The seasonally adjusted Case-Shiller Home Price Index for Boston may be signaling that a new round of real estate weakness is in the offing in the Bay State. The seasonally adjusted Boston Index dropped 3.8% in April (the most recent month reported on by the Index).
Weakness after sizzling spring in Boston?
The April decline in home values in Greater Boston seems incongruous. After all, the Boston real estate market was enjoying such a strong spring. In Boston and trendy communities in the Greater Boston region, the spring of 2015 was characterized by sharply rising prices and fierce bidding wars fueled by an exceedingly tight supply of homes for sale. Boston.com and The Boston Globe recently published articles describing the woeful difficulties of buyers trying to secure housing in the sizzling Metro Boston markets.
A summer slowdown happened last year
You may remember how the summer of 2014 saw a “mini-bust” in the Massachusetts real estate market. The weakness seemed to come out of nowhere after a very strong 2014 spring selling season.
During the fall of 2014 the media carried lots of reports on how home sellers and listing agents alike were surprised and chagrined over the fact that home prices had stopped rising and listing were suddenly not selling. At the time, many people in Massachusetts were very upset!
But then conditions improved. The Index recovered all its loses by the end of 2014 and moved higher as 2015 got underway. The “mini-bust” of 2014 was largely forgotten.
Case-Shiller Index signaling another summer swoon in 2015?
The important thing to note about the 2014 decline in the Case-Shiller Boston Index is that it exactly coincided with the start of the 2014 “mini-bust”. In effect, the seasonally adjusted Case-Shiller Index called the advent of the 2014 summer swoon.
Moving forward to this year, the Index again is showing an unexpected drop after a run of strong increases. The Index may be serving as a reliable canary in the coal mine early warning system of upcoming market weakness.
The chart above compares how the Boston Index performed in 2014 with how it is doing so far this year. Just like 2014, the Index rose in the early months of the year, and has now moved lower.
Further from Boston, weaker markets in 2015
If you are looking for more signs of weakness in Massachusetts real estate this year, look at the many communities of eastern Massachusetts located beyond a reasonable commute time to Boston. Out on the I-495 loop for example, while desirable homes that were priced attractively have sold very quickly so far in 2015, a significant number of other listings in the region have sat unsold for extended periods of time. Many of the homes that lingered on the market had to drop their asking prices to eventually find a buyer.
Indeed, the overall Massachusetts real estate market performed rather indifferently in the first half of 2015.
Median sales price rises marginally
The median sale price of homes was up only 1.8% compared to the first half of 2014.
While this was the third year in a row of gains in the first half median sales price in Massachusetts, the increase was very modest compared to how homes prices were spiking in Boston and nearby “hot” cities and towns.
Sales volume up modestly
It was a similar picture for single family home sales volume in Massachusetts for the first six months of the year. Home sales volume rose a modest 1.2% over the first half totals of the previous year.
Home sales volume had dipped slightly in the first six months of 2014 compared to 2013, so it was good to see volume rebound this year. But certainly for the state overall, there was no home sales bonanza in the first half of 2015!
Home sellers take note of the potential for a slow summer
Given the Case-Shiller Boston Index’s recently announced 3.8% drop and the indifferent first half performance by the overall Massachusetts market, home sellers need to recognize the potential for a summer downturn this year. After all, it happened last summer!
If your home is not selling
If your home in Massachusetts is currently on the market and not getting offers, keep in mind that pricing real estate is an art, not a science. Work with your agent on a price adjustment sooner rather than later. If your home is overpriced, even by a little, the earlier you reduce your asking price, the sooner your home will find a buyer. You might be pleasantly surprised at what even a minor price change can do for you!
If you are considering selling
Setting an asking price is one of the thorniest areas of real estate. You as the home owner understandably want the most possible for your property. However, if your agent’s value estimate comes in below your expectations, avoid the temptation to demand a higher than indicated asking price. Trust the considered opinion of your real estate professional and price your home in line with your agent’s suggestion.
After many years of experience in the trenches of residential real estate in MA, I can honestly say that if you are right and the agent’s suggested price is inadvertently below true market, the market will correct that by bidding the selling price up. On the other hand, if you pressure your agent to set the asking price too high, the market will severely penalize the listing and your house simply will not sell until the asking price gets in line with market value. Homes that are overpriced when they enter the market often sell for LESS than they could have gotten had they been priced properly in the first place!
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You get more with Warren Reynolds than you do with other top real estate agents. You’ll find in Warren rare knowledge and experience dedicated to helping you achieve all the value that home brings. Warren has a law degree and 20+ years of home selling success in Massachusetts. — talk with Warren today! 508-561-6259
"We have now bought and sold five homes. By far, you have been the best realtor we have worked with. Your professionalism and knowledge are so valuable to your clients. You made this process so easy. "-CB
Make better decisions
and feel in control.
Did you know you can materially improve your home selling success by choosing your marketing agent and brokerage brand wisely? It’s true! A marketing agent with a sterling reputation, backed by a strong brokerage brand, will do wonders for the reception your home gets upon entry to market. Call Warren today! 508-561-6259
"As first time homebuyers we were fortunate to work with Warren. He was a great asset and sounding board. He always gave solid advice. Warren played a pivotal role in helping us negotiate with a difficult seller. We truly benefitted from having Warren in our corner and so will you." -JK
Maximize your home selling success.
Not only is Warren highly skilled and dedicated to protecting your best interests, he will be highly responsive to your needs! He CARES about his clients and is always, always there for them. Why not give it a try? Contact Warren now and see how well he takes care of you! – talk with Warren today! 508-561-6259
"I had many, many questions which Warren was always more than willing to answer with a never ending patience. Throughout the process Warren looked out for my best interest. I may have purchased a garden style condo but Warren treated me like I was purchasing a million dollar estate!" -MP
Get the attention you deserve.
Warren is a very creative real estate practitioner and he uses that creativity in ways that provide important advantages to clients. Creatively runs in Warren’s family! His uncle was Harnett T. Kane, an internationally-recognized investigative journalist and New York Times best-selling author of thirty books about the American South. Experience Warren’s refreshing difference today! 508-561-6259
"Your creative approach to all aspects of my move helped make the transition easy and pleasurable. You were recommended to me by a friend who appreciated your integrity, expertise, friendliness and conscientiousness - qualities that I have witnessed in abundance as we've worked together." -KB
Get creative with Warren.
Warren is a highly dedicated professional in all his real estate dealings. That means he will continue to serve you well, even when others would compromise on their commitments. Warren’s ultimate goals in business are better transactions and greater client satisfaction. Talk with Warren today! 508-561-6259
"As first time homebuyers we were fortunate to work with Warren. He was a great asset and sounding board. He always gave solid advice. Warren played a pivotal role in helping us negotiate with a difficult seller. We truly benefitted from having Warren in our corner and so will you." -JK
Maximize your home selling success.
All real estate agents are legally and ethically bound to be fiduciaries acting in their client’s best interests. His name stands for integrity and he takes his fiduciary duties to you very seriously. He’ll steadfastly put your interests first throughout your home purchase or sale – talk with Warren today! 508-561-6259
"Warren was always there for us. Throughout the process, Warren kept on top of all our concerns. Warren worked for us, and looked out for our best interest. He is a very professional and caring person." - BP
Feel safe and well taken care of.
Warren is a highly dedicated professional in all his real estate dealings. That means he will continue to serve you well, even when others would compromise on their commitments. Warren’s ultimate goals in business are better transactions and greater client satisfaction. His devotion to excellence can demonstrably improve your home buying and selling decision-making and, consequently, your experience of home ownership. Warren constantly stays current on the local housing inventory. And he is conversant with the broader market trends that affect home sales statewide link to Market Updates. Warren knows that the market knowledge he works so hard to maintain and his high standards of real estate practice help him achieve for you the lasting, true value of home ownership. Talk with Warren today! 508-561-6259
"Warren was the finest real estate agent we've ever worked with. This was evident to us in comparison to quite a few realtors we attempted to utilize, as they were not very helpful, understanding or willing to work with us based on our preferences." -SM
“If you think it’s expensive to hire a professional,
wait until you hire an amateur.” Red Adair
Did you know you can materially improve your home selling success by choosing your marketing agent and brokerage brand wisely? It’s true! A marketing agent with a sterling reputation, backed by a strong brokerage brand, will do wonders for the reception your home gets upon entry to market. Warren is known in the local brokerage community as a dependable, highly skilled professional who is a straight-shooter. Other agents like working with Warren because they know they can trust him to be a reliable partner in any transaction. And the Berkshire Hathaway HomeServices brand stands for sound decisions and extraordinary strength and stability. The “Forever Brand” brokerage created by Warren Buffet sets the standard for the real estate industry by focusing not on selling more homes, but rather on selling homes for more!Call Warren today! 508-561-6259
"As first time homebuyers we were fortunate to work with Warren. He was a great asset and sounding board. He always gave solid advice. Warren played a pivotal role in helping us negotiate with a difficult seller. We truly benefitted from having Warren in our corner and so will you." -JK
Maximize your home selling success.
Not only is Warren highly skilled and dedicated to protecting your best interests, he will be highly responsive to your needs! He CARES about his clients and is always, always there for them. In person, by phone, email or text, whenever you need him, you’ll get a prompt response from Warren! Warren’s clients rave about the high degree of consideration and attention they get from him. Why not give it a try? Contact Warren now and see how well he takes care of you! – talk with Warren today! 508-561-6259
"I had many, many questions which Warren was always more than willing to answer with a never ending patience. Throughout the process Warren looked out for my best interest. I may have purchased a garden style condo but Warren treated me like I was purchasing a million dollar estate!" -MP
Get the attention you deserve.
Warren is a very creative real estate practitioner and he uses that creativity in ways that provide important advantages to clients. Creatively runs in Warren’s family! His uncle was Harnett T. Kane, an internationally-recognized investigative journalist and New York Times best-selling author of thirty books about the American South. Warren employs his own creativity by producing compelling marketing, both in print and especially online! His www.02038.com, is a highly effective website promoting the wonderful lifestyle afforded by the Town of Franklin, MA. And his Market Updates content on Massachusetts real estate trends gives home buyers and sellers alike the context they need to make more informed decisions about their housing investments. Warren frequently uses his abilities to devise resourceful solutions to the diverse challenges that threaten to complicate most real estate transactions. Warren has made real estate his career and won many sales awards in his 20+ years in brokerage, including the highly prestigious Chairman’s Circle Gold Award and the elite Centurion Award. Experience Warren’s refreshing difference today! 508-561-6259
"Your creative approach to all aspects of my move helped make the transition easy and pleasurable. You were recommended to me by a friend who appreciated your integrity, expertise, friendliness and conscientiousness - qualities that I have witnessed in abundance as we've worked together." -KB
Get creative with Warren.
You get more with Warren Reynolds than you do with other top real estate agents. You’ll find in Warren rare knowledge and experience dedicated to helping you achieve all the value that home brings. Warren has a law degree and 20+ years of home selling success in Massachusetts. His legal knowledge and decades-long experience in putting — and keeping — real estate sales together give him a better handle on the legal, practical and emotional dynamics of the real estate transaction. Warren uses these skills to empower clients to achieve more! He often anticipates and resolves problems BEFORE they can become serious impediments. Enjoy the sense of trust, security and control that comes from having a highly skilled expert at your side — talk with Warren today! 508-561-6259
"We have now bought and sold five homes. By far, you have been the best realtor we have worked with. Your professionalism and knowledge are so valuable to your clients. You made this process so easy. "-CB
Make better decisions and feel in control.
All real estate agents are legally and ethically bound to be fiduciaries acting in their client’s best interests. But many agents give their fiduciary duties short shrift in their quest for the quickest and easiest path to a closing. Not Warren Reynolds! His name stands for integrity and he takes his fiduciary duties to you very seriously. He’ll steadfastly put your interests first throughout your home purchase or sale. This may make Warren work longer and harder for you than most other agents would. But ultimately, Warren’s diligence and attention to detail is his commitment to an experience that transcends the sale. He wants you to have the confidence and peace of mind that comes with having a true fiduciary protecting you. Discover the difference of working with an agent who does not view you as just another opportunity for a commission – talk with Warren today! 508-561-6259
"Warren was always there for us. Throughout the process, Warren kept on top of all our concerns. Warren worked for us, and looked out for our best interest. He is a very professional and caring person." - BP
Feel safe and well taken care of.