Warren Residential Group Blog – Boston Real Estate Blog

Brookline, MA is among one of the Greater Boston communities that defied current real estate trends and reported an increase in home sales amidst a tough time for Boston real estate. Real estate data tracked by Warren Group has revealed that July, 2010 home sales in certain Massachusetts towns and cities have increased when compared to home sales during July, 2009.

For the majority of cities and towns in Massachusetts, home sales have hit a 20 year low, with July home sales falling 26% over the past year.  Here is a list of the 10 Massachusetts towns that have stomped on these statistics and weathered the economic storm.

(Percentages represent increase in sales compared with July 2009)

Cohasset- 130%

Norwood- 117%

Chatham- 100%

Bedford- 78%

Dennis- 41%

Easton- 27%

Brookline- 20%

Melrose- 20%

Hingham- 18%

Marblehead- 18%

Not only did Brookline real estate experience a 20% increase in sales, but this small city also saw an increase in median home prices by 14.5%.  Experts attribute Brookline’s success to its many shops and accessible public transportation. Boston’s young professionals and recent college grads also help make this area recession-proof.

Check out Warren Residential’s online listings of Brookline apartments and condos. You can also view the full article here.

Good news for Boston real estate; the Boston Redevelopment Authority, a planning and economic development agency, has recently voted to enhance a program that provides resources to owners of triple-decker structures. The program, appropriately titled the “Green Triple Decker Program”, also received a vote in favor of expansion from two to five structures, as well as a vote for the appointment of a project manager to supervise an eco-industrial zone project in the Newmarket district. The goal of the program is to achieve energy efficiency by learning how to effectively enhance the energy performance of local buildings.

Not only is this news reassuring to those who are involved with green economic development initiatives, but also to Boston residents who are concerned with reducing green house gas emissions and cutting down on various energy costs on their Boston rental property.  It is also expected to provide many local job opportunities, and enhance the value of buildings for Boston landlords.

The program is also expected help identify how to effectively preserve historical buildings in an energy efficient manner. It will hopefully reveal what kind of green technologies will best work for the older and more delicate structures.
The program also strives to mend the ongoing issue known as the “tenant landlord split”. Over 60% of Boston residents live in a Boston rental and yet there is still a disconnect that tenants feel when it comes to energy conservation due to the fact that their stay in the property is temporary, and that landlords lack energy efficient resources.

Contact a Boston realtor for any questions as to how this initiative affects you.

Are you planning on a Boston relocation, but aren’t sure if you want to buy a Cambridge condo or rent a South End apartment?  You’re not alone!  The age-old debate regarding whether it is more cost-effective to buy or rent a home is seemingly never-ending; although in the past, the argument has typically favored renting.

A recent article, however, indicates that now the debate may be shifting in the favor of buying a home. For a long time, renting was considered the cheaper alternative, but due to current economic factors such as low mortgage rates, it is now believed that in some instances homeownership may in fact be the less expensive alternative.

Since the economic downturn in 2007, average apartment rental rates have dropped, but when compared with the decline in home values, this drop appears moderate.  Research shows that home values in the US have gone down 30-40% in the past few years, indicating that there is more of a cost-cut in homeownership.  This factor, combined with low interest rates, tax benefits, and capital gains, contribute to the appeal of buying a home.

Although this shift may be occurring, it is not without hesitation and doubt.

As economic consultant Micahel Carliner explains, “Expectations have been tarnished by recent experience.  A lot of people were overconfident about capital gains — now they are overly pessimistic”.  He also notes that more upfront money is required when buying a home and additionally many potential homebuyers feel tied down with too much negative equity.

Everyone’s situation is different, but typically, if you plan to live in a given location for less than two years, it is better to rent due to the high costs associated with buying a home and the uncertainty of how long it could take to sell your home.  For those who plan on living in a location for more than ten years, however, it may be a more worthwhile decision to invest in a home.

No matter which option is best for you, Warren Residential Group can help.  We have a wide selection of Boston real estate for sale, and Boston rentals available.

Read the full article here.

For those looking to purchase Boston Real Estate, now may be the time to do it, as mortgage rates have hit a historically low level.  According to Freddie Mac, for the first time since 1991, mortgage rates have fallen below the 4% line, with the average rate on the 15-year fixed loan at 3.95 %.  Additionally, for the first time since the 1950’s, 30-year fixed loan rates fell to 4.49%. This could mean that your home could be paid off in half the time and for thousands of dollars less!

The lower rates on short-term loans, however, are not likely to affect the refinancing market.  Most people would need lower monthly payments to be able to afford a 15-year fixed mortgage as opposed to the more common 30-year loan.  Due to the weakened economy, fewer people are able to refinance.  In 2003, refinancing was more common, with about 33% of mortgages shifting from a 30-year loan to a 15-year loan.  Now, with the higher levels of unemployment and less equity in people’s homes, refinancing has fallen to about 20%, according to Credit Suisse.

And while these low rates are good news, it is important to note that not all homeowners will qualify for rates this low.  Typically one must have a certain credit score to qualify.  It’s important to conduct thorough research before buying a home or an apartment, and a qualified Boston realtor can help you with that.  Contact one of our realtors today or browse our online selection of Boston real estate for sale.

If you’re looking for a Boston rental, we can help with that, too!

Source article.

$10k PRICE CHANGE ON A 2005 GUT-RENOVATED EAST CAMBRIDGE 1 BEDROOM CONDO!
$219,000

For today’s featured listing, we have a recent reduction on an already AMAZINGLY priced Cambridge condo.  Whether you are renting or currently own, it is certainly worth taking a look at.  The location is central to everything that both Boston and Cambridge have to offer, and with current mortgage rates being around 4.5%, your monthly payment would be as low as, or even lower than, $1,200 (INCLUDING taxes and condo fees).

With the Green Line extension officially approved, and plans in place to make the current Lechmere stop an open shopping and farmer’s market, this condo is going to be an amazing investment for the future.  And for those of you who are looking for a Boston condos investment property, the unit was rented for $1,450.00 last year which would easily cover carrying costs.

For full listing details, please see our information on Cambridge condos.   You can also contact us or one of our agents to find out more information on this condo!

Additionally, one of our agents will be hosting an Open House THIS SUNDAY, August 8th, from 1:00PM-3:00PM and we would love to see you there!  If you are unable to stop in this Sunday, not to worry, contact Betsy Wagner or directly at (617) 416-1322  and she will set up a showing for you personally.

We hope you will be able to make it and again, please feel free to get in touch with Betsy if you have any questions what-so-ever!

In a rough economy, saving money ranks high on nearly everyone’s priority list.  Due to the current near record-low interest rates, many people are buying homes, but as a cost-savings strategy, are attempting to purchase without an agent. Buying a home is an experience that is both complex and at times overwhelming. What these individuals fail to realize is that trying to cut corners and go through the process without an agent might end up costing them more.

A real estate agent is great for a number of reasons. For starters, they are fully equipped with neighborhood and market knowledge that will give you leverage in the sales process. They fully understand current market values in ways that most buyers on their own do not. If you offer a price that is way below market value, you run the risk of never hearing back from the seller. On the reverse side, offering more than market value might counteract any savings you were trying to achieve by not hiring an agent in the first place.

In addition to their vast knowledge, agents also serve as buffers to any outside parties. With all of the inspectors, mortgage loan brokers, and any other outsiders involved with the process , having a middleman to deal with the mountains of paperwork, as well as the headache of negotiations, alleviates many of these burdens and  responsibilities from the buyer.

Having an agent also levels out the playing field.  Most sellers and their agents prefer to work with a buyer who is represented by an agent.  When you buy a home without an agent, you cannot rely on the seller’s agent for advice or contract help, as they are only focused on their own client’s needs. When one side of the transaction has a real estate professional and the other does not, it’s obvious which side is in control. You regain that control when you have an experienced professional on your side to even it out.

Buyers who attempt to represent themselves may have knowledge that’s limited to what they’ve read online or in home-buying books. This information however doesn’t represent all of the housing market rules and regulations. Agents can tell you more than any book can from their experience of working with buyers and sellers.

Warren Residential has many Boston realtors who can help you navigate through this complex process. Contact them today to find out how they can offer their services to make your buying process a more pleasant experience. Also view our online listings of Boston real estate for sale!

As a result of the Credit Card Act of 2009, credit card companies are forced to change their operations, and cardholders are starting to take note.  The majority of provisions took place just months ago, with the final revisions slated for next month.  Here’s what you need to know about the new credit card legislation and how it will affect you.

Changing the Way Credit Card Companies Do Business

One of the major changes makes standard over-limit fees a thing of the past.  Rather than automatic over- limit fees, overdraft coverage is now an additional service that cardholders must choose to opt into.  Consumers who do not opt in will have their transactions denied when they lack sufficient funds in their account.  Credit card companies are aggressively trying to persuade users to opt into this service to avoid a major hit to their revenue.  The over-limit fees are typically $30 for each transaction that is not backed by sufficient funds.

There are also changes in billing and payments. Before the new laws, payment dates were often inconsistent from month to month, and as a result would not be processed before the due date.   Users who thought their payments were submitted on time were getting hit with late fees and interest rates that were seemingly out of nowhere.  Now with the new legislation, bill payments are due on the same day every month.  The law requires that statements be sent out 21 days prior to their due date.

How Do These Changes Affect Your Credit?

Due to the changes brought on by the new legislation, credit card companies are drastically reducing available credit limits by as much as 50%.  For those with an outstanding balance, a sudden reduction in available credit limits means you will now have a higher debt-to-credit ratio, which could potentially lower your credit score to spite the fact that you haven’t actually taken on more debt.  A good rule to abide by is to aim to keep your debt less than 10- 30% of your available credit.

Credit card companies are adapting their business models to remain profitable amidst the new laws, and are sending out notifications to cardholders regarding these changes, which can include higher interest rates or fees or a reduction of rewards.  This eliminates any element of surprise, and also allows cardholders to opt out of an account if they don’t agree with the new terms.  If you opt out, your account will be closed and you will have five years to pay off any debt incurred under the old terms.

How Do These Changes Affect My Ability to Finance a Home?

The new credit card laws will make it easier for people to know what they are spending now that credit card companies are required to clearly indicate exactly what users are paying in interest, and how long it will take them to pay off their credit cards if they only make the minimum payments.  Credit card companies now have to apply your payments to your most expensive debt first.  For instance, if you had a different interest rate for credit card purchases and cash advances, the credit card company must apply your payments to whichever debt has the highest interest rate first.

There will be an adjustment period as we are met with rapidly-reduced credit limits, but these new rules will actually benefit homebuyers in the long run, helping them pay off their bad debts and improve their credit scores making it easier to secure financing for their next (or first) home!

Warren Residential Group

If you’re considering buying a home, you need the help of a trusted advisor to find a home that fits your budget and your needs.  Contact Warren Residential Group to help guide you through the process of buying Boston real estate, or browse our apartment listings if you’re still working on your credit score!