Cambridge Area Real Estate News*

Fall 2012

Dear Friends and Neighbors,

Happy Fall! I hope you enjoyed the summer and had plenty of time at the beach!!

My featured listing this fall is a custom architect renovated showcase home in the Brattle neighborhood which meets LEED Silver standards for energy efficiency. This home with its stunning custom cherry kitchen and family room open to a raised patio, has 12 rooms, 4-5 BRs, 4.5 baths and is listed at $2,250,000. There are photos, floor plans and specs at www.102Lexington.com. I will also be listing a 1 BR condo near Harvard Square and a fixer upper 2 BR condo in Somerville.

Have you considered solar panels or increasing the energy efficiency of your home? The Cambridge Energy Alliance is offering up to a $2,000 rebate for a solar hot water heater and there are companies now that will install solar panels on your roof at their expense and give you a 20 year discounted rate on your electrical bill. The Cambridge Energy Alliance is a wealth of information and advice at: 617-349-LEAF (5323) or www.cambridgeenergyalliance.org. They will also do an energy assessment of your home.

The Cambridge area real estate market continues to be marked by very low inventory. On September 1, 2012, there were 47% fewer properties on the market compared to one year earlier, with median asking prices 12% higher at $560,400, and average asking prices 14% higher at $746,891. This low inventory has led to a beneficial market for sellers and in some cases has driven prices higher.

Cambridge area sale prices continue to stabilize. Cambridge median prices are actually higher now than they were at the peak in 2005! This stability applies to some surrounding towns as well.

Mortgage rates are amazingly low: right around 3.75% or even a little less with no points for a 30 year fixed conforming loan with 20% down. For low down payment buyers, FHA loans are running sometimes as low as 3.25%, although closing and PMI costs can be high. If you are a buyer, this is a great time to lock in historically low interest rates. And if you are a homeowner, this may be a good time for you to refinance at a lower rate, or to consider selling.

SAVE THE DATE! After 9 years of benefit concerts and 4 years of dessert tastings, the Cambridge Housing Assistance Fund (CHAF)’s new and exciting fall fundraiser will be Open Doors for the Homeless. The Open Doors reception will be held on Thursday, November 1st from 6:00 – 8:30 PM at Microsoft’s NERD Center, One Memorial Drive, Cambridge. You will be greeted by panoramic 11th floor views of the Charles River, delectable hors d’oeuvres and pasta station and light classical background music provided by members of the Cambridge Symphony Orchestra. Featured speakers will be a CHAF client telling of their experience with homelessness and how they were helped by CHAF and Philip Mangano, President and CEO of the American Roundtable to Abolish Homelessness. Our goal is to prevent and end homelessness by raising $150,000 to help more than 125 homeless and near homeless families and individuals to avoid or escape life in a shelter, or on the street. For more info, or if you want to help a family by making a donation, just visit: www.CHAFund.org.

If you are considering selling, and you want the best advice on how to market and position your home in today’s real estate market, let me know. Coldwell Banker invests about $50 million per year in its internet presence and services. Ask me about how our sales and marketing strategy can benefit the sale of your home.

If you are buying, and want experienced advice on what house or condo to buy and how much to pay, give me a call. We are expecting a busy fall market, with pent-up buyer demand and new listings coming on market every day. Coldwell Banker continues to have the highest market share of any firm in Cambridge or Somerville and at this time of year, we typically list 15-20 new properties every week. So let me know if you’d like to tour some homes or, if you’re just getting started and want to explore on the internet, I’d be happy to register you for WebHunter, which emails you daily alerts of new listings.

I'm celebrating my 26th successful year in Cambridge area real estate sales! If anyone you know is considering buying or selling, most of my business comes from word of mouth and referrals by satisfied clients. I hope you will consider giving my name to your friends and associates. My greatest pleasure and honor, is thanking you for a referral. Thank you for your many referrals and for contributing to my success!

I look forward to hearing from you, whether to simply catch up, or to assist you with real estate.

Enjoy the fall season,

David Pap

Work: 617.844.2756
Cell: 617.594.1088
David.Pap@NEMoves.com
www.DavidPap.com
www.twitter.com/RealtorDavePap
www.davidpap.blogspot.com

Public money helped build new energy-efficient computing center

It turns out the Massachusetts Green High Performance Computing Center in my last post, is also receiving $25 million in support from the Commonwealth of Massachusetts, in an innovative collaboration of government, academia, and private business working together.


Boston Globe editorial here:

http://articles.boston.com/2012-07-10/letters/32599075_1_public-money-new-public-private-partnership-innovation-economy

New data center in Holyoke uses flywheels for energy storage

The $95 million Massachusetts Green High Performance Computing Center is designed to reduce energy consumption by 25%. It uses clean and cheaper hydroelectric power from a dam on the Connecticut River and a bank of flywheels to store excess energy until needed.

The center is a joint venture of MIT, Harvard University, UMASS, Boston University, Northeastern University and tech giants EMC Corp. and Cisco Systems.

Read the 7-9-12 Boston Globe Article here:

http://www.boston.com/business/technology/articles/2012/07/09/massachusetts_green_high_performance_computing_center_in_holyoke_puts_focus_on_energy_efficiency_as_well_as_computing_power/

Modular Housing Goes Upscale! Read this Boston Globe article about $2+ million custom modular homes being built in Wellesley, MA. 

http://www.bostonglobe.com/business/2012/07/05/prefab-homes-once-known-cheap-and-generic-are-building-quality-with-price-tags-match/VPmY6dUIQT3wpzP4Mc0TOK/story.html

A developer in Cambridge is selling 5 condos priced from $499k and up that are modular construction. These homes offer energy saving features and some flexible layouts with movable walls!

Cambridge Spring 2012 Seller's Market

Coldwell Banker's parent company, Realogy, was designated one of 2012 World's Most Ethical Companies, by Ethisphere Institute, a leading international business ethics think-tank.



Dear Friends, Neighbors and Clients, March, 2012

Good news if you or someone you know is considering selling your property! It seems to be a seller's market in Cambridge, and in some surrounding neighborhoods and communities as well! How long this will last, we don’t know!

This might sound counter-intuitive, given what we hear on NPR about real estate and the national economy. But Cambridge is its own market and marches to its own drummer.

Cambridge inventory is low: ~48% below what it was one year ago (per MLS). That's dramatic! Condos and houses that are desirable, well priced and in good locations, often sell for over the asking price with multiple bids. This seems to be driven by pent up buyer demand and historically low interest rates, hovering around 4% with no points for a 30 y­ear fixed conforming loan. As a result, Cambridge median prices are above the 2005 peak.

In any case, this is a good time to sell! So, if you are considering selling and would like a consultation or market analysis of what your home is worth, just let me know.

This has been a challenging time for buyers, with fewer options to choose from. The best strategy for a buyer is to watch the market and wait and see. Sooner or later, the right property will come on the market and then you can take advantage of those low interest rates. If you are considering a purchase, I’d be happy to help you find a home and consult with you on the appropriate price to offer.

Or, if you just want to catch up or plan ahead for a move, feel free to contact me.

I look forward to hearing from you and very much appreciate your referrals!

David Pap

Senior Associate & Consultant
CHAF Board Chair
desk: 617-844-2756
cell: 617-594-1088
David.Pap@nemoves.com
www.DavidPap.com
www.twitter.com/RealtorDavePap
www.DavidPap.blogspot.com


Helping Homeless Families at www.CHAFund.org

Cambridge Area Real Estate News January 2012

Follow me at: twitter.com/RealtorDavePap
Or: davidpap.blogspot.com

Cambridge Area Real Estate News*
January 2012

Dear Friends and Neighbors,

Happy New Year! I hope you enjoyed the unseasonably warm fall weather! They say 75% of the time that means a mild winter. As long as it’s not from human caused global warming and climate change, it’s fine by me!!

Speaking of which, I’ve been reading a great book by visionary economist Jeremy Rifkin, called “The Third Industrial Revolution.” He says in 30 years, every house and every building will be its own power plant, with wind or solar energy, and there will be an intelligent grid like the internet to distribute the power. In the process, 1000s of jobs will be created and carbon emissions drastically reduced. And ‘power,’ will become less vertical ‘top down’ and more horizontal/community/collaborative.

Rifkin has met with every head of state in the Europe Union, which has already put in place many of these plans. As usual, the US is far behind, but there is surprisingly a lot more going on in the US with renewable energy than we hear about in the media, which tends to focus on the negatives. Every page of Rifkin’s book has another interesting anecdote or solution. I highly recommend reading this book, which is the most optimistic view I’ve read on the subject in years. Rifkin has written 19 books translated into 30 languages!

Last year’s real estate market, though still down in the number of sales, continued to stabilize pricewise. Cambridge median prices are actually higher now than they were at the peak in 2005! This stability applies to some surrounding towns as well.

Cambridge new or renovated condos sold last year at vigorous prices in all price ranges. $1 million sales of renovated townhouses in good locations were ‘commonplace.’ Renovated 2 BR condos in a triple-decker near Porter Square sold in the $500ks and townhouse style renovated condos on Prince and Decatur in Cambridgeport sold from $650k - $805k for 2-3 BRs. With careful searching there are still values to be found, especially with today’s absurdly low interest rates.

Apprx. 50% of Cambridge sales in 2011 were ‘cash’ sales, with no mortgage, and investors were active buying condos or multi-family houses to rent out. This suggests that buyers may have been taking funds out of the stock market for what they saw as a more stable or productive investment in Cambridge real estate. A triple-decker in North Cambridge asking $875k had 11 offers, from a mix of rental investors and condo converters. A 3 family near the Charles River, with a 1990s renovation, asking $1.195 million had 6 offers, 5 of them cash, from a mixture of end users and investor/developers.

Meanwhile, a shortage of desirable inventory, job shortages and possibly consumer confidence means fewer buyers bought and rented instead. This caused rents to increase and a shortage of rental apartments available. This has led to a 200++ unit rental being built on Route #2 near Faces about to be built and in Boston, 5 luxury rental buildings are going up.

The 4th Annual Home Sweet Home, a Dessert & Wine Tasting to Open Doors for the Homeless on October 22d was a big success. By year end, The Cambridge Housing Assistance Fund (CHAF), which I co-founded and have volunteer directed since 1999, exceeded its $150,000 goal, raising $172,500 to help more than 120 homeless and near homeless families and individuals to avoid or escape life in a shelter, or on the street. For more info, or if you want to help a family by making a donation, just visit: www.CHAFund.org.

Mortgage rates are amazingly low: right around 4% or even a little less with no points for a 30 year fixed conforming loan with 20% down. For low down payment buyers, FHA loans are running sometimes as low as 3.5%, although closing and PMI costs can be high. If you are a buyer, this is a great time to lock in historically low interest rates. And if you are a homeowner, this may be a good time for you to refinance at a lower rate or, to consider selling.

If you are considering selling, and you want the best advice on how to market and position your home in today’s real estate market, let me know. And if you are buying, and want experienced advice on what house or condo to buy and how much to pay, give me a call. The spring market starts early, sometimes in late January, and there will be more inventory coming on market! Or, if you’re just getting started and want to explore on the internet, I’d be happy to register you for WebHunter, which emails you daily alerts of new listings.

I'm celebrating my 25th successful year in Cambridge area real estate sales! If anyone you know is considering buying or selling, most of my business comes from word of mouth and referrals by satisfied clients. I hope you will consider giving my name to your friends and associates. My greatest pleasure and honor, is thanking you for a referral. Thank you for your many referrals and for contributing to my success!

I look forward to hearing from you, whether to simply catch up, or to assist you with real estate.

Have a Happy New Year!

*While this newsletter is mostly about Cambridge, I cover Somerville and many surrounding communities from Arlington & Belmont to Brookline & Newton as well. Every town is different, so call me if you have questions about the value of your home or what to buy.


David Pap
Work: 617.844.2756
Cell: 617.594.1088
David.Pap@NEMoves.com
www.DavidPap.com
www.twitter.com/RealtorDavePap
www.davidpap.blogspot.com

more on Jeremy Rifkin

Jeremy Rifkin, who wrote "The Third Industrial Revolution," was on Diane Rhem show awhile ago. If you can find an archive to listen to it is WELL WORTH IT.

This is the most cogent plan I've heard for solving our energy issues. This plan is already started in Europe.

Among other things, in 40 years, almost every building or house will be a producer of energy, whether solar, wind etc. In the process, millions of jobs will be created. Nuclear is a minor part of the future.

Rifkin has consulted with European heads of state and many of these plans are being put in place

the show:

http://thedianerehmshow.org/shows/2011-09-27/jeremy-rifkin-third-industrial-revolution

Rifkin bio: http://www.foet.org/JeremyRifkin.htm

Mortgage rates absurdly low!

Mortgage rates are amazingly low: right around 4% or even a little less with no points for a 30 year fixed conforming loan with 20% down. For low down payment buyers, FHA loans are running sometimes as low as 3.5%, although closing and PMI costs can be high. If you are a buyer, this is a great time to lock in historically low interest rates. And if you are a homeowner, this may be a good time for you to refinance at a lower rate or, to consider selling.

Info from New England Moves mortgage consultant Kevin Greeley @617-844-2775 or kevin.greeley@nemoves.com.

Kevin works out of my office and provides a very valuable service.

Cambridge area real estate market 2011 review

Last year’s real estate market, though still down in the number of sales, continued to stabilize pricewise. Cambridge median prices are actually higher now than they were at the peak in 2005! This stability applies to some surrounding towns as well.

Cambridge new or renovated condos sold last year at vigorous prices in all price ranges. $1 million sales of renovated townhouses in good locations were ‘commonplace.’ Renovated 2 BR condos in a triple-decker near Porter Square sold in the $500ks and townhouse style renovated condos on Prince and Decatur in Cambridgeport sold from $650k - $805k for 2-3 BRs. With careful searching there are still values to be found, especially with today’s absurdly low interest rates.

Apprx. 50% of Cambridge sales in 2011 were ‘cash’ sales, with no mortgage, and investors were active buying condos or multi-family houses to rent out. This suggests that buyers may have been taking funds out of the stock market for what they saw as a more stable or productive investment in Cambridge real estate. A triple-decker in North Cambridge asking $875k had 11 offers, from a mix of rental investors and condo converters. A 3 family near the Charles River, with a 1990s renovation, asking $1.195 million had 6 offers, 5 of them cash, from a mixture of end users and investor/developers.

Meanwhile, a shortage of desirable inventory, job shortages and possibly consumer confidence means fewer buyers bought and rented instead. This caused rents to increase and a shortage of rental apartments available. This has led to a 200++ unit rental being built on Route #2 near Faces about to be built and in Boston, 5 luxury rental buildings are going up.

Renewable Energy

I’ve been reading a great book by visionary economist Jeremy Rifkin, called “The Third Industrial Revolution.” He says in 30 years, every house and every building will be its own power plant, with wind or solar energy, and there will be an intelligent grid like the internet to distribute the power. In the process, 1000s of jobs will be created and carbon emissions drastically reduced. And ‘power,’ will become less vertical ‘top down’ and more horizontal/community/collaborative.

Rifkin has met with every head of state in the Europe Union, which has already put in place many of these plans. As usual, the US is far behind, but there is surprisingly a lot more going on in the US with renewable energy than we hear about in the media, which tends to focus on the negatives. Every page of Rifkin’s book has another interesting anecdote or solution. I highly recommend reading this book, which is the most optimistic view I’ve read on the subject in years. Rifkin has written 19 books translated into 30 languages!