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John and Anthony Discuss the Housing Market on the Rebound

Related blog: Year End Home Sales Report Shows Strong Gains in 2012

 

All right Gene thank you, if you are on the market for a new home or maybe if you’re looking to sell yours listen up there’s some new information from last year that indicates the at the housing market is on the rebound. John and Anthony from Lamacchia Realty join us now to hash it all out, I feel I like this is where we went last year, we said it was on the rebound but this is for real this time?

Yes it’s continuing.

I think it is for real. Finally.

It is for real, ok so what’s the deal here?

Things are getting better. Home sales are up– they were up 20% it’s funny they were up every month this year about 18%to 25% and sure enough for the whole year they were up for 20%. There were 72,000 homes sold in Massachusetts compared to about 60,000 homes in 2011.

All right so things are looking up what were the total home sales in Massachusetts is that what you were just saying?

Yes 72,000.

For the last year, ok, in terms of Massachusetts compared to the rest of the country here are we doing a little better than some of the other states or like Florida or Nevada places like that not so great.

Well statistically speaking we’re not doing as well from an appreciation we’ve actually seen a slight decline in home prices just by 1%. We consider that more flat than anything which is a good sign but you have Florida Arizona, all these states that were so depressed, when the prices go up there, that impacts the nation even more. So you’re seeing double digit appreciation, I think it’s 6% over all the country.

Yeah, 6% nationally and then home sales were up 11% nationally but like I said in Massachusetts we were up 20% so for overall home sales we’re beating the national trend; for appreciation we’re behind, but we didn’t go down as much that’s why those percentages look so much bigger nationally when you put it in those other states.

They had a long way to go up

Right they went down 60% we didn’t go down that much.

Fewer homes on the market over the last year, why is that

I’d say the biggest reason is there are not enough folks who can sell, as the market starts to recover, you’ll see folks start to get into a better position based on what they owe versus what the home is actually worth and there are plenty of folks who want to sell but they just can’t, so as the market starts to correct itself, you’ll see inventory levels s start to slowly increase but right now we still have more buyers than there are sellers, and that’s obviously a good thing if you’re in position to sell.

Right so if you are in a position to sell what should you be doing at this point?

Sell your house!

Thanks. Thanks Anthony, thanks for coming by all right we gotta take a break!

The key here that John mentioned is there are sellers that want to sell and some don’t want to sell enough and what we’re seeing is, “well I want to sell my house but only if I can get $350,000. And right now it only seems I only can get $330,000. I want to wait a few years.”  And these are people who want to buy a $500,000 house, well if they wait a few years, yeah they’ll sell for $350,000 or $360,000, but that $500,000 house is going to be worth $550,000.  So I think some people need to remember that kind of stuff and take it into account because they get too worried about what can I get for this and not thinking enough about that one is selling for a good price as well. And that’s something people need to think about.

All right so if you’re thinking about selling your house here just go ahead and do it, don’t wait.

Yes we’re finding that sellers are getting a little too caught up in exactly what they can get and they have to remember what they can buy as well.

Well it’s hard if you think things are getting better if I wait a little longer my house will be worth a little more.

You see that in every market. We’ve seen that throughout 2000 as the market would run up, people thought well I should wait and we always tell clients that it’s a process, don’t try to time the market it’s a life decision, and if it makes sense to move and you identify a buy in a different town based on whatever the reason then make it work, and if that’s selling for a little less but you’re getting more buy because you can get a 3 and a half percent interest rate well guess what that might be a good time.

All right we have to leave it at that this morning,

Things are looking up though

Thanks, we appreciate it.

We’re at the level off and things are looking up

John and Anthony thanks for joining us.

 

 

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