see that we were 'there'.
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