Media Reports and the Housing Market

According to a survey by the Pew Research Center, just 29% of Americans perceive that news organizations generally get the facts straight.  Negative news in the real estate industry tends to have a big impact on ratings for the media and the message is often skewed in order to attract readership.  One such example is this headline which ran in the December 2, 2009 issue of the Chicago Tribune — “Mortgage rates hit lows, but will it last?”  The article offered no evidence that rates would soon rise—3 months later rates are still low—the intimidating headline was never justified.  For a closer look at how you can come to a more balanced view of the news and the real estate market consider this Real estate and the media report. Remember too that real estate trends and sales are local.  Sales vary dramatically from town to town, neighborhood to neighborhood and price point to price point. Consider the market data for single family home sales in Andover and North Andover.  Median sale prices are up 13% in Andover and 37.5% in North Andover for the first quarter of 2010 when compared to the first quarter of 2009–two very different trends in two very similar towns!  Your trusted real estate professional can help you understand the housing market in your neighborhood.

Every news report I read reports improving real estate sales in Massachusetts. According to  the Boston Globe sales of single family homes in Massachusetts rose 3% in 2009, the first year over year increase since 2004.  Whether or not this trend continues is the subject of much debate.  There is much speculation and many opinions as to whether or not the housing market will continue to recover after the government home buyer tax incentives expire.  Let’s take a look at single family home sales in Andover and North Andover. 

 In Andover the average single family home price in 2009 was $574,387 down .9% from the 2008 average sale price of $585,193.   A total of 252 single family homes sold in Andover in  2009 up 1.6%  over 2008 sales.

In North Andover the average single family home price in 2009 was $459,480 down 14.2% from the 2008 average sale price of $528,274. A total of 195 single family homes sold in North Andover in 2009 up 7.8% over 2008 sales.

You see the market data can be very different even in two neighboring towns.  Knowing and understanding your local market is critical when making buying or selling decisions.   See what homes have sold in YOUR NEIGHBORHOOD. 

North Andover Tax Increase

The average homeowner in North Andover will see his or her real estate tax go up again in 2010.  An average home valued at $447,800 will soon pay  property tax of $6502.  Selectman voted earlier this month to set the North Andover residential property tax rate at $12.74 per $1000 valuation. See the current valuation of your home in North Andover. 

Andover residents will see similar increases in their property taxes where the residential tax rate will increase to $13.19 per $1000 valuation.  If you’re concerned about your ability to pay your 2010 property taxes contact me at REMAX Partners in Andover.  Many cities and towns offer tax exceptions or abatements for qualified residents but there are very specific procedures and deadlines which must be followed.

Refinancing can lower your monthly mortgage payments

With home mortgage interest rates at historic low rates it may be a perfect time to refinance your current Andover or North Andover home. Although refinancing can sometimes be a complicated process it may be worth the effort because it may save you tens of thousands of dollars over the life of your loan. 

Generally refinancing makes sense if you can reduce your current mortgage by 2 points or more.  Analyze whether the cost of refinancing makes sense by figuring out how long it will take you to cover the refinancing costs and whether you plan on being in your home that period of time.  If your new mortgage will save you $200 a month in mortgage payments and it will cost you $2,000 to obtain the loan then it will take 10 months for you to “break even” and begin to save money. 

Shorter loans have lower interest rates but higher monthly payments.  Mortgages are usually 15 years or 30 years in length.  Make sure that your new loan doesn’t have penalties associated with an early pay-off if your plan is to move or pay off your home loan early.

 Refinancing can be a wise financial decision and with mortgage rates at a 30 year low refinancing is at an all-time high.  Weigh all of the details and make sure that your new mortgage is exactly what you are looking for before signing on the dotted line.

This mortgage calculator can help you decide or Click here for more information about refinancing from Yahoo Real Estate.

Have you ever asked yourself if you really need a Realtor?  Perhaps you’re concerned about saving money or being overwhelmed by phone calls or e-mails.  However, whether you’re buying or selling your home a real estate professional can be an invaluable asset, helping to keep deals together and making sure every important detail is managed in a timely fashion.

Because I know the Andover and North Andover real estate market can help sellers properly price their homes.   As “Your Neighborhood Expert” I advertise and market homes not only to potential buyers but to other real estate professionals as well.  I help home owners present their homes in a way that will appeal to potential buyers. I negotiate contracts and make certain all the essential details are properly coordinated.

My knowledge of the local real estate market is just as valuable for home buyers. I know what homes are available and I know the community, its amenities and all that it has to offer.  I prepare contracts, negotiate offers, help arrange home inspections and coordinate all the steps required for a successful closing.

If you’re thinking about buying or selling a home in the Andover area, or know someone who is, I can help diminish the stresses involved with buying or selling real estate.  Contact me at ReMax Partners in Andover to learn more about my buyer and seller services.