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TheAttiasGroup.com

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Figures released Friday January 4th by the Bureau of Labor Statistics have the national unemployment rate at 7.8%. This is the lowest national unemployment rate since January of 2009. The Attias Group Real Estate is encouraged by the steady decline in the national figure capping off a strong year of recovery in our national economy. In addition, the Consumer Price Index, a measure of prices of common goods such as food and fuel, has steadily declined in 2012. This indicates the average consumer is using less of their take home pay towards these basic necessities. With less take home pay going towards basic necessities it frees up more household income for disposable spending, investing, and saving. With more Americans back to work and spending less of their take home pay on essential goods and services, The Attias Group believes these economic factors are creating the perfect storm for housing gains in 2013. The Attias Group surveyed several communities this fall and found that year-over-year home prices saw increases:

Bedford Up 12% Concord Up 13% Lexington Up 6% Newton Up 21% Weston Up 2% Middlesex County

Up 5%

“As Wall Street and local job numbers stabilize, or see increases, Main Street and the lending community make decisions,” said Zur Attias broker/owner. “That volume uptick impacts home pricing as you can see,” said Attias. For a through dissection of your community’s housing trends contact us at 978.317.1234 or info@theattiasgroup.com.

1.11.13

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According to a new report from Harvard's Joint Center for Housing Studies, there is an uptick in home remodeling activity for Q4 2012 and an expansion on the horizon in 2013. The Attias Group Real Estate believes home remodeling is an important component to the growth of the economy both nationally and locally, and this report is another positive economic sign heading into 2013. The center's Leading Indicator of Remodeling Activity (LIRA) shows strong spending in the second half of 2012, suggesting the remodeling recovery is already underway. Remodeling spending was up 8.2% in the fourth quarter of 2012, rising to $124.1 billion, compared to $115.1 billion at the same time last year. The LIRA projects annual homeowner improvement spending will see double-digit growth through the third quarter of 2013. The center is estimating that spending will continue to rise more than 19% in Q3 2013, to over $145 billion. The Attias Group has also analyzed a second leading indicator released this week, U.S. Housing Starts which had positive gains to close out 2012. Nationally, December 2012 posted a 36.8% increase year-over-year, and a 12% increase over November 2012. In the Northeast, there was a 37% year-over-year increase in housing starts. "Construction jobs, whether they are new construction or remodeling, are an important part of our economy," said broker owner Zur Attias. "With unemployment numbers continuing to head in the right direction, housing starts up significantly, and now the LIRA projecting double digit growth, it is safe to say the housing recovery is here to stay." The recovery of home prices in local markets is supported by year-over-year* increase in the following towns. In Concord +13%, Bedford +12%, Lexington +6%, Weston +2%, Newton +21%, Middlesex County +5%, all of Massachusetts +2%. *data compiled from MLS Total Sold Market report for the fall market 8/1-11/30. "With home prices on the rebound and the economy making positive strides, I expect to see additional towns rebound in 2013. More people will start to see home values increase as our economy heals," said Attias. For advice and guidance in real estate, contact one of our top agents at 978.371.1234 or email info@theattiasgroup.com.

1.25.13

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Many factors make up the complex, living breathing organism that is the United States economy. For some time, housing has been a downward force on the economy with prices plummeting, construction jobs drying up, and investors placing their money elsewhere. The numbers released this week by the S&P Case-Shiller index show that housing is now a positive force in our nation’s economic healing. Data released on Tuesday January 29th showed home prices have risen 4.5% in the S&P Case-Shiller 10-City Composite index and 5.5% for the 20-City Composite for the 12 months ending November 2012. Boston posted a 2.3% increase year-over-year; the month-to-month seasonally adjusted change increased .1%. 19 of the 20 cities in the composite posted gains; New York was the lone city to post a loss of .3%. The Attias Group Real Estate is confident that the housing recovery is here to stay and will prove to be a driving force in our overall economic recovery. Regardless of what Punxsutawney Phil has to say on Ground Hog day, it is an early spring in the housing market. The typical lull from mid December to late February has been all but non-existent, as pent up buyer demand held over from the fall market has new inventory spending very little time on the market. Between December 15th 2012 and January 28th 2013 the average days on market has seen a 4.4% decrease in Middlesex County year-over-year. In Concord, the decrease is 22% year-over-year; Bedford a 67% decrease; and Lincoln an 80% decrease. The benefits to our local economy will not be just in the direct impact of spending on residential construction, or on things such as furnishings and fixtures. The benefits will also show up in state and local government spending, until recently one of the largest negatives during the recovery. Local government revenue is closely tied to property values through property taxes. The down turn in home values led to layoffs of municipal workers and others around the country. “On a macro level, the economy and the housing market share a symbiotic relationship,” said Zur Attias broker/owner of The Attias Group Real Estate. “One cannot heal without the other. As the recovery in housing gains forward momentum, many sectors of the economy benefit exponentially, especially unemployment,” said Attias. For expert advice and guidance in real estate contact one of our top agents at 978.371.1234 or email info@theattiasgroup.com.

2.1.13

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As this seller driven market begins to heat up, sellers are no longer competing for buyers; they are competing against other sellers. In addition to cutting edge marketing strategies, The Attias Group Real Estate provides thorough price analysis to put our sellers in the best possible position to attract the largest available buyer pool. In this market, price alone may not be enough to sell your home. In many cases, making minor upgrades or improvements to your home may attract an even larger buyer pool, and contribute to your net gain. Which improvements should you make? Remodeling.com recently released their annual cost vs. value report with some surprising insights. This regional report highlights several remodeling projects that have a high return on investment (ROI). This year, seven out of the top ten projects are exterior remodeling. “The first thing a buyer sees when they drive up to your home is the exterior; you never get a second chance to make a first impression,” said Zur Attias, broker/owner of The Attias Group Real Estate. “Buyers and buyer agents form their opinions of your home from the moment they arrive; spending a little capital on the exterior can increase your buyer pool and how they respond,” said Attias. According to remodeling.com replacing your front door recoups 85.6% of its value. Compare this to a bathroom addition which can cost, on average, upwards of $38,000 and only recoups 47.1% of its value on resale. Another exterior improvement that can yield a high rate of return is garage door replacement, which can recoup 75.3% of its value at resale. “Curb appeal is key here: think paint, pruning, mailboxes… This may sound crazy but it is certainly cheaper than a new kitchen where the buyer may not like the style of anyway. In a transitioning market, sellers have to be aware not only of buyer trends; they also have to watch what other comparable homes are doing to make improvements. Re-working your landscaping may not have been part of your initial strategy but might give you a key advantage over other similar homes,” said Attias. Contact one of our top agents at 978.371.1234 or email info@theattiasgroup.com to schedule an evaluation of your home and learn about what key improvements your home needs to maximize your rate of return.

2.15.13

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The Attias Group Real Estate is encouraged by a report released last week by the National Association of Realtors (NAR) stating that single-family homes, condos, townhomes, and co-ops available for sale dropped by 16.5% year-over-year. This decline in inventory, reported several times by The Attias Group, is certainly a positive confirmed by NAR economists. The year-over-year decline in homes for sale indicates that the market has worked through the backlog of inventory and, if these conditions continue, sellers are more likely to see offers at or above the asking price. According to the NAR, the national available inventory is down 5.6% from December to January, and as stated above down 16.5% year-over-year. The national median price rose almost 1% month-to-month, and is slightly higher than a year ago. The number of days a home is spending on market is also decreasing nationally, down 9.2% year-over-year. “These numbers are extremely encouraging for our local markets,” said Zur Attias broker/owner of The Attias Group Real Estate. “Coupled with positive numbers from Wall Street, we are seeing a sellers’ driven market emerging in many communities,” said Attias. Local statistics back up the NAR’s conclusions, and in many cases our local markets are exceeding the national averages. The Market Action Index from Altos Research measures the rate of current sales versus the amount of inventory available. Many local communities such as Bedford, Concord, Boston (metro), Acton, and Lexington are all well above the buyer’s market threshold, and are continuing a strong upward trend. “The pent-up buyer demand held over from the extended fall market continues to compound weekly,” said Attias. Zur Attias goes on to say “Accurately priced inventory is moving very quickly off the market; buyers are concerned with both missing the bottom and interest rate hikes, which I am sure are forthcoming.” For an accurate and comprehensive market analysis of your home call 978.371.1234 or email info@theattiasgroup.com to speak with one of our top agents.

2.22.13

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The Attias Group Real Estate has forecasted the recovery in the housing market for quite some time; analyzing early indicators helped many of our clients get ahead of the curve. Once again, our forecast has been confirmed by an additional independent source, housingviews.com, the blog published by the S&P Dow Jones Indices. The Attias Group believes in addition to the resale housing market, new construction is also showing strong signs of recovery, both locally and nationally. According to the National Association of Home Builders (NAHB) in the January reports released last week, single family housing starts are up 0.8% from December and 20% year-over-year. In the Northeast, there is a 35% decrease from December to January which is not a surprise due to the increase in snowfall this year. However, year-over-year, the number remains flat and this consistency is equal to strength. A forward looking indicator analyzed by the NAHB, building permits, shows even more significant gains. Nationally, there is a 35% increase in the number of permits applied for year-over-year. In the Northeast, that number jumps to a 40% increase year-over-year. “While I am encouraged by the number of new construction projects started, I see the double digit jump in permits as a much stronger indication of the overall health of this sector,” said Zur Attias, broker/owner of The Attias Group. “With so much seasonal uncertainty in the Northeast, I use forward looking indicators such as building permits rather than lagging indicators such as housing starts,” said Attias. The Attias Group believes new construction to be one of the biggest, if not the biggest influence on pricing. As reported in the 2012 Year in Review issued by The Attias Group, 30% of the towns surveyed had significant increases in median home values. Of the remaining towns, 41% had decreases of 5% or less. Middlesex County as a whole had an increase of 1.1% from 2011 to 2012. Zur Attias went on to say, “With median prices on the rise, new construction permits making huge strides, and unemployment continuing to hold steady, believe we will see the strongest spring market going back 5 or 6 years.” For advice and guidance or representation in real estate contact one of our top agents at 978.371.1234 or email info@theattiasgroup.com.

3.1.2013

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As most everyone remembers, Fannie Mae and Freddie Mac were at the center of the most recent housing down turn; now Freddie Mac is reporting it has sustained a full year of profitability. Income was reported at $4.5 billion for Q4 2012 up 55% from the $2.9 billion ending Q3 2012. This level of profitability is attributed to efforts to minimize legacy losses and from the recent rebound in the housing market that The Attias Group Real Estate has been reporting for some time. “The lending community is an important partner in real estate; if consumers do not have access to capital there is no chance at a recovery,” said Zur Attias broker/owner of The Attias Group Real Estate. “How the lending community and Wall Street continue to behave will be a vital component of the sustained recovery in the housing market. I am glad to see one of the mortgage giants is once again solvent,” said Attias. When asked about the recent volatility in Washington and on Wall Street, Zur Attias said, “On any given day Wall Street is bipolar at best; it is how the numbers play out over a few weeks or even months that will give you the true indication of the overall health of the economy. We won’t know the true effect of The Sequester cuts for some time. In the short term, I don’t see any major impact on housing. However, if a long term solution is not reached soon then all bets are off.” Another clear indication that the housing market is seeing a strong recovery locally is the 23% increase in sales dollar volume in Middlesex County over the past 4 months compared with the same time period last year. “With 303 more sales year-over-year in a four month period and $238 million more in sales volume, can there be any doubt that housing prices are on their way up?” said Attias. For expert advice and guidance or representation in real estate contact one of our top agents at 978.371.1234 or email info@theattiasgroup.com.

3.8.2013

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As more communities shift to a sellers driven market this spring, buyers, sellers, and renters are considering their position in the housing market. Many sellers in the early spring market are now emboldened by multiple offers and more expedited sales; buyers, frustrated with lack of inventory, may consider putting off purchasing; renters could decide to sit on the fence. The Attias Group Real Estate takes pride in the expert advice and guidance we provide to our clients in any market condition. It is safe to say that we have passed the bottom of the market. On a national level The S&P Case Shiller Indices 20 city and 10 city composites continue to rise. Locally, Boston is up not only on the month-to-month change, but is enjoying a 3.55% increase year-over-year. This means homes are starting to appreciate in value, and as the values rise, the buying public could be boxed out of specific price ranges. “With the housing recovery gaining steam, if you are thinking about selling or buying, now is the time,” said Zur Attias broker/owner of The Attias Group Real Estate. “People who were looking to play the bottom of the market have missed it. One needs to analyze the opportunities that are available now and make decisions. Buying an appreciating asset is a far better investment than buying a deprecating one,” said Attias. The Attias Group is advising buyers concerned with a lack of inventory and frustrated with multiple offer theater to hang in there. “Waiting to buy in the fall could result in paying almost 1% more than what you would pay now,” said Zur Attias. “Renters who are hesitant to start the buying process should also think about how much housing prices will increase when their lease is up.” When asked about renting versus buying, Zur Attias said, “If you can pull together the funds, there is no time like the present to get into the game.” The Attias Group believes as we get deeper into the sellers driven market, the lending community will have to make changes in order to sustain the recovery. If rates start to creep up, the amount required for deposit will have to drop in order to compensate. “Currently in order to avoid paying Private Mortgage Insurance (PMI) you need to put 20% down. As rates start to rise, and I believe long term they will, banks need to lessen the amount required for a down payment,” said Zur Attias. “For the recovery to maintain steam, the lending community will have to keep pace; based on previous markets, I believe we will need to see these changes going forward subject to one revision; banks must make it their priority to appraise accurately.” For expert advice and guidance, or representation, in real estate contact 978.371.1234 or email info@theattiasgroup.com.

3.15.13

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