February 21, 2007

Greater Boston condo market seen stabilizing
The worst may be over for the condominium market in greater Boston, as newly released data show that sales of condo units rebounded in the City of Boston during the fourth quarter of 2006, climbing 0.9 percent over the same three-month period the previous year, while condo sales in the 54 cities and towns served by the Greater Boston Real Estate Board fell by just 100 units, or a modest 4.7 percent, in the final quarter of last year compared to the same quarter in 2005. The relatively stable sales pace follows sales declines of 12 percent and 15 percent in Boston during the second and third quarters of 2006 respectively, and decreases of 8 percent and 20 percent throughout the GBREB jurisdictional area in last year’s second and third quarters, an indication that demand is improving and a recovery in prices may not be far off.

Notably, in greater Boston, the median selling price for condominiums slipped 2.7 percent in the fourth quarter to $327,000, but was down just 1.4 percent on an annual basis last year, declining from an all-time high median price of $345,000 in 2005 to $340,000 in 2006. Meanwhile, in Boston proper the median selling price for condos sold in the final three months of the year fell 7.1 percent from the same period a year earlier to $325,000, however the annual median selling price was flat in 2006, at $349,000.

On an annual basis, sales of condominiums declined 7.6 percent in the City of Boston during 2006 from one year earlier, while sales activity dropped 9.5 percent across the larger 54 community GBREB jurisdiction. Nonetheless, the 9.529 condos sold in greater Boston in 2006 is the second highest yearly sales volume on record, topped only the 10,526 units sold in 2005. Statewide, last year, condo sales fell 12.1 percent, from a record 23,536 in 2005 to 20,698. For complete quarterly and annual data on the condominium and single-family home markets in both greater Boston and Massachusetts, visit the Housing & Research Data section of marealtor.com.

High housing costs top concern of Bay State residents
A new poll of over 500 Massachusetts residents found that high housing costs is the most pressing concern facing the local population today, with two-thirds of respondents (66%) citing the cost of housing as a “significant” concern that not only effects them personally, but also hurts the state’s economy and the ability of young professionals and families from residing in their hometowns. Concerns about public education and access to health care also were noted by a majority of poll participants (52% and 50% respectively) as important issues, while concern about jobs (44%) and traffic congestion (42%) rounded out the top five most troublesome worries of residents, according to the study which was conducted by the Donahue Institute at the University of Massachusetts and Citizens Housing & Planning Association.

One in four (42%) respondents to the survey indicated that their monthly housing payment makes it “hard to make ends meet,” an increase from 2005 when only 29.5 percent stated likewise. Furthermore, more than one-third of all respondents (36%) said that they or an immediate family member has seriously considered moving out of Massachusetts due to the cost of housing – that’s up from less than a quarter (24%) of state residents who responded similarly during last year’s poll.

To address the state’s housing crisis, roughly two-thirds of those surveyed believe the state should work to develop new housing near shops and public transit, including 64.8 percent who said they would support the construction of affordable housing in their neighborhood. Nearly one in six residents (58.4%) also favor the creation of state incentives for employers to assist their workers in purchasing affordably-priced homes, while a majority offered support for a doubling of state funding for housing programs, and 80 percent of respondents to the poll believe that state government should require local communities to plan regionally for growth and residential development.

FDIC action further delays efforts by big box retailers to operate banks
Late last month, the Federal Deposit Insurance Corporation (FDIC) extended by 12 months a moratorium on Industrial Loan Company (ILC) applications put in place last summer that effectively stalls plans by Home Depot and Wal-mart to own and operate banks, at least in the short-term. Under the year-long moratorium, the FDIC will not issue any final decisions or accept applications for deposit insurance or notices of change in control for ILCs, a type of state-chartered, federally-insured bank that may be operated by commercial firms.

The National Association of REALTORS® has applauded the action, noting that the moratorium will provide Congress with time to evaluate whether statutory, regulatory or policy changes should be enacted to close the existing loophole that allows retail and commercial firms to own ILCs. At the same time, NAR also continues to express support for legislation (H.R. 698) recently re-introduced by Massachusetts Congressman Barney Frank (D-Newton), current chairman of the U.S. House Financial Services Committee, and Rep. Paul Gillmore (R-OH), that would maintain the separation between banking and commerce by imposing a prohibition on commercial firms from chartering or acquiring an ILC.

Faux pas in business etiquette can be costly when working with foreign-born buyers
The large immigrant population in greater Boston – which is expected to help fuel household formation and boost homeownership rates in the region over the next decade – offers tremendous business opportunity for REALTORS® who are well-versed in the cultures and customs of those born outside the U.S. But, mis-steps made when dealing with foreign-born buyers and sellers can also be detrimental to your business. First impressions are critical and understanding the social customs and business etiquette of other cultures is imperative if you are going to succeed in today’s global market.

To help get you started on gaining familiarity with the protocol and etiquette of communicating and doing business with those from different lands, as well as how to market to immigrant homebuyers, we recommend you check out the National Association of REALTORS® Field Guide to Business Etiquette When Working with Other Cultures. Additionally, for those interested in learning how to expand their market to include foreign-born clients and customers, or those seeking to build a more diverse sales force, be sure to access NAR’s Field Guide to Diversity for REALTORS®.

To further improve your ability to cultivate business from immigrant and international markets, NAR also offers the one-day, At Home with Diversity certificate course which will be presented locally by GBAR this spring. To request information on this program, call GBAR at 617-423-8700. You might also consider joining the Massachusetts Association of REALTORS® International Council, which offers educational programs and networking activities throughout the year. Annual membership is just $25.

GBREB Chairman shares insights on housing market in Boston Sunday Globe feature
Greater Boston Real Estate Board Chairman Richard Loughlin, president of the New England region for Coldwell Banker Residential Brokerage, was the subject of a business profile feature that appeared in the Boston Sunday Globe this past weekend. In the February 18^th On the Hot Seat column, Chairman Loughlin offered his views on the residential real estate market in the greater Boston region and the issues state and local government officials need to focus on to keep the area’s housing market and Bay State economy strong. You can read the entire interview with Chairman Loughlin online at boston.com.

Sharon REALTOR® meets with Lt. Gov. Murray
David Wluka, of Sharon, a past president and current director of the Greater Boston Real Estate Board, was among a delegation of real estate industry representatives who recently met with Massachusetts Lt. Governor Tim Murray to discuss housing and economic issues of concern to the state’s REALTORS®.

During the meeting, Lt. Gov. Murray was briefed on current conditions in the residential real estate market, including the need for more entry-level housing production; the successes of Chapter 40 B in creating affordable housing; and initiatives currently underway or being championed by REALTORS® to promote smart growth, housing affordability, and the economic prosperity of the Commonwealth. The REALTOR® organization’s opposition to property transfer taxes also was addressed, as was the rising cost and inaccessibility of homeowners insurance, which is creating a hardship for property owners in many communities across the state.

Wluka, who last year served as president of the Massachusetts Association of REALTORS® and chairman of the National Association of REALTORS® Smart Growth Advisory Group, was joined in the discussion by current leadership from MAR, as well as GBREB/MAR lobbyists Mark and Scott Delaney.

Four local REALTORS® accepted into Leadership Academy
Four GBAR members are among 10 REALTORS® statewide who have been selected to participate in the Massachusetts Association of REALTORS® Leadership Academy this year. Those accepted into the 2007 class are Tracey Bartucca, of RE/MAX Real Estate Center in Walpole; Tara Bayko, of Realty Executives Boston West in Southborough; Thomas L. Matthews, of Prudential Prime/Ledgard in Maynard; and Todd Movsessian, of Real Estate 109 in Belmont. Congratulations!

Limited seating remains for CE courses
A few seats still remain available for the three continuing education classes being offered by GBAR next week at the Greater Boston Real Estate Board’s offices at 11 Beacon Street in Boston. On February 27^th, members have the opportunity to earn up to six of the 12 credits required to renew their real estate license. The courses to be presented are International Real Estate (9-11 a.m.), Commercial Real Estate Basics (11:15 a.m.-1:15 p.m.), and Commercial Leasing (2-4 p.m.), all of which will be taught by Rob Nahigian, a well-known national trainer and local commercial real estate broker.

Registration is $45 per class or $105 for members who attend all three courses. To register, log on to www.gbar.org or call 617-423-8700.  Don’t delay as seating is limited to 30 students for each course!

GBAR to present ABR courses this spring
This April, GBAR will present the popular Accredited Buyer Representative (ABR) designation course and the elective E-Buyer class for those members interested in receiving comprehensive training in buyer representation. If you want to become educated on how to provide the same level of service and fidelity to buyers that sellers have come to enjoy, then you’ll want to attend these classes to earn your ABR designation, which happens to be the only buyer representative designation recognized by the National Association of REALTORS®. 

The two-day ABR course examines agency theory and practice, standards of care in the delivery of buyer agent representation, and strategies to target niche markets and build your buyer representation business. In addition, attendees will receive instruction on how to successfully handle offers and negotiations as a buyer agent, and learn about disclosure requirements, vicarious liability and other risk management issues. Meanwhile, the one-day E-Buyer class will teach agents how to effectively service today’s Internet savvy consumers. Specifically, participants will learn strategies to locate and market to the e-buyer, predictive modeling, customer confidentiality, and the tools and techniques for conducting business electronically.

The ABR course will be offered on April 9-10, with the E-Buyer class scheduled for April 11^th.  Both courses will be held on the campus of Regis College in Wellesley. Registration fees for GBAR members are $300 for the ABR course and $175 for the one-day E-Buyer course, or enroll for both programs for just $400.  For more information or to register call GBAR at 617-423-8700 or go online to the Education & Events section of gbar.org.

Mass. Oilheat Council to host free program for REALTORS®
The Massachusetts Oilheat Council will present a free one-hour program for real estate professionals interested in understanding the benefits of an oilheated home and how to enlighten consumers on the advantages of homes heated with oil on March 14, from 9:30 – 10:30 a.m. (preceded by a buffet-style breakfast at 9:00 a.m.), at the Boston Marriott Quincy hotel in Quincy. This program will include a discussion on Oilheat Tank Safety & the Environment; Energy Prices – Past, Present & Future; and Energy Savings/Conservation issues, as well as a question-and-answer period.  All attendees will receive complimentary resources to help sell more oilheated homes, and be eligible to win a new digital camera.

For more information or to register, call the Massachusetts Oilheat Council at 800-796-3342 or go online to print an informational flier and registration form.

 GBAR.org