Apr 25

Positive Trend for New Home Sales

Robert Dietz of the National Association of Home Builders explains the positive trend of new home sales as of recent.

Contracts for new home sales expanded by 6.1% in February, according to estimates from the joint data release of HUD and the Census Bureau. The growth in sales continues along a positive trend for the market, which is supported by solid job growth, improving household formations, continuing favorable housing affordability conditions, and tight existing home inventory.

The seasonally adjusted annual pace for February new single-family home sales was 592,000. This is 6.1% better than January and a 12.8% gain over a year ago. A mild winter in much of the country likely supported this year-over-year improvement.

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Inventory growth continued in February. After hovering near 240,000 for most of 2016, inventory has now risen to 266,000 homes. The current months’ supply number stands at a healthy 5.4. Given tight existing inventory, more new homes are required to meet housing demand.

The most recent data also indicate a growing share of homes not-yet-started in builder inventory. For example, on a year-over-year basis, homes under construction in inventory have increased by almost 6% over the last year. Completed, ready-to-occupy homes (there are only 63,000) are up 5% since February of last year. In contrast, homes not-yet-started listed in inventory have increased 42%, from 36,000 in February of 2016 to 51,000 last month.

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Pricing data in the February report suggest recent growth at two ends of the market. Median new home sales price (price of the home in the middle of the distribution) fell to $296,200, consistent with inventory broadening. On the other hand, average home price jumped to $390,400, which appears to have occurred due to growth in sales priced $750,000 or more. This divergent price effect in the data also occurred due to a decline in home sales priced between $300,000 and $400,000.

Regionally, all areas except the Northeast saw monthly growth in sales, with notable growth of 31% in the Midwest. Sales in the Northeast were down 21%. Smaller growth of 4% and 8% was recorded in the South and West respectively.

Solid builder confidence and ongoing tight inventory conditions suggest continued growth for single-family construction in the months ahead. Pricing remains an open question, given rising construction prices and increasing interest rates. New homes will need to be competitively priced, even as prices for existing homes continue to grow. For this reason, we continue to expect a broadening of the new home inventory base and slight declines in median new home size.

Mar 3

Massachusetts Named #1 State in the US

In a glowing report citing education, health care, and the economy, US News & World Report ranked Massachusetts the best state in the nation in a study released Tuesday.  Julia Guilardi of Boston.com goes into detail below.

It’s been a winning year for the Bay State.

U.S. News and World Report awarded Massachusetts its top honor, citing the Commonwealth’s continuing academic achievement, innovative health care system, and strong economy in its ‘Best States’ ranking. The report evaluates each of the fifty states across seven categories: health care, education, opportunity, economy, infrastructure, crime and corrections, and government. Massachusetts ranked No. 1 in education and No. 2 in healthcare, and placed within the top ten for economy and crime and corrections.

“Massachusetts is a great place to live, work and raise a family because of the strength and character of all those who call the Commonwealth home,” Governor Charlie Baker said in a release. “Everyone should be proud that Massachusetts continues to lead the nation in health care access and public education for all citizens, and our administration will continue to build on these accomplishments to bring more economic success to every corner of Massachusetts.”

Home to some of the nation’s top public and charter schools, Massachusetts has topped many state education rankings over the last several years. A statistic worth noting is the performance of eighth grade students: Bay State eighth graders are No. 1 in math and No. 2 in reading nationally.

Almost half of Massachusetts residents have a college degree, and the state boasts an 86 percent high school graduation, according to the report.

The report also highlights health care accessibility across the Commonwealth. While Massachusetts ranks No. 2 in overall health care, it earns top marks in access to health care. Massachusetts has the lowest rate of uninsured residents in the United States.

“Massachusetts has passed health-care reform laws in every legislative session since 2006 and is a national leader in delivering innovative and high-quality health care,” Dr. Stuart H. Altman, health economist and chair of the Massachusetts Health Policy Commission, told U.S. News & World Report.

In fact, the federal Affordable Care Act, which was enacted in Congress in 2010, was modeled after the Massachusetts’ near-universal health care plan outlined in Chapter 58 of the Acts of 2006, according to Altman.

The Commonwealth’s modernizing economy continues to thrive as well, the report says. At 2.9 percent, Massachusetts’ unemployment rate is well below the 4.7 percent national average, and the state earned a No. 4 national ranking for jobs.

“Over the past two years we’ve added 120,000 jobs. Today more people are working than at any time in the past 20 years. And our welfare caseload has dropped 25 percent,” Gov. Charlie Baker said in his second State of the Commonwealth address in January. “The companies of the future are moving to Massachusetts, bringing millions in private investment. While new companies are born here every day.”

Massachusetts has the second-best business environment and patent creation in the country, falling only behind California. Both start-ups and established companies – like new Boston resident General Electric – can succeed in the Bay State’s prosperous business climate, according to the report.

While the state earns high marks overall, there is still room for improvement in a number of areas. Massachusetts ranks fifth for gender equality in the workplace and sixth in overall median household income.

U.S. News and World also notes issues in Massachusetts’ infrastructure–the Commonwealth ranks 45th in transportation and 47th for average commute time. This aligns with findings from another report, which identifies the MBTA as leading the nation in light-rail derailments.

However, as sports championships continue to pour in, all signs point to continued growth and a promising future the Commonwealth.

Feb 9

New Home Sales Post Highest Yearly Total Since 2007

January 26, 2017

Sales of newly built, single-family homes rose 12.2 percent in 2016 to 563,000 units, the highest annual rate since 2007, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. New home sales fell 10.4 percent in December 2016 to a seasonally adjusted annual rate of 536,000 units.

“We are encouraged by the growth in the housing sector last year, and by the fact that builders increased inventory by 10 percent in anticipation of future business,” said Robert Dietz, chief economist of the National Association of Home Builders (NAHB). “NAHB’s forecast calls for continued upward momentum this year, with housing starts expected to rise 10 percent over the course of 2017.”

“To ensure sales continue to move forward in 2017, builders need to price their homes competitively, especially given that mortgage interest rates are expected to rise this year,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas.

The inventory of new home sales for sale was 259,000 in December, which is a 5.8-month supply at the current sales pace. The median sales price of new houses sold was $322,500.

Regionally, new home sales increased 48.4 percent in the Northeast. Sales fell 1.3 percent in the West, 12.6 percent in the South and 41 percent in the Midwest.

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Source: National Association of Homebuilders

Dec 19

Best Delivery & Takeout Food in Groton

With the busy holiday season upon us, it may be time to consider calling in your dinner order for pick up or even possibly delivery right to your home. Here are a few options locally.

Main House

Mandarin and Thai Cuisine restaurant in Groton, Massachusetts. Treat yourself to the best in food and casual dining at this family restaurant in Groton, Massachusetts. Main House Restaurant serves everything from appetizers and seafood to gourmet entrees for the whole family to enjoy. Their convenient location makes it an ideal place to come in to sit down or making a pickup order to take home for lunch or dinner.

Groton House of Pizza

Owned and operated by the Stefanakos Family for the past 30 years, the Groton House of Pizza has served tasty, affordable meals to area families and students. Through the years, this pizza parlor has provided fast fresh food for the feast. Serving great Greek pizza, excellent hot and cold subs, and fresh salads. Open for dine in, pickup, and delivery.

Filho’s Cucina

This is a dine in or a pickup option & it is worth it! At Filho’s you will find Traditional Italian fare, reasonably priced in a very casual atmosphere. The whole menu is available for takeout. Filho’s also offers an extensive catering menu that will fit any occasion. Fihlo has also masterminded a wonderful upscale pizzeria pastaria concept where he worked for the last eight years. Find your favorite pizza, pasta, and much more Italian food at Fihlo’s Cucina in downtown Groton.

Bruno’s Pizza

Bruno’s Pizza is located right in downtown Groton. At Bruno’s, they take pride in offering you the best food and service possible. Open for both lunch and dinner, Bruno’s is known for it’s fantastic pizza’s and sandwiches. They provide the option for both pickup or delivery.

Nov 22

Mortgage Misconception

The availability of mortgage credit is not at the same level that it was during the boom in housing (2005), and that’s good news. However, the constant headlines which talk about “tight credit” are causing some potential home buyers to doubt their ability to purchase. We want to rectify the misconception of what is required for a down payment in order to purchase a home in today’s market.
Freddie Mac recently discussed the confusion many first-time homebuyers have about the down payment they need in order to buy:

“Did you know that the average down payment among first–time homebuyers is 6% and it’s 13–14% for repeat buyers…It’s possible to put down even less.
Many potential homebuyers think that only the FHA helps make mortgage loans with low down payments. Not true.
Freddie Mac’s Home Possible mortgage products let qualified homebuyers put down as little as 3%.”

Nov 2
Phase IV at Academy Hill
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Academy Hill is excited to announce the release of two new condominium floorplans as well as the next 8 single family home lots in Phase IV.

Single Family Lots: There have recently been 8 new lots released on Cherry Tree Lane where you can build one of our single family home styles in this comfortable West Groton neighborhood. Pricing will start in the mid $500,000’s. Each home will feature 4 bedrooms and 2.5 bathrooms, tiled master bath showers with granite vanity tops, stainless steel applianced kitchens with granite counters and hardwood flooring in the foyer, dining rooms and kitchens. Our home plans will range from 2,500-3,600 square feet with open concept layouts.

Condominiums: We have 12 opportunities remaining to enjoy maintenance -free living. Our two new floor plans both feature a first floor master suite and bath with a 2nd bedroom, full bath and a loft on the second level. There is room to enhance the floor plan by finishing an additional bedroom on the second floor or creating a finished walk out lower level. The Scarlet plan is featured as a duplex and the Chestnut home-style is a free standing option. These homes will feature 1,943-2,100+ square feet of living space.

Plan Your Visit TODAY
To find out more detail about all of our available homes, call today for your private preview at 888-471-0470 or visit our website www.AcademyHillHomes.com.

Sep 6
New Home Sales Up 12%!
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New Home Sales up 12%!

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  • Nationally, both New Home Sales and Existing Home Sales are up month-over-month and year-over-year.
  • Inventory remains low which continues to drive home prices up as demand continues to exceed 4.7-month inventory.
  • The median price of new homes is up 12 percent from March 2016, while the median price of existing home is up 6.2 percent this April 2015.
Aug 22

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An analysis by Market Watch revealed the cost of rent was 3.8% higher than a year ago for the second straight month in June. That’s the strongest yearly price gain since 2007.

Source: Keeping Current Matters

Look For Shift Back to Homeownership, notes Tom Skahen, New Homes CEO of Streamline Communities. As rental rates continue to push up in the Northeast and mortgage rates trend down, start looking for the shift from rental to homeownership. Since the great recession of 2007, homeownership rates have dropped nearly 10 percent in the United States. CNN Money reports that 110 million people in the U. S. now rent and 21 percent are paying more than 30 percent of their total wages on rent, while homeowners percentage of housing expenditure continues to trend down. This is not sustainable, and we’ve hit a crossroads. There is going to be a shift back to homeownership and that includes the somewhat non-existent Millennial buyer. So builders, get ready for this demographic

Jun 21
New Homes Sales
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New-Home Sales Are on Track for a 7 year High - But it’s Still Not Enough to Meet Demand

Source: Realtor.com

Sales of new single-family houses rose last month to an annualized rate of 546,000, the Census Bureau(https://www.census.gov/construction/nrs/pdf/newresales.pdf) and the Department of Housing and Urban Development reported on Tuesday, an increase of 2% over April and the highest rate since February 2008.

Despite the fast pace of sales, the press release reported only 206,000 new houses for sale (seasonally adjusted) at the end of May - a supply of just 4.5 months.  Six months is considered a healthy supply.  Meanwhile, the median sale price of new houses was $282,800 in May, and the average sale price was $337,000.  Those numbers were $285,60 and $323,500 respectively last May.  Back then, there was a 5.1-month supply.

That’s pretty good news for buyers.  “New home prices are influenced heavily by what builders build and offer,” saysRealtor.com chief economist, Jonathan Smoke.  “The lower price is evidence that they are starting to build more affordable homes in their mix.”

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Apr 13

Why should you buy a home now? It may cost you more if you wait. Below shows the projected monthly increase in a mortgage payment today versus 2017.

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