Tag Archives: #returnoninvestment

Employment and the Housing Market

The virus crisis has financially impacted many of our friends, neighbors, and family.

For some, it has been positive as working remotely has meant more time at home, as well as money saved in travel and other business related expenses.

For others, the impact has been negative as hours have been cut or jobs lost, particularly in the hotel, restaurant, retail, and entertainment areas. (As we know all too well living on Cape Cod.)

Nonetheless, the real estate market here had a record setting 2020. As we start the year, we’re still seeing strong buyer demand, but inventory is at an all time low as potential sellers remain reluctant to market their homes.

If you’ve been thinking about making a move, but concerns about employment and the economy are holding you back, here’s what you should know…

Earlier this month, the Bureau of Labor Statistics (BLS) released their most recent Jobs Report that revealed the economy lost 140,000 jobs in December. That’s a devastating number and dramatically impacts those households that lost a source of income.

However, we need to give it some context. As Greg Ip, Chief Economics Commentator at the Wall Street Journal (WSJ), explains:

“The economy is probably not slipping back into recession. The drop was induced by new restrictions on activity as the pandemic raged out of control.”

More importantly, according to Michael Feroli, Chief Economist at JP Morgan/Chase:

“The good news … is that outside the hopefully temporary hit to the food service industry, the rest of the labor market appears to be holding on despite the latest public health challenges.”

Some are concerned that with millions of Americans unemployed, we may see distressed properties (foreclosures and short sales) dominate the housing market once again. Rick Sharga, Executive Vice President at RealtyTrac, along with most other experts, doesn’t believe that will be the case:

“There are reasons to be cautiously optimistic despite massive unemployment levels and uncertainty about government policies under the new Administration. But while anything is possible, it’s highly unlikely that we’ll see another foreclosure tsunami or housing market crash.”

As someone thinking about selling, what can you expect over the next few weeks and months?

For the households that lost a wage earner, there’s no denying that these are extremely difficult times. Hopefully, a new stimulus package will help the situation. With the health crisis improving as more vaccinations become available, the expectation is that the job market will also progress significantly.

If you’re contemplating selling, it’s important to remember that while the economy has been unkind to some, most have kept their jobs and income. We have now worked with several clients who — frustrated at not being able to find property on Cape — have bought in communities like Rochester, Randolph and Fairhaven.

Although not the Cape, these and other similar communities offer many of the same attributes including less congestion, more open space and access to recreation, while being close enough to Boston and Providence for those who may still may need to go to the office every now and then.

So the question for Cape home owners is this: is it time for you to realize a solid return on your real estate investment while interest in your home is strong?

Helping our clients make the best decisions for their individual situations has been our full time job for 21 years, not a part time hobby. If you would like to review your options, let’s connect at 508-568-8191 or msennott@todayrealestate.com. Talk soon…

Don’t wish for it; go for it!

Mari and Hank

What to Expect in 2021

With the New Year just a few days away, let’s take a look at what we can expect from the real estate market in 2021.

The graphic below summarizes some of the major expectations for the year ahead.

The big takeaways?

If you were planning on making your move in 2021, there’s no reason why you shouldn’t. Mortgage interest rates are expected to remain low and values will continue to appreciate.

If you’re still on the sidelines because of safety concerns related to the virus, you should talk to a real estate professional — hopefully Mari Sennott and Associates — about precautions that have been used successfully for the last several months that helped the market set all time records.

With more people being vaccinated as the year rolls on, it’s safe to assume that additional buyers will be entering the fray. So, if you’ve been holding off selling, you don’t want to wait much longer, as the competition is sure to increase.

This also remains a good time to buy. While prices may be a higher, the cost of borrowing is still historically low putting you in a solid position to purchase that first home, second home, or investment property.

2021 Housing Forecast [INFOGRAPHIC] | MyKCM

We already have 11 “under contract” heading into 2021. Statistically, the average agent has three for the year!

If you’re ready to make your move or want to discuss your options, let’s connect at 508-568-8191 or msennott@todayrealestate.com. Helping our clients make the best decisions for their individual situations has been our full time job for 21 years, not a part time hobby.

Let’s talk soon…

To help you get the process underway, we hope you’ll order one of our free guides whether you’re a buyer or a seller. (Or both!)

You can find them at our secondary website – Real Estate with Mari and Hank Sennott. Just fill out the order form and the guide will be emailed to you.

Author C.S. Lewis (1893 – 1963) wasn’t thinking of 2020 when he wrote “there are far better things ahead than any we leave behind.” But, his words do apply to a year that we bid a not especially fond farewell to.

We wish you a happy and safe New Year’s celebration. May your goals become reality in 2021.

Stay healthy. Stay optimistic.

Mari and Hank