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      Blog :: 08-2017

      58% of Homeowners See a Drop in Home Values Coming

      58% of Homeowners See a Drop in Home Values Coming | MyKCM

      According to the recently released Modern Homebuyer Survey from ValueInsured58 percent of homeowners think there will be a “housing bubble and price correction” within the next 2 years.

      After what transpired just ten years ago, we can understand the concern Americans have about the current increase in home prices. However, this market has very little in common with what happened last decade.

      The two major causes of the housing crash were:

      1. A vast oversupply of housing inventory caused by home builders building at a pace that far exceeded historical norms.
      2. Lending standards that were so relaxed that unqualified buyers could easily obtain financing thus enabling them to purchase a home.

      Today, housing inventory is at a 20-year low with new construction starts well below historic norms and financing a home is anything but simple in the current mortgage environment. The elements that precipitated the housing crash a decade ago do not exist in today’s real estate market.

      The current increase in home prices is the result of a standard economic equation: when demand is high and supply is low, prices rise.

      If you are one of the 58% of homeowners who are concerned about home values depreciating over the next two years and are hesitant to move up to the home of your dreams, take comfort in the latest Home Price Expectation Survey.

      Once a quarter, a nationwide panel of over one hundred economists, real estate experts and investment & market strategists are surveyed and asked to project home values over the next five years. The experts predicted that houses would continue to appreciate through the balance of this year and in 2018, 2019, 2020 and 2021. They do expect lower levels of appreciation during these years than we have experienced over the last five years but do not call for a decrease in values (depreciation) in any of the years mentioned.

      Bottom Line

      If you currently own a home and are thinking of moving-up to the home your family dreams about, don’t let the fear of another housing bubble get in the way as this housing market in no way resembles the market of a decade ago.

      Housing Inventory Hits 30-Year Low

      Housing Inventory Hits 30-Year Low

      Spring is traditionally the busiest season for real estate. Buyers, experiencing cabin fever all winter, emerge like flowers through the snow in search of their dream home. Homeowners, in preparation for the increased demand, are enticed to list their house for sale and move on to the home that will better fit their needs.

      New data from CoreLogic shows that even though buyers came out in force, as predicted, homeowners did not make the jump to list their home in the second quarter of this year. Frank Nothaft, Chief Economist for CoreLogic had this to say,

      “The growth in sales is slowing down, and this is not due to lack of affordability, but rather a lack of inventory. As of Q2 2017, the unsold inventory as a share of all households is 1.9 percent, which is the lowest Q2 reading in over 30 years.”

      CoreLogic’s President & CEO, Frank Martell added,

      “Home prices are marching ever higher, up almost 50 percent since the trough in March 2011.

      While low mortgage rates are keeping the market affordable from a monthly payment perspective, affordability will likely become a much bigger challenge in the years ahead until the industry resolves the housing supply challenge.”

      Overall inventory across the United States is down for the 25th consecutive month according to the latest report from the National Association of Realtors and now stands at a 4.3-month supply.

      Real estate is local.

      Market conditions in the starter and trade-up home markets are in line with the median US figures, but conditions in the luxury and premium markets are following an opposite path. Premium homes are staying on the market longer with ample inventory to suggest a buyer’s market.

      Bottom Line

      Buyers are out in force, and there has never been a better time to move-up to a premium or luxury home. If you are considering selling your starter or trade-up home and moving up this year, let’s get together to discuss the exact conditions in our area.

      Why the Back Bay, Boston is for You

      Why the Back Bay, Boston is for You

      Back Bay is Boston’s premier shopping and dining neighborhood. Back Bay is perfect for people watching and socializing, and provides ample opportunity to dine, shop, party, and vacation all at once, and all within close range of the T. There are plenty of things to do in Boston, but consider the Back Bay your one-stop-shop for all things high-end entertainment and relaxation.

      Before this part of the city was home to good eats and fashion-forward tourists, the area that is now Back Bay was home to a giant mill dam that birthed a swampland full of mosquitos on the bay. But thanks to some spare dirt laying around (shout out to the 1849 Boston health department), over 450 acres of steaming tidal area was filled to grade and re-sanctioned for development. In the years since, many magnolias have been planted, neighborhood associations formed, and new district names given to reflect the ongoing changes. Now, this area of the city is formally known as the Back Bay Architectural District.

      Highlights to Explore

      As you’re walking along Commonwealth Ave., take a second to absorb your surroundings. You’ll be amazed by the gorgeous Victorian brownstones in the residential areas, a marker of the old Boston wealth that settled here after the area was re-zoned for residential construction over one hundred and fifty years ago. Back Bay has long been considered one of Boston’s most desirable (and expensive) places to live, and notable buildings include the giant and ornate Boston Public Library and the tallest building in the city, the John Hancock tower at 200 Clarendon.

      If you’re exploring with children, take a two-hour tour of the bay with Capt. Berry on his floating classroom bay cruise tour. Your littles will learn all about how to hunt for jellyfish, identify bay-area birds, and hold a crab without getting pinched. Availability is limited, so make a reservation in advance to guarantee your spot with the Indiana Jones of the Chincoteague. If you’re looking for an exploration of the bay but don’t feel ready to dig around in mud, book a tour on one of the bay’s Swan Boat Tours

      Atmospheres to Enjoy

      After you’ve had your fill of walking and shopping, these are the places to go for a delicious drink or an evening of partying. Sonsie on Newbury Street offers a wide variety of cocktails and pairings, as well as a Gluten-free menu for guests with dietary restrictions. It gets packed during the late-night hours and is known to be a social hub, but it offers a more relaxed vibe before it fills to capacity in the evening.  For a more alternative drinking experience, Bukowski’s Tavern is where you should go. If all you do is write venomous drunk poetry and ramble about your own hopeless pit of self-loathing, you’ll be in good company with many other Charles Bukowski fans, but those qualities aren’t required for entry. Don’t expect to find the place empty (which is probably what Bukowski would have wanted). Bukowski’s Tavern is actually known for their peanut-butter burger and never-ending playlists of punk rock as much as for their great beer selection and has made its way onto a series of “Best Dive Bar in Boston” lists.

      Shopping to Appreciate

      The Back Bay is stocked with every high-end brand you’ve ever coveted, so whether you’ve been shopping Louis Vuitton for years or simply lusting over it, the Back Bay has every store can you think of along its avenues. Window shop or shop until you drop, run your fingers through some fine linens and silks at the stores of the Prudential Center, along Newbury Street, and at Copley Place. The shopping grid is easily decoded, and the more down-market stores like Urban Outfitters are located near Mass Ave. but as you progress eastward, you’ll notice progressively high-end shops (e.g. Lucky Jeans). You’ll know you’ve hit the boundary of the eight-block shopping stretch when you find yourself peering into the windows of Chanel and Cartier. For the most comprehensive list of stores, visit this list compiled by the Back Bay Association.

      Food to Adore

      The Back Bay is home to a variety of restaurants, and options cater to all price ranges and food preferences. If you’re looking for elegance and sophistication, stop into L’Espalier on Boylston Street for refined French-English fusion. Their calling-card is a gorgeous eight-course menu, which promises to entrance guests and leave them satisfied. If L’Espalier is a little spendy for what you’re looking for, try Stephanie’s on Newbury, an award-winning restaurant known for its sophisticated comfort food. The restaurant is close to some of the city’s most upscale and popular shops and art galleries, making it the perfect spot to grab a bite and continue exploring. Alternatively, Trident Books and Café is the perfect stop for those of us who enjoy a slightly less traditional pairing: great books and better coffee. Their café is well-known for their all-day breakfast menu and antioxidant rich smoothie selection. 

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