New data is always hitting the wire on housing data. It seems to be John Q. Public’s favorite indicator of financial well-being.  Zillow posted some interesting parameters that should probably be taken with a grain of salt. My experience is that Zillow can be wildly inaccurate, but my bet is that when looking at the entire real estate market as a whole – probably a decent snapshot.

Zillow has Jamaica Plain outpacing all of it’s neighbors, including but not limited to Roslindale, North Dorchester, West Roxbury, Mission Hill, etc.  The multiple listing service provides very accurate, real time data as well. In comparison, Jamaica Plain has remained surprisingly level over the last five years.

5 year real estate inventory for Jamaica Plain

I’m no analyst mind you, but it seems to me that we have a much healthier market now. While the number of homes on the market spiked throughout 06′, the number of properties going under agreement and making it to closing is very strong. I attribute this market resilience to our strong community. Despite the best efforts of the recession, Jamaica Plain drew a hipster line in the sand and we’re not crossing it.

$/SF values showing pretty steady over last 5 years.

$/SF values are a good way to commoditize real estate values if you’re looking at large quantities of property. It’s too easy to get hung up on the listing prices and overlook the varying size of a given unit.

If you would like more relevant real estate market data – feel free to ask for customized reports. I can drill down to almost any parameter and track it. Just email me at www.TheBostonHomeTeam.com, or better yet, check out our new website and sign up for regular market updates.

$8,000 homebuyers tax credit extended

President Obama reups popular tax credit through June 2010 and expands it to include people with higher incomes and some who want to trade up into new homes.

NEW YORK (CNNMoney.com) — President Obama signed an extension and expansion of the first-time homebuyers tax credit on Friday.

The $8,000 credit was scheduled to lapse on Dec. 1 but will now be in effect through the end of June. Homebuyers must sign a contract before April 30 and close by June 30. The income limits were also raised: Single buyers can now earn up to $125,000 and still get the full credit while a married couple can earn $225,000.

Free money?

The bill also made more homeowners eligible to claim the credit on their taxes. First-time buyers — those who have not owned a home in the past three years — still qualify for an $8,000 rebate. But now people who want to trade up can also qualify. Those who have owned and occupied a residence for at least five years out of the past eight can claim a $6,500 tax credit if they close on a purchase by the end of June.

“The new version of the tax credit has the potential to stimulate the housing market even more than the old version due to the fact that more people will qualify under the new rules,” said Gibran Nicholas, chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers.

Nicholas provided four scenarios illustrating how the tax credit rules for existing homebuyers will apply:

• Harry owned a home in 2001 and 2002 but sold it to relocate for a job. He would qualify for the $8,000 first-time-buyer credit because he has not owned a home in the past three years.

• Sue purchased a home in 2004 and has lived there since. If she decides to buy a new home, she would qualify for the $6,500 tax credit because she has lived in the same residence for five consecutive years in the past eight.

• Jane purchased her home in 2002, lived there for five consecutive years before she rented it out in 2007. She would qualify because she was an owner/occupier for at least five consecutive years in the past eight.

• Mark purchased a home in 2006 and lived there for the past three years. He would not qualify because he is neither a first-time homebuyer nor someone who lived in the same primary residence for five consecutive years out of the past eight.

Legislators and industry experts expect that the credit will encourage buyers such as Jane and Sue to move up their purchase plans.

“This bill will shift demand from the second half of 2010 into the first half,” said Pat Newport, a real estate analyst with IHS Global Research. “As a result, home sales and prices will get a boost in the first half of 2010, with payback in the second.”

That’s not a bad thing, according to Bill Kilmer, vice president of advocacy for the National Association of Home Builders. It’s important to stabilize real estate markets quickly to help bring the economy out of its tailspin.

The original $8,000 tax credit appears to have helped accomplish that goal: Home prices have inched up the past few months, according to the S&P/Case-Shiller Home Price Index.

But critics still see the program as being ineffectual because it rewards buyers who would have purchased a home anyway. Newport estimates that fewer than 400,000 of the 2 million who have claimed the original credit made their purchases solely because of the tax advantages.

Furthermore, buyers do not, in reality, receive the entire benefit. “The credit helped prices stabilize,” said Newport. “So the credit has been split between seller and buyer. The sellers are getting higher prices and buyers paying more than they would have without it.”

The housing industry, however, is pleased with the extension, although the credit has not been quite as effective as they hoped.

The industry thought the credit would provide a ripple effect, with sales to first timers triggering as many three additional “move-up” sales.

That did not happen, according to Lawrence Yun, NAR’s chief economist.

“It did not have the chain reaction impact it was supposed to,” he said. “Instead, many first-timers turned to vacant, foreclosed or other distressed properties the sellers of which were unlikely to be move-up buyers.”

So, the tax credit helped prop up the low end of the market without having much impact on the rest of the spectrum. Expanding the benefit to existing homeowners should boost those segments. That should produce additional benefits, according to Yun.

“Preventing further price decline or even nudging prices up a bit stabilizes housing wealth, which makes homeowners more comfortable in their spending,” said Yun. “They’re more likely to go out to the stores or buy a new car. That provides a boost to the overall economy.” 

The Ethicurean put it better than I ever could have. Despite Jamaica Plain’s progressive community and seeming hunger for everything “green” and “sustainable”, they have missed the opportunity to secure Lionette’s Market at the Brewery. Apparently the problem is financing, which is a very familiar story in my industry as well. In an email Jamey Lionette said, “We are NOT moving into the Brewery.  We tried lots of different banks, lenders, and development corporations and they all felt the project was too big a risk,  so they all said no.  We got next to nothing from the city and less from the state.  I had several ‘money adviser’ type people who all thought it was a slam dunk, but alas, a Lionette’s market and year round farmer’s market at the brewery is nothing that any lending institution wants anything to do with.”

Lionette's Market has low carbon trike delivery

I was blown away when I heard this. Are you kidding me?! If ever there was a location perfectly suited for a “slow food“  business, it’s Jamaica Plain. Every condo in town would be getting deliveries from the little MetroPed trikes.

I’m on a bit of a sustainability/environmental warpath and I’m embarrassed to say that I never even thought about where my food was coming from until the last two years.

Vitoria Brokhof

This probably had a lot to do with my concern for my daughter Vitoria’s health. We saw a couple of documentaries that most of you are probably familiar with like, King Corn, Super Size Me, Fast Food Nation and then just happened to follow up with a 10,000 mile road trip which just happened to take us past some of the food we had previously been eating. We drove by one of those huge cattle yards on a cold rainy day. There were thousands of absolutely massive cows mushing around in 6 inch deep mud and manure. We slowed down to take in the unusual size of the beasts and actually witnessed one collapse under it’s own weight. This made us really get serious about our food (although we could be doing much better). Until you really start to look around, you don’t realize how hard it is to find food that is made within your state, let alone organic or at least friendly farm food.

I was at Trader Joe’s the other day trying to find foods that were localish. I was really surprised to find that they don’t put the origin of the food on the package. Obviously things that have complex ingredient lists are harder to pin down, but fish and berries, etc. should be fairly straightforward. Nope.

If you call Jamaica Plain home and you think you’d like to support a business like Lionette’s Market, then speak up. Write the JP Gazette, drop a post on Neighbor’s For Neighbor’s, or at least leave a comment here. Also, check out the links in this post and learn more about some of the factors involved.

Community Servings is sponsoring a new Farmer’s Market this Sunday, July 26th from 10a-2p. It will be located at 18 Marbury Terrace in Jamaica Plain near Stony Brook T station.  Organizer Edith Murnane said, “We are excited at the prospect of starting a market that will both provide community members with fresh, local produce and products, as well as, create relationships with farmers that may assist us in better serving our critically-ill clients fresh, nutritious home delivered meals! Let us know what you think!” You can provide Edith with your feedback at Neighbor’s For Neighbors.

In fact, Edith needs your help. She wants you to vote the Farmer’s Market at Community Servings #1 on the Care2 website. Winner takes away $5000 in spoils for their organization. The market originally launched on July 12th and  was a huge success. Come on out this weekend and help support locally grown food. Some of the purveyors are:

Featured purveyors:
Silverbrook Farm, which provides organic fruits, veggies, flowering plants, honey and eventually eggs, jams and jellies;
Big Sky out of Newton – a baker that uses primarily local and organic ingredients;
The Greenest Bean – that produces small batch, organic, free trade coffee beans;
Sheldon Farm Herbs – local organic herbs

Later in the season:

There are other possible purveyors who may (hopefully) join later in the season:
Green City Growers, out of JP – that grows veggies out of your own yard for a small fee and a portion of the ‘produce’;
Boston Smokehouse out of Mattapan;
Cheshire Garden out of Winchester, NH; and
And possibly even the Boston Cheese Cellar out of Roslindale. The owner Kathy has graciously said she’d consider joining with some local cheeses!

Once the market starts they’ll be organizing chef demonstrations – such as Phil from JP Seafood who has agreed to come and demonstrate how you make fresh organic veggie ‘sushi’.. Other chefs that have agreed to participate include: Felicia from Centre Street Café, Brian from James’s Gate, Carlos from The Alchemist and Jake from The Milky Way/ Bella Luna! I’m still working on more . . . so, again, any ideas or connnections — send them!

And of course they’re looking to add a musical component. If you know any musicians who would like to donate an hour of their time to create a really lively environment, please let Edith know.

Contact Edith here: emurnane@servings.org

And here’s web directions to the location so that you can find it Sunday and the Sunday after that . . . and on and on until October 18th:

http://www.servings.org/about/directions.cfm

As usual the local media is whipping up a storm of conflicting real estate market information. Between all the blogs, The Globe, Boston Magazine, NPR,etc. and my own business I feel like I’m going to pass out and wake up in Oz. A big witch named Fanny Mae will be standing over me, “I’ll get you my pretty! And your little dog too!”

I was recently at my office when our sales manger was interviewed by Curt Nickisch of WBUR. He also spoke with me about the sort of story he was interested in doing and asked if I had any clients with a specific sort of experience right now. I ended up putting him in touch with several clients – all with very different stories and very different experiences in the current real estate market and he interviewed two of them to write a fairly editorial piece on the Boston market.

The Media Spin

This is the paragraph Nickisch led with, “This Friday is the first day of spring when – to mangle a phrase from Tennyson — one’s fancy lightly turns to thoughts of the…housing market. Spring is the start of the traditional home-selling season, but this spring is not looking so sunny. The recession is making buyers nervous about taking the plunge.” The article is titled, “Spring Home Sales Not Looking Sunny”.

Au contraire mon frere. Jamaica Plain real estate is on fire. The Realtors in my market have been pinching themselves asking, “is this really happening?” There seems to be a solid base of folks who want to buy and a real lack of good inventory. This is helping us maintain a solid foothold and values have stabilized. We are quite aware that this is a regional phenomenon. as I’ve mentioned in previous posts, other parts of the country are clearly not experiencing the market movement we are. Some sellers outside of our market aren’t looking at a small loss or break even, but rather no option to sell. No one buying. Nada.

I think the recent Boston Magazine article by Katherine Bowers referencing the comment about the New England real estate market, “it could be worse” put it quite well, “Not to imply that’s an unfair assessment. Today’s economy is precarious, to say the least, and the housing free-fall deserves a lion’s share of the blame. The problem is, the swath of reality under discussion is usually so wide, it doesn’t give individual homeowners much of a sense of what’s happening with values in their town. No matter how many assistants these experts have got scouring macro-level sales and foreclosure data, you can bet your renovated mudroom they haven’t checked the latest figures for single-family homes in Rockport.” The same goes for Jamaica Plain and the handful of towns that made the “Best Places to Live 2009” in the recent issue.

Bowers made some other valid points, “What’s more, there were 64 towns that outperformed last year’s average. From that list, we singled out 20 communities that have been resilient over a longer haul, with none of them down more than 9 percent since 2005; seven of the towns have in fact gained in value since the market peak. (Thank you to the Warren Group for the data and to the Realtors who shared insights on the ground game.)

More bright spots: Skilled real estate agents in key markets are staying busy. Small local banks are still lending. Where prices have dipped, opportunities abound. And for those hunkering down till the all-clear, prices for home-improvement projects couldn’t be better.” I couldn’t agree more. I feel like she interviewed me for the article.

JP has a lot to offer the buyer in today’s market. Buckle up for an awesome spring.

New Jamaica Plain Neighbors The new neighbors just moved in on Jess Street. They apparently are taking advantage of the foreclosure market and moving in to the dilapidated wreck of a house just behind mine. They look nice enough, but they better stay out of my garbage.

Go ahead, make my day...

I was interviewd on NPR and it aired this morning. That was a real interesting experience, let me tell ya. I wish I had a few minutes to think about what to say… I would have been a bit more positive. All in all the piece wasn’t so bad. It paints a bit of a bleak outlook, however. The “chumming the water” comment leaves the listener with macabre scenes of blood and bone. Oh, well. The Jamaica Plain real estate market is actually moving quite well. We’ve had 8-10 closings this month already (1 a day) and this happens to be my best year ever. I guess I just played into all the doom & gloom media…