Market Trends in Greater Springfield and Western Massachusetts

The housing market in the Greater Springfield, Massachusetts area has been very active. Unlike the previous year where the market reached record prices. The prices has stabilized, and in some cases have dropped. The inventory of houses on the market is very high, which gives buyers more options. Buyer's don't feel pressured to buy or worry so much about competition. This is good for buyers, but they are feeling pressure to make a move soon because of the rise of current mortgage rates . According to the National Association of Realtor On-line Magazine. "30-Year Mortgages Hit Highest Rates Since '02(May 26, 2006)."
"Long-term mortgage rates continued their upward trend this week, reaching the highest point since June 2002. According to Freddie Mac, interest on 30-year loans bumped up to 6.62 percent from 6.60 percent; while 15-year mortgage rates rose to 6.23 percent from 6.20 percent. Adjustable-rate mortgages bucked the trend, with the one-year ARM dipping to 5.61 percent from 5.62 percent last week and five-year ARMs dropping to 6.21 percent from 6.23 percent over the same period. All of the rates are up noticeably from a year ago, when the averages held at 5.65 percent for 30-year mortgages, 5.21 percent for 15-year loans, 4.21 percent for one-year ARMs, and 5.07 percent for five-year ARMs."
Source: Contra Costa Times, Martin Crutsinger (05/26/06)
Most realtors are advising their sellers to drop the listing price by 3 to 5 percent to compete with the market trends. Yes, the market has turned a little in favor of the buyers. However, don't be fooled the sellers still have the ball in their court, thanks to the rise of interest rates. Below are some numbers in the Greater Springfield Massachusetts area; Single Family homes sold or under agreement in the last two months in Agawam, Longmeadow, Chicopee, East Longmeadow, and Springfield as of May 26, 2006
Agawam: Single Family Listings: 85 Average List Price: $243,502 Average Sale Price: $238,185 Average Market Time: 77.45
Chicopee: Single Family Listings: 101 Average List Price: $186,966 Average Sale Price: $185,405 Average Market Time: 68.42
East Longmeadow: Single Family Listings: 44 Average List Price: $329,839 Average Sale Price: $320,702 Average Market Time: 120.59
Longmeadow: Single Family Listings: 59 Average List Price: $379,549 Average Sale Price: $334,484 Average Market Time: 100.54
Single Family Listings: 408 Average List Price: $157,927 Average Sale Price: $156,144 Average Market Time: 87.73

The totals and averages of the above cities combined out of 500 listings:
Single Family Listings: 500 Average List Price: $204,266 Average Sale Price: $199,077 Average Market Time: 86.91

More infomation at www.mawestrealty.com

30-Year Mortgages Hit Highest Rates Since '02

30-Year Mortgages Hit Highest Rates Since '02(May 26, 2006)
Long-term mortgage rates continued their upward trend this week, reaching the highest point since June 2002. According to Freddie Mac, interest on 30-year loans bumped up to 6.62 percent from 6.60 percent; while 15-year mortgage rates rose to 6.23 percent from 6.20 percent. Adjustable-rate mortgages bucked the trend, with the one-year ARM dipping to 5.61 percent from 5.62 percent last week and five-year ARMs dropping to 6.21 percent from 6.23 percent over the same period. All of the rates are up noticeably from a year ago, when the averages held at 5.65 percent for 30-year mortgages, 5.21 percent for 15-year loans, 4.21 percent for one-year ARMs, and 5.07 percent for five-year ARMs. Get More info at www.mawestrealty.com

Source: Contra Costa Times, Martin Crutsinger (05/26/06)

Pre-approval for Mortgage

Advantages to Pre-approval
Pre-approval will determine the maximum you can spend on a house before you shop, so you know what price range to target. Many shoppers aim too high, bidding on a home that they later learn is beyond their means because of unforeseen debts or other financial factors.
A pre-approved loan is the equivalent of a cash offer. Sellers are more likely to accept such a secure bid over other, simultaneous bids for which financing is still pending -- even if those bids are higher.
The contract you sign upon submission of your bid allows a finite period in which to find a mortgage -- typically 30 days or less. If you fail to secure financing within that period, the seller may drop your bid. In the meantime, another buyer may offer the seller a higher bid -- or even a lower one -- and bump you out of the picture. Some contracts allow the seller to find a mortgage for you if you miss the deadline, possibly with no consideration of the terms and how they affect you.
Pre-approved buyers can rush the closing if the seller is in a hurry to deal. Pre-approval gives buyers bargaining power. Find out more about pre-approval at http://www.mawestrealty.com/mortgage_pre_approval.htm.

Pending Home Sales Ease

(May 2, 2006) -- Pending home sales have slowed modestly as interest rates continue to rise, according to the NATIONAL ASSOCIATION OF REALTORS®.
The Pending Home Sales Index, based on contracts signed in March, eased 1.2 percent to a level of 116.2 from an index of 117.6 in February, and is 6 percent below March 2005.
The index is derived from pending sales of existing homes. A sale is listed as pending when the contract has been signed and the transaction has not closed; pending sales typically are finalized within a month or two of signing.
An index of 100 is equal to the average level of contract activity during 2001, the first year to be examined, and was the first of five consecutive record years for existing-home sales.
David Lereah, NAR’s chief economist, says the market has been encouraged by rising home sales over the last two months.
"Home sales rebounded from the slide that started last fall, but the pending sales data is showing a dampening effect from rising mortgage interest rates that have been trending up since January," he says. "This means a modest slowing can be expected in the sales pace in the months ahead, although the market will hold at historically strong levels."
Regionally, the index in the Northeast rose 5.2 percent in March to 112.9 but was 1.1 percent below March 2005. In the West, the index increased 0.7 percent in March to 111 but was 13.3 percent below a year ago. The index in the South eased 1.2 percent to 127.9 in March and was 1.6 percent lower than March 2005. The index in the Midwest fell 7.4 percent to 106.1 in March and was 9.3 percent below a year ago. More real estate news at www.mawestrealty.com

— NAR