From our President

Based on an online arcticle from CnnMoney.com by Ben Rooney home buyers are taking advantage of plummeting home prices. Here is an excerpt.

The National Association of Realtors (NAR) said Thursday that the number of existing homes sold during May rose 2% to a seasonally adjusted annual rate of 4.99 million units in May from a level of 4.89 million in April.

But sales remain 16% below the 5.93 million-unit pace in May 2007, the report showed. And Thursday's report marks only the second time in 10 months that sales have increased.

Analysts were expecting the sales rate to increase to 4.95 million last month, according to a consensus of analysts' estimates gathered by Briefing.com.

You can view the entire article here

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Continuing the theme from my previous post, I wanted to take a look at trends in the Cambridge condo market. Here are two graphs that paint a picture of what's been going on recently.

Notice the trend in the first graph. The number of sold properties and pending or "under contract" properties is growing each month. The market is definitely active as the volume of sales is increasing!

Now take a look at the second graph. It shows how the stock of available inventory is decreasing. Ah hah! Does this mean more and more people are buying at a time when inventory isn't being replenished? Could we be facing an actual shortage of available homes for sale at a time when affordability has improved and the cost of mortgage money is still very attractive? If this trend continues, could we actually face the possibility of price increases in the near future because of a alack of inventory?

My advice is to buy now while the market is on your side. Don't wait for a future market that could be characterized by a shortage of inventory, higher prices and the possibility of higher interest rates! Your best opportunity to take advantage of the American Dream is today, not tomorrow!

"Life's journey is not to arrive at the grave safely in a well preserved body, but rather to skid in sideways, totally worn out, shouting '...holy sh*t ...what a ride!'
-George Carlin

Here's a great tip to add instant value if you're selling your home. My wife, Cay, and I
always "stage" our property when we're selling. Like we always say at WEICHERT, REALTORS ... IT WORKS!

The results of a recent homeownership study are in and there's one trend in the way American's think about the real estate market that stands out. "Nearly half of all home buyers (44%) believe the housing market will improve once the new President takes office in January, 2009."

The study reveals a changing tide in public opinion. Despite some confusion about changing mortgage rules and the typical anxiety about making a big purchase, most buyers express an evenhanded sensibility about the market and are willing to make trade-offs in order to buy the house that meets their lifestyle needs.

In Cambridge, it looks like many buyers have realized that oversimplified forecasts of real estate doom and gloom just don't jive with what's happening here. The result is that buyers are taking action, particularly in the first-time buyer price point of $200,000 to $500,000. Each month since January, the number of properties purchased has increasingly surpassed the number of new offerings. The cumulative effect is that, in Cambridge, we just don't have enough inventory and it's not at all uncommon to see a property under contract in just a few days and after a heated bidding war. Imagine that!

As expected, the President today signed the Housing and Economic Recovery Act of 2008 in to law. I am pleased that this bill includes the tax credit we, Realtors, lobbied hard to make a reality.

The passing of this legislation is great news not only for us as real estate professionals but also for the homebuyers and sellers we serve. This new law will help bolster the housing market and keep us on the path to recovery by providing:

· A homebuyer tax credit for first-time buyers;
· Permanently increased loan limits;
· Assistance for more than 400,000 homeowners at risk of foreclosure;
· The addition of a standard deduction for real property taxes;
· Financial backing for Fannie Mae and Freddie Mac

As I told you several weeks ago, I remain convinced that we have reached the bottom of the market and will begin to see gradual improvement. Today’s passing of the new housing bill only strengthens my confidence that we are turning a corner.

Tell anyone that will listen that it’s a great time to buy real estate. Seize the opportunity.

Here are more details about the legislation