Mbettinson's Weblog

REALTOR ® Study Reports that over Half of Homes Purchased in Massachusetts in 2009 were Made by First-Time Home Buyers

Mark Bettinson — Fri, 12 Feb 2010 17:44:43 +0000

WALTHAM, Mass. – February 10, 2010 – A new study on Massachusetts home buyers and sellers found that over 50 percent of all homes purchased in the Bay State in 2009 were made by first-time home buyers (compared to 47 percent nationally). This is up five percent from 2008. The data is from the 2009 Massachusetts Profile of Home Buyers & Sellers, compiled by the National Association of Realtors® (NAR), on behalf of the Massachusetts Association of REALTORS® (MAR).
“The study echoed what many members had been hearing from their clients that the combination of more affordable prices, historically-low interest rates and the availability of the first-time home buyer tax credit all worked together to get first-time home buyers back into the market,” said 2010 MAR President Kevin Sears, a broker/co-owner of Sears Real Estate in Springfield. “At the same time, because it was a buyer’s market in 2009, the study found that over 90 percent of home sellers chose to work with a real estate broker to help sell their home.”
The study found that while oil prices had come down from the highs of 2008, commuting costs were still considered as very or somewhat important by 81 percent of buyers when considering which home to purchase. This was down from 84 percent in 2008.While the number of foreclosed homes in 2009 went down compared to 2008, the number of buyers who bought a home went up. According to the study, 10 percent of buyers bought a foreclosed home, which is up 7 percent from 2008, but the same as the national average.

The median income of buyers (which is reported from 2008 household data) was up to $94,800 compared to $88,100 in 2007 and higher than the $73,100 national median income. Fifty-nine percent of home buyers were married couples, 15 percent single females, 14 percent single males, and 12 percent unmarried couples. Thirteen percent of home buyers reported they were born outside of the United States compared to nine percent nationally.

The median age of the first-time home buyer was 30, which was down from 31 years of age in 2008. Sixty-one percent of first-time home buyers were between 25 and 34 years old, while 18 percent were 35-44 years. Only seven percent were 18-24 year years. First-time home buyers had a median income of $84,600 compared to $61,600 among first-time home buyers nationally.

Despite stricter lending requirements in 2009, 90 percent of buyers still financed their home purchase (94 percent of first-time buyers compared to 84 percent of repeat buyers). Savings was the chief source of the downpayment for 76 percent of first-time buyers with 48 percent of repeat buyers using proceeds from the sale of their primary residence.

Fifty-four percent of all buyers believe that their home purchase was a better financial investment than stocks (compared to 47 percent in 2008); with an additional 29 percent of buyers feeling their home purchase was at least as good an investment as stocks.

The study showed that 92 percent of Massachusetts home sellers chose to work with a real estate professional, which is seven percent higher than the 85 percent national average. Only five percent of sellers attempted to sell their home without the assistance of an agent or broker. This is much lower than the national share of 11 percent. Of those “For-Sale-By-Owner” (FSBO) sellers, about 20 percent knew the buyer prior to the sale.

The median age of the home seller was 44 years (which is down from 47 years in 2008) and they had a median income of $113,500. The typical seller owned their home for eight years. Fifty-percent of home sellers reported the main reason for deciding to sell was either a change in family situation (e.g., marriage, birth of child, divorce) or their home was too small. Only six percent reported selling their house because they could not afford the mortgage and other expenses of owning a home.

When it came to selling, 38 percent of home sellers did not reduce their asking price before the home was sold. Recent sellers typically sold their home for 94 percent of the listing price. Twenty-three percent of sellers did offer incentives to attract buyers compared to 42 percent nationally. Most often that assistance was applied to closing costs and home warranty policies.

*article compliments of Realtor.com

The Pro’s of Getting a Home Inspection

Mark Bettinson — Tue, 20 Oct 2009 16:13:07 +0000

When considering buying a new home, don’t cut corners when it comes to getting a home inspection. National statistics have reported that upwards to 40% of all previously owned homes on the market have been found to have at least one serious defect. Some defects are already disclosed by the seller and built into the pricing of the home. However the buyer needs to beware of exactly what they are purchasing and what extended costs they will incur from fixing up a problem that wasn’t theirs. For any of the classic problems (roof, furnace, electrical, pest damage, etc), the costs incurred could range from incidental to substantial. Once aware of a problem, you will want to ask your agent if the price which is agreed upon is still a fair price for the property. The home inspection protects your interests. Don’t buy your home without one!

The Clock is Ticking for Credit Deadline for First-Time Buyers!

Mark Bettinson — Mon, 14 Sep 2009 15:19:57 +0000

To stimulate the economy and the real estate market, first time home buyers are being given an $8,000 federal tax credit if they close on a property by November 30^th of this year. Because of this, agents are seeing a surge of first-timers rushing to close in time for the deadline, setting off bidding wars and stimulating what is typically a quiet August market.

In order to meet the November 30^th deadline, buyers should be signing contracts to purchase around September 30^th so that inspections, mortgage approvals and other odds and ends have ample time to be processed.

Though $8,000 seems negligible when compared to purchasing a $300,000 home, keep in mind that $8,000 can cover part of your first month’s mortgage or buy you new fixtures or even pay for landscaping.

With lower home prices, down about 20 percent in the region from the market peak in 2006, and mortgage rates in the 5.5 percent range, the addition of the federal tax credit makes this season a perfect one for first-time home buyers!

EXIT Premier Earns Office of the Year in Massachusetts

Mark Bettinson — Mon, 17 Aug 2009 17:09:24 +0000

EXIT Premier Real Estate of Burlington is proud to announce their recognition as Massachusetts “Office of the Year” by EXIT Realty of New England. EXIT Premier was also recognized as the #1 office in dollar volume for the 2008/2009 calendar year, placing the Burlington office first in Massachusetts for the third time in the last five years. The award ceremony took place on July 28^th at the Westford Regency Conference Center.

Mark Bettinson, Broker/Owner of EXIT Premier, accepted the award on behalf of his team from EXIT Realty International Founder and CEO, Steve Morris, who joined local New England brokers at the annual retreat and awards ceremony.

“Thanks to a team effort led by Sales Manager Sonia Rollins, Exit Premier has held top market share in residential sales for Burlington in 2008 and 2009,” said Bettinson.

Rollins added, “We are honored and proud to have received both of these awards from Exit Realty of New England. Our consistent market share is maintained because of the level of commitment and experience that our agents bring to the community on a daily basis. First and foremost, the real estate industry is a people business, and our management team at Exit Premier is confident that we have the right people working with us to serve our clients.”

In addition to office awards, Exit Premier Realtors Jim Connearney, William Rosanio, and Wilhelmina Kanelos also received individual honors.

Said Bettinson, “I’m honored to be working alongside a team of dedicated realtors. Our office remains committed to providing honest advice and guidance to those who are seeking to buy or sell homes. In a time of great challenge in residential real estate markets nationwide, Exit Premier continues to excel.”

Selling Your Home in 2009- You Can’t Fool Mother Nature

Mark Bettinson — Wed, 17 Jun 2009 14:23:06 +0000

Take Heart! The Sky is not falling. The ground might be shaking a bit, but there is a vibrant and healthy real estate market nevertheless. It’s not too late to “make your move” in 2009. You are able to sell your house in spite of everything you read in the papers and hear on the newscasts. Now some of you are mouthing, ’did he say vibrant and healthy?’ Yes, he did. But I’ll qualify that.

In any given local market, we have seen the average “days on market” for sales rise to twice the levels they were three years ago. But I make a distinction between the days on market for homes that are priced to reflect the actual values in todays market and those homes that are still priced to reflect the market of two and three years ago. If your home is priced accurately, I can sell it in 30-45 days, just like three years ago!

If there are 80 homes on the market in your local MLS, my observation leads me to the conclusion that at least half of them DO NOT reflect accurate pricing in today’s market. As such, they are not really ON THE MARKET! Of the 40 remaining homes that are asking a price that actually is fair given today’s credit crunch, buyers are coming through with acceptable offers in a reasonable short time frame! This is not a complicated business.

Of course, prices have dropped substantially in some areas, especially those markets where historically easy credit was extended from 6-8 years ago up until two years ago. As the falsely inflated prices on those homes has come down with the local upside down sales and foreclosures, this has indeed brought down values on those who remain solvent and up to date on their own loans. But, like any inflated market, the higher values were only there for the taking in the last few years of the market upswing. And they were only on paper, unless you cashed out of your house. What I’m really saying, is that for those of you who feel like you have lost value, take heart…. Very few people actually sold at the peak.

How long? How long before prices rise? I think it will be years. So your motivation to sell will come from your life needs to move as opposed to concern for the value of your real estate portfolio. If its time to move up, it’s as good a time now as ever. If it’s time to head to Florida, ditto. The pricing IS WHAT IT IS.

You can’t fool Mother Nature. The Marketplace is Mother Nature. If you are ready to move, you must work within the realities of this great balancer we call the “market”. With regards to exactly what the “market” will bear for you today, I will promise you clear and unbridled honestly. I’ll help you set your expectations correctly and I’ll help you get the job done within 60-90 days maximum, if you choose to move forward.

You can reach me at mark@exitpremier.com