Here are the latest statistics from January 2009:

Let’s compare these figures to what was going on in the fall in October 2008:

As you would expect due to the time of year and the amount of snow on the ground, there are less single family homes and condos currently on the market, but except for this normal seasonal change, the single family and condo market in Arlington has remained steady and active. Single family homes have been selling with an average of only 39 days on the market, while condos have been taking approximately 71 days to sell.

The multi family market has lost some ground. However, since so many 2 and 3 family homes in the city were converted to condos, there aren’t that many multi family homes for sale, so we’re working with a small statistical sample. The figures are showing that while homes are selling in a very respective average of 47 days on market, the average sales price has definitely dropped in last few months. It will be interesting to see what happens in a few months when the spring market (and the sun) returns!

More articles on Arlington, MA:

• Cut Down Your Commute Time
• Real Estate Stats for Arlington, MA as of October 2008
• Bring the Green Line to Route 16

Let’s compare this to what was going on 2 months ago.

Somerville Market Statistics November 2008:

Not surprising given the time of year and the current cold and snowy weather, there are less properties for sale now than there were in November.

Single family homes in Somerville are selling faster with an average Days on Market of 93.9 days. The absorption rate of 1.9 months means that if no more homes were allowed to come on the market after today, it would take less than 2 months for the market to buy up all of the homes currently for sale. The average single family home price has also risen by approxmately $2,500.

Although the average condo price has risen compared to the statistics from November, the absorption rate has also gone up meaning that the condo market is slowing down. The average Days on Market for condos in Somerville during the last 6 months is 104.8 days.

The multi family market has seen a decrease in the average price of approximately $11,000 since the fall while the absorption rate has remained steady. The average Days on Market for multi family homes in Somerville for the last 6 months is 98.5 days.

Here are some other articles about Somerville:

• November 2008 Market Update
• Cut Down Your Commute Time
• Bring the Green Line to Route 16

It’s been a little over 2 months since I showed the the last market update for Medford and I thought it would be interesting to compare what was going on in the market at the end of October versus now at the very beginning of January.

The first thing you’ll notice is there are significantly less single and multi family homes for sale right now. This is to be expected because many people choose to take their properties off the market during the holidays and wait until the spring real estate market begins. The condo market is the exception to this rule and there are currently more condos for sale in Medford MA than there were in the fall.

The average sale price for single family homes in Medford has come down about $8,000 while the average sale price for condos has remained steady. The surprise is that the average for multi family sales price in the city has increased by approximately $5,000.

When you look at the absorption rates, you’ll see that single family homes are selling a bit quicker. The multi family home market has taken a giant step forward and the current absorption rate of 3.7 months reflects a market at equilibrium and not a buyer’s market. The condo market, though, has slipped and is showing a buyers’ market with 6.5 months of inventory currently available.

If you’d like more specific information for your situation, just let me know and Happy New Year!

The new IRS ruling taking place next week allows limited personal use, so as long as you rent out that beach house for most of the year, it’s okay for your family to use it a bit and still do a 1031 Exchange when you sell.

You can listen below or click to download the MP3 file: Download MP3 Why Isn’t My House Selling?

Download audio file (why_isnt_my_house_selling.mp3)

MGIC and PMI Group will soon be requiring a minimum of a 10% down payment on an investor owned 1-4 family property. In some areas that they consider more risky (which include Norfolk and Suffolk Counties here in the Boston area) the minimum down payment will be 15%.

When I began selling real estate 17 years ago, I was taught to sit down with every buyer and discuss their financial ratios. These ratios were very set rules to determine how much house a buyer could afford. The rules were that no more than 28% of your gross monthly income should go towards your housing expenses (that includes the principal, interest, taxes and insurance for your property) and your total monthly expenses should not go over 36% of your gross monthly income. (This includes both your housing expenses and all other short and long term debt. . . car loans, student loans, credit card bills etc.) These ratios helped people to determine what a “comfortable” amount of housing expense they could take on given their income and their existing debts.

Stated income programs allowed buyers to totally disregard these financial ratios and it’s not a bad thing that these programs are gone.