Sullivan Team

Rising Demand Pushes Prices Higher - MA Average Home Equity Gain from Last Year + $24,000

Wow! MA average gian in home Equity from last year to this year is + $24,000.

With home prices rising across the country because of low inventory, homeowners gained over a trillion dollars in equity over the last 12 months, with the average homeowner gaining over $16,000!

Across the United States, there is a severe mismatch between the low number of houses for sale and the high demand for those houses! First-time homebuyers are out in force and are being met with a highly competitive summer real estate market.

According to the National Association of Realtors (NAR), the inventory of homes for sale “has fallen year-over-year for 36 consecutive months,” and now stands at a 4.1-month supply. A 6-month supply of inventory is necessary for a balanced market and has not been seen since August of 2012.

Is There Any Relief Coming? 

According to the CoreLogic’s 2018 Consumer Housing Sentiment Study, four times as many renters are considering buying homes in the next 12 months than homeowners who are planning to sell, “which is the crux of the available housing-supply imbalance.”

The map below shows the breakdown by state:

June Essex County Housing Reports: Inventory Down and Sales Prices Up

Essex County Housing Reports: May 2017 vs 2018 and March - May 2017 vs March - May 2018

Inventory down and sales prices up. - breakdown by property type:

Single Family: May: Inventory Down 15.5% and Sale Prices Up 8.2%:  3 Months Inventory Down 8.7% and Sale Prices Up 7.2%

Condo: May Inventory Down 17.4% and Sale Prices Up 3.6%:  3 Months Inventory Down 8.5% and Sale Prices Unchanged  0% 

Muilti-Family: May Inventory Down 14.6% and Sale Prices Up 11.1%: 3 Months Inventory Down 2.6% and Sale Prices Up  9.9% 

To view data for every Essex County town, go to: 

To dowload the full Housing Report go to:



Rent VS Buy June 2018


American 6.7 Million Job Openings Now Outnumber the 6.3 Million Jobless

American Job Openings Now Outnumber the Jobless


U.S. job openings rose to 6.7 million at the end of April, compared with the 6.3 million Americans who were unemployed

WOW, Fabulous May Jobs Report, Unemployment Rate, 3.8% !

WOW, Fabulous Jobs Report, Unemployment Rate, 3.8% !
Good news for driving demand for housing.


Unemployment Rate 3.8%; For Women 3.6%, lowest since 1953; Blacks, 5.9%, a record low ( : 

Latinos, 4.9%, at record lows;

Labor Participation Rate dropped to 62.7%, still large pool of workers who could step into the job market.

Wages Up 2.7% From Last Year;

Fed expected to Raise Interest Rates;


Unemployment Rate Falls to 18-Year Low; Solid Hiring in May

Nonfarm payrolls rose seasonally adjusted 223,000; unemployment rate at 3.8%    Updated June 1, 2018 11:12 a.m. ET

WASHINGTON—The U.S. labor market was firing on all cylinders in May: the unemployment rate fell to an 18-year low, employers added jobs at a faster pace and wages modestly improved.

The unemployment rate ticked down to a seasonally adjusted 3.8%, matching April 2000 as the lowest reading since 1969, the Labor Department said Friday. Nonfarm payrolls rose a seasonally adjusted 223,000 in May, a jump from gains from March and April. Average hourly earnings ticked up to a 2.7% from a year earlier—and raises were even stronger for nonmanagers.

“It’s pretty hard argue that the labor market is anything but right in the sweet spot,” said Dan North, chief economist at Euler Hermes North America. “There is tremendous demand for labor right now.”

U.S. employers have added to payrolls for 92 straight months, extending the longest continuous jobs expansion on record. And those gains are extending to all corners of the labor market.

The unemployment rate for women, 3.6% last month, was the lowest since 1953, when far smaller share of women sought jobs. The jobless rates for blacks, Latinos and those without high-school diplomas are trending near record lows.

A tighter labor market should also produce better wage growth, but overall gains have remained modest. Average hourly earnings for all private-sector workers increased 8 cents last month to $26.92.

Wages for nonsupervisor workers are rising at a faster rate than overall wage increases for the first time since 2014. The nonsupervisor increase, 2.8% in May from a year earlier, was the best annual gain since mid-2009, when the recession just ended.

Still, in April 2000 wages for those workers rose 3.9% from a year earlier.

“The tight labor market is putting employers under enormous pressure to invest as much as necessary to retain their best employees and attract the best talent,” said Rebecca Henderson, chief executive of employment firm Randstad Sourceright.

The historically low unemployment rate and growing wages should keep Federal Reserve policy makers in line to raise the central bank’s benchmark interest rate at a meeting later this month. Consumer inflation has strengthened in recent months to reach the Fed’s 2% annual target, another factor likely keeping the central bank in line to gradually lift rates further in an effort to make sure the economy doesn’t overheat.

One factor holding wage gains in check is the ability of employers in the past year to bring Americans who have been out of the labor market back into the workforce and dissuade existing employees from retiring or otherwise exiting.

In May, the share of American adults working or looking for a job edged down to 62.7%, but the share with jobs ticked up to 60.4%. Labor-force participation is up slightly from a recent low in 2015, but still near the smallest share of adults participating since the late 1970s



A broad measure of unemployment and underemployment that includes Americans stuck in part-time jobs or too discouraged to look for work fell to 7.6% from 7.8% the prior month. That rate, known as the U-6, remains somewhat elevated compared with the last time unemployment was similarly low. In April 2000, the broader measure was 6.9%.



Essex County Housing Report Jan through April; Inventory Down and Sales Prices Up

For First 4 months of 2018, Essex County housing inventory down and sales prices up. - breakdown by property type:

Single Family Inventory down 10.3% and Sale Prices Up 7.5%, 
Condo Inventory down 9% and Sale Prices Up 0.5%, 
Muilti-Family Inventory down 4.9% and Sale Prices Up 10.7%.

To view data for every Essex County town, go to: 

To dowload the full Housing Report go to:


Rising Mortgage Rates Not Slowing Price Increases


Rising Mortgage Rates Not Slowing Price Increases 💸


Mortgage interest rates have risen by more than half of a point since the beginning of the year, and many assume that if mortgage rates rise, home values will fall. History, however, has shown this not to be true.

Where are home values today compared to the beginning of the year?

While rates have been rising, so have home values. Here are the most recent monthly price increases reported in the Home Price Insights Report from CoreLogic:

  • January: Prices were up 0.5% over the month before.
  • February: Prices were up 1% over the month before.
  • March: Prices were up 1.4% over the month before.

Not only did prices continue to appreciate, the level of appreciation accelerated over the first quarter. CoreLogic believes that home prices will increase by 5.2% over the next twelve months.

How can prices rise while mortgage rates increase?

Freddie Mac explained in a recent Insight Report:

“In the current housing market, the driving force behind the increase in prices is a low supply of both new and existing homes combined with historically low rates. As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices.”

Bottom Line

If you are thinking about moving up to your dream home, waiting until later this year and hoping for prices to fall may not be a good strategy.


Mortgage Rates Jump to 7 Year High - 4.75% ☹️

Mortgage Rates Jump to 7 Year High - 4.75% ☹️

 Call us - 781-771-9929.   We'll help you navigate the difficult purchasing process. 🏆


Home Ownership Rates On The Rise

Chief Economist, Dr. Ralph McLaughlin, in his VUE Blog gave these new homeownership numbers some context:

“The trend is clear: the homeownership rate has been ticking up for five consecutive quarters, and the number of new renter households has fallen for four consecutive quarters. Owner-occupied households grew by 1.345 million from a year ago, while the number of renters actually fell by 286,000 households. 

The fact that we now have four consecutive quarters where owner households increased while renter households fell is a strong sign households are making a switch from renting to buying. This is a trend that multifamily builders, investors, and landlords should take note of.” 

In a separate article comparing the rental population in America to the homeowner population, also concluded that the gap is now shrinking:

“The U.S. added 1.3 million owner households over the last year and lost 286,000 renter households, the fourth consecutive quarter in which the number of renter households declined from the same quarter a year earlier. That could pose challenges for apartment landlords, who are bracing this year for one of the largest infusions of new rental supply in three decades.” 

America’s belief in homeownership was also evidenced in a survey conducted by Pew Research. They asked consumers “How important is homeownership to achieving the American Dream?”

The results:

  • 43% said homeownership was essential to the American Dream
  • 48% said homeownership was important to the American Dream
  • Only 9% said it was not important


Essex County Housing Report April 2018

To view data for every Essex County town, go to: 

To dowload the full Housing Report go to: