August 9, 2007

GBREB Stops Return To Rent Control
This week, the Boston City Council voted 8-5 to reject a return to rent control, which Bay State voters outlawed via a statewide ballot referendum back in 1994.  Voting in opposition to a proposed “tenant collective bargaining” measure that sought to require landlords to negotiate rent, terms of a lease and other related matters with tenants groups, were Councilors Consalvo, Feeney, Flaherty, Lamattina, Linehan, McDermott, Murphy and Tobin.  Notably, if passed, the ordinance also would have required owners of multifamily housing to open their building to allow access by tenant activists who would have been able to leaflet, solicit and organize tenants in their own homes.

For the past 18 months, the Greater Boston Real Estate Board worked aggressively to oppose this measure, arguing that it would have added a new layer of regulations, bureaucracy and cost to virtually every aspect of the landlord-tenant relationship as well as stifled the production of new housing.  The defeat of the proposal is due in large part to a strong REALTOR® grassroots effort that generated hundreds of e-mails and phone calls to city councilors.   We thank those REALTORS® who placed calls or sent e-mails expressing concern over this initiative and encourage you to once again take action thanking those councilors who opposed rent control. Click here

GBREB Testifies Against Wetlands Disclosure
At a hearing on July 31, Patricia Baumer, director of government affairs for the Greater Boston Real Estate Board and Steve Ryan, general counsel for the Massachusetts Association of REALTORS®, testified before the Committee on Natural Resources and Agriculture in opposition to H 767 – “An Act Relative to the Disclosure of Wetlands on Property.”  The proposed legislation would require REALTORS® to disclose to potential buyers whether a property is a wetland or part of one.  REALTORS® would be required to investigate and report to buyers on a variety of wetland restrictions, overlay maps and provisions in each community.  Additionally, REALTORS® would be required to research each property at a local county registry of deeds to check if any are subject to orders of conditions issued by the local conservation commission or the Department of Environment Protection.

In a joint statement submitted to the Committee, Baumer and Ryan noted that there are currently more than 135 communities that have wetlands protection bylaws on top of state and federal laws, and that buyers are able to ask sellers about property inspections, include inspections in the purchase agreement and find information through public records.  REALTORS® are also currently responsible for disclosing material defects of a property when aware.  Passing this legislation would be an impossible standard for REALTORS® to meet and cause confusion to consumers, GBREB and MAR contend.

What’s Your Foreclosure IQ?
True or False?  In most states, if you bid on a foreclosed property at an auction, you also may be bidding on tax liens and other debt accrued by the prior home owners.  Not sure of the answer?  Then you may want to take the Foreclosure Quiz in this month’s REALTOR® magazine.  With a record number of foreclosures occurring in Massachusetts this year, consumers can only benefit from your knowledge on the issue.

NAR Forecasts Home Prices to Recover in ‘08
The National Association of REALTORS® has estimated that housing prices will recover in 2008 due to a decline in housing inventory.  Buyers currently have a wide selection of homes to choose from, but with profit margins coming under pressure, new construction will be limited by homebuilders in 2008; which will cause inventory levels to move steadily into a more balanced state, according to Lawrence Yun, NAR senior economist.

Notably, the number of homes on the market has already started to shrink in greater Boston; where the supply of single-family homes for sale declined 16 percent during the second quarter of 2007, compared to the same three-month period last year.

As a result, the median selling price for detached single-family homes was essentially flat in the spring quarter, slipping just 1 percent from $499,900 in the second quarter of 2006 to $495,000 in the April-June period this year.  To view all the second quarter housing market data for communities in the Greater Boston Real Estate Board’s jurisdiction, check out the latest edition of Real Estate Rewind, GBAR’s quarterly report on the single-family and condominium markets.

NAR experts predict home sales will pick up later this year, rising to a total of 6.11 million for 2007 and 6.37 million in 2008.  Both numbers are lower than the 6.48 million in 2006. In addition, NAR’s report also shows that new-home sales are expected to reach 865,000 in 2007 and then 878,000 in 2008 compared to 1.5 million in 2006.

Meanwhile, existing home prices are estimated to rise 1.8 percent to a nationwide median price of $222,700 in 2008, after a 1.4 percent decline this year to $218,800. 

The median new home price should rise 2.2 percent to $245,400 in 2008 following a 2.6 percent drop in 2007 to $240,100.

Yun predicts, “Markets that sharply reduce construction in 2007 will generally experience respectable price increases in 2008.”  “Local conditions vary considerably, but with historically low mortgage interest rates this summer and sustained job gains, it could be a good time for first-time buyers with a long-term view to test the housing waters.”

International Buyers Become Bigger Piece of the Market
International buyers (foreign citizens who enter the U.S. legally to buy a home) are making up a growing share of real estate business, according to a new study conducted by the National Association of REALTORS®.

NAR’s 2007 Profile of International Home Buying Activity shows that a quarter of REALTORS® report more international business in 2006 than five years ago.  Nearly one in five REALTORS® sold a home to an international client in the past year while one third of respondents feel foreign retirees are an increasingly important market in the U.S.

The research explored the characteristics of second-home purchases in the U.S. made by international clients.  Here are highlights of the findings:

• International buyers showed stronger preference toward apartments and condos compared to U.S. buyers.  Twenty-two percent of international buyers purchased condos/apartments compared to 12 percent of U.S. buyers.
• More international buyers bought their houses in cash (28 percent) than U.S. buyers (8 percent).
• International buyers also purchase pricier homes than U.S. buyers.  The median home price purchased by international buyers was $299,500 – a considerable difference from the median price of $221,900 from U.S. buyers during the same period.

Milton & Boston Rank in Top 10 of Best Places to Live
Milton, Massachusetts ranked seventh on this year’s list of “America’s Best Places to Live” compiled by Money Magazine.

As quoted on Money’s website, Milton’s location eight miles south of Boston is what “brings and keeps residents.”  Milton also borders the Blue Hills Reservation, a 7,000-acre park with hiking, swimming and skiing.

Additionally, “Milton boasts a diverse population, with minorities making up 30 percent of all residents. All six schools have recently been rebuilt, and the library is now expanding. East Milton Square is the town's Main Street, with coffee shops, a pizza place and a small grocery store. What's missing, most agree, is a destination eatery.”

Also making the list was Hanover, New Hampshire, which placed second.

Boston was also featured in this year’s top five places to live for those over the age of 50, by the American Association of Retired Persons’ membership magazine (AARP).  Selections were based upon criteria that make a community livable such as access to mass transit systems, expanded sidewalks for easy walking, better healthcare and a wide range of mixed use housing, according to the magazine.

On a similar note, the National Association of REALTORS® has a Senior Real Estate Specialist  (SRES) designation, which explores the different subgroups of seniors, how to communicate with and market to them, as well as creating teams of experts. The course delves into financial, legal, estate, aging and senior housing issues.

For more information on the designation, click here.

Women’s Council of REALTORS® to Host 55+ Lifestyle Expo
The Massachusetts Women’s Council of REALTORS® (WCR) is hosting an event on August 23 from 4-7 p.m. at the Clarke Appliance Showroom in Milford.  Join them for an evening of networking and to learn about the lifestyle trends of homebuyers ages 55 and over.

The event will also feature presentations by high-end appliance manufacturers, hands-on displays of the latest kitchen and bath technologies and cooking demonstrations.  Notably, Chef Ming Tsai films his national cooking show Simply Ming at the venue.  To register for the event contact Hilda Bridgewater of the ERA Masiello Group at 603-547-7163 or visit www.mawcr.com.  Cost to attend is $5.

Go Back to School with GBAR CEUs
Sharpen your pencils and put your thinking cap on!  GBAR has many exciting continuing education courses and events scheduled in the upcoming weeks.  Here are some highlights:

GBAR.org