What to expect in 2013! Housing Market Update

I came across a very good article in regards to the 2013 housing market that I think is very accurate and offers good tips for both buyers and sellers.    I added some of my thoughts into the article pertaining to our local market area.

Overall the housing market has stabilized and there is no reason to be fearful of further large declines in property values.    There should be an increase of buyers looking, trying to take advantage of the continued low interest rates and low house values.   This does not mean that sellers can get all excited and think they can get a lot more for their houses.  There will be several of you that still will have a difficult time breaking even.  It will take a few more years before we will see the values increase to levels of 2005-2007.

Pricing property is still very important.    The majority of people buying are getting mortgages and the appraiser that is hired by the bank will have the final say as to the value of the home.   

If you want to buy, you have to be ready to make an offer.  If it’s a new listing a low offer will not be beneficial to you.  However, if a home has been on the market for a while you might be in a better position to negotiate.   It all depends on the property and the seller’s motivation.   Your buyer’s agent will research the situation and guide you along as to the best way to proceed.

Here are a few things to watch in 2013 that could change the housing market:

Fed chairman Ben Bernanke is lifting housing by buying bonds to keep mortgage rates low. How much longer can he keep that going?

The loss of mortgage deductions. Should the tax break on mortgage interest get cut,  it would throw cold water on the real estate recovery.

Sellers sit on the fence. Homeowners could remain on the sidelines as the ranks of buyers grow. In that case, the inventory of homes would shrink even more, lifting prices faster than expected.

Homeowners get bullish. A spate of home construction is already taking place in several major markets. In those regions, the housing stock is likely to stabilize, keeping price gains modest.

Banks loosen their grip. If tight lending standards return to historical norms, realtors argue, the market could see an additional 500,000 to 700,000 home sales next year.

Employer confidence rises. Since jobs are the engine of the housing market, a pickup in hiring later in the year, which economists are predicting, could accelerate a real estate rebound in the second half of 2013.

This information is taken from the article - Real estate: Find opportunity next year

By Carla Fried, CNN Money

Mass Home Prices - biggest jump since June, 2010

The Massachusetts Association of REALTORS released the October 2012 sales report. Single-family median prices had the biggest monthly year-over-year jump since the final month to take advantage of the home buyer tax credit in June 2010. In addition, sales were up for the 16th  straight month compared to the same time last year. Condo median prices and sales both went up compared to October 2011.

 

Highlights from the release:

* Single-family home sales were up 22.1% compared to last year
* Single-family median prices were UP 4.4% ($287,000)
* Condo sales were up 34.8% compared to the same time last year
* The median price for a condo was UP 2.0% ($265,000) compared to last year

Perfect Mini Farm - Now Reduced to $179,000 in Colrain, Mass

This wonderful property is perfect if you are thinking of having a few animals or love to garden. It comes with a well maintained Ranch, 2 Barns, and Garage. The 4 acres is mostly open and has river frontage. Easy to show and ready for you to move in and enjoy! For more information and photos click here to check out the visual tour.  

What will a home be like in 2100?

I came across an interesting article about what homes will be like in 2100.    For those of us that can remember, it seems like yesterday we were using a rotary phone.   Here we are 30+ years later and now have smart phones, IPADs  and the list goes on.  

Ever wonder what is next?  Here are some predictions that I found worth posting.

The walls of one’s home will be intelligent, and capable of simulating a shopping experience in three dimensions.

Most homes will be modular and customs will be built with pre-manufactured parts.

Each home will have its own water reclamation/recycling plant.

Clients will take life-like virtual walk-through of their homes before they are constructed or purchased.

Energy will be generated by sunlight hitting a home’s windows.

Wires will not exist.

Toilets will have DNA scanners that can detect proteins and fragments of cancer cells before tumors develop.

Every home will be net-zero.                                                      

I believe most on the list will come true.  It seems like everything is moving too fast.  Maybe it is time we go backwards.  Life was simpler and something to be said about the “good ole days”.  

What are your thoughts?

Shop Small Saturday in Franklin County, Ma

Tomorrow is an important day for the small businesses that count on your support during the holiday season. What I enjoy about shopping local is the unique gifts that you can purchase for that special person in your life.  There is nothing like receiving a gift that is handcrafted by a local person or a gift certificate to your favorite local store.  Think about all the wonderful places we have to pick from when selecting that special gift.  We are fortunate to live in a community that is alive with tradition.  Forget the mall - shop small! 

Enjoy the weekend.  Happy Shopping!

Click here for more information about Shop Small Saturday.

Moonlight Magic, Shelburne Falls - Friday Nov. 23rd

Looking forward to this years Moonlight Magic in the Village of Shelburne Falls.    It is a wonderful evening that is guaranteed to get you in the spirit of the holiday season.    The whole family will love it!  Great food - listen to carolers - watch street performers - check out all the shops that are open late.

The festivities start Friday November 23rd at 4:00 p.m.  You will want to get there early to park.  The lighting of the village starts promptly.

Get your holiday shopping done early and don't forget this weekend is small business Saturday!  You can start supporting local businesses on Friday evening right here in the charming Village of Shelburne Falls!

Look forward to seeing you Friday night!

Housing Update - Chief Economist National Assoc of REALTORS

National Association of REALTORS Chief Economist Lawrence Yun breaks down the housing market, job growth numbers and the impact of the Presidential election in this candid interview.  An interview worth listening to.

Mortgage Interest Deduction - Will it be eliminated?

I am often asked if I think the mortgage interest deduction will eventually be eliminated.  It is one way our government is proposing to help reduce the national debt.  It is definitely going to change and those making a certain amount won't be able to take the deduction.   I came across this article that defines how this could affect you.   



HOW FISCAL CLIFF COULD AFFECT THE MORTGAGE INTEREST DEDUCTION:

It is arguably one of the most popular U.S. tax deductions, and for some it is the necessary stimulus to buy a home.

The mortgage interest deduction, however, is now at risk, due to negotiations over the so-called “fiscal cliff”—the year-end deadline for large spending cuts and the expiration of tax cuts.

While it is impossible at this point to know what the outcome will be, it is certainly worth running through the possibilities. 

First, let’s do a primer on the deduction as it stands now:

The deduction lets homeowners reduce their taxable income by the amount of interest paid on their mortgage. This can be on the principal residence or a second home, but not on mulitple investment properties. Taxpayers are eligible for this deduction only if they itemize. Finally, the interest deduction is capped at $1 million of your mortgage.

This deduction, which is the largest housing-related subsidy in the U.S. tax code, reduced income-tax revenue by $79.9 billion in fiscal year 2007, according to the Office of Management and Budget. So what is that in real cash savings to taxpayers? Number crunchers at the Wharton business school did the math:

For those making less than $40,000 a year, the average tax savings is about $100. But in that bracket less than one-quarter of homeowners itemize deductionsl, so most don’t get anything. 

For those earning up to $250,000, the average savings, based on average mortgage amounts, would be $1,200-$2,600 a year. For those earning more than $250,000, and 100 percent of them itemize, the average savings is $5,400 a year.

Now to the proposals—and they are many.

One, released by the Simpson-Bowles commission, would cap the mortgage interest deduction at $500,000 of the home’s value and limit the deduction to primary residence.  A bipartisan plan from Domenici-Rivlin would limit the deduction to just $25,000 worth of mortgage interest.

Other proposals include eliminating the deduction only for taxpayers earning $250,000 or more, ending the benefit for second homes, ending the deduction entirely or limiting the amount of all itemized deductions to $25,000. That last one was advocated by Mitt Romney, but apparently some Democrats on Capitol Hill are starting to espouse it.  Without one proposal leading the pack, again, it is impossible to boil down the real cost to homeowners, but suffice it to say that anyone in the business of home ownership is opposed to reducing the mortgage interest deduction.

“It’s chilling the market,” said Jerry Howard, CEO of the National Association of Home Builders.  “Whenever there is uncertainty surrounding the value of an American home, why would you expect people to go out and buy a home? Or, just as much to the point, when there’s uncertainty about the value of a home why would someone put their house on the market to sell it, that’s why this whole debate to me is counter-productive and is only retarding the nation’s economic recovery.”

“The mortgage interest deduction is vital to the stability of the American housing market and economy, and we will remain vigilant in opposing any future plan that modifies or excludes the deductibility of mortgage interest," said Gary Thomas, president of the National Association of Realtors.

Whatever the arguments for or against the mortgage interest deduction, two things are indisputable.  Going over the fiscal cliff will kill the housing recovery, but said recovery is already so tenuous that yet another barrier to entry will hurt.

—By CNBC's Diana Olick

—Realty Check producer Stephanie Dhue contributed to this report.

Crafts of Colrain - Local Artists - Open Studio

The Crafts of Colrain is a full weekend of a self guided tour with 18 artists and farms that will display and sell their work.   Enjoy a beautiful drive in the country and get started on your holiday shopping.   Give a gift that is locally made! .  Hours for both days are 10 to 5.   For more information about the tour, artists and a map check out the Crafts of Colrain web site!

Cornucopia Auction - Academy at Charlemont - Sat Nov. 3

CORNUCOPIA AUCTION

Join us for a wonderfully entertaining evening at the 9th annual Cornucopia Auction. The event will be held Saturday, November 3, 2012 from 5 to 9 PM. at the Academy at Charlemont. 

Schedule for the Evening:

5:00 - 6:00         Preview

6:00 - 7:30         Silent Auction Bidding

7:30 - 9:00         Live Auction

The Silent Auction bidding will start promptly at 6 and finish at 7:30 when the live auction commences. Former Academy parent Doug Wilkins returns this year as auctioneer. The Academy's Sumner Recital Hall is transformed into a beautiful gallery for a dazzling array of high quality silent and live auction items.  Student servers offer trays of delicious hors d'oeuvres and samples of local award-winning cheeses, local sweet cider, West County hard ciders, Berkshire Brews, and fine wines selected by the Shelburne Falls Wine Merchant.

The Cornucopia Auction provides the Academy and the greater community an opportunity to come together to celebrate all that is special about where we live, in addition to generating financial support for the school. It is a wonderful evening of networking, holiday shopping and eating treats, so please join us to show your support.

Tickets are $20 per person.  For more information and list of auction items - visit the web site!

Cider Days, Nov 3rd and 4th - Franklin County, Mass

It is that time of year – Cider Days is happening this weekend.  It is great family fun and with lots to do.  The weather is going to be perfect.  Make your plans with you family and enjoy Cider Days!

For a list of events and more information check out the website!

CiderDays is a community event celebrating all things apples in Franklin County, Massachusetts. 2012 marks the 18th year of this event and there will be two days (November 3rd and 4th) of orchard tours, cidermaking and tastings, workshops and much more. This is for all who love apples, fresh or hard cider, apple cuisine, apple orchards or just being in New England in the fall. There is a charge for some of the activities but there is no admission for many of the activities at local orchards or for the workshops or Marketplace at the Shelburne Buckland Community Center in Shelburne Falls (from 10 AM - 5 PM on Saturday).

Shelburne Falls Art Walk

SHELBURNE FALLS ART WALK is happening this weekend. Perfect weather to stroll the streets and start early on your holiday shopping!  Hope to see you around town.

Saturday, November 3 - 4:00 to 7:00

Come and stroll the Village and enjoy the galleries, shops, and restaurants.  Enjoy live music, meet the artists, see special exhibits, and appreciate the wide range of art that Shelburne Falls is known for.

Shelburne Falls Building Site with Water Views

 Hurricane Irene severely damaged this 2-family home & now it's time for someone to take over and build new!  This Shelburne Falls location is the perfect .42 acre site and the owner is willing to get it ready for you. The building and garage will be demolished and permits in place prior to closing so you can start your construction in 2013.  This site has town water & sewer and overlooks the Deerfield River & has a beautiful view of the charming downtown. This property can also be sold ''as is". $49,000

Striking Log Home for sale with awesome views!

Beautiful contemporary style log home overlooks sweeping meadows & picturesque mountain views! This home is bright & open, must be seen!  It has a wonderful kitchen that is open to the dining/family room w/cathedral ceiling. There is a great room w/stone fireplace and floor to ceiling windows where you can sit back and enjoy those amazing views. In addition there is a fabulous master suite w/private full bath, 2 bedrooms w/full bathroom, hardwood floors, walk out basement, deck, and 3 car garage.  $364,900

CHECK OUT THE VISUAL TOUR:

Home Prices expected to increase by 3%

Recently released research data project rising residential prices in 2013. The October 2012 Economic Survey by the Wall Street Journal panel of economists forecasted home prices as increasing at an annual rate of 3.25 percent in the forthcoming year. A similar National Association of Business Economists survey projected a 2.8 percent increase in home prices by the end of 2013.

Based on information from the latest Realtors Confidence Index (see below), REALTORS® are projecting a 3 percent increase in home prices in the forthcoming year. Both practitioners and economists are in good agreement on this one: prices are projected to increase.

RCI September 2012 Edition

Information provided by Jed Smith is Managing Director, Quantitative Research with the National Association of Realtors®. He has worked on real estate issues for the past 20 years, providing input on a variety of housing, commercial real estate, tax, and planning issues. Recently he has been involved in several international studies.

Fabulous Property - House & Barn on 75 Acres - Buckland, Ma

Spectacular property, 75 acres on both sides of the road with complete privacy, picturesque mountain & meadow views with approx. 15 open acres!  The land across the road has a 30x60 P&B Barn wit professionally designed 2-story 1500sqft studio space-perfect for artists, retreats, or home office with exposed beams & lots of windows. The Barn side has passed percolation test and would make an awesome house site or you can live in the Barn. The antique cape is warm & inviting with charming details. Great Location-Must See!  $595,000

Check out the Visual Tour:

Wonderful Country Home Charlemont, Ma

This wonderful country home is located in a secluded and desirable area in East Charlemont.  Surrounded by nice homes and not far from Route 2 and less than 10 minutes to the Village of Shelburne Falls.  If you like exposed beams, pine floors, pine interior doors, attractive woodwork, high ceilings, and wood heat, come take a look at this one!   The price reflects work that needs to be done such as a new roof, decks and 2nd floor interior renovations - but all well worth it.  $149,000

Check out the Visual Tour:

Massachusetts Real Estate Update

The Massachusetts Association of REALTORS released their September 2012 sales report and for the 15th straight month sales have gone up compared to the same time last year. Single-family median prices were down less than one percent from last year while condo median prices went up compared to September 2011. (see graphs below – click on them to enlarge).

Release with podcast will be posted as soon as our website host is back online. Sorry for the delay

Highlights from the release:

* Single-family home sales were up 2.8% compared to last year
* Single-family median prices were DOWN 0.6% ($294,900)
* Condo sales were up 10.4% compared to the same time last year
* The median price for a condo was UP 2.9% ($280,000) compared to last year

This information is provided by the Massachusetts Association of REALTORS

Impressive Farm with Upscale Home - Whately, Mass

Impressive custom built farmhouse style home offers the finest details and farming amenities. Gourmet kitchen with custom cabinetry, Ashfield stone countertop and sink along with Viking appliances! Great room with oak timberframe, cathedral ceiling, balcony & fireplace. In addition there is central air and central vac, partially finished basement, heated 2-car garage & more! 

There are 2 barns with 10 acres, certified organic soil, fencing, water & electric.  Perfect for horses & gardening.  Nicely landscape with views of Mount Sugarloaf!  Near I-91, 5 colleges, and Northampton.  

Check out the Visual Tour!

Riverside Sanctuary - Perfect Getaway, Williamsburg, Ma

This riverside sanctuary is the perfect escape with an enchanting cottage sited along the river’s edge.  Sit back, relax & listen to the sounds of the east branch of the Mill River. Warm interior features living room with fireplace & woodstove, kitchen and dining area, upper level for master bedroom/studio space w/cathedral ceiling, wood floors, lots of windows & deck. Charming architectural features & lovely gardens! Convenient location - 5 min. to Williamsburg & 15 min. to Northampton. $195,000

CHECK OUT THE VISUAL TOUR:

Local Real Estate Market Update - Pioneer Valley, Ma

Sales of single family homes in Franklin County are up 15.3%  in the third quarter compared to this time last year.    The average sales price remains about the same.

The Pioneer Valley Region reports inventory for single family homes dropped 5.2%.  As of 9/30/12 there were 3,083 homes for sale vs. 3,243 last year.    The days on market for the Pioneer Valley region remains about the same.   As of 9/30/12, 1440 houses are under agreement and this time last year there was 1295.

The prices do remain flat, inventory is dropping and the time frame (days on market) to sell is about the same.  The real estate market is demonstrating that it has plateaued with a slight indication market is improving.   I will take this news!  Better than what I use to report a couple years ago.

Wonderful Home in the Hills of Heath, Mass

This attractive Cape style home is larger than it looks and is located in a countryside setting on 2.38 acres.  This wonderful home features a good size kitchen, two dining areas, living room, first floor bedroom and full bath, and a fabulous sunroom that you will just love.  In addition the second floor has two large bedrooms and a full bath; there is a large deck that overlooks a picturesque back yard with views; full walk out basement and an attached 2-car garage. Well built and worth a look! Only $195,000
CHECK OUT THE VISUAL TOUR:

Pondside Living in Shelburne, Mass

Immaculate and updated Ranch style home is located on a picturesque pond where the water views are simply breathtaking.  This park-like setting is like no other and must be seen in person to appreciate. The home offers low maintenance living & has charming features throughout including a living room with new brick fireplace,  updated kitchen, study or office, 2 bedrooms, 2 full baths, oil heat, beautiful wood floors & an attached 2-car garage.  Large deck with water views & barn with new roof!  $249,000

Check out the visual tour:

Live the Log Home Lifestyle!

Charming log home sited on 5 picturesque acres with seasonal views and a beautiful yard. It has a new roof, tile floor, freshly sanded wood floors and some new skylights! It is move in ready and offers single level living with attractive open floor plan including kitchen, dining and living area w/fireplace & woodstove. In addition there are 3 bedrooms, full bath, two enclosed porches, and a full basement. Perfect location near village, Ashfield lake, golfing and so much more!  $224,700.00

Check out the visual tour:

Homes for Sale in Franklin and Hampshire County, Mass

I have a large inventory of homes on the market located in Franklin and Hampshire County.  If you are looking for your first home, getaway place, farm or business venture - the perfect place could be right here.  If you have any questions about any of the properties listed for sale, feel free to give me a call at 413-337-8344 or email:  wanda@wandamooney.com

Wonderful Home for sale in Deerfield, Mass

Attractive Gambrel style home located in the Town of Deerfield and sited at the end of a private drive in a secluded setting with seasonal westerly views.   Newer Buderus heating system, fresh coat of paint, newer upper roof, and well insulated.    Features include eat-in kitchen, living room, 4 bedrooms, 2 full baths, ample closet space, finished room in the basement and a detached 2-car garage.   Come take a look! $259,000

Check out the visual tour:

Antique Colonial on 12 Acres - Heath, Ma

Beautiful Antique Colonial on 12 acres that is tastefully renovated incorporating period details of yesterday with modern conveniences of today.  The kitchen is fabulous w/stone countertops & upscale stainless appliances.  There is a large family room with fireplace, formal dining room with fireplace, first floor bedroom or parlor, den, 3 additional bedrooms, office or sitting area, total of 7 fireplaces, wood floors, exposed beam, updated systems! Open land, barn, and views of protected land. $395,000
Check out the visual tour:

Shelburne Falls - Now a Cultural District

Shelburne Falls is now a "Cultural District".  This is wonderful news for the village.  It is truly a special place.  

Cinderella moment for Shelburne Falls

The village is one of 10 Massachusetts communities to be named a state “Cultural District,” and state officials who came to celebrate in Buckland’s Town Hall Thursday afternoon saw Shelburne Falls at its autumnal best: on a balmy day with the last fall blossoms on the Bridge of Flowers, with golden foliage, and the streets full of Hallmark School of Photography students on their annual photo-taking foray into town.

But Anita Walker, executive director of the state’s Cultural Council, got to walk the town in a handpainted pair of “Art Walk” shoes that looked as though they were made for her. “When I came here last time, I thought this was an amazing place,” said Walker. “Today I’m living every girl’s dream: I’m wearing ‘magical’ shoes from the Art Walk,” she said, modeling a stylish pair of lace-up high heels in primary colors.  During the village’s quarterly Art Walks, shoes that are decorated by local artists are placed on paths to direct “foot traffic” to art studios, shops and galleries that stay open late that evening, when the streets are filled with people, roving musicians, artists and appetizers.  The shoes had been part of display in Town Hall, along with the Art Garden’s recent exhibition on the Deerfield River and with artworks given to Shelburne Falls from its Sister City, the village of Mutianyu, China.  Walker said she was not only going to walk through Shelburne Falls in her Art Walk shoes, but she was going to wear them to other cultural districts across the state.

 “This is the only place — probably on the planet — where people make a destination of going where the potholes are. And they’re beautiful,” she added, referring to the Glacial Potholes tourist attraction in the Deerfield River. “Our best cultural districts are real, authentic places where you celebrate who you are, what you are doing.”  “I brag about you every place I go,” she told the 45 to 50 people who attended the luncheon celebration.  Shelburne selectmen’s Chairman Robert Manners said the word “culture” stems from a Roman word meaning “to cultivate or grow,” as in agriculture.  “Here we are today, celebrating the creation of the cultural district of Shelburne Falls,” he said. “It’s only fitting that we recognize this, for it’s consistent in this area throughout time.” He pointed out that American Indians had established the Salmon Falls Glacial Potholes area as a common fishing area and signed a peace treaty; later, the available water power made it a center of industry.  Manners said the sense of place involved “things that are not tangible, that are here for us to enjoy.”

“This is a seed that we all take with us, to plant and grow elsewhere,” he said.

State Sen. Stan Rosenberg, who represented the two towns composing the village of Shelburne Falls for many years, said he is glad the village was one of the first to be included in the new cultural district program. “The bootstrap mentality, of we-can-do-it, is represented by this community. This is just a formal recognition of the cultural past — of what you already have here,” he said. State Rep. Steve Kulik, who represents the towns, said he will work with the village leaders “to make sure this is not just a designation in name only.”

Mary Vilbon, executive director of the Shelburne Falls Area Business Association, said that a new highway sign has been designed by an artist for Shelburne Falls, but that money is needed to pay for creating the road sign and installing it.  The village began applying for a cultural district designation over a year ago. Some of the other communities with this designation include Gloucester, Concord, Hyannis, Rockport, the Fenway district of Boston and the Upstreet district of Pittsfield.

The Cultural Designation Program was enacted by the Legislature in 2010, and participants hope it will open doors to more grants, more publicity, and more resources for boosting businesses.

By DIANE BRONCACCIO Recorder Staff

Thursday, October 18, 2012

3.8% Medicare Tax - Not a Real Estate Transfer Tax

Rumors have spread about this 3.8% tax.  The National Association of REALTORS has done an excellent job explaining the details of the tax.  The video is only 6 minutes and explains the property owners that are effected by the tax.   I hope this information is helpful.  Don't hesitate to contact me if you have any additional questions.

Rumors about the 3.8% Medicare tax continue to circulate. Here's the definitive word on what's true and what's not on how the tax impacts real estate.

OCTOBER 2012 | BY ROBERT FREEDMAN

Ever since health care reform was enacted into law more than two years ago, rumors have been circulating on the Internet and in e-mails that the law contains a 3.8 percent tax on real estate. The tax doesn’t target real estate and will in fact affect very few home sales, because it’s a tax that will only affect high-income households that realize a substantial gain on an asset sale, including on a home sale, once other factors are taken into account. Maybe 2-3 percent of home sellers will be affected.

Nevertheless, the rumors persist and the latest version that’s circulating falsely say NAR is advocating for the tax’s repeal. But while NAR doesn’t support the tax (it was added into the health care law at the last minute and never considered in hearings), it’s not advocating for its repeal at this time.

The characterization of the 3.8 percent tax as a tax on real estate is an example of an Internet rumor, says Heather Elias, NAR’s director of social business media. Elias and Linda Goold, NAR’s director of tax policy, sat down for a discussion of how the tax works.

Economic Update - Mortgages & Housing

Housing Starts, Mortgage Purchase Applications

On October 17, 2012, in Economic Updates, by Ken Fears, Manager, Regional Economics

In each Economic Update, the Research staff analyzes recently released economic indicators and addresses what these indicators mean for REALTORS® and their clients. Today’s update discusses housing starts and mortgage purchase applications.

§  There were two positive news releases for the housing market this morning; housing starts were up along with purchase applications for mortgages.

§  Single-family starts rose 11.0 in September over the August figure and 42.3% higher than a year ago.  The August number was also revised upward and permits for new construction of single-family units rose 7.6% in September.

§  The single family construction numbers are a positive sign for the market as they suggest that homebuilders feel confident in low inventories and are willing to delve back into the market despite tight financing that often requires self-funding of projects.  While construction is up, the 603,000 single family units started in September (seasonally adjusted at annual rates) was well below the 1.15 million units averaged annually from 1980 to 2007.

§  The purchase portion of the weekly mortgage applications index rose 1% on the heels of a 2% increase last week.   The refinance component fell 5% after a 2% decrease last week.

§  Purchase applications are headed in the right direction, but at low levels.  Lenders have complained of high refi volumes taxing their processes, so the decline on that side of the business should help homebuyers.  It may also help to reduce the spread between banks cost of capital and the rates that they loan at as a decline on the refi side would help to heat up competition for borrowers, passing on more the impact of QE3 to homebuyers.

§  Construction is up, which is a good sign of the sustainability of the low inventory levels which have driven price growth and buyer confidence.  In addition, growth of mortgage applications suggests that demand should remain robust through the end of the year and we may see some further improvement in rates to draw buyers out during the winter months.  However, lending conditions remain tight and an improvement on this front, hopefully with clarification on Basel III and Dodd-Frank (QM and QRM) as we approach January, should help to unlock more demand.

Ken Fears is the Manager of Regional Economics. He focuses on regional and local market trends found in the Local Market Reports and the Market Watch Reports . He also writes on developments in the mortgage industry and foreclosures.

Horse Farm for Sale, Westhampton, Ma

Massive 20,000sqft 2-story horse barn that offers many commercial possibilities for a home-based business or other.  It has 22 box stalls w/mahogany wood & iron doors, hay loft and multiple rooms that can be used for most anything.  How much would this building cost you to construct today?  It is a great value and must be seen!  In addition there is a renovated antique cape, paddock areas, potential magnificent building site w/views, all this on 50 acres. 10 min to Northampton. Great Location!

Check out the visual tour:

3rd Annual Pumpkinfest, Turners Falls, Mass

The third annual Pumpkinfest will be held on Saturday, October 20, 2012 on Avenue A in Turners Falls. The event is FREE to the public. Just bring cash for food, beer, and fun! The event runs from 3-9pm, with FREE shuttling from Turners Falls High School and Sheffield School! 

Costumes are also permitted - and encouraged!

Guests are encouraged to bring carved and painted pumpkins. They can be brought starting at 10am in front of St. Kaz on Avenue A. The other pumpkin station, located on 3rd St, opens at 12pm.  For more information contact Michael Nelson, Event Organizer at michaelnelsonmba@aol.com or 413-522-0712 or visit the Pumpkinfest facebook page.