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.
Monday, January 9, 2012
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.
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!
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!
Saturday, October 1, 2011
Home Sweet Home on Oct.22, 2011
PLEASE FORWARD TO FRIENDS! LET'S GO VIRAL!
YOU’RE INVITED!
HOME SWEET HOME TO OPEN DOORS FOR THE HOMELESS
SATURDAY, OCTOBER 22, 2011
Hyatt Regency, Cambridge
Please join us at Home Sweet Home on Oct. 22. You can taste delectable desserts donated by local pastry chefs, wine from local vineyards, enjoy a delicious buffet dinner with local ingredients, dance to the amazing LOVE DOGS and help the homeless move from shelters and streets to homes.
There's more info here: http://www.chafund.org/dessert2011.html
BUY TICKETS HERE: http://www.chafund.org/pages/tickets.html
Follow us on Facebook: https://www.facebook.com/event.php?eid=162264663824227
Just donate: http://chafund.org/pages/donation.html
About chaf: www.CHAFund.org
Love Dogs sound clips: www.thelovedogs.com
AWESOME AUCTION ITEMS INCLUDE:
- TV Diner guest appearance with Billy Costa (www.BillyCosta.com)
- One week at Provincetown condo
- Tour of Formaggio Kitchen Cheese Cave
- Red Sox tickets
- Bruins tickets
- Ski & Stay packages at Sunday River & Sugarloaf
HOPE TO SEE YOU THERE!
YOU’RE INVITED!
HOME SWEET HOME TO OPEN DOORS FOR THE HOMELESS
SATURDAY, OCTOBER 22, 2011
Hyatt Regency, Cambridge
Please join us at Home Sweet Home on Oct. 22. You can taste delectable desserts donated by local pastry chefs, wine from local vineyards, enjoy a delicious buffet dinner with local ingredients, dance to the amazing LOVE DOGS and help the homeless move from shelters and streets to homes.
There's more info here: http://www.chafund.org/dessert2011.html
BUY TICKETS HERE: http://www.chafund.org/pages/tickets.html
Follow us on Facebook: https://www.facebook.com/event.php?eid=162264663824227
Just donate: http://chafund.org/pages/donation.html
About chaf: www.CHAFund.org
Love Dogs sound clips: www.thelovedogs.com
AWESOME AUCTION ITEMS INCLUDE:
- TV Diner guest appearance with Billy Costa (www.BillyCosta.com)
- One week at Provincetown condo
- Tour of Formaggio Kitchen Cheese Cave
- Red Sox tickets
- Bruins tickets
- Ski & Stay packages at Sunday River & Sugarloaf
HOPE TO SEE YOU THERE!
Homeless Police, Fireman and Teachers
It's hard to believe that city service workers like police, fireman and school teachers are showing up homeless at CHAF partner agencies HomeStart and the Cambridge Multi Service Center for the Homeless.
Who will put out fires and teach our children? It shows how homelessness can happen to almost anyone. A parent gets ill and can't work, the family falls behind in mortgage or rent payments, you're a paycheck away from life on the street and then yes, you lose your home and end up in the state emergency shelter system, which is all to often a motel room with microwave meals.
There's a great video here about a woman with 5 children living in a motel room in California.
Since 1999 CHAF has raised $1.6 million to help 1,500 homeless or near homeless families and individuals to move from a shelter to a home or, to retain the housing they already have. CHAF’s goal this year is raise another $150,000 to assist 125 more families with rental startup costs.
CHAF partner agencies focus on ‘prevention.’ When a family loses their home, it costs the state $40,000/year of our tax dollars to house that family in the state emergency shelter system. For an average $800, CHAF can help that same family to stay in the housing they have, avoiding the devastation and cost of homelessness. With follow up services from CHAF partner HomeStart, 95% of families remain in their home one year later.
For more info about CHAF: http://www.chafund.org/.
We welcome any donation you would like to make.
Who will put out fires and teach our children? It shows how homelessness can happen to almost anyone. A parent gets ill and can't work, the family falls behind in mortgage or rent payments, you're a paycheck away from life on the street and then yes, you lose your home and end up in the state emergency shelter system, which is all to often a motel room with microwave meals.
There's a great video here about a woman with 5 children living in a motel room in California.
Since 1999 CHAF has raised $1.6 million to help 1,500 homeless or near homeless families and individuals to move from a shelter to a home or, to retain the housing they already have. CHAF’s goal this year is raise another $150,000 to assist 125 more families with rental startup costs.
CHAF partner agencies focus on ‘prevention.’ When a family loses their home, it costs the state $40,000/year of our tax dollars to house that family in the state emergency shelter system. For an average $800, CHAF can help that same family to stay in the housing they have, avoiding the devastation and cost of homelessness. With follow up services from CHAF partner HomeStart, 95% of families remain in their home one year later.
For more info about CHAF: http://www.chafund.org/.
We welcome any donation you would like to make.
Wednesday, September 28, 2011
Jeremy Rifkin: Energy plan for the future!!
This is it! The most optimistic and visionary plan I've heard for our economic and energy future. I'm going to read Rifkin's book: "The Third Industrial Revolution"! This will create millions of jobs. As energy is decentralized, every home and building becomes an energy producer, selling power back to the grid as necessary.
And, it sounds inevitable and enabled by the internet. It's like the music industry trying to stop the downloading of music files. They couldn't stop it, and had to throw in the towel and join in, selling files over the net like at iTunes. According to Rifkin, it will be the same with big oil and fossil fuels.
This is being done in the European Union now!
More about Rifkin: http://www.foet.org/JeremyRifkin.htm
And right in line with Rifkin's work, Google announces it is offering loans for homeownwers to install solar panels on their roofs:
http://www.boston.com/realestate/news/articles/2011/09/28/google_wants_to_help_homeowners_add_solar_power_panels/
And, it sounds inevitable and enabled by the internet. It's like the music industry trying to stop the downloading of music files. They couldn't stop it, and had to throw in the towel and join in, selling files over the net like at iTunes. According to Rifkin, it will be the same with big oil and fossil fuels.
This is being done in the European Union now!
More about Rifkin: http://www.foet.org/JeremyRifkin.htm
And right in line with Rifkin's work, Google announces it is offering loans for homeownwers to install solar panels on their roofs:
http://www.boston.com/realestate/news/articles/2011/09/28/google_wants_to_help_homeowners_add_solar_power_panels/
Tuesday, August 16, 2011
Warren Buffett
Here's a great Op Ed article in the Sunday New York Times by Warren Buffett and an interview of Buffett by Charlie Rose about the op ed piece. This is well worth reading and/or watching!
Warren has strong opinions about the recent deficit debacle, speaks about tax rates on the wealthiest Americans and has a generally optimistic view of the American economy.
Among other things, he believes that the real estate market is still eating up excess inventory from the bubble, and when household formations exceed housing starts, demand will exceed supply and that will help the economy turn the corner. He estimated that will happen in 2013.
Sunday Times Op Ed:
http://www.nytimes.com/2011/08/15/opinion/stop-coddling-the-super-rich.html?_r=1&src=tp&smid=fb-share
Charlie Rose Interview of Warren Buffett
http://www.charlierose.com/view/interview/11845
Warren has strong opinions about the recent deficit debacle, speaks about tax rates on the wealthiest Americans and has a generally optimistic view of the American economy.
Among other things, he believes that the real estate market is still eating up excess inventory from the bubble, and when household formations exceed housing starts, demand will exceed supply and that will help the economy turn the corner. He estimated that will happen in 2013.
Sunday Times Op Ed:
http://www.nytimes.com/2011/08/15/opinion/stop-coddling-the-super-rich.html?_r=1&src=tp&smid=fb-share
Charlie Rose Interview of Warren Buffett
http://www.charlierose.com/view/interview/11845
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