The Anagram Columbus Circle has all the opulence expected of a new luxury building: cabinets and bathroom vanities manufactured in Italy, appliances from Bosch and Wolf, a gym, a penthouse terrace that can be reserved for private events and guests, and co-working spaces.
But unlike the nearby condo towers that came before it, the Anagram has a notable difference: There’s nothing for sale.
Global Holdings Management Group, the developer, is among a string of developers eschewing condos for rentals. The company is behind some of New York’s better known condo buildings with eight-figure sales: 15 Central Park West, whose residents have included Denzel Washington and Sting, and 180 E. 88th Street, where a penthouse served as the home of Kendall Roy, played by the actor Jeremy Strong, on “Succession.”
This isn’t the first time Global Holdings has entered the rental market. In 2020, it turned a 50-story residential building on 10 East 29th Street into the Anagram Nomad. That building isn’t a ground-up project like the Anagram Columbus Circle, yet it still received a refresh in common spaces, adding amenities such as a play area for children and a library.
Anagram Columbus Circle, which has 123 units, is on West 60th Street, directly across from the Mandarin Oriental hotel, and it is still under construction, though tenants began signing leases in June and some have moved in.
The switch to rentals is primarily driven by the market, where high interest rates preclude even house hunters with the funds from buying. But there is also a different attitude about ownership versus renting, said Adam Rolston, an architect with INC, the designer of the building.
“New York’s becoming a little like the transient life,” said Mr. Rolston. “You could bring your whole family here for a 10-year period without necessarily ever wanting to live here permanently. That’s New York now. There is this generation that’s coming here to build relationships, connect to the culture of their company, but this is not their forever home.”
Still, Mr. Rolston said he wanted the building to feel welcoming. The curved facade stretches around the corner of West 60th Street and Broadway, across the street from the Deutsche Bank Center. Playing with shapes — instead of the rigid lines often found in Midtown apartments and office buildings — was intentional here, he said.
Global Holdings also wanted to offer luxury renters the same amenities available at condo buildings, such as a lifestyle manager who is on hand to secure last-minute reservations or to curate events for tenants.
The 27th-floor indoor-outdoor hybrid space could make a resident feel like they could touch Central Park, while a basement-level recreation space should keep the youngest tenants occupied with amenities like a music room, game room, and lounge. Amanda Shine, co-founder of the small business design company The Setting, designed the model units with what she described as “eco-luxury,” drawing inspiration from nature in the park.
To call the Anagram home will not be cheap. A 500-square-foot studio starts at over $5,400 a month, while a three-bedroom can run to nearly $28,000 monthly.
Condo-level amenities in a rental were enough for Tara Sullivan, who pays upward of $10,000 a month for a two-bedroom, two-bath with her husband at Anagram, to commit to a two-year lease with the building. She said she looked at more than a dozen apartments before deciding on the Anagram.
For Ms. Sullivan, an empty-nester who moved back to New York after stints in London and Orlando, buying a condo wasn’t an option.
“We signed a two-year lease, and the way we feel about it is at the end of the two years, maybe we would look into buying, but I doubt it,” Ms. Sullivan said. “The whole idea of buying something in New York City felt very overwhelming.”
These interviews have been lightly edited for clarity.
Adam Rolston, founding partner, creative and managing director, INC
Rental by choice — that’s the new phrase. On the design side, there’s no distinction — it’s the same thing now, just in terms of the level of finish, level of detail and the investment in design services. That is what makes buildings beautiful.
There used to be a big difference. It often was the price point in terms of the level of finish and the kind of design. And now there is no difference. It’s the same level of finish that you would have in a condo. This new, very robust rental market is very much a response to what’s happening culturally in New York.
This was the last place I saw. As soon as I saw this, I was like, “That’s it.” I knew it. Every other place I saw, there was always one little thing that made it a no. A few places were so small that I literally had to hold back laughing.
The quality of the appliances, the cabinets, and the bathrooms — it matters when you’re paying more than you’re comfortable with. You wanna feel like, “At least I have this really nice stove,” that feels like I’m getting something for my money.
My husband, who is in the real estate business, would say the reason this place made sense for us is because it’s an apartment that you’d be willing to own, because it’s so nice that it doesn’t feel like a rental. You feel some ownership in it.
Amanda Shine, model-apartment designer, the Setting
Seeing all the beautiful curvature in the building and the gorgeous materials, we wanted to play up the natural shape and organic texture. For us, the best amenity is Central Park, so we really felt like bringing the park inside and having it feel like you can touch it — it’s right outside. Whether you’re a family, a young professional or someone who’s here part-time, we wanted to open up the opportunity to feel like this is right next door for you.
The ownership group is incredibly creative; they are so fun to work with. You can look over, and you see 15 Central Park West, and you just know the caliber of finish. They made it feel fun to work on and very collaborative.
Kevin Torres, lifestyle manager
We want to highlight the spaces to activate them in their highest glory. We not only want to offer entertainment, but we really want to offer enrichment, so this idea that you’re coming to a space and it’s amplifying your quality of life, and you’re just not being entertained.
The reality is that we are in such a great space. With our local connections and our local neighborhood friendships and partnerships, we’re able to extend not only the amenities inside the building but outside as well.
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Colony Ridge, a massive residential development north of Houston, has quickly taken center stage in Texas politics.
After weeks of reports in conservative media portraying the development as a “magnet for illegal immigrants,” followed by state Republican leaders expressing alarm, Gov. Greg Abbott has promised that Colony Ridge will be addressed in an upcoming special legislative session, saying “serious concerns have been raised.”
“We’re trying to put together as much information as possible so that I can add to the special session any issue that needs to be enforced in terms of a new law in the state of Texas, to make sure that we’re not going to have colonies like this in our state,” Abbott told radio host Dana Loesch on Monday.
The precise issues are unclear. Abbott suggested he is worried Colony Ridge has become a “no-go zone” where the state’s ban on “sanctuary cities” is not being enforced. But legal experts say there is no law against selling land to people who aren’t citizens and many of the more outlandish claims about the neighborhood have been accompanied with little or no evidence.
Abbott also said the state has issued subpoenas to the developers “to find out what’s going on financially.” And he said state environmental regulators are investigating Colony Ridge and will issue a report.
The development company, Terranos Houston, has dismissed suggestions that Colony Ridge is a haven for people in the country illegally as “slanderous” and “unsubstantiated.” Developer William Trey Harris, a major campaign donor to Abbott, told local media this week he is “a little disappointed in our state government that they are taking action based on lies and gossip.”
That has not curbed growing interest from state GOP leaders. Attorney General Ken Paxton has said his office is looking into Colony Ridge, and Lt. Gov. Dan Patrick toured the development by air Monday. Patrick also spoke with Harris and said it is clear “they do not have enough manpower to patrol this area, which has grown at an unprecedented speed.”
The development, located in rural Liberty County about 30 miles north of Houston, is comprised of multiple subdivisions. According to a column that Patrick wrote after his fly-over, the developer told Patrick that the development covers nearly 33,000 acres and is home to about 10,000 people.
Last weekend, the State Republican Executive Committee, the governing body of the Texas GOP, passed a resolution calling for action on Colony Ridge, including legislation to “prevent further settlement of illegal aliens” there.
The upcoming special session is expected to start in mid-October, though Abbott has not released the exact date or agenda yet.
Harris, the developer, is a prominent Republican donor, particularly to the governor. He has given over $1 million to Abbott’s campaigns and also contributed to local politicians such as state Sen. Brandon Creighton and state Rep. William Metcalf, both of Conroe.
Allison Tirres, law professor at DePaul University and visiting professor at Santa Clara University School of Law, said it’s been “a longstanding practice” to sell property to people regardless of their immigration status in the U.S.
“Of course the Texas Legislature might try to pass a law that would ban sales to those without legal status, but it would likely be declared unconstitutional,” she said. “Bottom line is that states generally have wide latitude to regulate property laws within the state, but those laws cannot violate the Constitution, nor can they interfere or conflict with federal immigration law and policy.”
She said undocumented people don’t need a Social Security number to purchase property and can instead get an Individual Taxpayer Identification Number, which was created by the Internal Revenue Service in 1996 to allow immigrants who don’t qualify for a Social Security number to file their taxes.
Kathleen Campbell Walker, an El Paso immigration lawyer and the former president and general counsel of the American Immigration Lawyers Association, said no state or federal law prohibits undocumented immigrants from purchasing homes or land in the U.S.
She said cities across the country have tried to prevent undocumented immigrants from renting apartments or buying homes, and those ordinances have repeatedly been ruled unconstitutional by federal courts. Under the law, Walker said, there is no difference between a foreign investor and an undocumented immigrant buying property in Texas.
“If foreign nationals can acquire property sitting in their living room in London or sitting in their kitchen in Shanghai, [immigration] status doesn’t have a darn thing to do with it,” she said.
In 2006, the city council in Farmers Branch, a Dallas suburb, approved a series of ordinances that would have prevented landlords from renting homes or apartments to undocumented immigrants. In July 2013, the U.S. Fifth Circuit Court of Appeals in New Orleans ruled the ordinances unconstitutional. The U.S. Supreme Court declined to hear the case after the city appealed.
That same year, Hazelton, Pennsylvania, passed a similar ordinance. The 3rd U.S. Circuit Court of Appeals affirmed a lower court’s ruling that the law was illegal.
In 2014, the 8th U.S. Circuit Court of Appeals let stand a Fremont, Nebraska, ordinance that required prospective renters to disclose their immigration status. If they can’t prove they’re in the country legally, the landlord can’t rent to that person under the ordinance.
The law remains in effect, but the state lacked the resources to enforce it, according to a 2014 news article on Nebraska Public Media.
César Cuauhtémoc García Hernández, an immigration attorney and law professor at Ohio State University, said such laws are not new in U.S. history. For example, he said, in the early 20th Century, various states approved what were dubbed alien land laws that prohibited some Asian immigrants from owning or leasing property, sometimes based on their immigration status.
In 1948, the U.S. Supreme Court ruled that California’s alien land laws violated the rights of a Japanese immigrant whose farm was seized by the state because he was not a U.S. citizen. The ruling has been used as precedent in lawsuits challenging whether immigrants, regardless of status, can own land or property in the U.S.
Florida recently passed a law preventing Chinese nationals from buying land in the state, arguing that it was necessary for national security. García Hernández said this and similar laws are based on false narratives about immigrants.
“These are laws or proposed laws that target migrants based on flimsy claims of promoting safety or security,” he said. “I can’t get into the minds of their supporters, but the history of laws that restrict property ownership by migrants is riddled with repugnant claims that migrants are undesirable members of our communities.”
High inflation and the Federal Reserve’s action to tame it slammed the brakes on one of the hottest housing markets in history, and 2023 will go down as a year where too many buyers had too few houses to choose from. Cautious owners are unwilling to sell, expensive mortgages are pricing out overleveraged buyers, builders haven’t produced enough new construction and everyone involved is playing the waiting game.
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But what will await them when 2024 finally closes the door on this strange and stressful year?
Tight Supply and High Demand Will Still Define the Market — More So If Rates Fall
Bret Weinstein, CEO of Guide Real Estate in Denver, has ranked among the top 1% of Colorado agents for the last 10 consecutive years and has been featured in over 40 national and local publications.
He predicts the supply shortage that has come to define 2023 will carry over into the new year.
“Inventory is going to remain extremely tight,” he said, citing “the golden handcuffs of low interest rates.”
The term refers to the historically cheap pandemic-era mortgages that have been shackling potential sellers to their homes and depriving the market of sorely needed inventory.
“People are locked in and not incentivized to sell their homes,” Weinstein said.
Plenty of others share that view, but Weinstein deviates in thinking that if the Fed offers relief in 2024, which many expect it will, cheaper loans will make the situation worse before it gets better.
“If we see interest rates go down even a little bit, there’s a ton of suppressed buyer demand, so over the next year expect more buyers but still less inventory and equity,” he said. “It’s going to take a little bit until sellers are willing to sell based on having a substantial amount of equity that can help them offset the higher interest rates. So next year, if interest rates go down, expect an explosion of buyers while we still have the problem of low inventory.”
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Reluctant Sellers Will Get Creative
Bruce Ailion is an attorney and realtor with RE/MAX Greater Atlanta. A member of the RE/MAX Hall of Fame, RPAC Hall of Fame and the REALTOR Crystal Phoenix Award recipient, he’s been serving clients since 1979.
He’s well aware that many owners are bound to their current homes by golden handcuffs and can’t afford to sell and qualify for a new mortgage. He’s seen this situation before — and he expects sellers to get creative with solutions like wrap-around mortgages.
“For example, a homeowner has a house worth $400,000 and a loan at 3.25%,” Ailion said. “They want to buy a home for $900,000 with an $800,000 loan. The seller could sell their home to a buyer where the buyer puts 5%, 10%, and 20% down, and they offer seller financing at 7% to the buyer. They keep the 3.25% original loan and earn the spread between 3.25% and 7% on the original loan balance. This spread would be used to pay a portion of the new loan they take out at 7% when purchasing $15,000 a year in interest or $1,250 lower monthly payments.”
Another solution is what Ailion calls “the unintended landlord.”
“Here the owner of a home with a 3.25% loan leases the property out to a tenant,” he said. “The rent earned while maintaining the 3.25% loan is used to pay the interest on the higher mortgage interest rate taken out on the new loan they obtain at 7% when purchasing a new property. Financially this is a better option, but it requires more work and comes with a higher risk.”
Expensive Loans and Inflated Seller Expectations Will Increase Days on Market
Debbie Boggs is an award-winning real estate agent in San Antonio and Austin, Texas, the author of “Marketing for the Staging + Design Industry” and the co-founder of Staging Studio, a RESA-accredited certification training provider, and By Design, a multimillion-dollar home staging company.
Her most surprising prediction for 2024 is a higher average days on market — an interesting bet with buyers primed to snap up houses in a market defined by low supply and high demand.
“We are likely to see an increase in DOM before we see large-scale drops in housing prices,” Boggs said.
High interest rates account for some of her reasoning.
“Today’s buyers simply cannot afford the same home they would have purchased in 2020,” Boggs said.
But seller psychology plays a role, too.
“At the same time, the real estate market has a big recency bias,” Boggs said. “If a seller knows their next-door neighbor sold their home for $800,000 six months ago, that is their benchmark for what they expect to sell their own home for. This duality is likely to increase days on market.”
You’ll See Fewer Agents as a Tough Market Weeds Out the Pretenders
When the good times were rolling, there was no shortage of people looking to get into real estate in pursuit of a quick buck.
“The hot real estate market and soaring home prices of the last three years promised huge commissions for agents,” Boggs said. “It seemed like a golden opportunity for so many. Homes were selling so fast. Agents didn’t need to work that hard to hold deals together because there were always backup offers. Buyers were overlooking major inspection issues or waiving inspections altogether. Being a realtor seemed like fast, easy money, and more than 156,000 people got their real estate licenses in 2021 and 2020 — nearly 60% more than in pre-pandemic 2018 and 2019.”
Today, the money doesn’t come so easily, and the johnny-come-latelys are rethinking their career choices.
“A slower housing market means agents will need to work more hours for every home they sell — and for less money,” Boggs said. “More than 10% of agents quit in 2008 when the real estate market crashed. One big difference between now and 2008 is that there are fewer houses on the market. This means even fewer deals to go around, likely forcing more agents to give up their licenses.”
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Worldline has launched a consultancy service to help its eCommerce clients gain revenue and improve payment operations.
The service, announced Tuesday (Sept. 26), is designed to help businesses optimize existing operations and identify new markets where cross-border transactions and revenues “are rising rapidly,” the payments company said.
“In payments, add-on consultancy services have typically been offered in a very transactional fashion with the express aim of selling additional products,” Matias Fainbrum, vice president, Worldline Consulting Services, said in a news release.
“Worldline Consulting Services has been set up very differently. We are adding a bespoke, value-enhancing layer on top of our existing customer support so our customers can optimize the way they operate.”
According to the release, the service combines three offerings: solution design and checkout user experience, online payments authorization rate optimization, and multi-currency pricing and foreign exchange (FX) management.
PYMNTS spoke last month with Andrew Monroe, global head of gaming and media at Worldline, on the idea of “creating both a meaningful and efficient experience for consumers.”
However, he added that strategies for achieving that goal will vary from merchant to merchant, thanks to differences in local payment preferences and practices across markets and regions.
Still, from a payments standpoint, Monroe said optimizing the checkout process is the place to begin, with merchants developing a seamless checkout flow that reduces cart abandonment and lost sales.
“They should get enthralled by the goods or services they want to buy and then get it,” he said. “Everything in between is the merchant facilitating the checkout experience.”
And although creating seamless experiences often means removing friction from the eCommerce process, Monroe said a certain level of friction might be needed to garner consumers’ trust, depending on the goods or services being purchased and the consumer’s country of location.
“Sometimes it’s good to have no friction or minimal friction to enable them to slide through that checkout experience as quickly as possible,” he said. “Other times friction is necessary, or else consumers will drop off because they lose trust with the process.”
Also last month, PYMNTS talked with Guillaume Tournand, VP of growth and digital commerce at Worldline, about the difficulties facing companies when the realities of cross-border payments intrude on their commercial opportunities.
“The best value proposition that plays in the payment ecosystem is to unlock for merchants complex, international economies and opportunities by doing the heavy lifting that opens up the growth potential in a neat and convenient way,” Tournand said.
On September 22, 2023, President Jeffrey Dimodica sold 30,111 shares of Starwood Property Trust Inc (NYSE:STWD). This move comes amidst a year where the insider has sold a total of 30,111 shares and purchased none.
Jeffrey Dimodica is the President of Starwood Property Trust Inc, a company that specializes in originating, investing in, financing, and managing commercial mortgage loans and other commercial real estate debt and equity investments. Starwood Property Trust Inc is a leading diversified finance company with a core focus on the real estate and infrastructure sectors. An affiliate of global private investment firm Starwood Capital Group, the Company has successfully deployed over $63 billion of capital since inception and manages a portfolio of over $17 billion across debt and equity investments.
The insider transaction history for Starwood Property Trust Inc shows a trend of more sells than buys over the past year. There have been 2 insider sells and 0 insider buys in total over the past year.
The relationship between insider sell/buy actions and the stock price is often considered a significant indicator by investors. In the case of Starwood Property Trust Inc, the stock was trading for $20.35 per share on the day of the insider’s recent sell, giving the stock a market cap of $6.205 billion.
The price-earnings ratio of Starwood Property Trust Inc is 11.34, which is lower than the industry median of 16.65 and also lower than the companys historical median price-earnings ratio. This could suggest that the stock is undervalued compared to its peers and its own historical data.
Furthermore, with a price of $20.35 and a GuruFocus Value of $20.30, Starwood Property Trust Inc has a price-to-GF-Value ratio of 1. This indicates that the stock is fairly valued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at, a GuruFocus adjustment factor based on the companys past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent sell by President Jeffrey Dimodica may not necessarily indicate a negative outlook for Starwood Property Trust Inc. The stock appears to be fairly valued based on its GF Value, and its lower price-earnings ratio compared to the industry median and its historical median could suggest potential undervaluation. As always, investors should conduct their own research and consider multiple factors before making investment decisions.
This article first appeared on GuruFocus.
A new scam targeting vacant properties is on the rise in California.
According to a warning issued by the California Department of Real Estate, scammers posing as property owners have been contacting real estate agents and requesting their assistance to sell vacant homes and land they don’t own.
Known as “vacant land scam” or “vacant lot fraud,” this fraudulent real estate scheme was initially reported on the East Coast and made its way to California at the start of this year. Law enforcement agencies and district attorney’s offices around California have reported a sharp increase in this type of fraud in recent months.
In this hoax, the criminal searches public records to identify owners of real estate that is free of mortgage or other liens. Most often, vacant lots and investment, vacation or rental properties that are not occupied by the owner are targeted. The scammer will then pose as the owner and contact a real estate agent to list the property for sale with the intent of pocketing the sales proceeds.
These scammers typically say they cannot personally meet with either the listing agent or buyer of the property because they either live in another state or abroad or are traveling.
The criminal takes advantage of e-notaries and online communications, attempts to defraud the actual owner, the buyer and every service provider involved by selling the property under market value with an exceptionally quick escrow, according to a press release from the California Association of Realtors that was issued in June after the trade association received several calls on its legal hotline from agents who were suspicious that the person who signed their listing was not the actual owner.
The scam usually goes undiscovered until the sale closes and the transfer documents are recorded with the county. This scheme has particularly affected the elderly and foreign real estate property owners as there are no means to automatically notify the legitimate owners, according to state officials.
In one case, the “seller” electronically signed the listing contract, disclosures and a purchase and sales agreement with a cash buyer. The scam was averted before the documents were notarized because a family member contacted the real owner of the property after noticing it was listed for sale.
“Owners of vacant properties should check on their property on a regular basis,” Jim Hamilton, president of the Silicon Valley Association of Realtors, said. “If they live out of state or overseas, it would be a good idea to keep in touch with a broker whom they trust and neighbors or relatives who live near the property.”
Be aware of these ‘red flags’
These criminals usually use a number of tactics designed to keep their crimes from being discovered until it’s too late. The Department of Real Estate is urging homebuyers and real estate professionals to watch out for these tactics:
• Seller requests that the property be listed below market value to generate immediate interest.
• Seller requests that no “For Sale” sign be posted on the property.
• Seller requests preference for a cash buyer, quickly accepts an offer and demands a quick closing.
• Seller refuses to meet in person, preferring to be contacted through email, text or over phone and typically refuses video calls.
• Seller refuses to attend the signing and claims to be out of the state or country.
• Seller demands to use their own notary, who then provides falsified documents to the title company or closing attorney.
• Seller insists that proceeds are wired to them.
“These characteristics may not be red flags on their own, but when several or most occur, the risk becomes more apparent. Unfortunately, this scam is usually only discovered once the transfer of documents has been recorded with the appropriate county,” Hamilton said.
Those who believe a scam is occurring or are victims of real estate fraud, should report the crime to law enforcement authorities or the local district attorney’s office where the fraud occurred.
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PROPERTY consultancy Bidwells’ Energy & Renewables have welcoming the deal struck between the Scottish Government and the onshore wind farm industry.
Ros Clifford is Head of Energy and Renewables at Bidwells, which is one of the UK’s largest property consultancies that is currently overseeing 4.2 GW of onshore wind projects and is responsible for managing the Crown Estate Scotland’s marine assets.
Ros commented:
“History has been made with the signing of the Sector Deal between the Onshore Wind Industry and the Scottish Government. Scotland is already leading the way in decarbonising electricity and has aspirational targets for a minimum of 20GW of onshore wind in Scotland by 2030. Making Scotland the number one place in the UK to invest in Onshore Wind.
Today’s announcement of the Onshore Wind Sector Deal for Scotland is critical for delivering those targets. The Sector Deal recognises that transformational change is needed to reach these ambitious goals including co-ordinated and resourced plans for turbine delivery routes, whilst not leaving stakeholders or communities behind.
The Deal will reinforce the relationship and enhance collaboration between the onshore wind industry and the Scottish Government with support being given to remove key barriers to success. On the surface of it, highlights of the Deal include reducing average timescales for determining planning applications by 50%, responsible development guidelines enabling positive outcomes for climate and nature, tackling supply chain and skill shortage issues facing the sector and moving to a circular economy.
The announcement of the Sector Deal has come at a pivotal moment from the Scottish Government, because Investors will be looking for confidence and policy certainty to counter the mixed messages and uncertainty created following the UK Government’s rowing back of measures to reach Net Zero yesterday.
Buying a house in Massachusetts is a significant milestone that offers a unique blend of historical charm, modern amenities, and diverse communities. From the quaint streets of Nantucket to the bustling neighborhoods of Boston, the Bay State has a wide range of options for first-time homebuyers and seasoned buyers alike. To help you with your journey, this Redfin article will guide you through the ins and outs of the homebuying process. Get ready to explore what Massachusetts has to offer in the world of homeownership.
What’s it like to live in Massachusetts?
Historical charm, diverse culture, and natural beauty is what makes Massachusetts special. The fall foliage in the Berkshires is breathtaking, and coastal towns offer stunning beaches and scenery. Massachusetts is also known for its world-class universities, including Harvard and MIT, attracting a vibrant intellectual community. Residents can enjoy a robust sports culture, with passionate fans supporting the Boston Red Sox and New England Patriots. Check out this article to learn more about the pros and cons of living in Massachusetts.
Massachusetts housing market insights
A robust but highly competitive landscape currently characterizes the Massachusetts housing market. The median sale price has surged to $625,300, reflecting a substantial 7% year-over-year increase, making homeownership increasingly expensive in the state. Grafton, North Andover, and Amesbury stand out as the top metros with the fastest-growing sale prices, indicating significant demand in these areas. However, the market faces a challenge as the number of homes available for purchase has dwindled, decreasing by 23.8% year-over-year. This scarcity has fueled intense competition, with a striking 60.2% of homes selling above their list price. Cities like Acton, Arlington, and Ashland are recognized as some of the most competitive places in Massachusetts, emphasizing the need for prospective buyers to act swiftly and strategically in this dynamic housing environment.
Finding your perfect location in Massachusetts
Massachusetts has diverse communities with unique amenities, cultures, and lifestyles. Your location influences daily life, job prospects, education, healthcare, and activities. Housing market variation across regions impacts prices and availability, so using tools like a cost of living calculator can help you find a city within budget. If you’re looking for affordable places to live in Massachusetts, there are several options worth considering. Here are five popular cities in Massachusetts to help you get started.
#1: Springfield, MA
Median home price: $305,000
Springfield, MA, homes for sale
Springfield is a great place to live for those who value city living and historical significance. Residents can explore Springfield Museums such as the Springfield Museums, home to the Dr. Seuss National Memorial Sculpture Garden, a tribute to the enduring legacy of the beloved author. Springfield is also nestled close to the stunning beauty of the Berkshires and the abundant recreational activities along the Connecticut River. For those seeking affordability, Springfield boasts numerous appealing suburban options to explore.
#2: New Bedford, MA
Median home price: $380,000
New Bedford, MA, homes for sale
Living in New Bedford is a unique coastal experience rich in maritime history. Residents can immerse themselves in the city’s vibrant fishing culture at the New Bedford Whaling Museum and enjoy picturesque waterfront views along the historic cobblestone streets. The city’s diverse culinary scene, featuring fresh seafood, reflects its maritime heritage, making it a great place to live for food enthusiasts.
#3: Worcester, MA
Median home price: $400,000
Worcester, MA, homes for sale
The city is home to institutions like the Worcester Art Museum and Mechanics Hall, offering a thriving arts and music scene. Living in Worcester provides a central location in Massachusetts, which makes it an ideal hub for exploring the rest of the state. Worcester also has easy access to the beautiful parks of Central Massachusetts and the cultural offerings of Boston. Additionally, if you’re looking for affordable Worcester suburbs, there are several options that might interest you.
#4: Brockton, MA
Median home price: $500,000
Brockton, MA, homes for sale
Moving to Brockton offers a suburban charm, making it an appealing place to live. The city’s rich history is evident through landmarks such as the Brockton Historical Society and the Fuller Craft Museum, which showcase its cultural heritage. The city is a short drive from Boston, offering work and entertainment options while letting residents return to a calmer setting at the end of the day.
#5: Boston, MA
Median home price: $830,000
Boston, MA, homes for sale
Boston is renowned for its significant role in American history, with iconic sites like the Freedom Trail and the Boston Tea Party Ships & Museum. Residents enjoy Boston’s thriving cultural scene and world-class educational institutions. The city also boasts diverse dining, entertainment, and recreational options. The cost of living in Boston is 48% higher than the national average, making Boston one of the most expensive cities in Massachusetts to live in.
The homebuying process in Massachusetts
Once you’ve found a place you’ll love, it’s time to dive into the homebuying process. We’ll look at everything you’ll need to know to kick off your journey to home ownership in the Bay State.
1. Prioritize your finances
When buying a house in Massachusetts, it’s crucial to prioritize your finances by first assessing your overall budget and long-term financial goals. Utilizing tools like an affordability calculator can help determine how much house you can comfortably afford, considering factors like your income, existing debts, and potential mortgage rates, ensuring a responsible and sustainable purchase.
Various programs are available for first-time homebuyers in Massachusetts, including the MassHousing Down Payment Assistance, which offers up to $15,000 in down payment and closing cost assistance.
2. Get pre-approved for a mortgage
To get pre-approved for a mortgage in Massachusetts, you’ll work with a lender who assesses your financial situation, creditworthiness, and income. This process gives you a pre-approval letter, enhancing your standing as a serious buyer and setting a clear budget for your house hunt.
3. Connect with a local agent in Massachusetts
When buying a home, connecting with a local real estate agent in Massachusetts is invaluable. They have in-depth knowledge of the local market trends, neighborhoods, and legal intricacies, ensuring you make informed decisions and navigate the real estate process smoothly. So whether you need a real estate agent in Plymouth or an agent in Andover, they’re here to help.
4. Start touring homes
Touring homes is an essential part of the homebuying process in Massachusetts. It allows you to physically explore properties, assess their condition, and envision your life there. To make the most of these tours, prepare a checklist of your priorities and questions, and be open to the guidance of your real estate agent, who can provide valuable insights.
5. Make the offer
Making an offer on a home in Massachusetts is a critical step in the buying process. It involves carefully evaluating the market, reviewing comparable sales, and the property’s condition to determine a competitive and fair offer price.
6. Close on the house
Closing on a house in Massachusetts is the final, exciting step in the homebuying journey. During this phase, all the necessary paperwork is reviewed and signed, and the transfer of ownership is completed. It’s essential to work closely with your real estate agent and attorney, ensuring that all contractual obligations are met and funds are prepared for the closing costs.
To learn more about the homebuying process, explore Redfin’s comprehensive First-Time Homebuyer Guide.
Factors to consider when buying a house in Massachusetts
There are several factors to consider before buying a home in the Bay State.
Property taxes
Massachusetts is known for having relatively high property taxes, which can significantly impact the overall cost of homeownership. The overall state tax rate is 1.12%, which is higher than the national average of 0.99%. Prospective buyers should be aware that these taxes vary across different cities and towns within the state, with some areas having notably higher rates than others.
Real estate attorney
A real estate attorney may be required at closing in some states for various reasons, primarily to protect the interests of the parties involved and to ensure that the real estate transaction complies with state laws and regulations. Massachusetts is among one of those states that require one.
Dual agency
Dual agency occurs when a real estate agent or broker represents the buyer and the seller in the same real estate transaction. Buyers and sellers should consider whether they are comfortable with this arrangement and, if so, ensure that the dual agent maintains transparency and professionalism throughout the transaction.
Buying a house in Massachusetts: Bottom line
Buying a house in Massachusetts is a significant and complex undertaking involving many legal, financial, and practical considerations. Additionally, understanding the local real estate market, adhering to state-specific regulations, and considering the option of dual agency are vital aspects of a successful homebuying experience in the Bay State.
Buying a house in Massachusetts FAQs
What salary do you need to buy a house in Massachusetts?
The salary needed to buy a house in Massachusetts can vary significantly depending on various factors, including location, the price of the home, interest rates, and personal financial circumstances. To determine the specific salary you’ll need to buy a house, it’s best to consult with a mortgage lender or use online calculators. They can take into account all these factors and provide you with a more accurate estimate based on your individual circumstances and the current real estate market conditions. Keep in mind that it’s essential to have a budget that allows you to comfortably afford your mortgage payments and other homeownership costs without straining your finances.
What is the minimum credit score to buy a house in Massachusetts?
When buying a house in Massachusetts, aiming for a credit score of at least 620 is advisable. While not a state requirement, many lenders use this as a standard benchmark. A higher credit score can enhance mortgage eligibility, secure better terms, lower interest rates, and reduce long-term homeownership costs. Lower scores may still secure a mortgage but with less favorable terms and higher prices.
About Revaluation
Every four years, Wake County revalues real estate to ensure all properties are valued and taxed equitably. Real estate revaluations are required by law in North Carolina, and they set the tax value of all residential and commercial land and structures such as homes, office buildings, stores, and farms. They do not include what is classified as individual personal property, such as vehicles, boats, airplanes, and business equipment, which are valued annually.
Because property values don’t all go up or down at the same rate, revaluations make sure each property’s assessed value reflects its fair market value, or the most probable price a property would bring at sale in a competitive and open market. Because property taxes are based on a property’s market value, if counties didn’t conduct periodic revaluations, some property owners would pay more than their share of property tax while others would pay less than their share.
Property taxes are determined by two factors: a property’s assessed value, and the tax rate per $100 of value set each year by elected county and municipal officials. Property tax is Wake County’s largest source of revenue. Revaluations ensure that property owners pay their fair share of property taxes which go on to provide services like public education, emergency medical services, public health, law enforcement, affordable housing, and other community services.
Revaluation Timing
In North Carolina, counties must conduct a revaluation once every eight years. But in 2016, recognizing Wake County’s rapid growth, the Board of Commissioners voted to shorten the revaluation cycle to every four years. Rates from the first four-year cycle went into effect on January 1, 2020. The current revaluation has an effective date of January 1, 2024.
Revaluation Process
There are four main steps in a revaluation: neighborhooding, land and building pricing based on sales data, field and office reviews, and notice of assessment and appeal review.
Neighborhooding
Neighborhooding is where the county’s approximately 425,000 parcels are divided into about 5,100 neighborhoods based on similar market, economic, and geographic conditions, such as a subdivision where homes are all about the same age, style, and quality of construction. These properties are reviewed together because they typically react to the market in similar ways.
Land and Building Pricing
In the land and building pricing phase, property sales of both homes and land are analyzed to establish appropriate land values, building grades, and the influence of various property characteristics.
Field and Office Review
In the field and office review phase, appraisers review the proposed rates by visiting neighborhoods and properties around the county. The rates and value ranges established by these analyses are compiled into the Schedule of Values (SOV). The Wake County Board of Commissioners must approve the SOV created by the Department of Tax Administration before it becomes effective.
Notice of Assessment and Appeal Review
The results of the revaluation are presented to the Board of Commissioners and value notices are mailed to property owners. Taxpayers can appeal their values informally to the Department of Tax Administration or formally to the Wake County Board of Equalization and Review. Once appeals are heard, the County prepares lessons learned from the revaluation process and begins the next revaluation cycle.
Are you a first-time homebuyer dreaming of settling down in the picturesque landscapes of the Pacific Northwest? If so, Oregon might be the perfect place to call home. With its diverse geography, vibrant cities, and a unique blend of urban and natural beauty, buying a house in Oregon offers many opportunities for those seeking to live in a stunning state.
Whether you’re drawn to the bustling city life of Portland or the charming coastal communities along the Pacific Ocean like Florence, this Redfin article will guide you through the essential considerations and steps in purchasing your dream home in Oregon. Prepare to embark on an exciting journey to homeownership in the Beaver State.
What’s it like to live in Oregon?
Living in Oregon is a remarkable experience, characterized by a harmonious blend of natural beauty and cultural vibrancy. The state boasts diverse landscapes, from the rugged coastline along the Pacific Ocean, where you can explore the dramatic cliffs of Cannon Beach, to the lush forests of the Cascade Range, home to the majestic Mount Hood. You’ll find a strong appreciation for the outdoors in this state. Take a look at this article to learn more about the pros and cons of living in Oregon.
Oregon housing market insights
The Oregon housing market reflects a mixed landscape in recent times. The median sale price, currently at $511,100, has seen a modest decline of 1.7% year-over-year. However there are areas of the state where the sales prices are growing at a faster rate. A few of these cities include Coos Bay, Bethany, and Lake Oswego. This disparity can be attributed to decreased supply and demand dynamics, with some regions experiencing a shortage of available homes, driving up prices and fostering a competitive atmosphere. Cities like Bull Mountain, Oak Hills, and Oatfield stand out as some of the most competitive in the state’s housing market, where buyers face stiff competition in their quest for a new home.
Finding your perfect location in Oregon
Selecting the right location when purchasing a home in Oregon is paramount, as it directly influences your daily life and overall satisfaction. With Oregon’s diverse landscapes and communities, your chosen location can determine your access to outdoor activities, cultural amenities, and job opportunities. Tools like a cost of living calculator can help you find a city within your budget. And if you don’t know where to start, here are five of Oregon’s most popular cities.
#1: Salem, OR
Median home price: $449,000
Salem, OR homes for sale
Living in Salem offers a quieter, more relaxed pace of life compared to its larger neighbor, Portland. The city is steeped in history, with attractions like the Oregon State Capitol and the Deepwood Estate providing a glimpse into its past. Salem’s proximity to the Willamette Valley wine country allows residents to taste wine at renowned vineyards such as Willamette Valley Vineyards.
#2: Eugene, OR
Median home price: $523,000
Eugene, OR homes for sale
The city is home to the University of Oregon, infusing a youthful energy and a love for collegiate sports into the community. Moving to Eugene, you’ll be surrounded by an abundance of outdoor recreational activities, with the Willamette River offering opportunities for kayaking and biking. The cost of living in Eugene is 14% higher than the national average, so If you’re looking for more affordable suburbs, there are plenty of charming neighborhoods to choose from.
#3: Portland, OR
Median home price: $530,000
Portland, OR homes for sale
Moving to Portland offers a unique blend of urban charm and natural beauty. The city is renowned for its thriving arts scene, with numerous galleries, theaters, and music venues like the iconic Crystal Ballroom. Residents also enjoy easy access to outdoor adventures. Portland is nestled amidst the stunning Pacific Northwest landscapes, providing opportunities for hiking in Forest Park or exploring the scenic Columbia River Gorge. The cost of living in Portland is 8% higher than in Eugene, but there are several affordable suburbs in Portland to choose from.
#4: Hillsboro, OR
Median home price: $542,900
Hillsboro, OR homes for sale
For those searching for a suburban atmosphere with a strong sense of community, check out Hillsboro. The city offers a great environment, good schools, and a variety of parks and outdoor spaces for recreational activities. With its tech-focused economy and proximity to major employers like Intel, Hillsboro also provides ample job opportunities, making it an attractive place to call home.
#5: Bend, OR
Median home price: $784,900
Bend, OR homes for sale
Bend is an outdoor enthusiast’s dream come true. Surrounded by the stunning Cascade Mountains, it’s a hub for hiking, skiing, and biking adventures. The city’s vibrant downtown, with its craft breweries and lively arts scene, fosters a welcoming and active community.
The homebuying process in Oregon
Once you’ve narrowed down your perfect location in the Beaver State, it’s time to prepare for buying a home in Oregon. Here are the most important steps of the homebuying process.
1. Prioritize your finances
Before buying a house in Oregon, you must prioritize your finances by assessing your budget, factoring in not just the down payment and mortgage but also property taxes, insurance, and ongoing maintenance costs. Utilizing tools like an affordability calculator can help you determine a comfortable price range for your home purchase and ensure your financial stability in the long term.
Various programs are available for first-time homebuyers in Oregon, including the Oregon Bond Residential Loan Program Cash Advantage, which includes a grant of 3% of the total loan amount that can be used for closing costs assistance.
2. Get pre-approved for a mortgage
Pre-approval involves a thorough assessment of your financial situation, creditworthiness, and potential loan options. Getting preapproved for a mortgage provides a clear picture of how much house you can afford, streamlining your home search. In Oregon’s competitive markets, this preapproval can give you a significant advantage, as sellers tend to prefer buyers who appear financially prepared. Also, having a preapproval can expedite the entire buying process, ensuring a smoother and more efficient home-buying experience.
3. Connect with a local agent in Oregon
Oregon’s local real estate agent is crucial because they possess in-depth knowledge of the area’s housing market, neighborhoods, and local regulations, ensuring you make informed decisions and find the ideal home. So whether you need a real estate agent in Portland or an agent in Beaverton, they’re here to help.
4. Start touring homes
When touring a home in Oregon, consider important factors like the overall condition, layout, natural lighting, and potential maintenance needs. It’s a hands-on experience that helps you make a well-informed decision and ensures the house fits your needs and expectations.
5. Make the offer
Making an offer on the house is a crucial step in the homebuying process. It’s where you put your intentions into action, specifying the price you’re willing to pay, contingencies, and other terms. Carefully crafting your offer with the help of your real estate agent is essential to negotiate effectively and secure the property you desire.
6. Close on the house
The closing process is the final step in buying a house, and it involves signing all the necessary paperwork to transfer ownership from the seller to you. It’s a crucial part of the homebuying journey, where details like the title search, inspections, and financing are finalized.
For more information regarding the homebuying process, check out Redfin’s First-Time Homebuyer Guide.
Factors to consider when buying a house in Oregon
Carefully consider location, budget, and long-term lifestyle goals to make a well-informed decision that aligns with your needs and preferences.
Sales and property taxes
One enticing aspect of buying a house in Oregon is the absence of a statewide sales tax, which means you won’t be paying additional taxes on standard goods. However, it’s important to note that property taxes in Oregon are relatively high, sitting at a state average of 0.82%, which should be factored into your overall cost of homeownership. Nonetheless, this absence of a sales tax can still be a compelling financial advantage when considering homeownership in the Beaver State.
Natural hazards
Oregon, while incredibly scenic, does have natural hazards like earthquakes, wildfires, and flooding that should be considered when buying a house. It’s important to assess the potential risks in your chosen area and take necessary precautions to ensure the safety and resilience of your new home.
Dual agency
Oregon allows dual agencies in real estate transactions, which means a single real estate agent or brokerage can represent both the buyer and the seller. Clear communication and transparency is crucial to safeguard the interests of all involved parties effectively.
Buying a house in Oregon: Bottom line
Buying a house in Oregon offers many opportunities, from its diverse landscapes to its vibrant communities. With careful planning, thorough research, and the guidance of local experts, your journey to homeownership in Oregon can lead to a fulfilling and enriching experience in one of the most captivating states in the Pacific Northwest.
Buying a house in Oregon FAQs
How much does it cost to buy a house in Oregon?
The cost of a house in Oregon can vary significantly depending on factors such as location, size, and property condition. The median sale price is 511,100, and you’ll want to factor in the down payment, closing costs, and insurance. However, prices can be substantially higher in popular cities like Portland and Bend, while more affordable options can be found in rural areas or smaller towns.
What is the average down payment on a house in Oregon?
The typical down payment for a house in Oregon generally falls within 10% to 20% of the property’s purchase price. For example, on a $500,000 home, a 10% down payment totals $50,000, while a 20% down payment totals $100,000. However, these requirements can differ based on the type of mortgage, with FHA-backed loans often allowing a lower down price of approximately 3.5%, roughly $17,500 on a $500,000 home. Your down payment needs may also depend on your mortgage choice, lender policies, credit history, etc.
What credit score do you need to buy a house in Oregon?
To buy a house in Oregon, a good credit score is essential to secure favorable mortgage terms. While no specific minimum credit score is required to purchase a home, most lenders prefer borrowers to have a credit score of 620 or higher. However, aiming for a credit score of 700 or above is advisable to qualify for more competitive interest rates and loan options. Remember that credit requirements can vary between lenders, and factors like your income, debt-to-income ratio, and down payment will also influence your eligibility for a mortgage in Oregon.