Sales are slowing in Longmeadow

However, there was some good news this month....

• The number of Longmeadow home sales in the January - June 2009 period were significantly higher vs. the corresponding period in 2008 (74 vs. 64). See figure 1 below.
  
• The median sales price in May and June was at the highest level since the peak in October 2007 ($318,500 vs. $350,000) and the continuing trend this year appears to be up. See figure 2 below.

On the negative side...

• There appeared to be a resurgence in home sales during the first four months of 2009 that I wrote about in a posting in early May... possibly due to low mortgage rates... but home sales for the past two months (May/ June) were at the lowest levels in the past 4 years (see figure 1).
  
• The median sales price (average of past 6 months) showed an increase during the past two months to $318,500 but it is still 9.0% lower vs. the peak reached in October 2007 ($318,500 vs. $350,000)- (see figure 2).
  
• 15 out 29 (52%) homes in May/ June were sold at less than the official Town of Longmeadow assessed value (see figure 3). This is very similar to the trend for January - June 2009 with 39 out of 74 (53%) homes selling below the assessed value.
  

Figure 1- Home Sales, Longmeadow, MA
[click chart to enlarge]

Figure 2- Median Sales Price, Longmeadow, MA
[click chart to enlarge]

Figure 3- Sales Price vs. Assessment Value, Longmeadow, MA
[click chart to enlarge]

For the first 6 months of 2009, there were only 5 properties (out of 74 total, 6.8%) sold at prices > $500,000 although there are 27 properties (out of 114, 23.7%) currently listed with MLS. This is probably not surprising given the current difficulties in getting large mortgages.

Home sales in Longmeadow, Massachusetts in 2009 are on track to be higher than 2008 but the recent increase in mortgage interest rates may be slowing down this resurgence. However, it does appear that a bottom may be forming in the Longmeadow real estate market (as well as the rest of the US). This bottoming process combined with a economic recovery may lead to a more normally functioning real estate market in 2010. Let's hope so!

Longmeadow FSBO
East Longmeadow FSBO
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Some continued good news this month....

Here is the good news...

• The first bargraph below shows that the number of Longmeadow home sales in the January - April 2009 period were significantly higher (up 45%) vs. the corresponding period in 2008 (45 vs. 31).
• April 2009 sales were up 88% from April 2008 (15 vs. 8)
• Longmeadow home sales in April 2009 (15) were at the highest level during the past four years and equal to results for April 2007.

On the negative side...

• Sales for the January - April 2009 period were still significantly lower vs. results for the corresponding January - April periods in 2007 (45 vs. 56).
• The median sales price (average of past 6 months) showed an increase this month to $303,500 but it is still 13.3% lower vs. the peak reached in October 2007 ($303,500 vs. $350,000).

Shown below are a series of charts summarizing recent single family home sales in Longmeadow, Massachusetts.

[click chart to enlarge]

Below is a chart showing the relationship between recent Longmeadow real estate Sales Prices and Assessed Values (data obtained from Vision Appraisal website). The trend of a significant number of homes selling at prices below current assessment value continued in April (6 out of 15). The chart below shows that the median sales price (6 month trailing average) in April 2009 increased to $303,500 but it is still 13.3% lower vs. peak of $350,000 reached in October 2007.

Here is a link to the data for 2006-2009 Real Estate Transactions that were used to develop the above graphs. The above results include both MLS and FSBO transactions and are based upon public information obtained from the Hampden County Registrar of Deeds website.

The latest results continue to show that dramatically lower mortgage interest rates, lower home prices (translate --> more affordable) and the upcoming prime home selling/ buying season may be combining to generate a bottom in the real estate market- both in Longmeadow and across the United States.....

Let's hope so!

Longmeadow FSBO
East Longmeadow FSBO
House for Rent at LongmeadowBiz
Vacation Rentals at LongmeadowBiz

LongmeadowBiz.com- Longmeadow's #1 Business and Community website

Some improvement in March sales

Here's the good news.....

The bargraph below shows that the number of Longmeadow home sales in January-March 2009 period were significantly higher vs. the corresponding period in 2008 (30 vs. 23). However, sales for the January- March 2009 period were still significantly lower vs. results for the corresponding January - March periods in 2007 and 2006 (30 transactions in 2009 vs. 37 in 2007 and 41 in 2006).

[click chart to enlarge]

Now the bad news....

The median sales price continues to decrease and is 19.3% lower vs. the peak reached in October 2007 ($282,500 vs. $350,000).

Below is a chart showing the relationship between recent Longmeadow real estate Sales Prices and Assessed Values (data obtained from Vision Appraisal website). The trend of a significant number of homes selling at prices below current assessment value continued in March (18 out of 30 for the January - March 2009 time period).

Hopefully, with dramatically lower mortgage interest rates and the upcoming prime home selling/ buying season there will a strong rebound in the local and national real estate markets.

Longmeadow FSBO
East Longmeadow FSBO
House for Rent at LongmeadowBiz
Vacation Rentals at LongmeadowBiz

LongmeadowBiz.com- Longmeadow's #1 Business and Community website

Will Your Home Stand Out In The Crowd? Selling confidently in today's market

Hah! Made ya look, didn't I?

Selling a home is not much different than selling anything else. You must PREPARE it well, PRICE it competitively, and PROMOTE it to your market. We call this the THREE "P's".

If you choose to use a real estate agent to market your home, it will be his/her job to get the word out. This usually involves putting the listing on the MLS and on other Internet websites, putting an ad in the local paper, sending some postcards to your neighbors and possibly hosting an open house. By outsourcing the promotion, you will pay between 5 - 6% of the sales price of your home...assuming that it sells! If you choose to take control and sell "by owner", you will be promoting your home yourself and you will form your own marketing strategy.

If you have done your homework in the first two areas, promoting your "product" to a wide buyer pool is the key to your success. Quality marketing and advertising that makes sure your home stands out in the crowd will create a strong statement to buyers, giving them confidence to work with you. It will create value for your home, further enhancing your credibility. Expect to pay a reasonable amount to advertise your home and look for results oriented marketing that will reach buyers where they're looking.

First impressions count. Will your yard sign come from a hardware store and look generic, leaning precariously on your front lawn, the faded magic marker telephone number barely visible? Will your information sheets look professional and grab buyer attention?

In our years of helping private home sellers learn the ins and outs of marketing their homes to the public, we've seen more bad yard signs than we can count, and learned of countless ways that sellers have missed important opportunities. Does that mean you can't sell successfully without using a real estate agent? Heck no. It just means you need to educate yourself about the process and make sure you start off on the right foot.

Remember, your home's appearance and your choice of marketing is a reflection of it's owner. Do you want to appear cheap, like you don't know what you're doing, and possibly difficult to work with, or do you want to greet qualified buyers at your door with confidence? The choice is yours.

Protect Your Privacy When Selling Your Home

Not too long ago, one of our home sellers told us of a frightening experience he had when his home was under a listing agreement with a local agent. As a result of the incident, he canceled the agent's contract and took matters into his own hands. Here's what happened:

Early one day, our home seller left for work, not thinking twice about the lock box hanging on his front door. Later that day morning he received a frantic phone call from his teenage daughter. She was calling from the upstairs bathroom on her cell phone after hearing voices and movement downstairs. Fearing an intruder, her father immediately called the police on his other line and left the office to return home. As he turned into his driveway, the police were already on the scene and were talking to two strangers. Only after speaking with the officer did he learn that the "intruders" were really a real estate agent and his embarrassed client, both now visibly upset having caused such a ruckus. What the seller had not realized when he left in the morning, was that his daughter had a delayed start for school and had not left before him, as was normally the case. She was in the bathtub when the intruders" entered their home.

Thank goodness that the ending was uneventful, but it does point to the need to take privacy issues seriously when selling your home. With a lock box on your door, ANY agent can access your home at ANY time with ANY client. Remember your lock is on the outside of your home. You won't know when you leave in the morning if people are coming or who was there when you return later. You won't know if you left something valuable on your dresser. You just won't know.

When you sell privately, it's just that -- private. You determine who you will show your house to and when.

April Sales Figures...Good news/ bad news

The current real estate market reminds me of a “bear” stock market.

There have been days in the past …even in the most recent past six months- when the stock market has been down “big time” with the DJIA down triple digits. During these periods of time I just cringe and don’t want to know what’s happening because it is so depressing- thinking about all of the paper $$$ losses and not being able to do much about it. At the same time the various CNBC “talking heads” predict another 20% drop in stock prices and I just keep thinking about the still larger drop in my stock portfolio. Psychologically, I want to sell everything at any price and limit my losses. However, one thing that I have learned from over 30 years of investing in the stock market is that a contrarian point of view with a long term prospective is a good strategy. Large declines in the stock market point eventually lead to bargain prices with upside potential gains…. Remember the long time investment adage “big low… sell high”. However, in the heady days of the tech stock market boom, some stocks got way too high and dropped precipitously…. and haven’t come close to recovering… even after more than five years. However, solid performing stocks have recovered nicely.

I believe that the same thing will become true with the current real estate market. There are obviously overheated markets (e.g., Florida, California) where home price appreciation reached absurb levels and now these areas are correcting sharply. These markets may never again see prices as high as they have been. Too many new homes with steep price tags were built and there were not enough buyers who could really afford them. Now with the sub-prime mortgage problems and the accompanying foreclosures, short sales, etc., there are many homes becoming available with more reasonable price tags. Again, the “talking heads” are calling for greater price declines before it is over, but given our country’s demographics, there is likely to be a strong long term demand for housing at a reasonable price in the future. The inevitable drop in home prices that will occur over the next 6 months - 2 years will be uneven but will present opportunities for both buyers and sellers.

Now for the latest Longmeadow state of the housing market…

Part I- April 2008

[click to enlarge chart]

The numbers were similar to the rest of the country... April sales were down to 8 houses sold vs. 15 in 2007 and 10 in 2006. Jan-Apr 2008 YTD sales were also not very good with 31 vs 56 in 2007 and 47 in 2006. The large drop in YTD sales (-45%) vs. last year is similar in many other regions of the country.

The chart below shows that the median sales price (6 month trailing average) for homes sold in April 2008 showed a drop to lowest levels in almost two years.

Below is a chart showing the relationship between recent Longmeadow real estate Sales Prices and Assessed Values (data obtained from Vision Appraisal website).

Part II- The Good News

Walking around my neighborhood and driving around town recently I know of at least 10 homes that have been “sold” and will likely close in May or June that are not included in these latest sales figures. In addition, a local realtor told me recently that she had sold 5 houses in the last two weeks and was involved in one sale that involved 5 bids with the final price significantly higher than the asking price. Using the recent past home sales figures (or stock market performance) to predict the next 6 months – 5 years is akin to driving a car using the rear view mirror. While we are obviously not ready to declare that the Longmeadow real estate market has become a “seller’s market”, there are signs that maybe some improvement is in the making. One interesting comment in the April 24 Springfield Republican article by Susan Renfrew, President of the Massachusetts Assn. of Realtors was interesting: “people selling in this market also need to remember they’ll end buying their next home in the same market”. Let’s hope that by late summer/ early fall some sense of normalcy will have returned to our Longmeadow real estate market.

Longmeadow House for Sale by Owner
East Longmeadow House for Sale by Owner

Selling A Home: Challenge #1 - Controlling Clutter

Selling a home can be challenging and stressful! Often sellers have asked us, "What's the hardest thing to do when selling "by owner?" The answer to this question may surprise you. Whether you are using an agent or selling "solo", you still must prepare your home for the market. That said, we have worked with Western Massachusetts home sellers for over six years and the most difficult challenge sellers have told us they have had is GETTING RID OF CLUTTER. Sound familiar? If you need some help in this area, keep these thoughts in mind:

• Less clutter = bigger looking rooms = more money!
• Less clutter = less you have to pack, or worse, pay a moving company to transport!
• Less clutter (knick-knacks, photos, treasures) = more a buyer can imagine how their clutter will look in their new home!

How do you start controlling the clutter?

• Take it one room at a time - main rooms first. As you de-clutter, stage the room and take pictures for your slide show while it looks its best.
• Use contractor's trash bags - they hold more stuff and are very durable
• Donate to your local Goodwill or Salvation Army. Your stuff will go to a good home
• "Build the buzz" - have a "moving sale" and hand out New To Market flyers
• Make a checklist for quick clean ups before showings. Remember, when you sell by owner you don't have to clean up ever day just in case someone stops by - big bonus!

Remember, the time you take now to make your home squeaky clean and show ready, will pay off later as your home outshines the competition.