Your Local Real Estate Expert

2009 Belmont Real Estate Market Outlook!

Belmont continues to be a great place to live----and invest.

Below are some facts to help you make an informed selling & buying decisions in today’s Real Estate Market!

NEGATIVE PUBLICITY-All the negative publicity you hear on TV News broadcasts, see on line, hear on the radio or read in the newspapers about falling prices and very low demand are usually referring to the country as a whole, a region or state wide statistics. It almost never refers to our specific market place.

FINANCIAL MARKET CRISIS: Threatened with the collapse of many of our major financial institutions, the Federal Reserve Bank has by various methods stabilized the financial lending system. FNMA, FMAC & most of our major banks are once again in position to continue to fund home mortgages & refinances. These steps have assured home buyers of a continued flow of reasonable mortgage funds.

ELIMINATION OF BAD LENDING PRACTICES The credit market for buyers with marginal or bad credit has tightened considerably. No money down loans, no income verification loans , loans to buyers with less then sterling credit have been eliminated. Low down payment loans are still available to well qualified buyers.

LOW INTEREST RATES- Current interest rates are close to 60 year historic lows and there is a high probability that rates will drop further. The Federal Reserve Bank sees lower rates as one of it’s major weapons in jump starting the economy. The results should be a significant increase in the buying, selling & refinancing of homes. A critical point to remember is that even if you buy or refinance now and rates go down further, you can always refinance again.

OUR MARKET PLACE Our market place of Belmont and immediate surrounding communities are blessed by the fact that we are short almost equal distance from downtown Boston and Route 128/95 “America’s Technology Highway”. We are serviced by excellent public transportation and easy access to the major highways, Routes 2, 128, 95 & Mass Pike. Boston, Cambridge and the Route 128/95 belt with all the biotech & pharmaceutical companies, educational institutions, financial institutions, hi tech firms and other companies are a very short & easy commute. Our area currently is and usually is a thriving job market.

Market Place Growth & Expansion; Our Belmont & surrounding communities primary market place has almost no room for new development. There are virtually no large tracts of land left for major development and expansion of our housing base. Any new development is knock downs or urban renewal of existing areas. With zoning becoming more and more restrictive, it makes it very difficult to accommodate demand in periods of job expansion in our area. This is what causes our frequent housing price booms and protects us from dramatic downturns in real estate experienced in other areas of the state and country. It is a problem that cannot be corrected. That is why buying homes in our area is a great long term investment.

INVENTORY SHORTAGE SUMMER & FALL 2008- 2008 saw a shortage of mid range homes in Belmont. Many Sellers postponed the selling and buying of homes because of the negative publicity & crisis in the financial markets. With the financial markets stabilized, lower interest rates and some consumer confidence returning, there is pent up demand for housing in many market segments which will need to be filled. It is likely that we will see an early and vibrant spring real estate market.

JOB SECURITY- If your job is not secure or if you may get a job transfer within a year or two, you should not buy a house. For those with job security, it is an ideal time for selling your current home and buying your dream home. With real estate prices at or near the bottom and much lower interest rates, it means more affordable monthly house payments. If you are going to be in a home for 3-5 years or longer, then buying a home is an excellent investment as well as a place to call your own.

Energy & Time Costs: 2008 saw the cost of gas & oil soar to all time highs and then fall to 5 year lows in a span of a few short months. Today’s low energy costs will be short lived. High energy costs will be remaining with us for the long term. More & more buyer will be looking to buy in Belmont & surrounding communities rather then face expensive & time consuming commutes from areas outside Rt 128/95.

Excellent Public Schools Belmont Public Schools continue to provide our youth with an outstanding education We enjoy an excellent reputation both regionally and nationally. Families come to and stay within our community for our schools.

First Time Buyer Tax Credit: The Federal Government is offering a $7,500 Tax Credit to any 1^st Time Home Buyer who purchases a primary residence before July 1, 2009. It is for single family homes, condos, coops or townhouses. The buyer’s income cannot exceed $150,000. A Tax Credit is a subtraction of up to $7,500 from your total Federal Income Tax. For example if your Federal tax Obligation for the year is $10,000, you subtract $7,500 from it and your tax obligation for the year becomes $2,500. The Tax Credit in essence is a 15 year interest free loan. It does require that the buyer pay back 1/15 ($502.5) of the loan each year for 15 years . Please call Century 21 Adams and we will be happy to provide you with all the details

TIMING THE MARKET is very difficult. The statistics provided herein show that prices of single families has bottomed out, increased last year and may actually increase slightly again this coming year. Condos & Multi Family homes are a little more uncertain and may decrease slightly further in the next year or so. If your personal situation is stable, you find a house you like and you intend to be there for at least 3 years the odds are very much in your favor that the home you buy will be worth more that it is now in 3 years and considerably more in 5-10 years.