Equity Dynamics

Equity is the difference in what your home is worth and what you owe. Ideally, as the value goes up and the unpaid balance goes down with each amortized payment made, the equity grows from two directions. This dynamic leads to increasing a person’s net worth much faster than many other investments.

A homeowner has minimal control over value. It is necessary to maintain the property to avoid depreciation and make good decisions on capital improvements. After that, appreciation is generally controlled by supply and demand and the economy.

Mortgage management is something that the homeowner does have control. Making the decision to select a shorter term mortgage at a lower interest rate can have an impact on equity build-up. Lower interest rates amortize faster than higher interest rates which will also affect equity growth. Currently, it is possible to get a 1% lower rate on a 15 year mortgage than a 30 year mortgage.

Compare two alternatives of a 30-year and a 15-year mortgage. The payments will definitely be higher on the shorter term because it pays off quicker. However, if a person can afford the higher payments of $362.53 more per month in this example, the equity will be greater. Even after you take into consideration the higher payments, the increased equity is $17,236 at the end of the seven year holding period.

Another decision that can affect equity build-up is making additional principal contributions along with the regular payments. Whether you’re making an occasional lump sum payment toward principal or regular monthly contributions, it will save interest, build equity and shorten the term on a fixed rate mortgage. Estimate your personal savings with this Equity Accelerator.

After increasing for the past few months, interests have started to go down again making this a good time to refinance if you have been able to already. The combination of higher selling prices and lower rates may be enough to make refinancing an option. Lower mortgage rates also make this a good time for first-time buyers and move-up seller/buyers. Inventory is still low; however, market time for many of the homes is increasing and most sellers would like to sell before winter. Contact me if need help with buying, selling or both or if you would like a referral for a lender to refinance.
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Market reports for Wayland, Sudbury, Maynard, Concord, Stow MA

Stow MA Real Estate Report - More Homes for Sale in Stow!

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Welcome to the Stow MA Real Estate Market Conditions Report for August 2011.

Good time for buyers who would like to live in Stow. Current inventory for single family homes is up from last year at this time - 61 for sale compared with 45. The median list price is $419,900; last year at this time the median list price $437,700. The average list price is $465,496, almost exactly the same as last year. Of the 61 active/unsold single-family home listings, 4 have offers accepted waiting for contingencies to clear.

There are 3 single family homes with sales pending. Closed sales for the year through 7/31 were higher than last year - 47 up from 36. Median and the average sale prices were also higher - the median sale price was $507,800; the average was $472,488. The 2010 median sale price for the same period was $446,250; the average was $450,278.

July 2011 sales were slightly lower than July 2010 - 7 compared with 9. Median and average sales prices were higher than July 2010 but a bit lower than the median and average prices for the first 7 months of 2011.

Looking for easy living? There are 11 condomiums available in Stow; 4 townhouse style and 7 detached single family style with prices ranging $329,900 to $489,000.

Want to see what's on the market in Stow? Click here for complete MLS Listings.

Visit us at www.facebook.com/livingwestofboston to get market updates and community information about Stow, Sudbury, Maynard, Wayland, and Weston.

Data source: MLSPIN (Multiple Listing Service Property Information Network.

Stow MA Market Update - More Homes Sold in 2010; December Sale Prices Up

Happy New Year and welcome to the first Stow MA Real Estate Market Conditions Report for 2011.


Here is what's going on in Stow: Currently, there are 42 single family homes for sale in Stow MA; last year at this time there were 32. List prices for single family homes in Stow range from $199,000 to $699,900; with prices for new construction starting at $549,900.

The median list price is less than it was last year at this time - $438,350 compared with $591,400 last year; and the average is also less: $460,941 compared with $541,621 last year. Average time on the market is 222 days. There are 4 single family homes with sales pending.

There were 54 single family homes sold in Stow during 2010; up from 50 in 2009. Both median and average sale prices were lower in 2010; the median was $446,250; the average was $451,194. The 2009 median sale price was $470,000; the average was $494,166. December 2010 ended on a more positive note with the median sale price of $611,000 and the average sale price of $564,250; while the number of homes sold was the same at 4.

Lower list prices and historically low interest rates make this a great time to move to Stow! Visit http://www.marilynmessenger.com/ to search complete MLS listings with addresses and maps; news and information and market reports for Sudbury, Stow, Maynard, and Weston MA. Facebook users - "like" and search without leaving FB at www.facebook.com/livingwestofboston.


Data source: MLSPIN (Multiple Listing Service Property Information Network.

Stow MA - Housing Market Conditions - Great Time to Buy in Stow!

Here is what's going on in Stow Massachusetts housing market:

List prices for single family homes in Stow range from $239,900 to $798,000. The median list price is less than it was last year at this time - $474,900 compared with $580,000 last year; and the average is also less: $495,190 compared with $583,169 last year. Currently, there are 50 single family homes for sale in Stow MA. Last year at this time there were 51 listings; however, inventory levels vary by price range. The price range with the largest increase of homes available in Stow is $350,000 to $399,999 - there are 10 for sale compared with only 3 last year at this time; good opportunities for first time buyers. Additionally, there are none listed over $800,000; last year there were six.


Current activity is slow; only one sale pending and no single family homes with accepted offers. Many sellers have recognized the lack of activity and there have been 43 price reductions on 28 properties during the past 3 months; the average reduction was -4.11%; only time will tell if that is enough.

Year to date sales as of 9/30 are up over the first nine months of 2009; 48 compared with 38; and the average time on the market was less - 147 days compared with 186 in 2009. The price range with the most sales was $500,000 to $599,900 - there were 9 sold in that range. The median sale price so far this year is $442,500; the average is $444,531; both lower than in 2009 when the median was $455,000 and the average was $486,814.

Sales and prices during the month of September were less. There were 5 sales; the median sale price was $373,000 and the average sale prices $379,300. There were 6 sales during September 2009; the median sale price was $381,000 and the average was $388,083.

Lower list prices and historically low interest rates make this a great time to move to Stow! And with the stock market providing flat or decreasing returns, real estate is a good opportunity for growth. Visit www.marilynmessenger.com where you'll find complete MLS listings with addresses and maps, along with local market information and news.

Fall is the most beatiful time of year in Stow MA; gorgeous colors and best apple picking anywhere! If you haven't been to Stow, come see what you're missing!

Source: MLSPIN

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Sudbury Housing Market - Closed Sales Up!

Welcome to the Sudbury MA real estate market conditions report for July 2010.

Overall there are 143 single family homes for sale in Sudbury; 3 less than there were last year at this time. $1,000,000 to $1,499,999 is still the range with the most houses - 33 up from 30 a year ago. The price ranges with the highest increase in inventory are $700,000 to $799,999 - there are 21, up from 11 last year; and there are 15 between $600,000 and $699,999 - compared with 6 last year. The range with the largest decline is $400,000 to $499,999 - only 3 compared with 10 at this time last year.

Recent activity shows there are 19 properties with accepted offers that are still considered "active" listings and are being shown for backup offers until contingencies are met. There are 17 with sales pending.

Current list prices for single family homes range from $199,000 to $3,195,000; the median price is $849,000, down from $879,000 last year. The average list price is $1,009,924, down from $1,118,234 last year at this time. Average time on the market is 171 days; last year it was 168 days. As with inventory, time on the market varies by price ranges.

As anticipated, June was a busy month for single family closed sales in Sudbury. There were 30 compared with 24 for the previous June. The median sales price during June 2010 was $622,500; up from $613,750 in June 2009. The average was $651,113; approximately $40,000 less than last June's average. The average time on the market was 100 days compared with 130 days for closed sales in June 2009.

There were also 5 condominium/townhome sales in June 2010 compared with only 2 during June 2009. The median sale price was $540,000; the average was $497,417.

Visit www.MarilynMessenger.com for complete MLS listings with addresses & maps; the latest market conditions reports for Sudbury, Wayland, Weston, Maynard and Stow MA; news and information to help you plan your next move.

*Data source: MLSPIN (Multiple Listing Property Information Network

Stow MA Real Estate - Prices Edge Up As Inventory Declines

There are currently 33 single family homes for sale in Stow MA. Four of the 33 already have accepted offers waiting for contingencies to clear. Last year at this time there were 39 listings. Both median and average list prices are up from last year at this time. The median is $599,900 compared with $498,900 last year; the average is $544,758 compared with $539,955.


List prices for single-family homes in Stow range from $157,500 to $1,095,000; 3 bedroom homes start at $208,026; 4 bedroom homes start at $399,000; and new homes with 1,900 square feet start at $539,900.

Currently, there are two homes with sales pending. Year to date (through 11/30), there have been 50 closed sales; the median sale price was $470,000; the average was $494,666. There were 5 closed sales during November 2009; exactly the same number of sales during November 2008. The median sale price was $572,000; the average was $565,000; both higher than the previous November median price of $555,000; and average $530,000.

Low interest rates are good for buyers, however, fewer choices give sellers a bit of an edge and will eventually put upward pressure on price. For now, I would say were still a ways from being a balanced market since most buyers look at more than one town and are likely to find areas where there are more homes available. In any case, don't believe the headlines - all real estate is local and especially in Massachusetts conditions can vary greatly from town to town, and often it's right down to the particular price range.

To find out about available homes in Stow MA, visit www.marilynmessenger.com where you'll find complete MLS listings with addresses and maps, along with local market information and news.



Source: MLSPIN

Stow MA Real Estate - Closed Sales Up in June!

Here is what's going on in the Stow MA real estate market: There are fewer single-family homes on the market - 52 compared with 64 last year at this time; and both median and average list prices are up from last year at this time. The median is $619,900 compared with $599,900 last year; the average is $597,666 compared with $609,015. Current list prices for single-family homes in Stow range from $199,900 to $1,295,000; 3 bedroom homes range from $299,000 to $409,000; 4 bedroom homes start at $445,000; and new homes with 8 rooms, 4 bedrooms, and 2.5 baths start at $549,000.

There were 21 closed sales for the first half of 2009, seven of which closed during June compared with 21 closed sales during the first half of 2008, with only one closed sale during June. The median sale price y-t-d was approximately $90k less than last year, the average was only about 10k less; however, it is worth noting that time on the market decreased by 53% - only 181 days compared with 278 in 2008. Sellers who really wanted to move forward accepted the reality of the market and were able to achieve their goals.Lower prices and lower interest rates are both good for buyers, however, fewer choices give sellers a bit of an edge and will eventually put upward pressure on price.

For now, I would say were still a ways from being a balanced market since most buyers look at more than one town and are likely to MORE