Similar Sales are Somerville's Sales (MA) RE 1st half 2011

What we are trying to say with the tongue twister up top is that Somerville’s sales for the first half of 2011 exhibited a remarkable similarity to the same period in 2010. Starting with multi family properties, we count (according to MLS), 75 transactions in 2011. In 2010?…we count 75 transactions. Average days on market? 83 days…80 days for 2010. We may well speculate that the extra three days on market was the extra effort put out by our friendly real estate agents going the extra mile for their listing clients and negotiating ‘round the clock Friday through Sunday to get the average price up….(hey…stop laughing). At any rate, average price WAS up from a bit below $496k in 2010 to a whopping $531k in aught 11.

Singles? The 28 singles that sold did so in 71 days and allowed owners to cash out at an average of $457k. In 2010, the average was a tad over $453k. In the efforts of full disclosure, we should note that 39 homes cut the deed in the first six months of 2010.

Condos? well ever an interesting game. The similarity falls off in unit sales (157 for 2011 versus 211 for 2010), but that is offset by significantly higher prices -- $392k for 2011 up from 2010’s 369k. Average days on market grew from 78 to 88 (hard negotiating again?). Ya just can’t put a bead on condos – just like last year and the year before: maybe that is the best similarity of all.

First Quarter Real Estate "Round Down"

Get it? Round-up? ... "down"?... Never mind. The idea up there was a hint that first quarter 2011 sales were down in numbers of transactions in 2011 versus 2010...at least in the areas that I haunt.

Looking at the 3 Musketeers of residential RE (Singles, Condos and Multis), only Watertown improved over 2010 in the seven towns where I did some work. Belmont was down 2 (32 in 2011 versus 34 for 2010), Newton dropped 7 units from 2020's 122; Lexington sank to 58 from 2010's 62. Waltham got "clocked" (get it? Waltham Watch/Clock Company?) -- down to 78 sales from 2020's 93. Medford finished out the quarter at 79 sales (11 below 2010); Arlington ran out at 69; 8 shy of 2010's total. Only Watertown upped the ante: 61 sales for Q1 2011 UP from 2010's 52.

I wouldn't put too much stock into this, yet folks. Let's wait 'til we review the numbers and the mix -- then we can decide what to do with "all" our stock...Stay tuned.

The Race is ON in Somerville

Can you believe it?...2 weeks left and we are DONE with the first quarter of 2011. How time flies -- seems like only last year I was sniffing mimeograph paper and discovering the joys of watching Valerie Werner smooth out her "Bobbie Brooks" (but that is another story).

At any rate, at the risk of jumping the gun, I feel it is time to begin the look see at how Real Estate is holding up in my corner of the world, and today we will start off with Somerville and its agents as they race to the 1st quarter finish line.

So far this year, according to MLS, 64 properties have had the "T's" crossed and the "i's" dotted on the bottom line (6 singles, 35 condos, 23 multi-fams) -- SO FAR, we say. In the first quarter of last year (the full quarter) 107 properties did the ol' fliperino. Doesn't look good does it? But wait...

Digging a little deeper finds us a few nuggets of hope; we see (through the fog) 33 properties are Under Agreement and are scheduled to close by 3/31/11. According to these projections, the first quarter of 2011 in Somerville will close out with 98 transactions, about an 8% drop. That is nothing to toot our horns about, but it is, likewise, no reason for Chicken Little to be running about saying the sky is falling. The "goodest news" (as my grandmother used to day when she worked at the First National [remember the FN?...remember the JUMBO for that matter?]) -- the goodest news is in Condo sales, where days on market have fallen from 2010's 123 days to 108 (so far) days in 2011.

No real bad news here. The "baddest" we can find is that agents may well have to ride the Lexus about for another season before trading up to the Beemer.

The Belmont and Watertown and Newton and...THIEF

This is right outta the local Belmont (MA) "rag". It is too funny not to copy. Check out the "Perp's" Mode-of-Op...

By Dan Atkinson, Jen Thomas, Christian Schiavone and Emily Costello/belmont@cnc.com
Belmont Citizen-Herald
Posted Mar 31, 2010 @ 05:04 PM
Last update Mar 31, 2010 @ 05:27 PM
Newton, Mass. — Newton police have arrested a suspect in connection with last weekend’s theft of a bronze plaque from the Homer Building in Belmont, as well as a similar theft in Newton.

Vincent Cedrone, 52, of 315 Crafts St. in Newton, was charged with two counts of receiving stolen property, according to Newton Police Lt. Bruce Apotheker. He reportedly stole a bronze plaque from the Chestnut Grove condominium complex at 1175 Chestnut St. as well as the plaque in Belmont, Apotheker said.

Belmont police have also charged Cedrone with larceny over $250 and defacing property in connection with the March 21 theft of the Homer Building plaque, which was captured by several security cameras. The plaque is valued at about $1,900.

Cedrone’s arrest isn’t the first time his name has been connected to a missing historic plaque.

Last January, he received a $1,000 reward for returning the Belfry plaque stolen from Lexington’s Battle Green, according to one of the three businessmen who offered the reward.

Several weeks after the plaque went missing in December 2009, a Lexington police officer reportedly spotted Cedrone trying to load it into his car. He allegedly told the officer he found it and wanted to return it.

Now Cedrone is suspected of similar thefts in Belmont, Newton and Watertown, according to police officials in the three towns.

Lt. Richard Santangelo, a spokesman for the Belmont Police Department, said police received information that led them to Cedrone after releasing the security camera videos to news outlets, including one that aired the footage on the evening news.

The footage shows a man pulling into the Town Hall complex in a small white coupe at 4:30 p.m. The man appears to first try to pull off the bronze plaque on the school department building across the driveway, but gives up and moves on to the Homer Building.

“It was definitely the result getting the pictures out there to people,” said Santangelo. “Right after the broadcast we got some information.”

Santangelo declined to say what type of information police received and said he didn’t know whether it came first to police Belmont or Newton. After a joint investigation between police in Newton and Belmont, Newton officers made the arrest, Santangelo said.

So far, the Homer Building plaque has not been recovered and may have already been sold for scrap, according to police.

Santangelo said Cedrone is also a suspect in the theft of four other plaques from the Waverley Square area. One was mounted on a concrete post on the railroad bridge running along Trapelo Road. The other three were smaller plaques set in stone monuments around the triangular grassy space over the Waverley Square Commuter Rail station.

Historical plaques have turned up stolen in Newton and Watertown in recent months. Tablets have been swiped from Newton's Country Day School, Memorial Monument Rock at Newton City Hall and the Johnny Kelley statue.

Watertown had seven plaques stolen — three from Arsenal Park, three from in front of the Commander's Mansion on Talcott Avenue and one from Watertown Square. All appear to have been pried off.

Lt. Michael Lawn of the Watertown Police Department said police believe the thefts in Watertown, Belmont and Newton are related. Though Cedrone has not been charged with any of the Watertown thefts, Lawn said the police are "confident" the crimes were committed by the same person.

Thieves did not get away with another plaque at the George Washington monument in front of the Watertown Free Public Library, though the plaque suffered some damage from what appears to be an attempt at dislodging it.

Police believe the plaques were stolen so the metal could be scrapped.

Newton's Apotheker would not comment if Cedrone is connected to other plaque thefts, referring questions to the Middlesex District Attorney's office. The DA's office has not returned phone calls for comment.

At least a dozen plaques have been reported stolen in the Newton area over the past few weeks.

Despite Cedrone's arrest, John Carroll, one of the Lexington businessmen who gave Cedrone the reward, said he was just happy to have the plaque back.

“When we made the offer, it was no questions asked,” said Carroll, who owns Stone Meadow Golf on Waltham Street. “We were more interested in getting the plaque back and making sure it wasn't sold for scrap. It turned out well in the end.”

Copyright 2010 Belmont Citizen-Herald. Some rights reserved

A Self Serving Call to Action

The below quote came to me from my lobbying group, the National Association of Realtors. One wonders about these things. It is a plea to keep yet one more bail out going. The famous $8,000 to first time buyers is, after all just another bailout: it gives 8 grand to folks who may not deserve it and take it away from those who earned it (in the form of more debt to pay in the future -- which will be paid by rising taxes). At the risk of losing the love of my fellow agents, I say no; no to any of this. Let us all work hard, try hard, take a bit longer to recover, if necessary, but let us stop this govenmant mandated re-allocation of wealth.

Read the text:

"We have all seen first-hand the positive impact the first-time homebuyer tax credit is having on the real estate market recovery. As the expiration date for this successful program looms, we ALL need to make sure that Congress hears from us about the positive impact this program has had and ask them to extend it, and expand it, so that we can continue to see our markets fully recover."

Toys for Tots

Drop off your toys at 161 Mount Auburn St. in Watertown. Yesterday someone dropped off a great baseball glove; we've got two bicycles and lots of dolls...some kool games that all of us will remember...I promise I won't play with anything -- although that Playdough looks mighty inviting...

Open house here 4-8 PM on December 12 -- This Friday night upcoming. Cocktails and Hors D'Oeuves served. Last year I had kids playing floor hockey in the basement -- this year. Maybe this year the old folks will play, too.

CALL ME AT 617.470.8085 FOR INFO.

Some Things You Do Not Need to Know About...

...Somerville. Redux, as in we've done this before but just have to do it again.

Bette Davis lived the first decade of her life in Somerville. Katherine Hepburn's grandfather was from Somerville.

The smallest national park in the United States is in Somerville...on Winter Hill. It has nothing to do with James "Whitey" Bulger, rather it marks the spot where Paul Revere evaded capture during his "one if by land" gig. Speaking of that gig, the Brits took thier first hostile action against the emerging revolutionaries when they struck the old Mollet Grist Mill in Somerville in 1774. They confsicated 212 barrels of gunpowder and angered thousands of musket toting farmers.

The Ford plant in Somerville turned out 75,000 cars in 1948. In 1957, after building just 400 Edsels, the plant was ignominiously closed for good.

NO JOKE -- New Real Estate Laws and Issues

On Thursday, December 20th, President Bush signed into law a bill passed by Congress: HR 3648 –Mortgage Forgiveness Debt Relief Act of 2007.
The three major points are:
· Elimination of the “phantom tax” on foreclosures, short sales or other discharges of debt on a primary residence. Consider this scenario: A property is worth $250,000, and the mortgage balance is $300,000. Under the old rules, if a lender forgave the $50k difference as part of a foreclosure, short sale, refinance or loan modification, the borrower had to claim the $50k as income and pay federal income taxes on that amount. The new law eliminates this “phantom tax”, and the forgiven debt is no longer treated as taxable income to the borrower as long as certain requirements are met, such as the discharged mortgage balance must be on the taxpayer’s principal residence.
· The tax deduction for mortgage insurance premiums is now extended until December 31, 2010 instead of expiring at the end of 2007. The same rules apply as before in terms of the income limitations etc.
Those with adjusted gross incomes up to $100,000 receive the full break, but the deduction reduces 10% for every $1,000 over $100,000 until it reaches zero at an adjusted gross income of $110,000.
· The capital gains exclusion is now $500,000 instead of $250,000 for an unmarried individual who sells their primary residence within 2 years of the time their spouse has died. This new guideline applies to sales after December 31, 2007, and provides relief for widows and widowers by giving them a 2 year window from the time their spouse has died to sell their home and receive the $500,000 exclusion. Of course, the same rules apply as before, where the individual(s) need to have lived in the home as their primary residence for 2 out of the last 5 years.
Yet to be determined…
On October 17, 2007 the Office of the Attorney General amended 940 CMR 8.00
et. seq., the regulation under the Consumer Protection Act that identifies unfair and
deceptive acts or practices in connection with mortgage brokering and mortgage lending.
The new amended regulations were issued following an extensive comment period and
after four hearings were held statewide between September 18 and 21, 2007. The new
regulations will take effect on January 2, 2008.
Massachusetts’ Attorney General Martha Coakley’s new mortgage regulations have forced national lenders like Wells Fargo to drastically adjust their business practices in the Bay State — which includes no longer paying yield spread premium to its brokers. Who else is dismissing YSP and which lender is pulling the plug on business in the state altogether?
Massachusetts prohibits certain activities and requires that all mortgage loans be in the borrower's best interests. Furthermore, a mortgage loan broker's interest cannot conflict with the borrower's best interest.

To Sell or Not to Sell...that is the Question

I sent this to a prospect wondering whether they should sell or rent their home:

Some points to ponder on the idea of renting out your property. I hope there is some value here for you. I do have other resources.

How will your choice will affect your cash position?

How willing and able you are to manage a rental property?

Are you buying another home? If so, you may need the proceeds from the sale of your present home to fund the purchase of your new one. If you anticipate that the sale might result in a loss, consider whether it would be better to rent out your present home, at least until the real estate market turns around. You may need to accept the loss to currently realize the cash that a sale now would bring. If the sale results in a capital gain, consider whether you will be able to exclude that gain from federal income taxation. (If you meet all of the requirements, you may exclude up to $250,000; up to $500,000 if you're married and file a joint return.)

If you are not able to exclude all or part of the capital gain, you may need to reserve a portion of the proceeds from the sale to cover the taxes due. Or you may need to defer the sale and rent out your home in the interim.

If you decide to rent out your present home, will your rental income cover the ongoing expenses associated with the property? Will it cover mortgage payments, property taxes, and insurance? If not, determine whether you can afford to cover the difference on an ongoing basis. Will the tenants be responsible for all utilities, or will you have to cover some of these expenses? Consider what your anticipated annual maintenance expenses on the property might be. Most importantly, if the property were vacant even for a brief period, think about whether you could cover these expenses without a steady stream of rental income.

Rental income, realistically is for 10 months a year, not 12. Expenses are 12 months. There will be instances when a tenant stays for a long duration, but when they move out, you will generally be faced with a long period of rehabilitation to bring the property back up to pristine condition.

If you decide to rent out your present home, you'll be a landlord. You'll have to decide whether to manage the property yourself or hire a local property management service. The decision may hinge on whether you are moving a few miles away or a few states away. Familiarize yourself with the various laws that govern landlord/tenant relations. You'll have to meet health and safety code requirements and perform maintenance and repairs on the property yourself, or hire others for these tasks.

Renting out your home can also have tax implications. For instance, if you rent your home temporarily, you may still qualify for the capital gain exclusion when you later sell your home, but that's not the case if your property is considered permanent rental property. Assuming you rent your home on a temporary basis for more than 15 days during the tax year, you'll have to declare the rent you collect as income. However, you can offset rental income with allowable interest and property tax deductions. To the extent that the rental income exceeds these otherwise allowable deductions, you can also claim rental deductions for maintenance, insurance, and depreciation. These expenses, though, are limited to the amount of rental income. Depreciation deductions, it should be noted, may impact the amount of capital gain that you can exclude from federal income taxation when you sell the property.

If you permanently convert your home to rental property, the tax treatment may be different. Before you make the decision to rent out your home, you may want to consult an accountant or other tax professional. If you have friends or colleagues who have rented out their homes, you might also ask them about their experiences as landlords.

I Have Moved to Better Help You Move

I am pleased to announce my affiliation with CENTURY 21 COMMONWEALTH, the number one selling entity in Massachusetts. My new situation offers me a vibrant framework through which I may better serve you -- whether you are a buyer or a seller, the resources and clout behind me now will lead you to the most advantageous pricing in your transactions.

I'd love to meet with you in any of our conveniently located offices to discuss how I may best serve you.

Best of everything.
Al.

Some Things You do not Need to Know About...

Somerville...

Barak Obama lived here when he went to Harvard.

Hank Hanson, who helped put up the first flag on Iwo Jima (it was taken down and replaced by a bigger one that made it into the famous picture) grew up in Somerville. He was killed on Iwo Jima 5 days after the flag went up.

Archibald Query invented Marshmellow Fluff in Somerville.

Nick Gomez, director of "The Sopranos", is a native.

Lots of real gangsters are natives too.

Somerville is the most dense municipality in New England.