POSTED ON : 12/05/2023
*** How LOW is the Supply of Homes *** We (www.keyprimerealty.com) have extracted our MLS data as of 11/30/2023 for Single Family, Condo, Multi Family new listings by month and put the numbers on a chart. This tells it all. Check how abysmal the supply of homes this year when compared to many years in the past. It is surprising we didn't do this bad during the peak Covid time back in 2020. Despite the Feds demand destruction efforts which succeeded in doing so but it did more damage to the supply than to the demand. No wonder, Boston is one of the top 10 metros in terms of price increases this year when compared to last.
POSTED ON : 12/01/2023
***State of Housing Market - Massachusetts Single Family *** The just released "Quarterly Market Insights" from our local MLS tells the state of housing in clear terms. We(www.keyprimerealty.com) extracted the 3 most important slides from this report. Sale Price Change QoQ, Listing Counts QoQ, Days2Offer QoQ - These are 3 objective numbers the shed the light on how low the inventory is and how hot the market turned out to be despite a shocking mortgage rate environment w.r.t recent credit environments.
POSTED ON : 11/22/2023
***Massachusetts Association of Realtors (MAR) housing report for Oct 2023***. If you are in the market or just interested in tracking the market – hope you find this summary helpful. For a more detailed report go here - https://www.keyprimerealty.com/mar-reports
POSTED ON : 11/20/2023
***Just Closed***Congrats to our (www.keyprimerealty.com) buyers who got to close these properties in the past couple of weeks. Tight inventory. Common Multi-Offer situations. Bidding Wars. Sale to List is above 100% in most towns. High Interest Rates. Yet the buyers made it to the finish line. Despite a proven track record, we are always looking forward to work for that one NEXT client. If not for you, refer someone who might be looking to hire a realtor. Just have them interview us for the JOB!!
POSTED ON : 11/17/2023
***Oct 2023 - Producer Price Index - Residential Construction***
We (www.keyprimerealty.com) work with several new construction buyers/sellers. Producer Price Index (PPI) published recently by US DOL - BLS, shows the prices of inputs to residential construction haven’t changed much Month over Month. YoY, there is a good reduction in some of the highly weighted items that go into new home build such as Softwood Lumber. We pulled some charts from FRED Economic Data. These are eye opening on how the construction materials have gone up since Jan 2020. The Inflation / Supply Chain disruptions have indeed taken a toll on the overall cost of materials that go into a new home construction. There are some significant increases in costs. Despite all this, the home builder’s confidence index is so high as the margins are pretty good as they have excellent pricing power considering the home price appreciation during this period due to the supply gut. Thought this is useful for those who might be interested in buying new constriction or better yet if someone wants to build their own home!!
POSTED ON : 11/16/2023
***CPI Print on 11/14/2023 – Most of the increase is from Shelter***
Shelter costs rose .3% Month Over Month and 6.7% Year Over Year. This weighs heavy in the core CPI which is at 3.2% for the last 12 month period. This is well above the Feds target of 2%. This latest CPI data was widely celebrated with a pop in stocks and yields on bonds falling sharply, something has to break in housing for the target 2% to be realised. Rents must come down. Hope the huge number of apartments being built come online soon and while these are being absorbed, the rents should stabilize if not come down. Owners equivalent rent is tricky. This measures how much money a property owner would have to pay in rent to be equivalent to their cost of ownership. The third component of shelter which is lodging away from home should become stable, once the revenge travel after pandemic subsides.
POSTED ON : 11/07/2023
*** How LOW is the Supply of Homes *** We (www.keyprimerealty.com) have extracted our MLS data for Single Family, Condo, Multi Family new listings by month and put the numbers on a chart. This tells it all. Check how abysmal the supply of homes this year when compared to many years in the past. It is surprising we didn't do this bad during the peak Covid time back in 2020. Despite the Feds demand destruction efforts which succeeded in doing so but it did more damage to the supply than to the demand. No wonder, Boston is one of the top 10 metros in terms of price increases this year when compared to last.
POSTED ON : 11/03/2023
*** What is happening to Home Prices *** Out take(www.keyprimerealty.com) on Home Prices. Housing is in recession for sure! Several businesses that rely on home buy/sell/finance transactions such as brokerages, agents, lenders, loan officers are hurting very bad. Stocks of companies like Redfin, Zillow, Compass are at rock bottom levels. Yet, despite all these indicators, prices are holding and steadily increasing. Refer to the "S&P/Case-Shiller U.S. National Home Price Index" which has been steadily ascending for several years in a row with only a small blip in the second half of last year. Buyers sure did miss this short window. This proves yet again how tough it is to time the market.
POSTED ON : 10/30/2023
*** Just Closed *** Congrats to our(www.keyprimerealty.com) buyers who have just closed this beautiful home in the coveted Lexington town. Lexington being Lexington - of course there was bidding! There were 6 offers on the property. Great to see our buyers win. Buyers found mostly what they were looking for in this home. We managed to find a lender at 5.7% which put so much more buying power in their hands. Interview us to see what we can do for you!
POSTED ON : 10/25/2023
***Increase in Price Cuts & Decrease in Sale to List Price Ratio*** We (www.keyprimerealty.com) haven't yet seen this in action as we lost a few offers in recent bidding but a national trend is setting in which is a welcoming news for buyers tired of Home Price Increases . 2 Main reasons for this: 1). Seasonally this is the time some cooling of prices happen 2). The Spike in 10-year treasury off late has pushed mortgage rates closer to 8. While the mortgage rates increase is bad news for buyers, fewer bidding wars and price cuts are a welcome sign. You can always lock a better rate down the line when they do go down like most did during the recent historically low mortgage rate period.
POSTED ON : 10/20/2023
***Massachusetts Association of Realtors (MAR) housing report for Sep 2023***. If you are in the market or just interested in tracking the market – hope you find this summary helpful. For a more detailed report go here - https://www.keyprimerealty.com/mar-reports
POSTED ON : 10/18/2023
***Sep 2023 - Producer Price Index - Residential Construction***
We (www.keyprimerealty.com) work with several new construction buyers/sellers. Producer Price Index (PPI) published recently by US DOL - BLS, shows the prices of inputs to residential construction haven’t changed much Month over Month. YoY, there is a good reduction in some of the highly weighted items that go into new home build such as Softwood Lumber. We pulled some charts from FRED Economic Data. These are eye opening on how the construction materials have gone up since Jan 2020. The Inflation / Supply Chain disruptions have indeed taken a toll on the overall cost of materials that go into a new home construction. There are some significant increases in costs. Despite all this, the home builder’s confidence index is so high as the margins are pretty good as they have excellent pricing power considering the home price appreciation during this period due to the supply gut. Thought this is useful for those who might be interested in buying new constriction or better yet if someone wants to build their own home!!
POSTED ON : 10/16/2023
***Where are Town Homes / Condos being built in Massachusetts*** We (www.keyprimerealty.com) have extracted all new construction Condo listings from our MLS and placed them on the map to advise our clients where is such new construction. This custom Google map has the number of units, name of the complex for each location. We have included an MLS number of one listing for each complex if a user would like to research further on the complex. A website of the development if present has also been included. With existing homes supply at rock bottom this year, we are having several clients looking for new construction. This equips up to point them in right direction. We thought this helps anyone in market and hence we are making it public.
POSTED ON : 10/13/2023
*** September 2023 - Consumer Price Index - Most Increase is from Housing***
Our( www.keyprimerealty.com) take on the latest CPI data w.r.t to Housing. Shelter costs rose .6% Month Over Month and 7.2% Year Over Year. This weigh heavy in the core CPI which is at 3.7% for the last 12-month period. This is well above the Fed’s target of 2%.
Something must break in housing. Rents must come down. Some say the Zillow Rent Index shows much moderate rent increase which is a leading indicator where rents are going. Hope the huge number of apartments being built come online soon and while these are being absorbed, the rents should stabilize if not come down. Owners’ equivalent rent is tricky. This measures how much money a property owner would have to pay in rent to be equivalent to their cost of ownership. The third component of shelter which is lodging away from home should become stable once the revenge travel after pandemic subsides.
POSTED ON : 10/11/2023
***Soaring yields on 10 Year T-Note: What it means for Housing*** Yields on the 10-year treasury stands at the same levels as they were in 2007. The surge was shockingly sudden after the recent FOMC meeting. Considering 10 Year is a Proxy for Mortgage Rates, the rates will likely go high from here and stay high as long as the yields stay high. Until the buyers of treasuries (Fed/China/Japan etc.) come back, we are in for a readjustment of risk assets - stocks, real estate etc. Higher mortgage rates are obviously bad news for Housing Market which is probably the most interest rate sensitive area. it is ironical but something must happen to this supercharged economy for investors to get back to the safety of treasuries, lowering yields, lowering mortgage rates, and finally bring normalcy to the Housing Market.
POSTED ON : 10/06/2023
*** Where is New Construction? - Single Family *** We (www.keyprimerealty.com) generated a custom map pinning where new construction is going on. Hope this helps not just our clients but general public who might be interested in this data. While the sellers "locked in" bringing down the supply of homes to historic lows, developers/builders are filling the gap where possible and helping with the situation. While the creation of affordable Single Family is rare these days, any type of addition to the inventory situation is very much appreciated.
POSTED ON : 10/03/2023
***Under Contract Sales*** Congrats to our(www.keyprimerealty.com) clients who put these homes under contract. With one month or less supply of homes in most towns, it was a challending ordeal to get these pass through the initial stages of the sale process. Our clients went above and beyond and so is the agent working for them. Interview us to see what we can do for you!
POSTED ON : 09/26/2023
***Did you LOCK the historically Low Mortgage Rate?*** We (www.keyprimerealty.com) would like to draw your attention to an interesting graph on mortgage rate share. Since 2020, the percentage of sub 3% mortgage rate jumped from 4% to 23% of all outstanding loans. Share of 4-5% fell from 40% to 20%. May be this explains why a good number of US consumers are insulated from the FED rate hikes and resilient. This also explains why the exisitng housing supply froze. Who wants to let go of this prized posession!!
POSTED ON : 09/23/2023
***Massachusetts Association of Realtors (MAR) housing report for Aug 2023***. If you are in the market or just interested in tracking the market – hope you find this summary helpful. For a more detailed report go here - https://www.keyprimerealty.com
POSTED ON : 09/22/2023
***Just Closed***Congrats to our (www.keyprimerealty.com) buyers who got to close these properties in the past couple of weeks. Tight inventory. Common Multi-Offer situations. Bidding Wars. Sale to List is above 100% in most towns. High Interest Rates. Yet the buyers made it to the finish line. Despite a proven track record, we are always looking forward to work for that one NEXT client. If not for you, refer someone who might be looking to hire a realtor. Just have them interview us for the JOB!!
POSTED ON : 09/11/2023
***Just Listed in Natick. Within budget for most households. Open House Sat & Sun 1-3PM***
Very well maintained Deerfield Complex within a mile from Natick MBTA station. Perfect combination of convenience & resort style subdivision with garden style homes, lots of greenery, and amenities that let you have it all within the community.
POSTED ON : 09/11/2023
***Home Prices to Rent & Income Ratios - Compared by Country*** If you think US Home prices are out of control, think again. We (www.keyprimerealty.com) would like to refer you to OECD (https://www.oecd.org/) data that compares the home prices to rent & income data of comparable market-driven economies. Interestingly the US ranks pretty well. Majority of the countries in this group have a much worse affordability and a poor own to rent ratio. Home prices paid by owners make it much cheaper to rent in several of these countries. There could be some other factors such as higher city taxes in the US but even after such considerations, the US does very good on affordability (relatively speaking) and if the housing supply glut continues, the home prices might still have a lot of room to run from here!!
POSTED ON : 09/05/2023
***Just Closed***Congrats to our (www.keyprimerealty.com) buyers who got to close these properties recently. Tight inventory. Common Multi Offers. Bidding is Still Going On. Sale to List is above 100% in most towns. High Interest Rates. Yet the buyers made it to the finish line. Despite a proven track record, we are always looking forward to work for that one NEXT client. If not for you, refer someone who might be looking to hire a realtor. Just have them interview us for the JOB!!1
POSTED ON : 08/31/2023
***The Erosion of Housing Affordability. BOLD Action Needed to Fix!***We (www.keyprimerealty.com) are a member of NAR, the largest trade association and follow the content closely. NAR's affordability index chart below with historical data. A score of 100 means a buyer with median income can afford a median home. Data going back to 1980 shows how affordability, particularly for first-time buyers, has eroded, diving in 2022/2023 to a level not seen since the mid-1980s. A few advocacy efforts from NAR : 1). Increase Capital gains exclusion limit . 2). Offer Tax credits to attract private investment for expensive rehabs 3). Provide Tax incentives to convert unused commercial building to residential 4). Cut red Tape in Land Development
POSTED ON : 08/25/2023
" Why Home Builder Stocks Have Caught Wall Street's Attention
We (www.keyprimerealty.com) watch the whales when they tarde/invest housing stocks. Warren Buffett's Berkshire Hathaway has set its sights on the housing market, and here's why it matters! According to their latest 13F filings, the conglomerate has strategically invested in leading home builders: DR Horton, Lennar, and NVR. Total Investment: A whopping $814 million! This significant commitment highlights Berkshire Hathaway's confidence in the potential of the housing sector.
Outperformance: These home builder stocks didn't just keep up; they soared! In the second quarter, all three companies outpaced the S&P 500 by a wide margin, showcasing their resilience and growth potential even in uncertain times. Beyond the Quarter: The 13F filings provide a snapshot, but the story might not end there. Berkshire Hathaway could have continued to build its position beyond the reported quarter, indicating a sustained belief in these companies' prospects.
(Note: 13F filings reflect a point in time and might not capture ongoing developments.)
POSTED ON : 08/22/2023
***Who WON the Home Price Change Predictions for 2023??***. We (www.keyprimerealty.com) referred to an interesting Article from Furtune.com published in the beginning of the year on Home Price Change Predictions from various authorities on the subject. The real results as of today, point us to the fact that “timing the markets is a futile exercise and most will fail doing so”. Most predictions were way off the mark. We got to give it to NAR – the National Association of Realtors. Their prediction seems to be closest at national level. Our Greater Boston has seen much better Price Appreciation so far Year to Date..
POSTED ON : 08/18/2023
Massachusetts Association of Realtors (MAR) housing report for July 2023 is out. If you are in market or just interested on the housing facts – hope you find this summary helpful. For a more detailed report https://www.keyprimerealty.com/copy-of-mar-reports
POSTED ON : 08/17/2023
*** 30 Year Mortgage Rates Hit 23 Year High.Do you Really Have to Borrow at Average??***
30 Year Mortgage Rates Hit a 23 Year High. Rates are well above 7%. Charts below from mortgagenewsdaily.com. We (www.keyprimerealty.com) have been at work to find lenders that beat the averages by a great margin. Some local banks & credit unions are the beacons of hope in this high-rate environment & affordability crisis. Check this credit union – GREYLOCK federal credit union who are offering 5.375% - 5/1 ARM for first time home buyers and on top of it, a little bit of closing cost credit too. Adjustable rates are the way to go in this high-rate environment as the wider consensus is that the rates will be lower in future and a refinance will help further lower monthly costs.
POSTED ON : 08/11/2023
"***CPI Print on 8/10/2023 – Almost all of the increase is from Shelter***
Shelter costs rose .4% Month Over Month and 7.7% Year Over Year. This weighs heavy in the core CPI which is at 4.7% for the last 12 month period. This is well above the Feds target of 2%.
Something has to break in housing. Rents must come down. Hope the huge number of apartments being built come online soon and while these are being absorbed, the rents should stabilize if not come down. Owners equivalent rent is tricky. This measures how much money a property owner would have to pay in rent to be equivalent to their cost of ownership. The third component of shelter which is lodging away from home should become stable, once the revenge travel after pandemic subsides. "
POSTED ON : 08/07/2023
Massachusetts Association of Realtors (MAR) housing report for June 2023 is out. If you are in market or just interested on the housing facts – hope you find this summary helpful. For a more detailed report https://www.keyprimerealty.com/copy-of-mar-reports
POSTED ON : 08/04/2023
***US Debt Downgrade - Housing Impact***
Fitch Ratings’ downgrade of the US debt from AAA to AA+, automatically downgrades the credit rating of mortgage giants Fannie and Freddie. 10 Year Treasury upon which the mortgage rates track, has hit a 1 Year High of 4.1%, after the news on 8/2/2023. Higher mortgage rates mean bad news for housing in general. We @ www.keyprimerealty.com have been suggesting buyers to opt for adjustable rate mortgages lately. This keeping in view the spread between 10 year treasury & 30 year fixed mortgage at a historic high. This should come down eventually there by the buyers shall have an opportunity to refinance and lower their costs. That is exactly what most buyers did during the pandemic.
POSTED ON : 07/26/2023
***Yield Curve Inversion - What it tells us about Financing your Home Purchase*** : Residential Mortgages Not having a prepayment penalty is a boon for US housing market. We @ www.keyprimerealty.com are advising our buyer clients to go for Adjustable Rate Mortgages in this high rate environment which are predicted to go lower down the line. The Yield Curve inversion tells the same story and the spread between 10 Year T-Note & 30 Year Fixed Mortgage Rate should narrow down the line. No matter where you start your mortgage, you can end up at a great rate as long as you have a mortgage to refinance when the rates go down substantially like they did in various economic stimulus situations by the Fed. The Household Mortgage Payment as a % Disposable income (chart below) is a great indicator of how well the homeowners capitalized on low rates in the recent past.
POSTED ON : 07/20/2023
***July 2023 - Producer Price Index - Residential Construction***
Producer Price Index (PPI) published recently by US DOL - BLS , shows the prices of inputs to residential construction haven't changed much Month over Month. YoY, there is a good reduction in some of the large weighted items that go into new home build such as Softwood Lumber. We pulled some charts from ""National Association of Home Builders"" (NAHB). These are eye opening on how the construction materials have gone up since Jan 2020. The Inflation / Supply Chain disruptions have indeed taken a toll on the overall cost of materials that go into a new home construction. There are some significant increases in costs. Despite all this, the home builders confidence index is so high as the margins are pretty good as they have excellent pricing power considering the home price appreciation during this period due to the supply gut. Thought this is useful for those who might be interested in new constriction or better yet of someone wants to build their own home!!
POSTED ON : 07/17/2023
***July 2023 – CPI Print US BLS***
The recent CPI print released from US BLS indicates Shelter is still the stickiest item of the inflation. Other items such as used cars, Food all coming down nicely, but Shelter is still very high. Since this is a high (24%) weighted indicator, unless this is brought down to much low or even to a negative number, the 2% inflation target is a far cry. Some economists suggest “shelter” which constitutes Rent & Owner Equivalent Rent (OER) is lagged indicator and is much lower than reported. CPI doesn’t directly include home prices but typically CPI’s shelter inflation lags house price growth. We @ www.KeyPrimeRealty.com see the ground realty of housing at least in our market. With the way home prices are , there is a long way to go for shelter component to come down and there by the CPI print there by the overall 2% inflation target.
POSTED ON : 07/14/2023
***Quick Note on Rate Buy Downs*** If you want a lower upfront cost to start home ownership in this high mortgage rate environment, explore the "Rate Buy-down"" option. The best part about this is you can have seller / builder or even lender pay for this discount. This discount comes in different variations: 2-1 or 3-2-1 buy down - essentially a discounted interest rate for the first couple of years and goes back to current market rate after this initial period. Adjustable-Rate Mortgage wit lower than FIxed Rate Mortgage is an option and paying points to buy down the rate is an option too. Rare but the assumable mortgages can solve the supply gut too. Just know that there are different options and dont be scared by the headline mortgage rates. Just talk to a lender you know / trust. We at Key Prime Realty will be happy to refer you to a few good lenders that are aggressively helping buyers and doing business in this market!
POSTED ON : 07/12/2023
**Under Contract Sales** Congrats to our Buyer Clients who put these homes under agreement and closing soon. In a normal market, such a praise is not necessary, but we are living through a tough housing market for buyers. Most towns are recording less than 1-month supply of homes – a record low. The “Months of Inventory” is a great metric to watch to assess if a market is favoring sellers or buyers or balanced. < 1 month inventory highly favors sellers. Some towns even have 0 Single Family + Condo listings as of this writing. This is very unusual for an early summer market. Something must break this cycle. We certainly do not hope for any bad economic conditions to bring demand in sync with supply, hope the policy makers at various levels (Fed, State, County, Municipality) help home builders supply more to bring some stability to this crazy market!
POSTED ON : 07/10/2023
**Just Listed**
Wooded, Scenic, Serene - Fruit street of Hopkinton. The town is coveted and this home & the street will remind you of a vacation!
2004 Built - 4 bed 3 Full 2 Half Bath - 3 car garage - 2 master suites, With another 700 SFT of Attic that can be finished.
Sun soaked first floor. Fully finished basement. Abundant outdoor space to entertain. Just like a resort ! Dont just work from home.
Work while you are on vacation at home !! Come see us at Open House this weekend or send someone you know.
7/15/2023 12-2PM && 7/16/2023 1-3PM. Message for any private showings outside this window. Happy to Accommodate all showing requests.
POSTED ON : 07/07/2023
"**Spread Between 10 Year Treasury and 30 Year Fixed Mortgage**
Is there some good news in the spread between 10 Year T Note and the Avg. 30 Year Mortgage Rate? Looks like there is! There is universal market expectation that the rates will go down eventually. We don’t want anyone to hold us to this, but we @ Key Prime Realty, suggest our buyer clients to go for an Adjustable-Rate Mortgage for now, in the hope that a refinance down the line, can save them further in their monthly payments. On the high Spread – 1) It is believed that the spread is high due to lack of Quantitative Easing (QE), the fed backed bond purchase and it is widely expected that the program will be back to stimulate growth in future if/when needed, there by bringing down spreads, and there by the mortgage rates. 2). The Lenders are adding a premium now to offset a risk of refinancing of these loans – a wave of them is predicted once rates go down. All in all - there is broad consensus that the mortgage rates should go down in the next few years and the spread discussed above reflects that market prediction. This is indeed good for Housing Market in general.
POSTED ON : 07/05/2023
Commercial Real Estate – Apocalypse!!
Commercial Real Estate (CRE) crash predictions are making rounds in news off late. The greats like Elon Musk, Charlie Munger in some interviews predicted – “CRE is melting away fast” - Elon Musk. “Brewing storm in the US commercial property market” – Charlie Munger. It is not fair to paint all CRE with one giant brush. While it is true that Office & Retail are hurting bad with vacancy rates, rest of the CRE such as Multi Family & Industrial are doing pretty good. (Chart Below). The interest rates affect all CRE more than housing market as in general most CRE loans are not as fixed as 30 Years and a reset of rates is likely on a good number of CRE loans, but the vacancy rates & pricing power by some CRE asset classes can make these asset classes survive this struggle very well. Many CRE REITs are priced very low now that there might be some stock picking opportunities if you are into it. Office sector is just a 5% of the REIT market but the sentiment has brought down most REITs.
POSTED ON : 07/03/2023
Massachusetts Association of Realtors (MAR) housing report for May 2023 is out.
If you are in market or just interested on the housing facts – hope you find this summary helpful. For a more detailed report https://www.keyprimerealty.com/copy-of-mlspin-reports
POSTED ON : 06/17/2023
Have you been thinking of buying new construction or dealing with a builder right now or thinking of building your own home? Find below a quick take on how well the builder margins have improved since last year. The PPI index published a couple of days ago by US DLS - shows categorically how the material costs have substantially come down in the past year. Ex: The Softwood Lumber which is used in framing has gone down by 40% YoY- this constitutes roughly 30% of the material cost that goes into new home build. We @ Key Prime Realty extracted the latest US-BLS PPI chart to track how construction material prices are trending MoM & YoY. No wonder most of the National Home Builders(Pulte, Lennar, DRH, Toll KB Homes etc.) are reporting stellar results as their margins have expanded very well above the increased labor costs & money costs. If you hear a story from a builder how their margins compressed lately, just use this data in your discussions / negotiations.
POSTED ON : 06/16/2023
Congrats to our clients who got to close on their properties recently. This spring market has been surprisingly resilient despite subdued demand predictions due to high interest rates. It was certainly hard work from buyers as well as our team to put together these sales ! Get in touch. Happy to work with you - 781 790 4440
POSTED ON : 06/14/2023
Todays CPI release (Source: U.S. Bureau of Labor Statistics) proves yet again that the Shelter prices are not coming down fast enough. Rents & Owner equivalent rents are as high as 8% Year over Year - the most stickiest item next only to Food inflation. Hope it cools down in the subsequent months for the benefit of renters, buyers and for the overall Inflation target of 2%. For those who have direct / indirect holdings in real estate enjoy this run - Charge market rents to improve your returns. If you are selling - Find what the market has to offer and sell it at market. No matter what your real estate needs are , we @ Key Prime Realty will be happy to help!
POSTED ON : 06/10/2023
For those who are in the Housing Market or interested to know how the current market is : We @ Key Prime Realty generated a chart with latest & historic listing data from our local MLS. This one chart tells it all. It is TOUGH out there for buyers.
Listings are way low compared to anytime any year in the recent past. Fed induced Demand destruction is real too. Between these 2 forces, listing shortage for now is overpowering the market dynamics. Current owners are not willing to let go off their Covid Era loans. Some even willing to rent than sell to hold onto cheap borrowing they did. With experts forecasting a mild recession, if at all, a strong labour market - further demand lowering may be a far cry. Supply is the answer. Build More !! Relax Regulations !!
2022 was off to a great start for home selling/buying Activity.
Thanks to the misplaced Transitory inflation talk by Fed, rock bottom interest rates, and the QE that was still on going in the beginning of the Year. The market turned upside down in the second part of the year. Buyers went to the sidelines due to interest rates surge shock and the substantial slowdown in activity.
Despite all factors we had a great year!
POSTED ON : 02/14/2023
When it comes to housing market state, common terms we hear are 'Less Supply', 'Low Inventory'. The substance behind this characterization is very real and apparent when we look at data & some charts. Look at 3 charts below from Census.gov. 1). New Housing Units Completion - All types 2). New Housing Units Completion - Single Family 3). New Housing Units Completion - Multi Family. The Great Financial Crisis (GFC) has changed home building for worse and the already fragile demand supply equation took a major swing with the pandemic induced factors!!
POSTED ON : 11/25/2022
Sharing an interesting chart on how the Mortgage Debt Service changed overtime as a percentage of the total disposable income of the home owners. Due to the substantial easing of financial conditions the households had such a great run with relatively lower housing payments when we exclude property taxes / insurance/ other utility costs. New buyers entering the market might have a different story on the other hand with the property prices soaring..
