Doug's October Musings

October has arrived but where is the autumn weather? October 1st was warm and balmy reaching almost 80 degrees! It was a good day for a swim.

Sales in September jumped to36 in number. This is a 50% jump from the number of sales in August 2011 and in comparison to August 2010; the number of sales are the same (37). The median sales price in August 2011 increased to $576,000 ($581,500 in Aug 2010) and the average sales price was $1,019,194 ($1.72M in July 2010). The average days on market are 240 (241 last year). These numbers show a welcomed increase in values and number of sales and the “under agreement” pipeline indicates that the next couple of months should also show a strong numbers of sales.

I included this month a list of all homes sold in your township so you can see specifically what is selling. Please let me know if you have any questions.

Interest rates continue to be historically low and will hopefully entice buyers to take advantage of what I see as a great opportunity to invest on the island. Five year ARM’s are available for as low as 2.5% and 30 year fixed as low as 3.99%. For specific information on all bank loans please consult with your preferred loan person as they can explain all the requirements for each loan.

Doug's September Thoughts

The beginning of September brings the end of summer. The August fireworks in Oak Bluffs were the best ever! Hurricane Irene came and gave us a little blow and rain. My thoughts and prayers go out to everyone inland that took the brunt of the storm.

September also brings cooler days, open parking spaces and the annual Striped Bass and Bluefish Derby. This month will also (hopefully) bring an influx of buyers looking to take advantage of the current market conditions. Real estate is the only business I know that sales slow down when prices are reduced. Go figure!

Sales in August increased to 23 in number. This is a 30% jump from the number of sales in July 2011 and in comparison to August 2010, the sales are the same (23). The median sales price in August 2011 decreased (for the 2nd month in a row) to $473,000 ( $634,750 in Aug 2010) and the average sales price was $543,833 ($1.72M in July 2010) . The average days on market are 254 (288 last year). Although these numbers show a significant decrease in values, the “under agreement” pipeline indicates a larger number of higher end properties will be closing in the fall.

Of the 23 sales in August, 7 were bank foreclosure related sales.

Again, as last month, let us compare the YTD (year to date) sales numbers. For YTD 2011, there have been 223 sales with an average price of $874,000 and a median price of $547,000. In comparison, for the same period 2010, there were 265 sales with an average price of $992,729 and a median price of $560,000. The average days on market are down to 250 compared to 315 in 2010; the only positive number in this month’s review.

Interest rates continue to be historically low and will hopefully entice buyers to take advantage of what I see as a great opportunity to invest on the island. Five year ARM’s are available for as low as 2.5%

Hopefully the world and national economy will stabilize, jobs will increase and we will see a renewed interest in island real estate.

RE/MAX Broker & Obama

At a recent town hall meeting a RE/MAX broker asked Obama about the state of Real Estate. Here is the exchange...



http://youtu.be/yyvA-uZNrVA

Doug's August Reflections

August 1, 2011

August is here! Unbelievable. This is the month where tourists flock to the island in search of the perfect beach day, a wonderful meal at their favorite restaurant (Outermost Inn is mine) or just a chance to relax.

For me, I also like to travel in August. This year I am heading to the Amazon rain forest in Brazil with my wife and son for some kayaking and hiking. Should be an adventure! While I am gone, Jennifer Knight from my office will be handling the day to day activities here.

Sales in July dropped to 16 in number (ouch!). In comparison, one year ago there were 44 sales in July, 2010. The median sales price in July 2011 dropped to $505,030 ($495,000 in July 2010) and the average sales price was $727,000($1.06M in July 2010) . The average days on market are 208 (234 last year). I find these numbers very concerning since sales predictions were supposed to be steady through 2011.

Since a month to month comparison of statistics or even comparing same period this year to same period last year show a sharp decline in sales, I decided to take a YTD (year to date) look at the numbers. For YTD 2011, there have been 198 sales with an average price of $913,000 and a median price of $550,000. In comparison, for the same period 2010, there were 242 sales with an average price of $923,000 and a median price of $554,000. So even though the number of sales is down 18% YTD, the prices are steady.

The inventory of homes for sale on island is still around 570 units. The total number of properties for sale including land, condos and commercial is 760. This is consistent with the past 3-4 months. Several years ago when the market was better, out inventory rarely reached 500 units.

Interest rates continue to be historically low and will hopefully entice buyers to take advantage of what I see as a great opportunity to invest on the island.

Hopefully the national economy will stabilize and we will see a renewed interest in island real estate.

Enjoy the rest of your summer and here’s hoping (fingers crossed) that a buyer for your property is in the near future.

According to CNN Money.com's Fortune section now is a great time to invest in real estate again. http://finance.fortune.cnn.com/2011/03/28/real-estate-its-time-to-buy-again/

Doug's Spring Reflections

Ahhh…. March, the month spring arrives and boy, do we deserve a nice one! The winter of 2011, specifically the snows in the northeast, will be remembered for a long time.

I write to you this month from the International RE/MAX conference in Las Vegas Nevada. This 4 day annual event brings together over 5,000 REMAX agents from 56 countries to study current real estate trends, interact and share ideas and see the newest “gadgets” available. I had dinner last night with a group from India that opened the first RE/MAX offices in that country just 2 years ago. Their market is booming!

There is some good news and some not so good news at the first day of the conference. The good news is that many indicators (nationwide) are suggesting an upswing in the economy. With consumer purchases up at Christmas time (first in 4 years), an increase in car sales (big ticket purchases) and a decrease in unemployment (now below 8.9% nationwide, 8.1% in the northeast), economists are seeing a renewed consumer confidence. This confidence will surely translate into more real estate purchases. The not so good news is that the foreclosure mess that has affected so many communities will not end in the near future. There are an estimated 7,000,000 (yes, million) homes still facing foreclosure over the next 4 years and these properties will saturate the market, thus buffering prices and confusing buyers. In some markets, these bank foreclosures and short sales are 70% of the market. Luckily for us, these type of “distressed sales” on the Vineyard is only about 12-13% of the market.

Island sales for February were down to 23 for the month with an average price of $646,644 and a median price of $515,000. These are both down from the past 3 months. This is typical for this time of the year since closings usually take 60-90 days from initial offer and the November/December market is traditionally a slow time.

Interest rates have been fluctuating as high as 5.25% for a 30 year rate but recently dropped below 5%. I believe interest rates will stay steady throughout the year.

Here’s hoping for a wonderful spring and a busy selling season.

Doug's Real Estate Thoughts For February

February 8, 2011

Happy Valentine’s Day! And here’s hoping you have been able to dig out of the never-ending snow that keeps pounding the northeast. Fortunately (or unfortunately according to some), the Vineyard has been spared the 16-20 inch snows that have been common “across the pond”. We have our share of 2-4 inch accumulations that melt and freeze into ice rinks in our driveways, but right now we are a balmy 40 degrees and all signs of a “white” winter are gone.

The market has been a little roller coaster like this winter as many buyers seem to be staying home and not traveling to the Vineyard for real estate shopping. But those who do travel here have been buying!

There were 27 sales in January with a median price of $650,000(up $100,000 from last January) and an average market time of 218 days (down from 285 a year ago)…both good signs! Of these 27 sales, 3 were bank related (foreclosure) sales and 4 sales were over $3 million dollars…one of which was the Cronkite estate that brought a whopping $11.3M!

There are presently 41 properties “under agreement” that will close in the next 60-90 days +/-. Current inventory is still high with approximately 500 properties for sale. This number will be increasing as we approach spring.

These statistics, once again, tell me that the real estate market on the Vineyard is stabilizing.

Vineyard Gazette on The State of Vineyard Real Estate

http://mvgazette.com/article.php?28870

Doug's Thoughts For The New Year

Wishing you a wonderful 2011 where you accomplish your goals and enjoy every day with enthusiasm and promise.

The “year end” numbers I predicted the last 2 months (mostly) came true. There were 337 residential units sold in 2010 compared to 270 in 2009. That is a 25% increase! The median price of $596,500 in 2010 is 8% over that of 2009. The only surprise to me is that days on market remained relatively constant at 299 . As you remember, my earlier prediction was that days on market would be reduced by 10%. I hope these statistics continue into 2011 and we see a continued stabilization, if not appreciation, in our real estate market.

The New Year also brings a time to review the current market value of your property. I will be emailing you, within the next week, an updated CMA that evaluates your property in relation to the market. Please let me know any questions or comments you might have after you review the report.

Interest rates have “ticked” up a little in the past quarter, although most 30 year fixed rates are still below 5%. The change in banking that is affecting the real estate market most is the “tightening” of banking requirements for buyers. In almost every transaction last year, I saw new documentation requests from loan underwriters, so patience is a definite virtue when waiting for the bank to approve a buyer’s loan.