Wednesday, June 9, 2010

June 2010 - Real Estate Market of Lynn, MA

Howdy Readers,

So... Soraya and I were talking and it seemed only right that we start to shed the light on the reality of the real estate market in Lynn. There is a lot of available property right now at an incredible price. If you've been reading this blog, you know that there's a lot going on down here and the potential for incredible neighbors is high! In this first post, Soraya lays out some of the facts of where we're at. I'm hopeful that over time, we'll be able to prove out the positive trends in Lynn, MA and the Downtown area. In future posts, we'll be heading in to some of the lofts to show you what Downtown has to offer. So enough from me, let's here from one of my incredible neighbors, Soraya E. Cacici.

------- Guest Post - Soraya E. Cacici - RE/MAX Heritage, LLC --------

The voice behind The Real Estate Stiletto blog lives on. I had to put blogging on the back burner in recent months, but I promise to return to the local blogging scene soon enough. In the interim, my friend and neighbor, Corey Jackson, has so kindly invited me to talk real estate on the fabulous

So, I’ve been quite busy helping clients (hence the blogging hiatus). Here’s a bit of what’s been happening in our market – this includes all of Lynn, not just Downtown:

The following numbers show the trend of the Lynn real estate market by comparing key sales factors for the prior and current periods.

Most current median sales stats for Lynn:

Median sale prices for single-family homes are up 12% since May of 2009
Median sale prices for condos are down 8% since May of 2009
Median sale prices for multi-family homes are up 6% since May of 2009

I also calculated the local absorption rates, which demonstrate how long it will take for all the homes on the market to be sold, or absorbed, at the current rate of sales. For Example, if the absorption rate is 8%, then 8 out of 100 properties for sale sold that month. If the absorption rate is rising, the market demand for real estate is improving and if it is falling, the market demand is deteriorating.

Current absorption rates for Lynn are as follows:

Single Family Homes – 16%
Condominiums – 3%
Multi-Family Homes – 20%

Economics 101 of supply and demand - competing inventory greatly affects real estate prices. The following numbers shows the number of months that it will take to sell off the current inventory of active listings if the rate of sale remains constant.

Single Family Homes – 5 months
Condominiums – 11 months
Multi-Family Homes – 4 months

We saw a spike of properties go under agreement during the months of March and April, due to the tax credit deadline of April 30, 2010. Some of those properties have already closed, but we’ll see a trickle effect of the tax credit throughout this month since the tax credit doesn’t require a closing to occur until June 30, 2010.

I personally don’t believe that the tax credit made an astronomic difference in sales, though I don’t know for sure what things would have looked like without it. It’s safe to say that it certainly didn’t hurt.

I’ll leave you with this good news! Rates are still in the high 4% range for a 30-year fixed mortgage (for those who qualify). You can’t beat that.

Until next time, I wish you all a wonderful month of June!

Please don’t hesitate to call, text, or email with any real estate questions. I’m here to help however I can.

Soraya E. Cacici, Realtor
RE/MAX Heritage, LLC

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