Mortgage Rates

Hello everyone,

Well, the news for mortgage rates has been bad. Rates continue to rise. Here's an article I took from Yahoo finance:

NEW YORK (AP) -- The yield on the Treasury's 10-year note passed 5 percent Thursday, hitting a 10-month high as investors see their hopes for an interest rate cut evaporating.

The 10-year yield broke through 5 percent mark overnight and rose as high as 5.07 percent in mid-morning trading in New York, reaching its highest point since late July. U.S. bond markets were following a trend toward lower prices and higher yields in trading abroad.

Some market experts say the 10-year yield is likely to climb higher as bond prices weaken -- making it even harder for consumers to finance home puchases, and also for companies to borrow money.

Fixed mortgage rates, closely linked to the 10-year yield, have been advancing recently, adding to worries about sluggish home sales and faltering home prices. The average U.S. 30-year fixed mortgage rate was at 6.12 percent Thursday, up from 5.98 percent a week ago, according to Bankrate.com. The average 15-year fixed mortgage was at 5.82 percent, up from 5.69 percent last week.

Mortgage rates have been boosted by swelling Treasury yields, which have lifted in part because investors are less sure the Federal Reserve will lower interest rates by the end of the year -- let alone by July or August, as many traders predicted a few months ago. Economic data has appeared too strong to warrant a rate cut anytime soon; despite the sluggish housing market, the job market has remained stable, wages keep ticking up and manufacturing activity is clawing its way back from stagnancy.

The United States isn't alone in rising yields. Bond yields in the Eurozone, Great Britain, Japan, and other economies have been ticking up as central banks around the world gradually hike interest rates to curb inflation -- which appears to be accelerating now as it catches up to strong global growth over the past few years.

On Thursday, New Zealand's central bank surprised markets by raising its key interest rate to a record high 8 percent from 7.75 percent, hoping to curtail inflation. And on Wednesday, the European Central Bank raised its key rate to the highest level in nearly six years on Wednesday and left open the possibility of more increases.

In 2006, the 10-year U.S. Treasury note's yield peaked in early July at about 5.23 percent; the last time it traded above that level was in 2002.

John Shea
Vice President
Summit Mortgage
781-224-2809 (office)
jshea@summitmortgage.com

Mortgage Rates

Hello everyone,

Here's the latest thinking from our rate lock department:


Employers in the U.S. last month added the fewest jobs in more than two years as payroll losses spread beyond homebuilders and manufacturers. The unemployment rate rose. The 88,000 increase in employment followed a 177,000 gain in March that was smaller than previously estimated, the Labor Department reported today in Washington. The jobless rate rose to 4.5 percent from 4.4 percent, which matched a five-year low. Fewer jobs may herald slower wage growth for Americans already struggling with higher gasoline costs, diminishing prospects for faster economic growth in coming months. The report may revive speculation that the Federal Reserve, which is expected to leave interest rates unchanged next week, will need to cut in coming months to boost growth.

John Shea
Vice President
Summit Mortgage
781-224-2809 (office)
jshea@summitmortgage.com

Tips on Preparing a Home for Sale and Staging a Home for Sale

"Realizing that you only have one opportunity to make a 'good first impression' in today's over-supplied real estate market is a compelling reason for home owners to properly clean, paint, de-clutter, and stage their single greatest financial investment for introduction to the marketplace. In this market, buyers have many choices and are the engine driving the real estate train. Sellers must look at their property through the eyes of prospective buyers, see the shortcomings, and correct as much as possible as quickly as possible. In this way, sellers will ensure their home is prepared for introduction into a real estate market that is not as favorable to them as it once was.

Here are some specific suggestions on preparing a home for sale:

• Minimize furnishings and accessories to showcase the size of the home.


• Wash all windows (inside and out) to let as much sunshine in as possible.


• Remove old carpeting and shine up those hardwood floors.


• Scrub the tub and replace loose caulking and grout.


• Invest in paint! Buyers today don't appreciate wallpapered walls.


• Sweat equity is now the responsibility of the seller -- not the buyer!


• Perhaps re-purposing some furnishings to different rooms will give a fresh look.


• If you aren't Martha Stewart inspired, contact a staging specialist to get the job done.


• Make certain all systems are in good repair.


• If the seller isn't the best dressed for the ball, they'll end up the wallflower!

Remember ... the presentation of the property is something that you can control. Take charge and invest some effort and a bit of capital. You will increase your dividends many times over!"

Mary Ellen Galaris
Web Site: www.megsteam.com
Email: maryellen@MegsTeam.com
Phone: (978) 882-4464

- - -

"In this new market, it is important than ever to make sure your home shows nicely so it will sell quickly. These are the helpful hints that I tell sellers that they need to do to make their home show well and sell:

1. If your home is decorated in dark or unusual colors, you will need to paint it neutral colors.


2. Clean or paint appliances. The kitchen is one of the most important rooms in the house.


3. Paint the front door and make sure you have a nice pot of flowers near the entryway, especially if spring is in the air.


4. Make sure there is no clutter in the home. Make sure the closets are organized.


5. Have a garage sale, or start packing unwanted items to make the home feel spacious.


6. Clean all windows so that they sparkle.


7. When showing your home, if you have curtains or drapes that are closed for privacy, make sure they are pulled back to let in light.


8. If your home has any history or some unique features, write them down, and also tell us about the neighborhood. This creates an image in the buyer's mind of how it would be to live in your home.


9. If you have furry family members, make sure they are out of the way when a buyer is looking at your home. Even if the buyer is an animal lover, it might take away from showing your home.


10. Make sure that your home is priced correctly in this market. Buyers are very educated today with prices of homes for sale, and if you are overpriced you will only help sell your competition.


11. Help the buyer with some closing costs. That will make your home stand out.


12. In the warmer weather, make sure your lawn is green and the yard is not full with clutter, and if your shrubs are overgrown, cut them back to feature the home.

The most important principle to understand about selling your home is that 'presentation is everything.'"

Sean K Connelly
Web Site: www.MoveInNewEngland.com
Email: sean@seankconnelly.com
Phone: 781-479-4479

- - -

"I consistently give sellers this advice on preparing a home for sale:

Don't put your house on the market until it is 'show ready.' To me this means: take care of those repairs you never got around to, make sure the furnace has been serviced recently, that the dripping faucet has been fixed, that the yard is weeded, and free of junk. De-clutter!

I usually bring in an interior designer who will walk around with the homeowner and make suggestions on what should stay and what should go, maybe re-arrange some of the furniture, and suggest paint colors if painting is recommended.

Sometimes I will suggest a pre-sale inspection if the house is old or in poor shape. This pre-sale inspection would be so that we know what the issues are and the homeowner can make repairs or price the house accordingly.

Also, de-personalize the house, which may mean putting away a lot of those family photos or personal collections. Buyers want to visualize themselves in the space, which is hard to do with too many reminders of the current occupants.

Finally, clean! Make it shine. The reason we call it 'staging' is because your house is 'on stage' - competing with other homes for the hearts and minds of the potential buyers. All that work up front will put you in the best position for a successful sale."

Tina McManus
Web Site: www.YourNorthShoreHome.com
Email: TinaMcManus@Remax.net
Phone: 978-882-4387

- - -

"Here are some tips for preparing a home for sale that we tell our sellers:

• Decluttering is the most important.


• Kitchen counters should be clear of everything.


• Basements, garages and attics should be cleaned out and items condensed.


• Store away most personal belongings ie photos, toys, knick knacks.


• Clean out closets and arrange them in an orderly fashion.


• Clean the carpets and windows.


• Keep the paint colors neutral and touch up any areas.


• Yard should be mowed and shrubs trimmed.


• Keep animal scents under control."

Jennifer Anderson and Ron Goulart
Web Site:www.jenandron.com
Email:jen@jenandron.com
Phone:978-281-1260

- - -

Things to Love About Marblehead, Massachusetts

1. The Spirit of '76. The original of this famous painting hangs in Abbot Hall.


2. Yacht clubs. You don't need a boat to join the Dolphin Yacht Club: Enjoy a summer of waterfront fine dining and multiple events for the whole family! Other yacht clubs include Boston Yacht Club and Eastern Yacht Club


3. Spend a long Fourth of July weekend at the Marblehead Festival of Arts with multiple art mediums in many downtown venues and loads of things to do for the whole family.


4. Great Restaurants.
   
   Italian restaurant recommendations include:
   Pellinos Fine Italian Dining and Caffe Italia Trattoria & Bar.
   
   For breakfast, try The Driftwood.
   
   If you enjoy seafood and waterfront dining, either The Barnacle or The Landing might be for you.
   
   Another popular local restaurant and hang out is Maddie’s Sail Loft.


5. The beaches. Devereux Beach, Gas House Beach, and Grace Oliver Beach are a few favorites.


6. Along with being a short ride to Boston and Logan Airport, Marblehead itself offers the amenities of most cities with a small town feel. There are plenty of restaurants and shops within walking distance of each other. The town has done a tremendous job upgrading its education infrastructure with a new high school and renovated middle school. As a property owner, the tax rate is low relative to nearby towns, yet the public services are terrific.


7. In the summer, visit the Marblehead Farmer's Market every Saturday morning where fine vegetables, fruit, flowers, bread, cheese, and countless other goodies from local farms are available under tents at the Veteran's Middle School. Stick around for a time while you enjoy a hot cup of coffee and a tasty muffin or enjoy the weekly entertainment as you chat with neighbors and friends. It’s definitely a social event not to be missed!


8. Marblehead Little Theater is a very successful, well-supported community theater group that just celebrated its 50th birthday. The membership is devoted to putting on a musical and a drama each year. The local area is enriched by the quality of the productions. Whether you are performing, working back stage, or sitting in the audience - MLT makes a difference in the culture and quality of life for people in Marblehead and surrounding towns.
   
   Recently MLT took over an unused fire station in Marblehead. Years later and many hundreds of thousand dollars later, this charming building is being transformed into a wonderful black box theater where dramatic productions, classes for children, movie nights and special events take place. The building is still being updated, but significant progress has been made in this exciting facility. Large scale musical productions take place at other venues in the area.


9. Historian Betty Hunt’s walking tours of Olde Town. Betty not only knows the history of many homes, but many of the local tales as well. The Olde Town area is well worth visiting on your own as well.


10. Go back in time with a tour of the beautiful Jeremiah Lee Mansion that provides a taste of wealth from bygone years.


11. Watching a sunrise over Children's Island and the Lighthouse from historic Fort Sewall. Fort Sewall served as the safe haven for the USS Constitution (Old Ironsides) when it was being pursued by two British war ships.


12. See the transformation of Abbot Hall when it is magically bedecked for the Holiday Pops Concert and enjoy the wonderful orchestra ringing in the season!


13. Be sure to visit the Marblehead Historical Society and Gallery!


14. Visit the Marblehead Art Association and Gallery in the King Hooper Mansion.


15. Crocker Park.


16. Gatchell Playground.


17. Redd’s Pond and the Sawmill at Redd’s Pond.


18. Old Burial Hill


19. Old Powder House


20. Black Joe’s Pond


21. Marblehead Christmas Walk (1st week in December)


22. Marblehead Fourth of July Fireworks

- - -

The following RE/MAX Advantage Real Estate agents contributed to this list:

Carole Bouchat
Web Site: www.bouchatproperties.com
Email: carole@bouchatproperties.com

Claire Dembowski
Web Site: www.liveneartheshore.com
Email:claire@liveneartheshore.com

Cyndi Kilbarger
Web Site: www.cyndinorthshore.com
Email: cyndi@cyndinorthshore.com

Terry and Kathy Sullivan
Web Site: www.sullivanteam.com
Email: terry@sullivanteam.com
Email: kathy@sullivanteam.com

Jody Watts
Web Site: www.rwhometeam.com
Email: jody@rwhometeam.com

- - -

RE/MAX Advantage Real Estate's Marblehead, Massachusetts office:
74 Atlantic Ave.
Marblehead, MA 01945
781-631-2330

Things to Love About Peabody, Massachusetts

1. The Northshore Mall is one of the many reasons Peabody is a favorite destination for shoppers.


2. Great location. Peabody is conveniently and centrally located near major highways route 128, route 95, route 1, and route 93. This convenient location leaves many residents feeling like they live in “the center of the world.” Want to get to Boston? Only 30 minutes or less during normal traffic. How about ski country? Just up the road a couple of hours and you are on the slopes in no time. Peabody is just a short distance from Logan International Airport and close to Beverly Municipal airport.


3. Brooksby Farm is an orchard and working farm that’s owned and managed by the City of Peabody. Brooksby Farm offers over 275 acres for cross country skiing, high school track races, and trails for walking.
   
   Truly, Brooksby Farm is a local favorite all year round. In the fall residents and visitors pick their own apples and enjoy hayrides. Children visit the outside stables and watch the animals roam. There is also a petting zoo. During the summer a camp program is offered on site. During the winter the retail store is open.
   
   Brooksby Farm is conveniently located near the North Shore Mall, so it’s easy to stop at the farm for fresh vegetables and fruit on your way home after a shopping trip. Brooksby Farm is available for weddings and other functions as well.


4. Low property taxes. Peabody has one of the lowest tax rates on the North Shore. The property taxes are currently only $7.76 per thousand. Peabody is partly able to create these low property tax rates due to the mix of industry and businesses that gives the city a strong commercial tax base. Some important areas for jobs and businesses are the North Shore Mall, Centennial Park, and Lahey Clinic.


5. Peabody has its own Municipal Light Plant that has the lowest rates on the North Shore. In addition to great rates, a 20% discount is granted if you pay your bill early. That’s quite a savings.


6. Peabody has its own water treatment plant and several pumping stations making Peabody self sufficient for its water supply.


7. Peabody is known for its annual International Festival, held every September. The International Festival is sponsored by the city and attracts people from all over New England to experience ethnic foods, music, dance, and art. The event usually attracts over 50,000 people each year. The International Festival is a showcase for and celebration of the deeply multi-cultural community of Peabody and its various ethnicities. This year's festival will take place Sunday, September 9, 2007 from 11:30AM to 5:30PM in downtown Peabody.


8. Excellent restaurants. Specific recommendations include:
   
   
   • Petrillo's. Great Italian food. They also have a take-out that's great
     when you're in a hurry. You need reservations on weekends.
   
   
   • Wardhurst. This family-owned restaurant specializes in Greek cuisine and has been a long time favorite for many Peabody residents.
   
   
   • Land 'n Sea. Famous throughout the North Shore. Their fried clams are some of the best you can find anywhere and their famous roast beef sandwiches are great too.
   
   
   • Su Chang's. "The best" Chinese food with great atmosphere and service to go along with it.
   
   
   • Other recommended restaurants are: Legal Seafoods, Brothers Cuisine, Joe's American Bar and Grill, Carraba's, Bertucci's, Family Fare, and Century House.
   
   
9. Golf. The Meadow at Peabody is a public golf course owned and operated by the city. The course is challenging and the views are spectacular, especially in the fall. In 2005 and 2006, the Boston Business Journal rated The Meadow at Peabody the 8th Public Best Golf Course in the state. Peabody also hosts a private golf course owned by Salem Country Club.
   


10. A new Peabody / Lynnfield YMCA just opened its doors last fall. This state of the art facility offers swimming (inground pool), exercise programs, activities, and summer camp programs. A great addition to the city and a great place for families.


11. Peabody has a transfer station where residents can bring up to 1500 pounds a year at no charge and the Department of Public Works has a recycling center at its base on Farm Avenue. Peabody also hosts a Household Hazardous Waste Day every June for disposal of hazardous materials. There are also two composting sites owned by private companies where residents can bring their organic recycling materials.
    


12. Peabody is a city of 50,000 people but has a small town feeling to it. Peabody is a melting pot of various ethnic groups coming together.


13. Public transportation convenience. Options include commuter shuttle bus, MBTA bus (with a direct route to Boston), Coach co. service, Logan Express service, and commuter rail service.


14. The city of Peabody boasts one of the most popular elderly programs around. The Torrigian Center sponsors everything from knitting to exercise programs. A wonderful way for our elderly community members to be social and productive.


15. Within the last 3 years, Peabody has built 2 new elementary schools and boasts at least one registered nurse in every school.


16. The Christmas concert held each year at the Peabody City Hall is a very enjoyable evening which features a symphony orchestra. Last year the Boston Symphony Orchestra gave a free concert there.


17. Peabody provides terrific recreational programs for adults, children, and teens of all ages. Sports programs such as basketball, soccer and baseball are among favorites not to mention football as well. The sports programs for the children are excellent in quality and have produced several professional baseball players and an Olympic Medal swimmer. If you want to move to the grove there are programs as well. Art progams also are a big hit. The local libraries also have programs that they sponsor as well for all ages.


18. George Peabody House.


19. Peabody City Tanner Common Summer Concert Series.


20. Peabody Historical Society.


21. City of Peabody 4th of July Events.


22. North Shore Computer Society.


23. Three Peabody Library branches: Main Street, South Branch, West Peabody Branch.


24. Perfecto’s Coffee Shop.


25. Woodbridge Assisted Living


26. Brooksby Village

- - -
The following RE/MAX Advantage Real Estate agents contributed to this list:

Donna Baigelman
Web Site: www.NorthShoreHomeInfo.com
Email: donna@NorthShoreHomeInfo.com

Kate Fabrizio
Web Site: www.northshorehomes4u.com
Email: kate@katefabrizio.com

Todd Finn
Web Site: www.toddfinn.com
Email: todd@toddfinn.com

Bernie and Anita Horowitz
Web Site: www.NorthShoreHomeInfo.com
Email: bernie@NorthShoreHomeInfo.com
Email: anita@NorthShoreHomeInfo.com

Judy Lima
Web Site: www.hometeamnewengland.com
Email:judithlima@comcast.net

Karyn Reardon
Web Site: www.megsteam.com
Email: karynreardon@comcast.net

Also contributing:

Colleen Bertolino, assistant to Kate Fabrizio

- - -

RE/MAX Advantage Real Estate's Peabody, Massachusetts office:
515 Lowell Street
Peabody, MA 01960
Phone: 978-535-3122
Fax: 978-535-6087

Things to Love About Beverly, Massachusetts

1. Great restaurants:
   
   
   • Brenden Crocker's Wild Horse. The dining room has great food as does the bar. They carry a great variety of beers on tap and have over twenty amazing martinis. There is great live music on Wednesday nights and there’s always a great crowd and a good vibe.
   
   
   • Tryst has outstanding food. It is very small, so you need to make a reservation but it is well worth it. The also have a fabulous wine list.
   
   
   • Kitty O'Sheas is a great Irish bar. They have traditional Irish food. They also are one of the only bars in the area to show European Soccer games on television. They also have live bands and a great deck located in the back for the summer time.
   
   
   • Tapas Corner is a great little restaurant off of Cabot Street. It is very small but they have great burritos and unique wraps as well. There is always interesting music and great conversation in Tapas.
   
   
   • One more is Mandrake on Cabot Street. They have amazing food and always a good crowd on the weekend nights.
   
   
   • Other specific restaurant recommendations include The Beverly Depot, Chianti, Harry's 57, and Siam Delight.
   
   
2. For outdoor fun, Lynch Park (official name David S. Lynch Memorial Park) is great. They have great outdoor concerts on Sunday nights during the summer. There are all sorts of activities and fun things for every age (kayaking is one example). The Rose Garden is one of the main attractions of Lynch Park. The Falconer statue is worth viewing as well.


3. The Beverly YMCA provides lots of activities for everyone. They have three locations through out Beverly including the McPherson Teen Center.


4. Montserrat College of Art has tons of galleries that are open to the public. Exhibits, galleries, and talks are free and open to the public. There is always something new and exciting going on at the College. Taking classes there is also very worthwhile.


5. The coast line of small beaches. Walking the dog on Brackenbury Beach is great too.


6. Beverly is a city with a small town feel. There is a diverse mix of people and neighborhoods.


7. Convenient location: Easy highway access and 3 train stations (for the commuter). You can also get to the mountains of New Hampshire, the coast of Maine, the city of Boston all within 2 hours.


8. Downtown Beverly with its variety of restaurants, coffee shops, gift shops, and art galleries.


9. The Farms Village with its boutiques and ”green grocery” small restaurants and coffee shops.


10. Cabot Cinema.


11. Concerts on the Beverly Common.


12. The Beverly Public Library.


13. The idea that whatever neighborhood a person lives or school their child attends, it is “the best.”


14. Large number of community playgrounds and ball fields.


15. Independence Park - one of the nicest ocean views on the North Shore.


16. St. Mary Star of the Sea Catholic church is very beautiful inside.


17. The Cummings Center provides a large number of jobs and is home to many companies.


18. And of course, The OCEAN!!!!

- - -

The following RE/MAX Advantage Real Estate agents contributed to this list:

Margaret Belmonte
Web Site: www.margaretbelmonte.com
Email: margaret@margaretbelmonte.com

Blaze Johnson
Web Site: www.blazerealestate.com
Email: blaze@blazerealestate.com

Tina McManus
Web Site: www.YourNorthShoreHome.com
Email: TinaMcManus@Remax.net

- - -

RE/MAX Advantage Real Estate's Beverly, Massachusetts office:
100 Cummings Center Suite 104F
Beverly, MA 01915
978-927-9100

Things to Love About Salem, Massachusetts

1. Halloween. Every year in Salem, Halloween is a month long celebration known as “Haunted Happenings.” The Haunted Happenings celebration bills itself as “America’s Halloween Festival,” and kicks off in early October with a parade known as the “Grand Parade.” It’s not unusual to see people dressed up in costumes any day in October, at any time. Halloween itself is like one big outdoor costume party with street vendors selling Halloween-related items as well as food and drink.

2. Salem is a walk to everything city: the train, the bus, the grocery store, the bank, restaurants and live music, the park, the common, the dog park, the waterfront, you name it!

3. Dogs! Believe it or not, Salem is very dog friendly! You can walk through the city and see that the local businesses have water bowls out for dogs!! Salem has a dog park with a large fenced in area, and many wonderful other parks.

4. Salem has culture! Music and lots of it; Salem is going to have its first annual Soul and Jazz Festival at Salem Willows this summer. The Peabody Essex Museum is a world class museum; we have a thriving art community: art galleries and Artists Row (where local artists have formed a co-op to sell their wares). Don't forget the Picklepot that sells items made by local artists.

5. Tremendous night life. Many Salem bars and clubs have excellent live music. Specific recommendations include Rockafellas, Dodge Street, Edgewater Café, and Bangkok Paradise. For a more low key evening, take in a movie at Salem’s own movie theater, Cinema Salem.

6. Salem has exceptionally wonderful restaurants! Indian, Chinese, Japanese, Thai, Seafood, American, Mexican, Italian, and neighborhood restaurants. You name it, Salem’s got it. Specific recommendations include Strega, The Old Spot, Passage to India, The Grapevine, The Lyceum, Finz, Bella Verona, Red’s Sandwich Shop, In a Pig’s Eye, and the Front Street Coffee House.

7. History. Not just the famous Salem Witch Trials of 1692, but also the rich maritime history (including pirates). And don’t forget the colonial history either.

8. Stunning, must-see architecture. Some highlights include the McIntire Historical District and many of the homes located near Salem Common. One great way to view some architectural highlights is to go on the annual Christmas House Tour run by Historic Salem. Be sure to visit the House of the Seven Gables and the Witch House also.

9. The waterfront area, including the Custom House, Pickering Wharf, and Salem’s own tall ship, “The Friendship.”

10. The cobblestone streets give Salem a historic feel.

11. Salem is one of the most affordable communities on the North Shore.

12. Salem Common. Also known as Washington Square, this 9 acre park of public land is primarily used for concerts and other large public gatherings.

13. Convenient transportation options. Salem Ferry runs to Boston. The MBTA Commuter Rail travels from Salem Depot to Boston as well.

14. Education. Thousands of students attend Salem State College every year and it doubles as one of the largest employers in Salem. For younger students, Salem has an abundance of public and private schools. Foundation for Salem Public Education holds an annual Spring Auction each year at the Hawthorne Hotel. This year's date is Thursday, April 5th, 2007. Channel 5 anchor Susan Wornick will return for the 2nd year as the celebrity auctioneer. Silent Auction is from 6:00-8:00 PM and then the Live Auction is from 8:00-9:00 PM.

15. The Essex Street Pedestrian Mall and the many unique shops throughout the city.

16. Winter Street during a snowstorm.

17. Winter Island (Marine Recreational Park).

- - -

The following RE/MAX Advantage agents contributed to this list:

Maggie Gibson
Buyer Agent for the Sullivan Team
Web Site: www.sullivanteam.com
Email: maggie@sullivanteam.com

Jenny May
Web Site: www.jennymay.biz
Email: jenny@jennymay.biz

Karyn Reardon
Web Site: www.megsteam.com
Email: karynreardon@comcast.net

Staff members Nikki and Alice also contributed to the list.

- - -

RE/MAX Advantage Real Estate's Salem, Massachusetts office is located at:
143 Washington Street
Salem, MA 01970
978-740-2333

Things to Love About Gloucester, Massachusetts

1. The beaches: Good Harbor Beach and Wingaersheek Beach for the people who want a bigger beach. For those with small children that need a smaller beach, try Half Moon Beach and Cressey's Beach, both located at Stage Fort Park. Other beaches include Niles Beach near Rocky Neck and Long Beach.

2. Annual celebrations: St. Peter's Fiesta, which is the last weekend in June. Events include The Greasy Pole, Sunday Parade, Carnival Rides for the kids, live music, good fun and cheer with the locals. Other annual celebrations are the Schooner Festival, the Boat Parade of Lights, and the New Fish Festival.

3. Culture: Rocky Neck Art Colony, Hammond Museum, Beauport Museum (which is celebrating 100 years), Cape Ann Historical Museum, Cape Ann Symphony, Gloucester Stage Company, West End Theater, North Shore Art Association, Thursday night concerts at Harbor Loop, Sunday night concerts at the bandstand at Stage Fort Park.

4. Whale watches. 4 different whale watches depart from Gloucester:

Captain Bill and Sons Whale Watch
Cape Ann Whale Watch
Yankee Fleet Whale Watch
7 Seas Whale Watch

Captain Bill and Sons whale watches include informative narration by:
The Whale Center of New England.

5. Scenic views and sights: Walks along the seashore. Fabulous light, as recognized by artists for the last 150 years. Show stopping sunsets and the beauty of a full moon over the ocean. 26 square miles of crashing surf, time worn granite stones, secret coves, sand dunes, hilltop breezes, woods, trails, parks - beyond great!

6. The “Ladies’ Night” and a “Men’s Night” that kick off the Holiday shopping season. All the shops, restaurants, and art galleries in the downtown area host an Open House and offer a 20% discount on all purchases that evening. The atmosphere is festive with Carolers walking the downtown area singing Holiday songs.

7. An abundance of excellent dining establishments, many of which specialize in seafood. Specific recommendations include Halibut Point, The Causeway Restaurant, The Franklin, Passports, Alchemy, The Rudder, Madfish Grill, LobsterLand, and Azorean. For more information on these restaurants and to learn about others, check out Cape Ann Web's Gloucester restaurant reviews.

8. The Fisherman at the Wheel Statue and the beautiful boulevard. Memorial services for those “lost at sea” are also held at the Fisherman statue.

9. More water-related activities – boating, swimming, scuba diving, snorkeling, sailing, and fishing.

10.Independent-minded residents living an island-mentality life. The people of Gloucester are great and are a blend of different cultures.

- - -

The following RE/MAX Advantage agents and teams contributed to this list:

Jennifer Anderson and Ron Goulart
Web Site: www.jenandron.com
Email: jen@jenandron.com and ron@jenandron.com

Realty Team Homes
Web Site: www.realtyteamhomes.com
Email: realtyteamhomes@yahoo.com

Lillian LoGrasso
Web Site: www.lillianlograsso.com
Email: lillianlograsso@remax.net

Karyn Reardon
Web Site: www.megsteam.com
Email: karynreardon@comcast.net

Cricket Sperry
Web Site: www.kristalpooler.com
Email: cricket.sperry@comcast.net

- - -

RE/MAX Advantage Real Estate's Gloucester, Massachusetts office is located at:
191 Main Street
Gloucester, MA 01930
978-281-8005

Direction of Mortgage Rates

Hello everyone,

Here's the latest on mortgage rates:

I have not written a commentary since the end of last month due to extraordinary factors affecting the markets of late and I wanted to let things settle before I made another comment on the market. First, the Sub Prime debacle is causing financial jitters throughout the mortgage and banking industries as high loan defaults finally catch up with lenders originating loans with loose credit requirements.

This activity has spilled over to the ALT A market which is causing havoc to lenders who originate conforming and ALT A business such as ourselves. The result of this is we will see more companies shut their doors, wall street continue to experience liquidity issues, and a mortgage market that will remain tight for most of the year.

Currently, the market is ignoring all fundamental indicators as traders of MBS's f(mortgage backed securities) focus primarily on the stock market. Since last week, when the DOW dropped 415 points, many investors in equity have switched to bonds for safety. This will begin to unravel by the end of the week or next week, as the stock market begins the recovery of the sell-off. This may hinder any rally we might get from poor economic data due to investors exiting the market.
So, I would remain cautious at these good levels as I feel that the market will sell-off to correct the stock market related rally of last week.


John Shea
Vice President
Summit Mortgage
781-224-2809 (office)
jshea@summitmortgage.com

What are the most effective ways for buyers to use the Internet as part of their home search?

"The Internet is without a doubt a huge tool for
homebuyers. The ability to browse listings with the
click of a mouse is easy and less time consuming than
tediously thumbing through newspapers or driving
around town looking for real estate signs.

The most effective way for a buyer to search for homes
on the Internet is to first find a web site which is
easy to use. If a buyer finds the web site to be
confusing and busy, they won't re-visit. Giving a buyer
the ability to view addresses will help them rule out
houses that are not in their desired neighborhoods.
Also, buyers should make sure that the site they're
using enables them to view all MLS listings, not just
listings for that company's office.

With the majority of homebuyers now browsing listings
on the Internet for several months before physically
walking into a house, it enables them to narrow their
search, and educate themselves about the market.
This gives the buyer more confidence and knowledge than
ever before!"

Jenny May, ABR
Web Site: www.JennyMay.biz
Email: jenny@jennymay.biz
Phone: 978-828-4142

- - -

"The most effective way for buyers to use the Internet is to sign onto my web page at www.patfenton.com and enter the towns and price range that suits them. They will be able to search all the homes currently available and see all the same data that we as Realtors see. The information provided on my web site is the highest quality they can receive in terms of content. This allows them to understand what's happening in the market, see what their dollars will purchase, and decide what they feel comfortable buying. It puts them in control of the buying process, and they will feel comfortable knowing that every property on the market is available to them."

Pat Fenton
Web Site: www.patfenton.com
Email: pat@patfenton.com
Phone: 978-524-8717

- - -

"The obvious is as an educational resource to learn about markets they're interested in. Many use lots of different resources - Realtor sites, craigs list and Zillow (they like the satellite photo features). When they see a property that interests them, they can easily copy me on it. It's a great communication tool that saves us loads of phone time. When you're moving into an area you're not familiar with, just Googling the towns can bring up information about the community that helps you decide if it's the sort of place where you'd like to live."

Cricket Sperry
Buyer Specialist, Kristal Pooler Team
Web Site: www.kristalpooler.com
Email: cricket.sperry@comcast.net
Phone: 978-578-5446

- - -

"It sometimes seems like before you buy a house, you'd better buy a computer and printer! The Internet has brought a wealth of information to the real estate investor that has changed the way people look at and purchase property. Today the Internet allows a buyer to find a property, view a property, and even buy a property without even stepping foot in the property! There are a lot of web sites that provide property information, but I like to make sure my clients know that not all sites are up-to-date and user friendly. The www.sullivanteam.com web site, powered by iMaxWebSolutions.com, allows the buyer to view the property in a specific price point, see a virtual tour, and with one click set up an appointment to view the property of choice, then get the driving directions for the appointment.

Members of the web site can track the property for price changes or sale trends and even allows a daily email or cell phone page when a new listing hits the market! This is a great service when you are in the heat of a property search!
You can spend hours on the Internet finding school stats, community information, flood zones maps, mortgage calculators, and some sites even offer price opinions. A well designed web site offers all of this information with a click of the mouse!

However, let me remind the real estate investor to not believe everything they read just because it is in print! A smart consumer knows that the Internet is no replacement for the personal touch or past experience when it comes to buying large ticket items! A real estate investment is no exception! I tell my clients to use the Internet as a resource for research then print articles for me to clarify and put into a local context!

Not every state has the same real estate values and there are different ways to purchase real estate globally. To an untrained eye the information on the Internet is appealing but note that it often lacks regional reference which is vital for a real estate purchase! In closing, I recommend that a real estate buyer or seller uses the Internet to learn all about buying and selling and then go to Google, search on RE/MAX and find a great local real estate listing agent or buyer specialist! Once you find the home you want to buy, this same agent will help you explore the Internet to find the sites that provide the information you'll need to get through a home inspection, a property repair, and even to close on a mortgage!"

Andrea D'Amato
Web Site: www.FindYourNewHome.biz

- - -

"I think the use of my web site www.margaretbelmonte.com is a very effective way for buyers to use the Internet as part of the home search. The Internet is a great way for buyers to get an overview of the market in regards to price, housing style, and differences in towns. My web site is an interactive tool which enables the buyers to email any interest or questions about a particular home as well as stay on top of new listings, price reductions, and under agreement. The Internet is a valuable information tool for buyers; however, I don’t think any tool takes the place of a solid and trusting relationship with a Realtor who is experienced in working with buyers as evidenced by the ABR designation and years of full time real estate sales experience."

Margaret Belmonte
Web Site: www.margaretbelmonte.com
Email: margaret@margaretbelmonte.com
Phone: 978-927-2737

- - -

"The Internet has definitely become the most effective way for buyers to begin searching for their dream home! The most effective way for a buyer to use the Internet for their home search is to find a local real estate agent that also has their own web site. For instance, my web site names are www.LillianLoGrasso.com and www.GloucesterandRockporthomes.com. Real estate is local and a lot of web sites out there just buy domain names to capture buyers and then offer the lead to a real estate agent for a substantial fee.

A savvy buyer should find a real estate web site that specializes in the areas they are looking in. Personally, I feel if a real estate agent does not have their own personal web site and is not up to date with technology, it says a lot about the agent. My web site offers full access to the all properties listed in the MLS and this includes properties listed with any other broker. You will never miss an opportunity! It updates every ten minutes and it can send a message to your cell phone with hot properties, it can send you daily e-mails, and best of all you can look up properties that have sold or expired which I know for a fact that most other websites do not offer! So my best advice would be to begin your search through a major search engine that includes the towns you would like to buy in and mentioning RE/MAX would ultimately get you the best result, LOL!!!"

Lillian LoGrasso
Web Site: www.LillianLoGrasso.com
Email: lillianlograsso@remax.net
Phone: 978-479-2250

All About Open Houses: Their Role and How Our Agents Market and Conduct Them Successfully

"Open Houses are especially important for properties that are 'not a drive by.' They are another tool for getting potential customers in the door. I recently had an Open House and almost every potential buyer said 'wow, this house is really nice and was deceiving from the outside.' For my Open House advertising, I use my web site’s Open House page, boston.com, and the Boston Herald. All of these have been very effective. Obviously signage is also important. If the property is large or unique, I have two agents present to control the flow of customers.

I give my sellers as much feedback as possible from the comments of potential buyers. I also provide my sellers with a list entitled 'how to prepare for an Open House'; these are tips and suggestions to make the exterior and interior of the home appealing to the buyers."

Judy Lima
Email: judithlima@comcast.net
Web Site: www.judylima.com
Phone: 978-535-6666

- - -

"There are three types of Open Houses a Realtor can have and I have a different marketing strategy for each of them. The first type of Open House would be for the listing office, which in my case is the RE/MAX Advantage office. This Open House occurs within a few days of first listing the home. The RE/MAX office would take a tour through the home which is commonly known as a “caravan tour.” This allows the office agents to get familiar with the home and preview it for their buyer clients. Normally, I would send out a voicemail broadcast to the office announcing the new listing.

The second type of Open House would be what’s commonly called a “broker luncheon.” This Open House allows me to invite Realtors from across Cape Ann and multiple offices to enjoy a delicious lunch and to preview the home for their buyer clients. I have a database of real estate agent e-mail addresses and present a nice invitation and always cook my now famous Pasta al Forno. Because I’ve been consistent with this delicious meal, I can count on seeing a great turnout (simple strategy)!

The third type of Open House is the most common: a Sunday Open House where the public is invited to take a tour of the home. I use many different avenues of advertising including but not limited to: Realtor.com, Boston.com, the Multiple Listing Service, and of course my own web site GloucesterandRockporthomes.com. I also use print ads and target different newspapers depending on type of home and location as well as target audience. I also send out a broadcast e-mail to most Cape Ann Realtors making them aware of my Sunday Open House so they can send the info along to their buyer clients who may want to attend. Open Houses are a great way to expose a home to the market place!"

Lillian LoGrasso
Web Site: www.LillianLoGrasso.com
Email: lillianlograsso@remax.net
Phone: 978-479-2250

- - -

"We believe Open Houses work very well for the seller and it also helps
prospective buyers make educated decisions. We still think that Sundays
between 12PM and 3:30PM works best. The Open House lasts for approximately 2 hours. We usually perform an Open House when the listing is new and then
perform an Open House on a price change or sometimes when we need to
jumpstart the listing if activity has been weak.

A couple of strategies we use for marketing an Open House are to 1) Promote the listing on Monday for the Open House on the following Sunday. 2) Promote the time of the Open House on your listing via different web sites such as: the MLS (multiple listings service), Realtor.com, Boston.com, your personal web site, and any other site you subscribe to. For instance, we think a great way to drive traffic to Open Houses is to place the time of the Open House on the comment section on MLS. We also place the time of the event as the headline on Realtor.com.

The promotions start on Monday and this helps create some buyer anxiety by the time Sunday comes along. If a potential buyer is interested in the property and sees the property on Tuesday and the property is viewed by 4 other prospective buyers during the week and then the same people come back to Sunday's Open House and also see 20 more prospective buyers in the home then there is a better chance of achieving a higher offer on the home by the time Sunday's Open House is completed because the prospective buyers are not sure who else might place a bid on the home. This process helps create a sense of urgency with the prospective buyer.

We do not make any buyer feel uncomfortable when viewing a home. We ask informal questions and let the prospective buyer dictate the conversation. By having a casual conversation, you can then make clear decisions on what type of buyer they are or are not. If the buyer is serious then we proceed with specific questions and provide market statistics which are derived from our web site. This is a great tool when educating prospective buyers. A couple of soft drinks and snacks never hurt when performing an Open House. Open Houses can be fun and can be very productive for both the seller and the buyer."

Mike and Mary Cotraro (Team Cotraro)
Web Site: www.teamcotraro.com
Email: cotraro@teamcotraro.com
Phone: 978-882-4425

Direction of Mortgage Rates

Hi Everyone,

Here's the latest commentary from our rate lock department:

Not much economic data coming out this week, with the exception of the slighty bearish CPI data released this past Wednesday, which really did nothing to the mortgage markets. The market is off slightly this morning in anticipation of the 5 year treasury note auction.

Weekly jobless claims were lower by 27,000 than the previous week, dropping from a revised 359,000 to 332,000. But, they are still higher than they were for the majority of last year. The four-week moving average pushed up to 328,000. Just a few weeks ago the average was closer to 310,000. Layoffs in construction and manufacturing have been the biggest causes for the increase. Continuing claims actually fell. However, considering that hiring was slower and the unemployment rate rose in January, it is more likely that many of these people have passed their 26-week maximum for collecting unemployment benefits as opposed to finding work. If overall economic activity does soften, then new claims will be in the mid to high 300K range on a consistent basis within the next two or three months.
Based on the lack of data, there will probably be not much market movement the rest of the week.

John Shea
Vice President
Summit Mortgage
781-224-2809 (office)
jshea@summitmortgage.com

Why is it important to properly price a home when it is first listed on the market?

"There is a very ready, willing, and able group of buyers that will purchase immediately when a home is first listed if it is priced properly from the outset. Sellers cannot fool the buyers anymore in this day in age with a price you would like to ‘try.’ Buyers are very aware of the current market conditions and have all the tools at their fingertips to see if they are getting a good value or not.

If a seller prices their home properly from the outset and has an excellent real estate agent with a great marketing plan, it is always a win-win situation. The real estate agent will market the home to the real estate community and market it as an ‘excellent value!’ This will trigger the real estate agents to call their qualified buyers and make them aware of ‘a deal they just heard about.’

There is a HOT window of opportunity when a home first hits the market to get as many buyers into the home as possible. When a home is priced properly and it’s within this window, a savvy buyer will see it and jump at the chance. If you overprice, and lose this window of opportunity, there is a great chance that you will end up with offers much less than the “excellent value” price that your Realtor suggested. I am very honest with my sellers and last year the properties I listed that were priced right and marketed as ‘excellent values’ all sold with 25 days of first hitting the market. Basically, price it right from day one and you’ll win!"

Lillian LoGrasso
Web Site: www.LillianLoGrasso.com
Email: lillianlograsso@remax.net
Phone: 978-479-2250

- - -

"New inventory attracts the greatest amount of buyers. Buyers, with the advance of technology, are highly informed in regards to price and days on the market. The longer a home is on the market, the less likely it is to achieve the asking price. Homes priced correctly at the onset receive more exposure and offers. The market data indicates homes which must be reduced to attract offers frequently sell for less than what the broker originally suggested as an asking price."

Margaret Belmonte
Web Site: www.margaretbelmonte.com
Email: margaret@margaretbelmonte.com
Phone: 978-927-2737

- - -

"Proper pricing of a home is all-important in the sales process. The first two weeks of the listing are the most important. That is when the current buyer pool will look at the house and the most likely time to get an offer. In the market we are in, an overpriced listing will not generate offers, it will just sit on the market and lose its initial appeal."

Pat Fenton
Web Site: www.patfenton.com
Email: pat@patfenton.com
Phone: 978-524-8717

- - -

"If you are reading this then you know and well understand the power of the Internet! It is important to price your home properly when the ‘For Sale’ sign first goes into the ground because the Internet has given buyers the power to learn all about the current real estate market place. A real estate buyer will know when your listing is truly a NEW listing because they are surfing the net looking for their new home every day sometimes morning, noon, and night! They are circling their favorite neighborhoods just waiting for the new sign to pop!

When a property comes on the market with the wrong price tag, the right buyer for that property might come through the first open house but then watch and wait, willing to gamble for the right price! In this time of cautious financing, no one wants to overpay. The buyer's bank even hires an appraiser to come out and check the value for the bank's investor once the offer is accepted. The Internet buyer knows that there is an increased chance of a price reduction the longer the house stays on the market.

Multiple price reductions are often a flag that the house is over priced out of the gate. Multiple price reductions are setting the buyer up to want to make a low offer to ‘test’ the water. In today's technology powered real estate market, a well-priced house will be recognized! When the listing is fresh on the Internet, it is possible that the right buyer will not only visit the debut open house but also stand in line to make a full price offer! Houses that sit on the market too long get lost in the excitement of new listings and often appear to have something wrong with them."

Andrea D’Amato
Web Site: www.FindYourNewHome.biz

How does a Realtor determine a home’s value?

“A home’s value is determined by looking at similar style and size homes and their features and benefits, then comparing the subject property to them. We look at homes that have sold in the past 3 months and ones currently on the market. In a declining market, such as ours, the subject property needs to be priced below the past solds. The percentage of the reduction is predicated by the current market.”

Pat Fenton
Web Site: www.patfenton.com
Email: pat@patfenton.com
Phone: 978-524-8717

- - -

"As a sales broker with 25 years of experience, I consider several avenues to determine price. First, in today’s market, which many still consider uncertain, I consider properties which have sold over a 3-6 month period. These properties typically tell the true story of home values, i.e. sold price to asking price, days on the market, number of price reductions. Sold properties indicate the market reality. I am extremely selective in the properties I choose for comparison, selecting style to style, size to size; I compare 'apples to apples.'

Next I research properties which are currently under agreement. These properties indicate what buyers perceive to be a good value in today’s market. Lastly, I look at what the new property is competing with in regards to price, style, condition, days on the market, number of price reductions. Asking Prices in today's market are what buyers perceive to be the seller's wish, not necessarily true market value. The market and my experience in successful selling in this market suggest only properties which are priced competitively result in a SOLD."

Margaret Belmonte
Web Site: www.margaretbelmonte.com
Email: margaret@margaretbelmonte.com
Phone: 978-927-2737

Direction of Mortgage Rates

Hello again everyone,

I certainly don't expect to be posting about rates every day but I felt it was important to correct the comments I made yesterday. Unexpectedly, rates got better today. Here's the explaination from our rate lock department:

Retail sales in the U.S. stalled last month as cheaper gasoline limited service station receipts anddealerships sold fewer cars. Purchases excluding fuel and autos increased during the month. January sales were unchanged after a 1.2 percent gain in December that was more than previously estimated, the Commerce Department said today in Washington. Sales excluding autos and gasoline rose 0.5 percent after rising 1 percent in December. Shoppers redeemed gift cards and used the savings from lower gasoline prices to buy winter clothing and home furnishings last month. The figures show an economy that's growing at a moderate pace, a description Federal Reserve Chairman Ben S. Bernanke is likely to share with lawmakers when he begins two days of testimony on Capitol Hill today.

The market liked the retail news and MBS's are slightly better than yesterday's prices. However, we do have Bernarke speaking. It should be along then same vain as what we have been hearing. I do not see the market coming off of the little rally this morning.

John Shea
Vice President
Summit Mortgage
781-224-2809 (office)
jshea@summitmortgage.com

Direction of mortgage rates

Hello everyone,

Here's the latest from our rate lock department:


And another record is set. For the last 5, count ‘em 5, years the U.S. has set new trade deficits. The latest was an enormous $763.6 billion, which barely needed December’s $61.2 billion gap to beat 2005’s $716.5 billion. Much of the disparity lies in the cost difference between goods in the U.S. and goods in China. China has managed to keep their currency artificially low against the dollar, as Japan used to do (and still does to a certain extent) in the 80’s and 90’s. This and the fact that they have been making quality products is why China has overtaken Japan since 2000 to become the largest supplier of goods to the U.S.

Members of the Federal Reserve and other government officials in the U.S. have been “strongly” urging China to allow their currency to trade more freely on the open market without intervention. Then, China’s currency (the yuan) would increase in value and close the gap between the cost of goods from China and elsewhere. Firmer U.S. government action is required in order to resolve the situation (assuming the government actually wants to resolve it). But, if the government were to take action, it would cause a spike in inflation, which would then crush consumer spending. Obviously, this would have a vastly negative impact on the economy, which is why the government is unwilling to step in. They would rather see this problem work itself out naturally.

Don’t forget, tomorrow morning at 8:30 ET January’s retail sales data will be released. Based on the limited reaction that we saw in the markets to this morning’s data, it seems apparent that traders are waiting for the sales numbers before making a move. We still expect the numbers to be stronger than forecast, which would have a very negative affect on bond prices.

This all means that if you're thinking about whether to lock or float a rate right now you probably want to strongly consider locking. There's a little uncertainty out there and that's not good for rates.

Please call me if I can help with a mortgage.

John Shea
Vice President
Summit Mortgage
781-224-2809 (office)
jshea@summitmortgage.com

Real Estate Values on the Rise?

Hello everyone,

For anyone who missed it, F0x 25 did a story last night on whether Real Estate Values will be on the rise again soon. Here's a link to view the story:

http://www.myfoxboston.com/myfox/pages/Business/Detail?contentId=2361009&version=1&locale=EN-US&layoutCode=VSTY&pageId=4.1.1



John Shea
Vice President
Summit Mortgage
781-224-2809 (office)
jshea@summitmortgage.com

Thoughts on the current state of the real estate market on Massachusetts’ north shore from RE/MAX Advantage real estate agents

"I think there is more buyer inquiry in January 2007 than there was in January 2006. It seems as though sellers are beginning to adjust to a declined market in regards to pricing of new inventory. There is still an abundance of inventory on the market. Homes which have been on the market for 6 months or longer are now competing with new to the market properties. I think it is a more level playing field for buyers and sellers. It is still a great time to be a buyer and sellers must adjust to market changes in regards to price."

Margaret Belmonte
Web Site: www.margaretbelmonte.com
Email: margaret@margaretbelmonte.com
Phone: 978-927-2737

- - -

"Based on the inventory currently on the market now, which is over 5,000 more homes as compared to last year at this time and with anticipation of an increase in property coming on the market for spring, I see no change in the direction of prices in our declining market. If interest rates go up, the price decline will be even deeper.

I see no change in this price direction until our inventory does a drastic decline and I see no signs of this happening in the near future. Therefore, pricing in this market is all important."

Pat Fenton
Web Site: www.patfenton.com
Email: pat@patfenton.com
Phone: 978-524-8717

- - -

"Here is the latest on the streets of Beverly, MA as it pertains to single family housing with a price range between 260 and 460. The new year sparked a ton of interest with potential buyers looking to purchase a home in 2007. Potential buyers have increased dramatically with over 40 people at some of our open houses in a 2 hour window. This is positive for sellers, however the buyers can be patient and will make sure they are getting the best deal possible. Sellers need to do the extras on the home while preparing it to sell, otherwise the house will not achieve its full value or worse will not receive any offer.

The market appears to be stabilizing with inventory not being as large as it has been in the past. 2007 is a good year for buyers as many sellers understand the market has come down and are willing to still sell their property. Many buyers are still cautious and are constantly watching the market as well as keeping up with the latest trends in housing. 2007 should be slightly better than 2006 based upon the number of potential buyers looking so early in 2007. It appears that we may have a productive spring market if sellers listen to professional real estate agents and not listen to their friend who sold their house two years ago and received a large sum of money. Like the great Kenny Rogers sings about, 'You got to know when to hold ‘em and know when to fold ‘em.'"

Mike Cotraro
Web Site: www.teamcotraro.com
Email: cotraro@teamcotraro.com
Phone: 978-882-4425

- - -

"A positive change in the perception of our current Cape Ann market can be gauged by comparing the number of under agreement (UAG) properties now vs. the same time last year. It's what I like to call 'the pipeline.' I'm happy to say that in Gloucester, the number of UAG single families is up from 2 to 20 (+900%), condos from 5 to 14 (+180%) and multis from 0 to 3 (+300%).

Buyers last year were afraid to buy because many were worried about a 'bubble': 'if I buy it today, it might be worth substantially less in the very near future.' According to the current number of under agreement properties, those fears have all but disappeared and, once again, real estate is going 'under agreement' and selling. And, as most of us in the trenches said, 'There is no bubble. The market will correct, but not drastically.'"

Kenny MacCarthy
Web Site: www.kennymaccarthy.com
Email: kenny@kennymaccarthy.com
Phone: 978-758-0983

Direction of Mortgage Rates

Hello Everyone,

Here's the current commentary from our rate lock department:

The market after a brief rally in the morning sold off as profit takers came in and sold the market off. This caused most investors who priced early to post a revised rate sheet.

Most of the weeks economic numbers have been neutral to slightly bullish overall, the pinnacle of course was the Fed's statement holding things steady and not changing their inflation expectation. This has a calming effect on the market which I believe will work into the market in the form of a short term rally.

Even though January nonfarm payrolls were considerably weaker than anticipated (111k vs. 206k in December), there were +99k in revisions to the last four months. This means the three-month moving average on nonfarm payroll gains basically held steady at +171k. The private service sector produced 90k jobs in January after averaging +194k in the prior three months. The manufacturing sector continued to lose jobs (-16k vs.-18k previously)-the seventh consecutive decline.

The rest of the employment report was softer. Manufacturing aggregate hours were down 0.8% in the month, pointing to soft production and a declining capacity utilization rate. Overall hours were down 0.1% and set the quarter up for a weak start in terms of GDP, which we have pegged at just under 2%. Average hourly earnings are now more consistent with the employment cost index, up just 0.2% in January after a 0.1% downward revision to +0.4% in December. Over the last year, earnings are up a reasonable 4%. We think the Fed is likely to be happy with this situation.

Translation: We're thinking rates will be steady to slightly down in the short term.

John Shea
Vice President
Summit Mortgage
781-224-2809 (office)

Recommended Real Estate Links

RE/MAX Advantage, Beverly, MA


iMaxWebSolutions.com


Sullivan Team