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Patti Longo's Blog

By Patti Longo | Agent in Andover, MA

Affordability Currently Driving New Homebuyers in Mass.

Affordability Currently Driving New Homebuyers

The Wall Street Journal had an interesting piece this week about what motivated homebuyers to act in the relatively soft 2010 market.

The answer, according to a Weichert survey conducted between July and December of last year: affordability.  Overwhelmingly.

This is not altogether surprising.  The combination of low interest rates and (generally) low home prices has a powerful effect.

Fully 28% of the over 1200 survey participants claimed that favorable financing played a critical role in motivating them to buy.

Another 28% claimed more living space or property was the primary driver--more or less in-line with levels seen over the past 5 years.

Most interestingly, almost none of the respondents claimed the desire to own a home vs. renting one as their principal motivation (compare that to over 25% in 2005).

What does this mean to me as a market follower and real estate professional?  Overall, I think it's a positive indicator, showing that consumers' attitude toward homeownership is more rational and financially driven than in the halcyon days of the residential real estate bubble.

Moreover, at least one of those primary factors, low interest rates, is unlikely to significantly reverse over the next 12 months--with QE2 the Fed has made it's expansionary, pro-growth and low rates policy clear.

On a local level, as we remarked earlier this week in our Westford MA real estate market update, we have seen a slight uptick in home prices in Westford.

Nonetheless, the current local median sale price of just over $400,000 is still a good value--relative to the market peak of $519,000 in late 2005.

So if you're considering putting your home in Westford up for sale, or are currently on the market--keep these motivating factors in mind.

In your marketing materials, focus on value--emphasize amenities, appliances, distinct attributes of your neighborhood and the Westford community that distinguish your home and property as an exceptional deal relative to other similarly priced real estate options.

Don't hesitate to contact us with any and all Westford homebuying or selling questions!

Interested in seeing what Westford MA homes are currently on the market?  Visit our comprehensive MLS search!

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