Mom and Dad — To Move or Not to Move?

Mom and Dad — To Move or Not to Move? 
        That is the Question! 

I am a baby boomer, part of the ‘sandwich’ generation.  Like most of our generation we are dealing with moving issues, not only for ourselves but helping our parents as well.

Facing failing health issues, my husband’s parents addressed their moving question after having lived in their home for over 60 years.  Deciding to downsize from a home long-lived-in and loved is a very delicate decision, fraught with unforeseen consequences.

For our parents, giving up their home created a sense of giving up their independence.  This made for a considerably more emotional process.  Providing our parents with information, opinions, support and RESPECT during their decision-making process was critical.  I’ve learned that helping to simplify a very complicated and sometimes volatile process is essential. 

There is so much to think about while preparing to move.  My in-laws did not want to ‘burden’ their children with managing their move. 

Recently I have joined the Home Center Sotheby’s International Realty office, taking on responsibility for the Transitions program.  This program was developed to assist all who are considering down-sizing for any reason.  I am particularly pleased that we are able to provide this service to families who are dealing with the sensitive issue of helping parents move. 

Your thoughts and comments are most welcome!

Jean

If you are interested in contacting Jean Morse Jones to obtain additional information about our Transitions program, please contact her at 617-749-8833 or at our Hingham offices at 57 Water Street, Hingham, MA 02043.  Jean is a licensed Realtor and holds her Senior Real Estate Specialist designation.

South Shore Real Estate Trends

It has been a while since I’ve written about our local sales and on-market real estate activity. Perhaps I was waiting for good news. Oh well.

Let’s look behind the “media’s” headlines and review objective data from our local Multiple Listing Service*.

I am going to give you some numbers for Cohasset, Hingham, Hull and Scituate. These towns cover a broad demographic and quite a variety of sales price points.  All data refer to sales over the past 6 months and on-market data are single family homes currently for sale.

Cohasset
There are 97 homes currently for sale with a median price of $1.09 mil and past six month sales totals 38 homes with a median price of $637,500. Yikes! Are houses selling for 1/2 price? Let’s look a little deeper. Of those 97 homes, 56 are on market for more than $1 mil and only 6 of these high-end homes sold in the past six months. Of the total sales, 32 sold for less than$1 mil.

A good way to look at the inventory of homes for sale is to take sales for a period (I chose six months), average it and divide it into the inventory to get months of inventory.  In Cohasset, homes on market priced below $1 mil have a 7.7 month inventory. Over $1 mil? The inventory is 56 months! (6 sales / 6 months into 56 on market)

Hingham
Hingham is much larger than Cohasset and has an inventory of 156 homes for sale. 58 over $1 mil. With sales of 122 homes, the average inventory is not bad. However, look at the 58 over $1 mil homes and the sales of these homes at just 15 properties and we find  an inventory of 23.2 months! Half that of Cohasset but still problematic.

Hull
Coastal Hull has long been considered an affordable alternative for waterfront living.  With 99 homes for sale, just 9 over $1 mil and a median list price less than half of Cohasset or Hingham, you’d expect different results. Let’s look.

53 homes sold under $1 mil and 3 over the million mark.  Inventory of sub-$1 mil homes in Hull is double Hingham’s rate at 10.2 months.  There are three high-end homes that may take up to 18 months to sell based on recent sales data. Better than Cohasset or Hingham but still a year and a half.

Scituate
Benefiting from a more remote location (for Boston commuters) Scituate has often been a relative bargain. The new commuter rail helps offset the commute too. Scituate’s median home listing today is $549,900 with a total of 33 homes for sale. Of those almost one-half, 14, are over $1 mil. So are sales good? You bet – if you’re selling under that million dollar mark.  99 homes sold in the past 6 months giving an inventory of just 1.2 months There are 2 for sale over $1 mil and you can expect to wait 42 months to see them sold at the current rate.

There’s more data to discuss (frequency of price changes and rate of change, comparison of total value on market vs. total sold by price point and more), but, if you’ve gotten this far you have been more than patient – Thank You!

If anyone would like a spreadsheet with all the data supporting these comments, email me at RobertKMitchell@HomeCenterSir.com

Bob Mitchell
Home Center Sotheby’s International Realty
617.510.5106

* I put an asterisk here to point out, in fairness, most but not all sales are recorded here. Sales that do NOT go through a REALTOR are not reported. Nevertheless, these numbers represent most of our local sales.

An Absorbing Real Estate Issue

Welcome

First, thanks to all of you who read this occasional blog on real estate related topics.  Your comments are most welcome and I look forward to hearing from you.  To those of you receiving your first “issue”, thanks for registering on our website or meeting one of our people at the great town events this summer. Both I and all the other agents at Home Center Sotheby’s International Realty are here when you need us to answer any and all questions you have regarding the purchase and sale of property both locally and via our world-wide network.

Now to the absorbing topic . . .

We all understand that demand for a product is affected by a number of factors which act together to create the “market price”.  When selling real estate there can be more than meets the eye in determining a fair asking price.  For example does a quality home with “inherent value” overcome a poor market? How about that kitchen you upgraded two years ago paying for itself? Sadly, no.  You need to take your personal feelings out of the equation. The biggest factor affecting the sale of any home is obvious. It is the perceived value of the home vs. the other similar properties vying for the attention of the shopper. Supply and demand at its most local level.

Let’s look at the town of Cohasset.  Sure there are numerous multi-million dollar homes but there are also many more affordable properties enjoyed by the folks who live there. When they put their homes on the market, are they entering a single market? Is there such a thing as a Cohasset buyer?  I suggest no to both questions.

Here are the facts. Over the past nine months, 47 single family homes have been reported to MLS as sold in Cohasset. That’s 5.2 homes on average sold per month.  What can we do with this information?  Let’s consider for a moment the number of homes currently (mid-September 2009) for sale there; 102 homes.  The absorption rate is the projected time to sell on-market properties based on recent sales. In this case, if the sales rate continues as it has, it will take 19.5 months to sell these properties.  Is this represented across the range of prices offered?

Consider the number of homes selling for $1 mil or less.  The absorption rate or time to sell these homes is 12 months. Still quite a while but with current market conditions perhaps understandable.  How about those higher priced properties? If they sell at the rate of the past 9 months, many homes over $1 mil will be on the market four years from now!  OK, let’s hope that the future is not that bleak. Sales trends are reversing and picking up in some towns and segments.  Even so, if sales rates doubled, that still means there’s up to a 24 month inventory of high-end homes in Cohasset!

And the lesson is?

Specific market knowledge is essential.  There is more to market knowledge than familiarity with the basics – schools, transportation, neighborhoods – an expert agent must be familiar with sales trends at all price points. Not just anecdotal, seat-of-the-pants “experience” but hands-on understanding of the data behind the market.  An agent with in depth knowledge can make all the difference to a seller or a buyer.  Pricing a home to “lead the market” places it at the top of shoppers’ lists. Of course it has to be a great value, in a wonderful condition, with fabulous on-line photographs that tell a compelling story too.

How can you improve the odds of a successful outcome in selling your home?

Find a great agent working for a trusted, recognized brand. Warning – here’s where I move from an objective commentator to a biased marketing director.  There’s no one more committed to successfully bringing together buyers and sellers of real estate on the South Shore of Massachusetts than the agents of Home Center Sotheby’s’ International Realty.  When you are ready to talk, please give us a call.

Thank you,

Bob Mitchell
617.510.5106

Three local towns offer you a busy Sunday

Cohasset, Hingham and Hull Celebrate on Sunday, September 13th.

This Sunday – rescheduled from rainy Saturday – sees the return of the second annual “Cohasset Day”. From 12:30 – 6:00 pm a variety of activities

Cohasset Day 2008

on Cohasset Common and in the Village offer something for everyone. It starts with a return to an old-fashioned family day with a decorated bicycle parade and kid’s games. In mid-afternoon a fashion show and classic car concours should appeal to the adults.

Throughout the day a variety of local restaurants offer their creations. (Tip: purchase your ticket in advance for $20/family at Darilynn’s or French Memories, on South Main Street and save $5.) Proceeds from the event benefit The Council on Elder Affairs, Cohasset Food Pantry, and the American Legion George H. Mealy Post 118. For more on this event click here.

Welcome to Hingham

Not to be outdone, neighboring Hingham kicks of its 375th anniversary at 11:00 am with a walking tour of the town followed by a public reception and garden party, 4:00 to 7″00 pm at the Old Ordinary, Lincoln Street. The event features period music and costumes as well as refreshments. Best of all it’s all free! Oh, I should mention that Home Center Sotheby’s is proud to sponsor this year-long celebration.

Enjoy the beach? Then a must visit destination is the “Endless Summer” event at Hull’s Nantasket Beach. Starting at 9:00 am with a judged sand castle contest using 30 tons of sand dumped on Nantasket Avenue it continues at noon with a kids’ sidewalk chalk art contest. There’s a music venue featuring sounds from around the world plus food from over 20 restaurants! When you visit, stop by our Home Center Sotheby’s booth for a balloon (biodegradable of course) and a bottle of water.

Thanks for reading. For information on buying and selling property in these and surrounding towns, please give me a call.

Bob Mitchell
617.510.5106

No beef with Julia’s kitchen

Did you see today’s Boston Globe?  Famed chef/author Julia Child’s home in Cambridge is now home to a family of vegans! The home, familiar to viewers of her several TV shows and a recent movie, has been extensively renovated.

103 Irving St.

The surprising thing is that the new owners never heard of the author of Mastering the Art of French Cooking before looking at the $3.7 million home.  For more click here.

Bon Appetit!

Bob Mitchell
617.510.5106

More signs of a real estate rebound.

“Home prices in Greater Boston have increased for three straight months and the number of houses selling is up sharply, suggesting that the long housing slump is over.” according to yesterday’s (Aug. 26) Boston Globe.

Housing industry specialist Karl E. Case, a professor of economics at Wellesley College, said the Boston market is “bottoming out.’’ He noted that the housing index he cofounded, the S&P/Case-Shiller home price indexes, showed several months of prices increasing in Greater Boston.

“That’s significant,’’ Case said.  For the full story, click here.

 

Bob Mitchell
617-510-5106

You deserve Presidential treatment

By now everyone is aware that President Obama and family are on the Vineyard.  Did you know that the property was sold to its current owner by a Sotheby’s International Realty broker in Martha’s Vineyard?

Courtesy of Plum TV

In 2005, Tom Wallace of Wallace and Company Sotheby’s International Realty co-brokerd the sale of this $20.35 mil “farm” to a Mississippi couple.  He also acted as rental agent recently for this late summer rental.

So if you want your family to be treated to the same “white glove” service as the First Family, may I recommend that you work with a Sotheby’s agent? No matter what the price point we support every client with the utmost service.

Bob Mitchell
Marketing Director, REALTOR®
610.510.5106

When Headquarters Meets Living Quarters

Workspaces that inspire . . .

Our company, Home Center Sotheby’s International Realty, participates in a unique collaboration with the Wall Street Journal to provide The Business Of Extraordinary Living.  In a recent article Iyna Bort Caruso offers an in depth discussion of the necessity, in today’s fast-paced world, for a home office that is more than a corner of the family room.

Sure the offices discussed (Click here to read the full article) are “over the top” oases for the mega rich, but the concepts are something we all can appreciate and, perhaps, incorporate into our own homes.

Did you know that, according to a 2007-08 consumer preferences survey by the National Association of Home Builders, 50% of recent or potential home buyers find a home office desirable?  It’s no wonder, then, that we see a preference for this new “must have” amenity. 

Thinking of buying or selling real estate?  Please give me a call to explore your interests and develop the potential of your home or help you to focus your home search.

Bob Mitchell
617-510-5106

Ultra Exclusivity

The town of Norwell is located in the heart of the South Shore.  Easy access to Route 3 and close to the coast and Cape Cod, this is an ideal community with some of the highest quality values in the area. 

Norwell's "Reserve"

Our listing in the “Reserve” offers the discriminating buyer a gated community, a large home with a cosy feel, a wonderful level yard leading to a pool and 2-story pool house – more on that later.

A Campbell Smith designed home, it is set privately on over seven acres down a tree-lined drive. The rooms are elegant with crown molding, high ceilings, hardwood floors, 7 fireplaces and 4.5 baths. The eat-in kitchen borders the sunken family room on one side and an inviting formal dining room with French doors leads to the private bluestone patio with formal perennial gardens on the other.

2-Story Pool House

The second level has three bedrooms and two more are planned for.  The master bedroom offers a fireplace, built-ins, two walk-in closets, and a large private bath.  A Bose sound system brings music to the home both inside and out to the patios and pool. The bluestone patios have a view to the ‘Gunite’ environment pool and a five room guest house.

The guest house / pool house is separated from the main house by an expansive lawn and features a massive stone fireplace, kitchen, sleeping loft with two separate areas and private screened porch.

P.S. Click on either photo to view our latest video tour of this home.

Hingham Real Estate Market News

It’s been a while since I wrote about our local real estate market and now seems like a good time to recap recent activity. (All data is taken from the independent Multiple Listing Service.)

The Grande Dame of Main Street

Single family homes for sale in the town of Hingham on July 31, 2009 had a total asking price of $181.7 mil. This is up from July 31, 2008 by a surprising 13%. What does this tell us?  Well, it is not the result of less expensive homes entering the market. In fact the median asking price is up 15% to $877,125 and the average asking price is $1,037,816.* Folks offering their homes for sale in Hingham are once again optimistic about the market and we agree despite recent downward sales trends.

How about sales? Over the 12 months leading up to July, 2009, the total value of all single family homes sold by all agents in town was $118.9 mil which is down 17% from the same period in 2008. Ouch!  Average sales per home are down 6% to $716,541.

And how is our office, Home Center Sotheby’s International Realty, fairing? Couldn’t be better, thank you very much.

We are proud to announce that we are the leading independent real estate office in Hingham. Our total sales volume in 2009 vs. 2008 is up a whopping 8%.  This remarkable success is recognized by the savvy sellers who have come to us recently to list their homes. Collectively they have helped up to increase our homes on-market by 26%. Thank You!

In conclusion, we see a lot that gives us hope in the months ahead.  Our business is up and we look forward to continuing our successes over the next 12 months.  When you are looking for the finest assistance in buying or selling homes on the South Shore, please give us a call.

Thank you,
Bob Mitchell
617-510-5106

 

*Note: 2009 data has been adjusted to remove an unusual $8.4 mil sale in July.