Increase your family’s net worth

A recent study from the Survey of Consumer Financing revealed that the net worth of a homeowner is over 44 times greater than that of a renter.

I know I sound redundant when I bring up the topic of buying versus renting, but I am going to mention it again. Everyone should realize that unless you are living somewhere rent-free, you are paying a mortgage – either yours or your landlord’s. Buying your own home provides you with a form of ‘forced savings’ that allows you to use your monthly housing costs to increase your family’s wealth.

In other words, every month that you pay your mortgage, you are paying off a portion of the debt that you took on to purchase your home. Therefore, you own a little bit more of your home every month in the form of home equity. As your home’s value increases you also gain home equity.

The Financing study also revealed that the median net worth of a homeowner is $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).

That is why Gallup reported that Americans picked real estate as the best long-term investment for the fifth year in a row. According to this year’s results, 34% of Americans chose real estate. Stocks followed at 26%, and then gold, savings accounts/CDs, or bonds.

I know what some of you may be thinking, not everyone has the ability to buy and there is a myriad of reasons why it may not make sense for some. And I agree. My general rule of thumb is, if you have the down payment for the property you want to buy and you plan to live there for at least 3 years it probably makes sense. Here is a great online calculator to help you figure things out.

Reach out to me to discuss your specific situation.

Joe Schutt

Committed to representing your interests with the highest level of integrity, I am dedicated to service excellence focused on personal attention and building a solid trust relationship. I listen carefully and make my clients feel comfortable in exploring their full range of real estate options and then encourage them to relax and rely on my expertise to insure that the details run smoothly and efficiently. Google+

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December 2018 Greater Boston Real Estate Market Trends

Here’s December 2018’s Monthly Indicators Report from the Greater Boston Association of Realtors® showing Boston real estate market trends.


December 2018 Greater Boston Real Estate Market Trends

Sales of single-family detached homes and condominiums softened in December as higher mortgage rates, instability in the financial markets, and a seasonal decline in the supply of homes for sale led to reduced buyer demand according to data issued by the Greater Boston Association of REALTORS® (GBAR).

In December, a total of 965 single-family detached homes were sold in metropolitan Boston which is an 8.4 percent decline from the 1,053 homes sold in December 2017. The condo market took a similar path, as it experienced an 11.5 percent decline on an annual basis, dropping from 826 units sold in December 2017 to 731 this December.

For year-end totals, 13,568 homes were sold in a Greater Boston in 2018, a 2.2 percent decrease from the 13,867 homes sold in 2017. The condo market experienced a similar decline of 1.7 percent from 11,025 unites sold in 2017 to 10,837 in 2018.

Condominium
  • December condo sales DOWN -11.5%
  • Median prices 0.0% ($539,900)
  • Active Listings UP +22.0% to 1,476
  • Listings added to the market DOWN -3.4% over last year (345 from 357 in 2017)
Single-Family
  • December single-family home sales UP -8.4%
  • Median prices UP +0.2% ($590,000)
  • Active Listings UP -2.6% to 1,677
  • Listings added to the market UP +3.9% over last year (422 from 406 in 2017)

Interested In Specific Neighborhood / Area Real Estate Market Trend Data?

 

December 2018 Greater Boston Market Trends

Joe Schutt

Committed to representing your interests with the highest level of integrity, I am dedicated to service excellence focused on personal attention and building a solid trust relationship. I listen carefully and make my clients feel comfortable in exploring their full range of real estate options and then encourage them to relax and rely on my expertise to insure that the details run smoothly and efficiently. Google+

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What we are seeing in the Boston housing market as 2019 gets underway.

Boston housing market as 2019 gets underway

According to an analysis from real estate research site NeighborhoodX, average asking prices for market-rate homes at the more expensive end of the Boston market (Back Bay, Beacon Hill, and other parts of downtown) heading into 2019 converge at around $1,200 to $1,300 a square foot. The same is the case in less expensive areas such as Mattapan, Roxbury, and Hyde Park, although, there, the convergence is around $300 a foot.

Overall prices at the end of December ranged from a low of $159 a square foot in Mattapan to a high $3,857 a foot in Back Bay.

NeighborhoodX broke down both range and price per-square-foot to offer a different lens through which to analyze the market. At the lower end, this gives a sense of where (or whether) bargains can be found, or what the entry level price might be. At the upper end, especially with emerging neighborhoods, it gives a sense of where the neighborhood may be heading.

Check out the graph below to see a portion of the average consolidated neighborhood prices. Click here to review NeighborhoodX interactive breakdown of the full average, high and low prices per neighborhood.

Boston Average Consolidated Neighborhood Prices

Joe Schutt

Committed to representing your interests with the highest level of integrity, I am dedicated to service excellence focused on personal attention and building a solid trust relationship. I listen carefully and make my clients feel comfortable in exploring their full range of real estate options and then encourage them to relax and rely on my expertise to insure that the details run smoothly and efficiently. Google+

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