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Market Outlook: How Is Your Town Doing?

The second quarter has come to an end and we’re receiving a bit of a reality check on the housing market.  There is some good and some not so good news to report.  Let’s take a look at some key numbers in the northeast to give you an idea of what I’m talking about.  In the past 6 months, we have seen a push up in the market due to the following factors:

  • Housing Tax Credit, which expired April 30th…The credit produced a flurry of activity in the market as people rushed to purchase & close on time
  • Historically low interest rates…under 5%
  • Increased consumer confidence (according to Realty Times, consumer confidence had been on a fairly steady upward trend for the past quarter or two)

And a closer look at more recent numbers in the northeast from this quarter compared to 2nd Q. last year:

Average Sale Price-

Single Family

CT- up by 14%

MA- up by 8%

RI- up by 12%

Westchester County- up by 8%

Condo

CT- sales price increased slightly, 4%

MA- up by 4.5%

RI- up by 6.5%

Westchester County- avg sales price down by 2.3%

Unit Sales-

Single Family

CT- up by 29% compared to last year

MA- up by 30% compared to last year

RI- up by 12% compared to last year

Westchester County- up by 68% compared to last year

Condo

CT- up by 42%

MA- up by 35%

RI- up by 26%

Westchester County- up 82%

Days on Market-

Single Family

CT-avg market time 80 days compared to 90 last year…decrease of over 11%

MA-market time down by 13.1%

Westchester County- down 9.4%

Condo

CT- 10.4% decrease

MA- down 13.5%

Westchester County- down 12.9%

Also, key numbers show some positive trends in the luxury market.  For example, average sale prices in the $2 million + range were up in CT, Massachusetts, Rhode Island and Westchester County and sales volume was up by a minimum of 50% in each of those states/counties.   New Hampshire  saw a 221% increase in sales volume between YTD 2010 vs. 2009.

Although a lot of the data we saw in the past 6 months and even some of the 2nd Q was positive, May & June have shown downward trends:

  • Expiration of tax credit…credit temporarily inflated market
  • Commerce Department stated that new homes sales were down by 33% in May; existing home sales were down 2.2% from April
  • Consumer confidence fell by 10 points in June…also sent stock prices plummeting

    green interest-rates-low

    Low Interest Rates

  • Continued sluggishness in jobs report

There are golden nuggets amongst all the rubble, however:

  • Interest rates are at all time lows…a great time to buy…can get a 30yr FRM at 4.57%…an all time low in Freddie Mac’s 39 year survey or a 5yr ARM at 3.75%
  • If you price right, your house can sell!
  • Good time to refinance

If you’d like to know more about how your town fared this quarter and year–to-date, visit raveis.com’s local housing data matrix.

7 thoughts on “Market Outlook: How Is Your Town Doing?

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    1. William Raveis Headquarters

      Thank you for your great question! When choosing between and ARM or fixed interest rate loan, carefully review your individual circumstances. How long do you plan on staying in the home? This is an important factor to look at. However, when fixed rates are at the historic lows we’re seeing now (below 4%!), you should capitalize and go with a fixed rate. ARMs are best when interest rates are higher. Hope this answers your question. Thanks for reading!

      Reply
  5. Pingback: 6 Month Market Update: A Closer Look : Charlie Abrahams

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