New EPA deleading regs to raise renovation costs

New Environmental Protection Agency regs go into effect April 22, 2010 saying all contractors removing lead paint must be certified. The EPA estimates this will add about one hour and $100 to most renovation jobs.

Click here to read the full January 24, 2010 Boston Globe Article by J.W. Elphinstone

Will mortgage interest rates 'spike' in spring???

"Lending rates will also spike as the government withdraws its trillion-dollar support of the mortgage market in the spring," says an article in the New York Times on 1/1/10.

This might argue for home buyers to act before this happens so they can lock in historically low interest rates. Sellers may also want to consider selling sooner rather than later as rising rates could adversely affect home values.

"As banks enjoy a recovery, lending may slow further as the Federal Reserve shifts its focus from spurring growth to heading off inflation, reversing the current period of ultralow interest rates that has been a boon to banks. Right now, low rates are fattening banks’ profit margins, since many lenders are not passing on their own low costs to borrowers. Lending rates will also spike as the government withdraws its trillion-dollar support of the mortgage market in the spring."

Here's the link to the full article:

http://www.nytimes.com/2010/01/01/business/economy/01wall.html?bl

Follow me on Twitter

for timely updates:

www.twitter.com/RealtorDavePap

New Cambridge Property Tax Rate FY2011

New Cambridge, MA tax rate=$7.72/yr/$1,000 of assessed value. Residential exemption is $198,423=$1,531.83/yr saving for owner occupied properties.

"Hopes run high for tax-credit expansion" Market Watch

The 1st time Buyer's $8k tax credit certainly spurred sales in the entry $300s, $400s level in Cambridge, MA area this fall. Extending and possibly increasing this credit might keep sales activity up over the usually quiet holiday period (T'gvg - mid Jan.).

Here's the article from Market Watch:

By Steve Kerch, MarketWatch
SAN DIEGO (MarketWatch) -- The expansion -- or, at a minimum, extension -- of the $8,000 first-time-home-buyer tax credit that is set to expire Nov. 30 is at the top of the legislative agenda for the Mortgage Bankers Association, with one of the MBA's leaders saying the trade group is "very close" to winning that battle in Congress.

http://www.marketwatch.com/story/home-buyer-tax-credit-renewal-very-close-mba-2009-10-12

"Home prices and sales on rise in Boston area," Boston Globe 8-26-09

"Home prices in Greater Boston have increased for three straight months and the number of houses selling is up sharply, suggesting that the long housing slump is over," according to an article in the Boston Globe on 8-26-09.

If buyers feel increased confidence that the market has bottomed or is bottoming out, this may suggest a busy fall market with buyers also trying to close before November 30th to take advantage of the $8,000 tax credit. Average time from accepted offer to closing is ~60 days although, depending on the bank, it's possible to close in 45 days. So, if a buyer puts a home under agreement by end of September to middle of October it should be possible to close by Nov. 30th.

Ironically, there is still a shortage of inventory in the $300s and low $400s price ranges, which is where most first time buyers are looking. This may lead to some competing bid situations. Perhaps sellers will get the message and start selling so they can trade up. This could even fuel the market in stagnant higher price ranges as these sellers trade up.

Today's lower prices are a boon to buyers, who can buy for 10%++ less than a few years ago. And for sellers trading up, there is a silver lining. Guess what? It's possible that what you're trading into has come down more in value than what you're selling. So, don't lament the 'loss' you're taking on the selling end when you're gaining on the buying end. You may very well come out ahead, with more house and equity for the money than if you had traded up when prices were higher.

Read the full Boston Globe article at http://www.boston.com/business/articles/2009/08/26/reports_suggest_mass_home_buyers_overcoming_qualms/

10 Questions for New School Head Jeff Young

"..the pieces are here in this community for Cambridge to be the best urban school district in the country," said new Cambridge school superintendent Jeff Young.

Read the interview by David L. Harris in the August 20, 2009 Cambridge Chronicle:

http://www.wickedlocal.com/cambridge/homepage/x1373186714/Ten-questions-for-Cambridge-superintendent-Jeff-Young