Atlantic Bay Sothebys International Realty (Real Estate News Blog)

The Year in Review Part 1: Provincetown (2010 Sales Statistics and Activity Recap)

2011-02-08T07:13:00.000-08:00

The year-end numbers are in! Over the next few updates, we will review the final sales figures from MLS along with a comparative analysis of this year in relation to the prior two years. We’ll start with Provincetown this week, and we’ll look at Truro and Wellfleet in the coming weeks.
Our data comes from the Multiple Listing Service and does not include private sales. The vast majority of sales that occur in this market are MLS sales.

For a snapshot of the inventory and activity in Provincetown for 2010, see our "The Year in Review Part 1," entry on our Web site, click here.

Simple Staging Tips

2010-12-21T08:08:00.000-08:00

If you are just listing your property for sale, or even if it’s been on the market for a while, consider the following simple tips to make your property present in its best light:

Paint: Freshen and Neutralize. If you have any walls painted with bold colors, consider repainting them in neutral tones. Bold colors are not widely appealing, and can distract the buyer from considering your property as a contender. If your walls are already a neutral color, go through your house with an objective eye, and retouch any areas that may be scuffed or worn. One often overlooked area for paint is your stair risers. A fresh coat of paint on your risers makes a big impression. Same goes for trim around your doors, especially near the door knobs.
Depersonalize: Pack away your family photos. You’d be surprised how often buyers spend time looking at your photos instead of looking at your house. Eliminate any photos or highly personal objects that draw too much attention. The idea is for the buyer to picture him/her self in the space, not to get to know your family. In general, de-cluttering your home gives the impression of increased space.
Bedding and Slip Covers: A little goes a long way. We get so used to our own furniture and bedding, that we may not realize that it is starting to look worn. A simple an inexpensive way to freshen your furniture is to cover couches or chairs with a simple slip cover – buy neutral colors and fabrics. Also, consider a new duvet cover for your beds. Crisp linens make a positive impression.
Lighting: Make sure buyers can see your house. Make sure you have ample and well-placed lamps throughout your house. Table and floor lamps offer a warmer light than overheads. Even during daytime showings, lamps make your home feel inviting.
Curb Appeal: First impressions are lasting. Grab a friend and ask for advice. Stand outside your house and approach the front door together. Have your friend share with you any negative impressions. Is there a rip in the screen door? Is a brick loose on your front stoop? Is there a garden bed that is overrun with weeds? Often times, we become blind to our own deferred repairs, and a fresh set of eyes can set you straight. You don’t want a buyer to be mentally starting a repair list before they have even set foot in your home.

Bonus Holiday Tip: Remove your Holiday decorations right after New Year’s to return your property to a more neutral state.

Market Activity Report: Through Third Quarter of 2010

2010-10-18T20:45:00.000-07:00

The real estate market on the Outer Cape is strong and thriving! All three towns have seen huge increases in sales volume over the same period last year, and average sale prices are up. Many buyers have come off the sidelines and are entering the market. Could this be a sign that the bottom of the market is behind us?

For a snapshot market activity in each of the three towns - Provincetown, Truro and Wellfleet - see our "Third Quarter Report" entry on our Web site, click here.

Market Update: Residential Market

2010-07-23T12:50:00.000-07:00

The temperatures and the real estate market are both heating up on the outer Cape this summer! Here’s a snapshot of the inventory and activity in each of the three towns.

For a snapshot of the inventory and activity in each of the three towns - Provincetown, Truro and Wellfleet - see our "Residential Market Update," entry on our Web site, click here.

First Half 2010 Activity Report – January 1 – June 30, 2010

2010-07-06T06:31:00.000-07:00

Good news on the Outer Cape! The market continues to show signs of strength and recovery. Sales activity in Provincetown and Truro has more than doubled for the first 2 quarters of this year as compared with the same period last year, and volume in Wellfleet is up 50% over last year.

For more on "First Half of 2010 Activity Report," click here.

First Quarter 2010 Activity Report – January 1 – March 31, 2010

2010-05-25T10:15:00.001-07:00

Good news on the Outer Cape! The year started off very strong in the local real estate market, compared with the same period in 2009. The number of transactions overall was up significantly and sales volume in all 3 towns was up an average of 79%.

For more on "First Quarter 2010 Activity Report," click here.

Ken's Journey to Tanzania: Journal Entry #13

2010-04-10T07:36:00.000-07:00

Note: For pictures associated with this blog entry, see the Atlantic Bay Sotheby's International Realty "Real Estate News Blog."

Saturday, April 10

Terri gave birth at 10:30pm at Aga Khan Hospital in Dar es Salaam on April 9th. Mom and baby are doing well and should be home Sunday the 11th. Caito and Terri are leaning towards naming their daughter, Nadia but that’s not definite yet. The baby is 7 1Ž2 lbs. The baby was due April 15th but Terri told me she was hoping to deliver early so I could meet the baby. We both got our wish.

Thursday, April 8, 2010

I sent out my last journal entry but I am sure some of you would be interested in an update of the Uwamaba Group job initiative to which so many of you gave so generously.There was a great deal of excitement today at the meeting. I think they were surprised to see how quickly it all came together. Terri and I were greeted with a great deal of passion. As each name was called there was much applause as the recipients received 100,000 Tanzanian shillings each, approximately $75 US. You would have thought we were handing out $100,000 the response was so joyful. The lone man in the group had a smile from ear to ear and thanked us enthusiastically. The women, most with tears in their eyes, as they received the money took our hands in theirs. As they quietly uttered heartfelt asante sanas they each curtsied. Terri said that is a custom here and is saved for the times of extreme gratitude. They then signed their names to a paper agreeing to reinvest 10,000 shillings each by the end of May to keep the program going and enroll others from Uwamaba’s membership. I have a great deal of faith that this program can be expanded and sustained with no further outside contributions. Any additional money that comes in, that is earmarked for Uwamaba, will be used as intended and launch other people before May. I have seen that money earmarked for any Baobab program goes exactly to the program the donor requests. My hope is upon my return that some of you would interested in getting together to brainstorm about raising money to fund some of the other worthwhile programs that Baobab has initiated, particularly the clinic breakfast program which I have run personally since my arrival. That program costs about $200 per month and pays for the uji, a cook three times a week, firewood or charcoal and transport of the supplies to the clinic kitchen 3 days a week. We feed approximately 300 people per week and as I have stated this may be the only meal of the day for many of them. If you are interested in this or any other program please email me after April 20th. Asante Sana!

Sunday, April 4

My time here is winding down and as in all things the 3 months, which looked like an eternity in January, flew by as quickly as any 3 month period in anyone’s life. I am both ready and not at all ready to return.

The last week has been extremely busy setting up the mobile HIV testing in some of the more remote villages. The logistics are complicated but I believe we have a good system in place which might need some tweaking but is solid overall. Last Tuesday was the first testing day at a remote site and unfortunately I was dealing with extreme intestinal distress and could not make the trip. Katie, our incredibly competent volunteer from Minnesota, went in my stead and did a great job. There were nurses, counselors for any people that tested positive and several of the street boys as interpreters with great cajoling skills. Terri’s husband, Caito, who is skilled in sound design, made sure that there was great music in the attempt to draw people. Baobab even had a fairly new bicycle that was raffled off. You had to be tested to enter. About 75 people were tested, a very good turnout. Overall, a very successful day with several people who tested positive on medication already. There will be a comprehensive follow up which will probably not take place until after I leave but I will be kept in the loop by email.

This last full week we will be meeting with the Uwamaba group to hand out the money to the 10 people selected for the business initiative. Both Terri and I are really excited to be able to spend more time with these interesting, ambitious people. We will also be strategizing about Baobab’s future funding and the possibilities for grant and public money. In the middle of all this Terri is still sick and is minutes away from delivering her baby. I really don’t know how she does it.
We’re now in the rainy season and there is a definite change in the weather pattern. At least two or three times a day huge, dark clouds build over the Indian Ocean rising to towering heights. They then roll into Bagamoyo accompanied by tremendous lightning and booming thunder. Then the skies open up. These bursts of rain are of short duration but the intensity and volume is something to behold. The dirt roads become muddy torrents within minutes and then as suddenly as these storms blow up, they end and the skies are sunny again with not even a hint of a breeze.

As I said, it will be hard to say goodbye as much as I’m looking forward to cooler, drier temperatures, a comfortable bed, good food, roads that don’t rattle your teeth out of your head, electricity that is on for more than 12 hours straight, I would come back next month if I could. The things that draw me back are all related to the people and the children I have been blessed to meet. Of those children I will miss Faiza, Habibu, Shobani, Neema and little Amina from the clinic, most of all but I haven’t even mentioned the countless others, as this is a community filled with beautiful children. I will never forget the resiliency of those that have been abused, neglected, infected with HIV and forgotten. Knowing the history of many of these little souls and seeing them light up and thrive, because of the people associated with Baobab, gives me hope that they will have lives filled with love and safety instead of terror no, matter how long they are in this world.

Then there are the adults. I will sorely miss my special friend Halima, the young passionate warrior who now in her later years is a foster mother beyond compare. I will miss her songs her hugs and always 3 kisses on the cheek and that she embraced me from the start. She is truly a miracle worker taking damaged, abandoned children and transforms them through the power of her love, affection and determination. These transformations are amazing to behold, no, her magic is really beyond belief. Ally and Assia the courageous founders of the Uwamaba support group, with 526 members, are people are such dignity and are inspiring in ways that are hard to believe. The stigma around HIV is so prevalent here and yet they are living their lives honestly and openly, encouraging others to do the same. I am grateful to Dr. Ayam, Rigobert and nurse Mama Mpondo who struggle to give the best health care possible in a hospital so depressing that it defies description. The street boys who have been such a joy to be around and all so incredibly giving, George, Mugin, Ema, William, Yaseeni, Pascal, Bennard and Benedictor. Young men who formed their own family when their biological families either rejected them or were ravaged by AIDS. I will never forget the woman, bed ridden with an inoperable spinal tumor giving us a gift of two eggs after visiting with her. I can still see her makeshift wheelchair, a white plastic lawn chair with bicycle wheels. The young woman with advanced TB and HIV infections stumbling after us after visiting her so she could walk us to the edge of the village.

There are sights that are part of the day to day, women carrying all sorts of goods on their heads, the colorful kangas that women wear, women bent over at the waist everywhere doing household chores. They sweep with short handled brooms, do quantities of laundry by hand, work in the fields bent over at the waist with knees locked and they work in that position for hours. Then there are the young men offering inexpensive transport on their piki pikis, motorcycles which they ride without helmets. The older men of Bagamoyo with their impeccable manners and command of the English language. Most everyone you meet greeting you with habari, jambo, or shikamoo and karibu, (welcome) always. Babies carried on women’s backs securely in place, sleeping soundly. The other worldly sound of muezzins calling the faithful to prayer 5 times a day. Hiring a bajaji when it was too hot to walk and enjoying the breeze when there was no natural breeze. A trip anywhere in town is a maximum of $1.50 no matter how far. Students practicing dance or playing tribal drums at the art college. The huge Monday market with hundreds of people and everything imaginable for sale. The herds of cattle and goats walking the dirt roads of town and sauntering down the beach on the Indian Ocean. The fishermen in their dhows, with their elegant sails, evocative of ancient times. There are the beautiful African mornings when the air is still and the sun is not yet broiling, the light is soft and tinged with pink. The smell of wood smoke permeates the air as people prepare uji outside their homes over small fires. The sounds of farm animals, cows and roosters the most vocal. The first sight of school children in their uniforms making their way to class. It is all in slow motion, like a dream, it is always too hot to hurry. I will miss walking everywhere in this town without fear. I have walked alone in every neighborhood at all times of the day or night and have never once worried for my safety. I will miss watching soccer with Terri’s husband and his friends. Caito’s smile and his effort to include me have been most appreciated.

I will never forget Steve, my 15 year old friend who died so tragically on Feb. 11th. It seems like a long time ago. We talked every day and it was obvious to me that even in his terrible physical distress he welcomed my visits. We played video games but more often just sat there quietly enjoying each other’s company. He would often reach out and take my hand and I know he loved the back rubs we all gave him. I can still see him on that wild bajaji ride careening down the shoulder of the highway so nonchalant as though he made that trip every day. Our outing to the movies when he was so ill I had to carry him through the mall to the bathroom. People stared, many I’m sure found us to be a very unlikely pair but most, I feel, had a full understanding and sympathy for a dying boy. I think of him every day and the loving tribute of his funeral service, attended by 100 people. The unexpected beauty of the women’s voices on the bus ride to Steve’s grandmother’s home and those voices being joined by the voices of the women already inside the house will echo in my ears forever. The kindness showed to me by everyone there, a stranger really, having only known Steve for two weeks. I am still haunted by the explanations of Steve’s death “well, after all this is Africa or “AIDS did not kill Steve, Africa did” or “he died of Africa”. All repeated over and over like a perverted mantra. It remains just a tragedy to me, senseless but avoidable in the west.

More than anyone I’ve had the pleasure to meet I am heartsick about leaving Terri. I don’t believe I have ever admired anyone as much as I admire her. Her belief that every life is worth saving and there are no hopeless situations, even though they are all around her here, is awe inspiring. She has created an organization that is truly committed to the community, not to just one segment or group, but to all. She believes the strength of this town lies in it web of connectedness. I see the benefits of this approach and I see how the money is used and there are no administrative costs. Terri often uses her own funds if there is a shortfall through Baobab. I look on her as a sister and know we will always be part of each other’s lives. I will miss our late night strategizing and our shared joy when we feel in synch over a project. I hope I am here to see the birth of her second child. There’s not much time for that to happen, we’ll see.

I believe I chose wisely when I decided to work with Terri and Baobab. This has been an incredibly fulfilling endeavor. I have worked harder here than I ever have in my life as the conditions were so difficult at times. Sometimes the heat and humidity were so intense it was hard to breathe but every day I saw at least one thing that made it all bearable. I have a new appreciation as to how easy my life is at home and a renewed gratitude for that abundance. I have never been hungry, abused, abandoned, or lived without plumbing or electricity or with holes in the roof or crumbling walls. I hope I remember to be grateful.

This is my last journal of this remarkable adventure and I would like to acknowledge and thank from the bottom of my heart my friends and family at Atlantic Bay Sotheby’s. They have supported this journey of mine from its inception. They have offered nothing but encouragement and contributed generously to Baobab Home. So thank you, (in alphabetical order) Alan, David, Emily, Gregg, Leslie, Lincoln and Sue. I love you all. Thank you to the Provincetown Banner for printing many of my journal entries in their internet version and expanding awareness. Finally, thank you to everyone that took the time out of their busy lives to read this journal. If nothing else I hope it has increased your understanding of life in a small Tanzanian town. A special thank you to all those who contributed to the job initiative project. I have tried to send a personal email to all who contributed and if I missed you I will get one out soon as Terri and will be going over the final list of contributors in the next few days. I hope you will continue to care about Baobab Home and the people of Bagamoyo. If anyone is interested in becoming involved, or more involved, please email me after I return April 20th. The work does not end when I return and the need will remain tremendous. I will be coming back.

Ken's Journey to Tanzania: Journal Entry #12

2010-03-27T16:31:00.000-07:00

Note: For pictures associated with this blog entry, see the Atlantic Bay Sotheby's International Realty "Real Estate News Blog."

I’ve just finished serving breakfast, and having weighed myself at the clinic, found that I am down about 11 lbs. I’m sure at least 3 of those lbs. are water and will be replaced. The heat has played a major role in my weight loss. My appetite has diminished and I am eating much less. When I was on safari our guide commented that the people of northern Tanzania believe the people of the coast are lazy and sleep more than work. I told him that it’s amazing to me that the people of Dar and Bagamoyo have any energy to work at all. The heat and humidity are that enervating.

I am taking a few doses of cipro for the first time since I’ve been here. It’s amazing I have had few digestive problems since I arrived in January. I decided not to fool around and start the cipro before it gets any worse. I thought of how fortunate I am that I have access to western medicine and don’t have to suffer for very long. That is not the case for the vast majority of the people I have met. They must rely mostly on traditional medicine and hope for the best.

Amina was at the breakfast program with her mother again today. That is the fourth time in a month and I am curious as to what’s going on. People usually come to the clinic no more than once a month. She had a burn on her arm that was mostly healed and about 3 inches long and an inch wide. She was in great spirits and she adores her mother so I hope it was accidental. It saddens me that my mind even goes to the place of suspicion. I will miss this little girl with her big smile and her drawings of animals and flowers in my notebook. I worry about the future for this 8 year old HIV+ child.

I have spent more time at the orphanage lately and have seen such positive changes in Faiza. So shy and non-verbal when I first met her she now runs to me when I arrive and has the most infectious laugh you have ever heard. She is finally starting to signal to use the toilet and when I ask her simple questions in Swahili she responds. If I ask her “Hadija wapi?”(where is Hadija? Her little friend) She looks around the room and when she spots Hadija she smiles and points right to her. She is now 6 years old but developmentally she is 2 or 3. This poor little girl has a limited future but according to Terri can live her life at Baobab with all the love, affection and good nutrition it supplies her. You cannot imagine how sweet and gentle this child is. You may remember, Faiza was malnourished, is HIV+ and was sexually abused and has now been under Baobab’s care for about a year.

Last week I took Halima and Terri out for lunch. As much fun as Halima and I have trying to understand each other it was just great to have Terri as interpreter. I want to know so much of Halima’s life and with my limited Swahili it is impossible. Halima and I took a bajaji from her home and we met Terri at Traveller’s Lodge. Halima was wearing a beautiful purple and white kanga and was very excited to have lunch out. I know she seldom goes out to eat and I really doubt that she ever does.

What a fascinating life this 64 year old woman has had. In the late ‘70s when the ruthless dictator Idi Amin invaded Tanzania from Uganda she was outraged and determined to put her anger to use. She traveled by dalla dalla to Lake Victoria on the western side of Tanzania. The lake is shared by several countries, including Uganda on the north. She joined other young women and learned to operate a motor boat and transported guns and other weapons to the front at the northern border. She said all gun running was done under the cover of darkness and was accomplished mostly by women as men were engaged in active combat. I asked her if she was ever afraid. She said it frightens her more now when she thinks back on how dangerous it was. Then, she was involved in something she passionately believed in and she was also a lot younger and felt invincible. She said the fighting was awful and she was witness to firefights and she saw the horrible wounds suffered by bombing victims. Almost 40 years later she has occasional nightmares about the people she saw torn apart by the bombing.

She has one living child, a 42 year old son who is a fisherman. She has lost 3 other children, one in childbirth and two to malaria. I believe those losses are what drive her to be a foster mother, and what a foster mother she is! The 3 children in her care now are thriving. You may all remember the story of little Habibu, 9 years old, rejected by his mother who believed he was possessed by an evil spirit. Habibu’s younger brother, Shobani, 5, is a victim of malnutrition as is Habibu. They are very small for their ages and have developmental problems. There is also Neema a beautiful little girl who’s parents and aunts and uncles have died of AIDS. I will be sending current photos of these children (in a separate email) that I took last week in Halima’s home so you can see what love, affection and good food have done for these children. According to Terri the change is astounding. Even I have seen a huge difference in these children in the short time I have been here. Halima showers these children with affection, washes them, feeds them, clothes them and sings with them songs she makes up about them. These songs never fail to get the children up and dancing as Halima accompanies her songs with hand clapping and encourages them to join in. Babobab Home pays Halima a stipend each month to support her foster work and she told me that no amount of money could equal the joy she receives from Neema, Shobani and Habibu.

Last Thursday Halima said she had something for me. She presented me with a hat and bag that she wove by hand. I offered to pay her as I know how much work goes into each piece and she waved it off. She then proceeded to kiss me loudly on each cheek, twice on the right, in very European fashion. Each kiss was accompanied by a loud “mwa”. She then held my face in her lands and looked into my eyes and said I was her dear rafiki, friend, and said to me “nina penda u”, I love you. I will miss her greatly when I depart.

Today is Terri’s birthday and I want to do something to celebrate it. She is a remarkable human being. I hope one day that some of you can see for yourself what she accomplishes with so little. She does everything with a sense of joy and purpose and never stops thinking of ways to expand as she is well aware of the desperation of so many here. Her goal is to make people self sufficient after the initial help of Baobab ends. There are so many success stories from the 8 street boys to the babies at the orphanage, the home building, to Ally and Assia and the people of Uwambaba. Now, with the expanded HIV testing program in the villages that we have implemented I don’t see how she continues to move forward. She’s due to deliver her second child in two weeks and has not slowed down a bit. Add the countless emails she answers and writes to secure more funding and I doubt that you will find too many others like her. The most amazing aspect of this for me is, this is her life. This is not a 3 month volunteer stint. She doesn’t get to return to an easy western life and I truly doubt she would even want to. She and her wonderful husband, Caito, live so simply and by US standards they would be considered poor. Her home is chaotic and doubles as the second room of the pre-school building across the street. There are children, neighbors, the street boys and volunteers in her home constantly. We value our privacy at home. Privacy is a foreign word here. We have grown very close these past months and we will miss each other sorely when I return home but we both know I will return. There are so many projects we have worked on together and I want to see how they have impacted the people we have met.

Ken's Journey to Tanzania: Journal Entry #11

2010-03-27T06:39:00.000-07:00

Note: For pictures associated with this blog entry, see the Atlantic Bay Sotheby's International Realty "Real Estate News Blog."

Hi Everyone!

This is something a little different than the journal I’ve been posting. Yesterday, Terri and I met at the Uwamaba office, the local AIDS support group. We had set up a meeting with the 10 people picked by the group for small business funding of $75 per person. There was a great deal of excitement amongst the 9 women and 1 man selected. Each person had a modest business plan and budget. If these people are successful they will set aside a portion of their profits to launch others in the group into their own businesses.

Since my last email referring to this enterprise, $250 has come to Baobab Home earmarked for this endeavor. These donations were unsolicited. Only $500 more is needed to start these good people on their way to greater self sufficiency. I am hoping with all the people that have been reading my emails that we can raise that amount and more. If we raise more it will go to the HIV mobile testing in the more remote villages that we start on the 30th. These are two very important pieces in the fight against HIV/AIDS and the stigma surrounding it here. Donations can be made on line through Pay Pal on the Baobab web site www.tzkids.org or by snail mail. The address in NJ is also on the web site. Please make sure you earmark whatever you send with a note referring to the Uwamaba group. Thank you The following are the names of the people chosen and a brief description of what their business plans look like. I will attach photos in a separate email so you can place a name with a face. Thanks again!

Ken

1.Mwayadna Muhela

She is a single mother with 3 children. Her husband left her when she tested positive even though it’s most likely he infected her. This is a common story amongst the 9 women. She wants to be able to sell cooked fish to the workers near her home as there is no local vendor.

2. Teresia Valande

She already sells soda and juices from her home and wants to increase her inventory and realize savings by buying in bulk. She is a single mother with 2 children.

3. Mary Mzamu

She makes uji from scratch, buying the 5 grains and grinding and combining them herself. She would like to expand her client base. Baobab would be interested in buying directly from Mary for the breakfast program at the clinic.

4. Subira Faranga

She had 4 children but 3 have died. She cooks in a handmade food stand which she would like to repair and expand. She would also like to be able to buy supplies of wood and charcoal in bulk to maximize profits.

5.Halima Magenge

She now buys batik cloth that she sells door to door. She wants to buy more cloth to make enough money to invest in a small shop as she finds the many miles she walks every day selling door to door a struggle.

6. Katarina Bundara

She now travels 5 hrs one way 3 days a week to sell her cooked fish in a remote village. She said there is a market for her fish locally if she had the money to build a small vending stand and be able to pay the small licensing fee.

7. Mwinyimbegu Mnyamisi

He sells raw fish in Dar once a week but even though the profit is good he wants to be able to make the trip 3 times a week to make enough money to keep his 2 children in secondary school.

8. Mariamu Hashimu

She needs money to finish her half built stand in which she already has a decent business selling doughnuts. She would like to expand her business and buy cloth to sell for women’s kangas, the colorful wrap-arounds that all the women wear.

9. Rehema Digale

She lives in one room with her 2 small children. Her husband left her. She already sells cooked cassava and other cooked vegetables and would like to expand her business and also buy wood and charcoal in bulk.

10. Ashura Rajabu

She would like to buy chicken and cook it at home and sell it to local workers in her bustling neighborhood. She supports 2 daughters. Her 2 young sons died of AIDS.

Can You Still Get a 5% Mortgage??

2010-03-24T06:48:00.000-07:00

There's still time to get a 5% mortgage -- but the window is closing.

On April 1, the government will stop buying mortgage-related debt, which will send interest rates slowly higher. Since November 2008 the Federal Reserve has snapped up $1.25 trillion worth of mortgage-backed securities -- essentially, people's mortgages bundled together and sold to investors.

The program has kept interest rates artificially low over the past year, with the price of a 30-year fixed-rate loan ranging between 4.93% and 5.09%, according to mortgage giant Freddie Mac.

That's about 0.4 percentage points lower than these loans would have been without the government's intervention, according to Jay Brinkmann, chief economist for the Mortgage Bankers Association.

But when the Fed stops buying and cedes the playing field to private investors, they will almost surely demand better return for their risk.

"Rates are going to be higher than they are now," said Brinkmann.

How much higher is the question.

"It's really hard to tell right now," said Amy Crews Cutts, Freddie Mac's deputy chief economist. "The Fed said it will taper off [purchases] gradually. Each week they buy less than the week before."

So far, though, the tapering has failed to spawn higher rates. Last week, the 30-year was just 4.96%.

Still, all of the experts agree that mortgage rates will climb. The good news is that none of them think the increase will be very large.

Their projections are for a gradual run up to between 5.5% and 6% by December. Brinkman's projection is a rise to 5.8%; Cutts is to 5.75%.

That will add only about $70 to the monthly payment on a $150,000 note. That's still very reasonable and should not discourage many consumers.

Homebuyers may even find themselves paying less every month as housing markets continue to experience price declines.

Excerpted from CNNMoney.com

Ken's Journey to Tanzania: Journal Entry #10

2010-03-11T07:28:00.000-08:00

It's been very busy with all Terri has taken on and there hasn't been time to even gather my thoughts. This is my last entry until I return from safari on March 18th.

We were invited to speak to the Bagamoyo HIV support group 3 days ago. Terri and I and George, one of the former street boys, took a bajaji to their office. It was about a 20 minute ride to a section of town I hadn't seen yet. It seems our driver was a bit confused also in this older section of town as he had to phone his office for directions. The roads got narrower and dustier and the sun was beating down unmercifully. The twists and turns of the road had all of us confused and I'm sure I could not have found my way back to any area I would recognize.

When we arrived, 15 minutes late, we were greeted by Assia and her husband Ally (I had mistakenly referred to him as Bennard in a previous post and also in a photograph). The building was cinder block, solid and unpainted with a rusty tin roof. The office itself was cramped and stuffy and packed with about 30 people. There were posters on the walls, many with the swahili word for AIDS, ukimwi. The group was comprised of mostly adult women 20 -50 years of age and approx. 10 men all a bit older. The women were beautifully attired in their multi-colored kangas and the men wore trousers and collared shirts. The room was stifling and everyone was sweating profusely as there was no fan and only one small window. Terri and I were escorted to a small table with 2 chairs while most of the members sat on the dirt floor. We had worked on a short presentation which included a prevention discussion and our planned visits to more remote villages to test willing residents. As I spoke and Terri translated I looked out into the room and was surprised how emotional it was for me.

The stigma around HIV/AIDS in Tanzania is pervasive and the courage shown by these people, most of whom walked great distances just to meet us, was beyond belief. I found myself choked up on several occasions as people spoke of being ostracized by society in general and many who were shunned by their families and friends. Yet, here they were telling me how important it was to be open with anyone they met, to be honest with themselves and everyone they knew. It brought back painful memories of the early years of the AIDS epidemic in the US when health care workers refused to enter the hospital rooms of anyone with AIDS.

After we wrapped up our presentation there were questions and comments. One man, whose name I wish I had written down, explained why there were so few men in attendance in response to my question. He was about 65, very nicely dressed with a kind face. His eyes betrayed a weary sadness. He spoke perfect English with a British accent. A vestige of colonialism I'm sure because many of the older men of Bagamoyo have a command of the English language. He told me the men of Tanzania are in denial and will not accept responsibility for their role in the spread of HIV. He also said the government should make testing mandatory for all citizens. Pregnant women must consent to an HIV test and may be denied admission to the hospital to deliver their babies if they don't comply. Angrily, he said that even if a woman tests positive husbands or boyfriends do not have to be tested or even named. He then said no amount of prevention education will make a difference until men change their selfish ways.

It was obvious to me that this man commanded the great respect of all in attendance. He then spoke to the group in Swahili translating what he told me. There was much nodding of heads as flies buzzed around the room and everyone looked wilted but attentive. When he finished people applauded and he turned to me and said "thank you for allowing me to speak the truth". I want to impress upon all of you reading this how bold and fearless this man is to speak the truth openly.

Because so many of these people have lost jobs or been denied employment due to their HIV status we inquired as to how much it might cost in start up money for a member to open their own business. After some internal discussion the president of the association said about $75. Terri and I quickly brainstormed and came up with a plan to sponsor 10 of their most entrepreneurial members who must present a solid business plan and if they are successful they must then agree to re-invest some of their profits in other support group members to get them started in self employment. This was greeted with tremendous enthusiasm and many assante sanas. When I return from safari the group will have chosen 10 members and we will get their photos, bios and business plans and go about trying to raise the $750 to jump start this program. We decided to gift the money and not treat this as a micro loan as these are not really people who are allowed to participate fully in Bagamoyo society. They are already under tremendous pressure and having a debt would be extremely stressful.

As the meeting broke up people lingered to shake our hands and thank us personally. I am still amazed that a group like this even exists and the fact that there are 525 members is even more astounding. Actually, make that 527 as Terri and I were voted in as honorary members as the meeting ended.

Terri was greeted by an elderly woman as we left. She asked Terri if she had a few minutes to spend with the woman's daughter who was very ill. Terri knew this woman and her daughter and she readily agreed. They lived near the support group office so we followed the woman down some narrow paths. She had a very bad limp and walking was obviously uncomfortable for her. As we walked the landscape changed and I felt like we had been transported back in time to an Africa of the distant past.

The houses were all mud and stick construction and all had palm frond roofs. Upon closer inspection many of the homes had walls that were crumbling and holes in their roofs. There is no electricity, no plumbing, no well. There were no screens anywhere and I saw no evidence of mosquito nets. Terri said this is the poorest part of Bagamoyo and is rife with disease - malaria, TB and HIV. We arrived at the woman's 10X10 foot house which looked like it might fall down in a stiff breeze. The walls were crumbling and it seemed only part of the roof was intact. Insects of all types were crawling in and out of the dwelling. Slumped against the front wall of the house was the woman's 28 year old daughter. She barely had the energy to lift her head and greet us. She is suffering from advanced HIV and TB infections. She was in a dirty, torn kanga and spoke so softly Terri had to lean in closely to understand her. I have tears in my eyes as I am writing this. I can't remember a more pathetic scene. I honestly don't know how Terri finds the strength to do this day in day out. All the joy of the previous 2 hours vanished.

The daughter's husband left her after she tested positive for HIV. Ironically, he was the one who infected her. Her two year old son died last year of HIV but miraculously her 5 year old daughter is negative. As Terri continued to speak to her the mother hobbled into the house and came back out carrying a small stool. I'm sure, other than the bed, it is the only piece of furniture they own. She placed it next to me, gently pulled my arm and gestured for me to sit. I could not accept this offer. I smiled at her thanked her but then said hapana, no I can't. I then gestured for her to please sit on the stool. She hesitated but smiled and thanked me and gratefully sat.

I stood there lost in my own thoughts. All this sadness, all this misery it is all too much to bear sometimes. It seems incomprehensible. We have all seen this misery on our tvs in our movies but to be here to see it, to smell it, to feel it with your whole being takes your breath away.

An hour passed and it was time to find our way back home. The sun had drifted below the palm trees and the shadows were filling the little courtyard. Terri looked drained and I didn't think I could muster the energy to even get back to the support group. We said our difficult goodbyes. We trudged back down the dirt path and after a minute heard something behind us. We turned at the same time because the sound was strange, a labored, foot dragging sound. It was the young woman breathlessly trying to catch up to us. We stopped and the effort on this young woman's face was heartbreaking. It had taken every bit of energy for her to catch up to us. She leaned on Terri, and in gasping breaths said it was impolite to not walk us to the edge of the village. At this gesture Terri broke down and I couldn't even look at the young woman I am so ashamed to admit. Where does this come from? Why, in this woman's grave condition, did she feel the need to be hospitable and do the socially correct thing? Why did she care about us? There are no answers to any of my questions. The only thing that ever comes to mind for me is, this is all the accident of birth. She was born in the wrong place at the wrong time. What I continue to struggle with is, why?

Ken's Journey to Tanzania: Journal Entry #9

2010-03-02T07:24:00.000-08:00

Ken Russo is spending three months this winter volunteering at The Baobab Home, an orphanage in Bagamoyo, Tanzania that provides care for children with HIV/AIDS. He is documenting his fascinating experiences and sends us periodic updates from his journal. Here is his latest entry. Read about his whole journey starting back at the end of January …

Tuesday, March 2
Terri and I returned late last night from an incredible trip to Nairobi, Kenya. The flight was about an hour, fifteen minutes. We flew over Zanzibar and there were stunning views of snow covered Mt. Kilimanjaro later in the flight. We were visiting relatives of my stepmother and father who have lived in Nairobi for 20 years, Peter, his wife Helga and their two teen aged children Christopher and Hannah. The children were born in Kenya. The second we arrived we were both thrilled by the cool temperature with little humidity. After a month of oppressive weather we were both energized.

After arrival we met the driver of the cab that Helga had sent for us. After leaving the airport it became clear that this was going to be the cab ride from hell. We had originally booked a morning flight which Kenya Airways canceled. We were re-booked on the late afternoon flight that Helga warned would put us in Nairobi at the worst possible time for commuting. She was right. The 12 mile trip to their home took 4 hours! It did give us time to get to know our driver, Hamuel. He arrived in Nairobi after leaving his family’s farm when he was 22. He had no money and was barefoot when he arrived. He slept outside and looked for work for weeks. He now has his cab license and a second job. He and his wife saved enough to buy a 2 room house and are putting their children through school. He said they are raising their children to be independent and well educated. I don’t know when he learned to speak English but he speaks it fluently.

As we approached Peter and Helga’s neighborhood the landscape changed dramatically. We left the crowded urban streets of Nairobi and entered an area that I can only describe as Greenwich, CT. We were stopped by guards at the gate and entered the Spring Valley area. Well maintained roads, mature trees and plantings everywhere with beautiful homes behind high walls, some of the walls with razor wire on top. There were dogs behind most of the gates and small guardhouses at the entrance to most of the driveways. I felt like we had left Africa and entered suburbia, albeit a very secure suburbia.

We drove down the long brick driveway to the house and arrived at a metal gate which a guard opened as he welcomed us to the property. The two story house is comfortable and filled with interesting African art. We were met at the door by Jacinta, the housekeeper and after bringing our bags in she drove us to meet Peter and Helga at a birthday party they were attending in the neighborhood. Many of Helga’s colleagues were there as were many people working in HIV and malaria research. We were welcomed warmly and walked down the long backyard hill to the tent where the party was winding down. The adjacent property is one of the United Nation’s world headquarters. The food was delicious, the conversation smart and passionate and with the full moon and cool weather we were extremely content.

The next day found us at Nairobi’s International School’s food festival. It was held on the campus of this most extraordinary school with its excellent academics, plus world class arts and athletic facilities. This includes an Olympic size pool and a 500 seat theater for performing arts. The grounds are manicured and there are towering shade trees many in full bloom. There are students from all over the world who will all probably go on to universities in Europe or the US.

The festival was held in a large field with tents and tables and chairs and there was food from at least 50 countries. The huge crowd was in great spirits and the mood was festive. We were accompanied by Peter, Helga and Helga’s delightful parents visiting from Germany, Hans and Margarete.

We headed to the US Embassy after the fair for a swim in their large pool. We were waved through two sets of gates and were in the pool shortly after. It was great to swim and the pool was plenty big enough for lap swimming. We returned home refreshed and ready for dinner.

We left Spring Valley for Mediterraneo, an Italian restaurant in Nairobi proper. This restaurant is popular with expats and the food was excellent. Helga’s parents regaled us with some incredibly harrowing tales of life under soviet rule in East Germany including the time they were caught trying to cross the border into West Germany.

On Sunday we had a leisurely breakfast in their sunny dining room with everything your heart desired on the table with all manner of local fruits, homemade jams, bagels, cereals etc. The conversation centered on Terri and Baobab.

Later that afternoon Peter and Helga took all of us to the very British, Mugaitha Club. It must have been what colonial Africa was like for Europeans. It was elegant, complete with white glove service. The grounds and buildings were impeccable and the patrons were well dressed, everyone engaged in quiet conversation.

We enjoyed a delicious, light supper on Sunday evening prepared by Helga and served on the patio undisturbed by insects or humidity. There was much fun as the children joined us. They are well mannered, very bright and extremely charming.

It was hard to leave Monday morning but we said our thank yous and goodbyes and purchased 3 jars of Jacinta’s delicious homemade jam. Peter and Helga were the consummate hosts and we couldn’t have had a nicer time. Helga’s parents were a joy and I hope to see them again. I look forward to seeing them all this summer in Marion as they own a home that has been in Peter’s family for generations.

The return trip to Jomo Kenyatta Airport took less than an hour. Kenya Airways, again, canceled our 1:30 flight and we didn’t leave until 5pm. In the interim Terri had to endure an interview with the airport doctor as she is 7 months pregnant and the airline wanted to confirm that she was fit for travel. The interview cost 600 Kenyan shillings, about $8.00 Traffic was a nightmare in Dar and the ride back with Terri’s husband took 3 hours to cover 50 miles.

We are back in the humid soup that is Bagamoyo with much planned over the next few weeks.

Ken's Journey to Tanzania: Journal Entry #8

2010-02-24T07:21:00.000-08:00

Ken's Journey to Tanzania: Journal Entry #7

2010-02-21T07:18:00.000-08:00

Ken Russo is spending three months this winter volunteering at The Baobab Home, an orphanage in Bagamoyo, Tanzania that provides care for children with HIV/AIDS. He is documenting his fascinating experiences and sends us periodic updates from his journal. Here is his latest entry. Read about his whole journey starting back at the end of January …

Friday, February 19
The trip to Dar was quick and uneventful. We hired a taxi and Terri’s favorite driver, Bwana Chu Chu. He’s a very good natured, large man with the patience of Job. It seems that nothing fazes him.

We arrived right on time for our meeting with Thomas Kipilingi. Thomas is about 35, well dressed and incredibly articulate. His command of the English language is impressive. Thomas has spent the last 9 years working with Rwandan refugees and has spent many hours in the camps. His office is on the top floor of a 3 story, glass building. It was also air conditioned. There are few high rises in Dar, most no more than 3 or 4 stories. He explained the grant process in detail and Terri and I felt that we made a very good impression. We will start writing our proposal when we return to Bagamoyo

Dar es Salaam is a sprawling city of approximately 4 million people located south of Bagamoyo on the Indian Ocean. It is chaotic and colorful with residents selling everything everywhere. The streets are mostly dirt with a few of the main roads paved. There are few traffic lights yet somehow getting around is no more problematic than driving in any major western city. There is mass transit, mostly buses which are always packed. Even here the roads are shared with goats, chickens and cattle. Here, as in Bagamoyo women balance large bundles or buckets of water on their head. There is a peninsula that juts out into a bay and it is here you will find large homes in gated neighborhoods sometimes with armed guards. This is also where you will see luxury shops and high end restaurants with US pricing. We had lunch at the Africafe, very upscale and very air conditioned.

Sunday, February 21
Terri and I took a ride to the center of town looking for a friend of hers. The Baobab Home jeep is perfect for the torn up dirt streets of Bagamoyo. It is a beat up, high clearance vehicle with a few dents and real safari charm. We found Terri’s friend who is a member of a nomadic tribe. She didn’t recognize him at first as it was the first time she had seen him in western dress. His tribe is very similar to the Maasai with the same ideas as to what is beautiful. Like the Maasai his two front lower teeth had been extracted, he had large holes in his earlobes and there is a distinct space between his two front upper teeth. Terri says at a young age reeds and then small pieces of wood are forced between those teeth to create a gap. He was reserved but friendly and he and Terri had a conversation in Swahili. His native language is tribal.

The “downtown” area of Bagamoyo is dusty with a low profile as most buildings are a single story. Most are unpainted cinder block with several older, traditional mud and stick dwellings. Dirt floors are the norm and kitchens are usually self contained and separate from the main dwellings. This makes perfect sense as the homes are already hot and almost everyone uses smoky charcoal or wood to cook. I think the only kitchen I’ve actually seen within a main dwelling is at Terri’s home.

We then went to check in with a woman, Assia, who was deathly ill with AIDS 2 years ago. Baobab had made sure she started HIV drug treatment and her health quickly improved, surprising everyone. Terri saw that she received job training and it was discovered she was entrepreneurial and her life improved immeasurably. Baobab built Assia a small home as they have for 8 other families in crisis. The houses are modest affairs but are life altering for the families. She married Bennard last year. He is also HIV+ and doing well on therapy. They are a most amazing couple. They have become Bagamoyo’s first public AIDS activists, determined to overcome the stigma the disease still carries here. Bennard has started an informal support group with monthly meetings for a membership approaching 500. He wears a t-shirt with the AIDS red ribbon and a slogan in Swahili, We Care. They travel to remote villages at their own expense and bring with them instant result, HIV test kits paid for by Baobab. They say, at times, they have met great resistance but have always found at least 5 people in each place willing to be tested. They are the most inspiring and determined people I have met here. They are also gracious and welcoming. Their home is clean and tidy with everything in its place. Bennard said he would like to call a special meeting of his support group in our honor. Terri and I may take him up on his offer as we would like to meet these courageous people and see if there is any way we can help. As we left they each took both my hands in theirs and said several times, Asante sana (thank you so much)

On Sunday Caroline, the Danish volunteer and Mugin and Ima, 2 former street boys and I traveled to Baobab’s shomba (farm). It’s a 15 minute drive from the current Baobab Home and a world away. As I mentioned in an earlier email within a few months all of Baobab’s operations will be moved there. Presently there are 3 buildings, the new expanded orphanage, an open air covered dining room and a small, traditional round building with a thatch roof which will be the office. There are 3 buildings yet to be built, a kitchen, a dormitory for the HIV camp (more on that in another email) and a home for Terri, Caito their son and a child on the way this April. The goal here is to expand services and become more self sufficient, growing their own crops and purchasing dairy cows. A by product of the cows will be bio fuel, reducing or eliminating the use of expensive propane or charcoal. As I mentioned previously the farm is sited on 15 acres and is situated perfectly to catch the strong breeze off the ocean. There are banana and orange trees along with mangoes. All the buildings were constructed using private donations and volunteer labor.

We came out to harvest a 1⁄4 acre of cassava, a starchy root similar to a potato. The leaves are edible and are often cooked with coconut juice. The smaller plants are pulled out by hand but even those are challenging. Caroline picked leaves while the rest of us pulled plants using hoes on the larger trees. It was hard, hot work but it felt great to be working outside in that strong breeze. The boys had much fun at my expense watching me handling the panga (machete). After 4 hours we had cleared the field and had quite a haul of cassava and leaves. We delivered everything to Baobab where the house mothers will prepare it. Needless to say I slept very well that night.

Ken's Journey to Tanzania: Journal Entry #6

2010-02-16T07:14:00.000-08:00

Ken Russo is spending three months this winter volunteering at The Baobab Home, an orphanage in Bagamoyo, Tanzania that provides care for children with HIV/AIDS. He is documenting his fascinating experiences and sends us periodic updates from his journal. Here is his latest entry. Read about his whole journey starting back at the end of January …

This is a quote from a book I just finshed, "The Crocodile that Ate the Sun" about the ongoing tragedy in Zimbabwe. The author writes for National Geographic. I believe in light of Steve's death it is timely.

"In Africa, you do not view death from the auditorium of life, as a spectator, but from the edge of the stage, waiting only for your cue. You feel perishable, temporary, transient. You feel mortal. Maybe that is why you seem to live more vividly in Africa. The drama of life there is amplified by its constant proximity to death. That's what infuses it with tension. It is the essence of its tragedy too. People love harder there. Love is the way that life forgets that it is terminal. Love is life's alibi in the face of death." -Peter Godwin

Tuesday, February 16
It’s been 3 days since Steve’s funeral and I find going to Terri’s a little empty right now. I miss the greeting I received. No matter how poorly he was feeling I always got a huge smile and an invitation to play a computer game with him or watch a movie. His bed is empty and the painting he gave Terri and Caito is on the wall. It’s a traditional village scene with a large, hopeful sun with bright yellow rays emanating from it. He was not able to finish the painting he started for me and there is something unbearably sad about that.

Yesterday was clinic and there was a steady flow of HIV positive people into the courtyard where people sit on benches waiting to be called. Many of the women have walked miles to the clinic as they cannot afford even public transportation. They are all beautifully dressed in long colorful dresses and equally colorful scarves and headdresses. Several carry babies on their backs and some arrive with older children. One small girl was helping gather bowls after people had their fill of uji. Her name is Amina and she’s 8 years old. She was dressed in an ironed, pale pink dress and she had a pink book bag. Her smile was absolutely captivating. After helping she came to me and smiled and with my limited Swahili and well thumbed phrase book we engaged in what we both found to be a fun conversation. I gave her my pen and notebook and she started to draw maua (flowers) and many different animals such as tembo (elephant) and twiga (giraffe). I gave her my pen and several sheets of paper which she thanked me for and placed in her book bag. A name was called and she moved quickly to catch up with her mother who was approaching the nurse’s desk. I fully expected to see her mother get on the scale as everyone does before their check ups. It wasn’t her mother that stepped on the scale, it was Amina.

Terri and I have been working on public funding for Baobab as there is no possibility of expansion depending solely on private donations. We will be traveling to Dar yet again this Thursday to meet with the representative of an organization with available grant money. The organization, Rapid Funding Envelope, was recommended by Alison Ellis and I would like to thank her publicly in this forum for her assistance. Terri and I are both excited by the possibility and we are keeping our fingers crossed. We also have many other errands to run there so it will be a full day.

I have been wanting to make mention of the characters who are either in residence or spend time at Francescos or in William’s restaurant on the premises. First there is Ramone a 50ish Spanish national who claims to be an eye doctor. I’m a bit skeptical as I mentioned several diseases of the eye to him and nothing seemed to register and his English is good. It seems that he and his Tanzanian wife have run a few Ponzi schemes with some of the locals. According to Terri they have bilked the people of Bagamoyo out of thousands of dollars. His wife has been convicted and is now serving time in the local prison. Ramone is free at least for the time being. Then there is Sophia an Italian living here with her Tanzanian boyfriend and their child. They argue publicly constantly in Italian, Swahili and English. There is Bebeto the former manager of Francescos who is suing his former employer and Francesco has filed a counter suit yet Bebeto is here every day and evening. Bebeto’s wife runs the concession stand but she hasn’t spoken to Bebeto in months. There is William the cook who is pining away for Caroline, a Danish volunteer, who is blissfully unaware of his angst. The funniest part is he keeps asking me for advice and I’m just the one to ask with my vast experience of the opposite sex. Then there is Francesco himself who is 80 years old, walks around town with no shirt on (which is highly offensive to most of the women especially Muslim women) and when I asked him how much Swahili he speaks after spending at least 6 months a year here for 20 years he answered “not a word, it is a boring language” This is a man who speaks three other languages fluently. He is incredibly narcissistic and talks incessantly about his vast wealth while he pays his help a dollar or two a day. There is no escaping him and I may have to starting eating in my room to escaped him.

After dropping the boys off at Halima’s she invited me to spend some time with her. Her home consists of two, small cinder block buildings, one for sleeping for 7 people the other is an open 2 room building with a dirt floor. There are large window openings and no screens. She invited me to sit next to her on a board sitting on 2 cinder blocks. She then sliced a small watermelon and gave me the first slice. It was very sweet, warm and messy. She divided the rest among the children. She is so affectionate with the children and they adore her.

Halima weaves thin reeds into beautiful floor mats. She works on the ground, hunched over her work in what looks like a very uncomfortable position. She never complains and she seems to only take delight in everything she sees. I have grown quite fond of her. We went out to her shaded back yard where she unrolled one of her large mats. She lay back and invited me to rest next to her. We lay there together not speaking but both enjoying the shade, the breeze and the company. Sadly, Halima’s yard abuts a new garbage dump which looms over her yard and is only about 50 ft from her property line. She continues to fight the town wanting the dump closed but I fear she is fighting a losing battle. She worries about the health of the children. She is unconcerned for herself because she says she is ancient and by Tanzanian standards she very well may be ancient. The average life span is less than 50 years. Halima is 64.

One of the little boys Halima foster cares is the sweetest most loving child I have ever seen. I attribute this solely to Halima’s care. According to Terri, Habibu was malnourished when they found him and was developmentally challenged due to malnourishment and neglect. His family shunned him as they believed he was possessed by an evil spirit. They believed this because he is mentally much slower than children his age.When Terri went to his home to evaluate the situation she found him alone, in a dark corner, emaciated and naked. No adults in the home would go near him. He was 4 years old. When Terri approached him she said he howled in fear like a trapped animal. It is hard to imagine that scene when I am with Habibu today. He runs to me on school days and never lets go of my hand on the walk to school. He greets me in Swahili and right before we leave Halima makes sure every button is fastened and his shoes are tied and then she lifts him in the air, hugs and kisses him. She then holds his face in her hands and says baadaye, see you later followed by Ninapenda u Habibu, I love you Habibu.

Ken's Journey to Tanzania: Journal Entry #5

2010-02-13T07:10:00.000-08:00

Ken Russo is spending three months this winter volunteering at The Baobab Home, an orphanage in Bagamoyo, Tanzania that provides care for children with HIV/AIDS. He is documenting his fascinating experiences and sends us periodic updates from his journal. Here is his latest entry. Read about his whole journey starting back at the end of January …

Thursday, February 11 and Friday, February 12
Yesterday was very slow at the clinic and we had a lot of uji left over. We decided to visit a few wards of the hospital and offer breakfast. The conditions inside the wards were deplorable. Desperately ill people lying on filthy sheets if they were lucky enough to have sheets. Most were lying on the sagging, plastic mattresses with no pillows. The smells were overpowering and all surfaces were covered in grime. Mangy, starving cats roamed the wards at will looking for scraps or even insects. There were no fans and no mosquito netting. The maternity ward was especially squalid with one nurse for 25 mothers and their babies.

You cannot imagine the gratitude expressed by the patients for a simple bowl of porridge. The hospital serves no food so the people depend on loved ones to feed them. As we handed food out the patients would touch our hands and thank us, several people said bless you in Swahili.

After the hospital I walked over to Traveller’s Lodge to eat lunch and to re-group. The lodge is a tranquil oasis that I escape to once or twice a week for its serenity and good food. I must admit it was strange to sit there after the hospital experience. The raised patio has a thatched roof at least 30 feet high which contains several fans. The patio looks out over the dense landscaping. You can hear the ocean just beyond the “jungle” in front of you.

While I am writing this Terri called to tell me Steve died at 10:15 this morning, 2:15am east coast time. He was 15. I must stop writing now.

Friday, February 12
Yesterday seems like a bad dream. I was at the clinic when Terri called and she asked me to arrange transport of Steve’s body. If not for the kindness of Dr. Ayam and her affection for Steve and the assistance of physician assistant, Rigobert I would have been lost. They were patient, compassionate and so helpful. They quickly arranged for an ambulance (no small task in Tanzania) and Rigobert , recognizing my obvious distress, rode with me in the back. Mama Ponda one of the HIV clinic nurses rode in the front with the driver.

It was a somber scene at Terri’s house where Steve has been living for the past 8 months. Terri was in tears and the street boys were milling about asking how they could help.

The street boys are 8 teenagers who were living on the streets of Bagamoyo fending for themselves with no families to care for them and if they did have families the boys were often subjected to physical abuse. Terri took them in several years ago and Baobab found them housing and sponsors to pay for schooling. They are amongst the sweetest, most thoughtful group of kids I have ever met. They live together as a family of brothers in a 3 room apartment paid for by Baobab. They are all progressing in school and they are always asking how they can help. They all loved Steve and their grief was evident in their eyes. 3 of the boys put on rubber gloves and got ready to transport Steve. I first went in and sat with Steve whose body was covered in a white sheet. I uncovered his face. He looked so peaceful all the pain and fear had left his face. After all his suffering he looked like a little boy, fast asleep. The boys carried Steve to the ambulance, several of them in tears. They had all been so good with Steve when he was ill, rubbing his back, fetching whatever he needed, bathing him. I rode in the back of the ambulance with Steve and Rigobert. 3 of the boys followed in Terri’s jeep. We arrived at the hospital morgue and the boys carried Steve in and gently placed him in the stainless steel drawer.

We went back to Terri’s and sat on the porch not speaking for several hours as is the tradition here. Then people started to depart.

I went to eat and check my email at the internet café. As I was sitting there a text came in from Rigobert. It said: “Brother Ken, you don’t need to think a lot about Stive (sp), we loved him but God loved him most. I know it’s painful but the boy is resting and it’s the way it’s supposed to be. We are together in this painful moment. Let’s pray for him. Thanks for the spirit of helping you showed to our young brother Stive” I just sat there with tears flowing down my face. He said one other thing that haunts me, “My friend remember, this is Africa” It is either a statement of resignation or a cry for help to the western world. I believe it is probably both. The people here know that Steve died because of the geography of his birth. They know if he was born in the west he would be alive and thriving right now. But because “this is Africa” he is dead at 15 his tiny body in a stainless steel drawer in a refrigerated morgue in this stifling African town.

Saturday, February 13
Steve’s funeral was yesterday in the hills outside of Dar es Salaam. Baobab rented a 30 seat bus and it was packed with employees and friends. Halima sat next to me and pointed to things on the road and told me their names in Swahili. She then had me repeat what she said which always got a smile from her. The road to Dar was packed and it took a little over 2 hours to get there. About 1⁄2 hour before we arrived everyone on the bus started singing traditional hymns for the dead. It was so sudden and the voices were so beautiful, in harmony with the pitch rising and falling, that I was incredibly moved. Terri said the words spoke of the loss of a child and the chorus was “we will be together again”.

We parked at the bottom of a steep hill and as we walked through a cool, wooded area the people continued to sing and more fervently as we approached Steve’s grandmother’s house. Their voices were greeted by the voices of the women mourners inside the home and as we got nearer all the voices blended and we were surrounded by a wall of angelic sound tinged with sadness. We paid our respects to Steve’s distraught grandmother who took both of my hands and thanked me in English for being a friend to her grandson. The women inside continued to sing many songs as other women prepared the meal for at least 100 people. The men sat separately which confused several people as this was a Christian service. Perhaps it was out of respect to the many Muslims there. I was greeted warmly by many people several of whom spoke to me in English. A man came by with a basin and a pitcher of water. It is the custom to wash your right hand or both hands before you eat but you may only eat with your right. It was a bit of a challenge being left handed but I was able to eat without making too big of a mess. The food was delicious, if a little heavy on starch.

After everyone ate, the minister, in a white robe, came out along with all the women in the house and gave his sermon in a strong, clear voice. More singing and then they brought a table outside with a lace cloth on it and several men brought out Steve’s coffin and placed in on the table. There was a simple, hand painted cross with Steve’s name and dates of birth 6/6/1994 and death 2/11/2010. The men opened the coffin and pulled the sheet away from Steve’s face. Oddly, there was cotton in Steve’s mouth and nostrils. No one seemed to know why. The minister then directed everyone to file past to say kwa heri, goodbye. So many people in tears.

The whole congregation walked in silence 1⁄4 mile to the cemetery. The grave had been freshly dug that morning by 3 of the street boys who spent the previous night with Steve’s grandmother. It took them 5 hours. They placed the coffin in the grave and then Steve’s grandmother threw a handful of dirt in the grave as the minister said “ashes to ashes, dust to dust” in Swahili. The cross was pushed into the ground at the head of the grave. Working in shifts several men quickly filled the grave, sweating heavily with the effort. It was nearing sunset and everyone was exhausted with the emotion of the day. Terri was in tears for much of the day as was her husband, Caito. Halima held my hand as we walked back to the bus.

The ride back was filled with quiet recollection of Steve and more than once when people on the bus and at the funeral spoke of his death they said “Africa killed Steve not AIDS” My Swahili teacher told me that’s a common response to an early or unexpected death in Tanzania. I understand completely.

Ken's Journey to Tanzania: Journal Entry #4

2010-02-09T07:09:00.000-08:00

Ken's Journey to Tanzania: Journal Entry #3

2010-02-05T06:57:00.000-08:00

Ken Russo is spending three months this winter volunteering at The Baobab Home, an orphanage in Bagamoyo, Tanzania that provides care for children with HIV/AIDS. He is documenting his fascinating experiences and sends us periodic updates from his journal.
Here is his latest entry. Read about his whole journey starting back at the end of January …

Wednesday, February 3

Total chaos at the clinic breakfast this morning! The children, their mothers and a few male prisoners all waiting for uji, the mixed grain porridge, Our cook at the clinic who prepares the uji was a little behind this morning. It took him a while to get the wood fire going in the clinic kitchen. It is straight out of medieval times. A huge vat of porridge that he stirs with a giant wooden spoon and the smoke is so dense you can’t spend more than a few minutes with the cook. He is incredibly good natured and helpful but has no sense of time. I carried the heavy bucket 100 yards to the clinic and Katie, the other volunteer, carried the huge basket of plastic cups. We were immediately surrounded by children and their mothers and we were ladling furiously and working up a sweat in the humid 90 degree weather. In all the chaos no one forgot to say Asante, thank you. Several mothers helped distribute the uji and we quickly ran out the first batch and returned to the kitchen for the second batch. The pace was much slower and I spoke to one of the manacled prisoner. He was in an orange jump suit with a white tag sewn to the front. The tag had the date of his incarceration and of his release. I asked him why he was serving 3 years and he said in broken English “trouble with wife” which was incredibly disturbing. I then spotted Halima (I wrote about her in my previous email) She literally ran over to greet me with a huge smile and a burst of rapid fire Swahili that left me looking at her with a stunned expression. She realized I understood nothing and started laughing which of course got me laughing. I told her pole, pole (slowly, slowly) and I figured out that her 3 foster sons were excited that I will be escorting them to pre-school and that Terri had called her to say I would be at the clinic and she was looking forward to seeing me. She was there escorting a sick friend. There is such joy and kindness in this woman. People are drawn to her as they were at the clinic. I am drawn to her also and there is something else that just occurred to me, she reminds me of my own grandmother.

I took Katie to lunch after the clinic to the nicest hotel in Bagamoyo, The Traveller’s Lodge; yes they spell it with two Ls. It was a nice chance to relax and have a healthy lunch, talk about our hectic morning and get out our emails. The Australian manager, Nicholas, had kindly invited us to use the wireless connection at the hotel for no charge. A very generous offer in Bagamoyo. I sent an email to my HIV doc in Boston inquiring as to whether he knows if it’s possible to somehow get Steve to the US for treatment. He will not live long with what the Tanzanian medical system has to offer. Each day I spend with this beautiful child reveals another layer of his personality, his intelligence and his off beat sense of humor. Today I joked with him and asked him to please climb up Terri’s coconut tree to get me a coconut as I was very hungry. He looked at me and with a huge grin he gestured for me to climb the tree and get one for him to drink because he was thirsty. We both started laughing and he reached out to hold my hand and we just sat quietly enjoying the moment.

I will be sending a separate email with photos to everyone. Unfortunately I don’t know how to re-size my pics and the camera only lets me choose large or small format. A lot of you are not getting the photos because your mailboxes are too small. Sorry about that.

Thursday, February 4
The day started with a great deal of promise and ended with uncertainty. I walked to Halima’s to pick up her 3 foster sons, Shaboni, Habibu and Arthumani. These little guys are break your heart cute. Halima greeted me in her usual open arms fashion. There was picture taking, a lot of smiles and Asantes (thank yous). It was already hot and humid at 8am with no breeze and we had a mile walk on a very busy road. The boys stayed close as the road is intimidating and I delivered them safely to the school yard. Of course there is no getting away easily from a group of school children here as they always come running over to practice their English.

On to have 6 more passport photos taken for my volunteer visa. It was $100 for the tourist visa at the airport and $120 for the volunteer visa. It’s a real scam. After the photographer positioned me for the pics she gave me a sly smile, walked away, came back and handed me a comb. The second I started laughing so did she.

When I delivered the photos to Terri it was obvious Steve was struggling to breathe and he was crying in pain. Terri called a taxi and we were off to the Ocean Road Cancer Institute in Dar es Salaam, about 1 1⁄2 hours away. An x-ray showed a marked deterioration in his lung capacity and his respiration rate was about 60/minute. We met with the oncologist, Trish Scanlon from Canada a woman of great determination and compassion. She said it appears that Steve has systemic KS (Kaposi sarcoma) and his prognosis is very poor. He was so weak I had to carry him back to the car. Pain meds helped as did an ice cream cone. We are working on finding portable oxygen to be administered at home. His blood oxygen level is 73% and should be 95-99%.
I’m so glad I’m here for Terri as Steve is like a son to her and I can see the toll this is taking. Early to bed as there is a 5am wake up call and back to Dar with Steve for an 8am lymph node biopsy.

Friday, February 5
A storm blew in last night around 10pm. For one hour the skies opened up. The rain on the tin roof was deafening and soothing at the same time. It was accompanied by continuous lightning and booming thunder. The lightning lit up the blue mbu (mosquito) net over my bed. The temperature dropped by at least 10 degrees and it was the first time since I arrived that I pulled the sheet over me.

We were on our way to Dar, watching the sun rise over the verdant landscape. Closer to Dar traffic was at standstill and we had a firm 8am appointment at the hospital. We still had 3 or 4 miles to go so Terri, Steve and I jumped out of the cab and flagged down a bejudgee, a 3 wheeled, enclosed motorcycle with a seat for 3 behind the driver. They are ubiquitous in the city. The next 20 minutes we flew down the unpaved, badly rutted shoulder of the road in a mad cap, white knuckled ride where it felt like the vehicle was going to tip over at any moment. The young driver was honking wildly and we were weaving back and forth between the shoulder and the road. Steve was between the 2 terrified adults and slept through the whole ordeal. We were shaky but laughing when we exited the cab and grateful to be back on solid ground. We carried Steve in. He was terrified but stoic and he did very well. The results of the biopsy are due next week. If it’s KS he will not be subjected to anymore poking and prodding and we will move on to palliative care. If it’s lymphoma a decision has to be made around a course of chemotherapy and unless Steve was insistent Terri and I do not want to see him go through it.

We are finally delivering on a week old promise to see Avatar and he is subdued but excited nonetheless. Again, he has so much gratitude for such a small thing.

Ken's Journey to Tanzania: Journal Entry #2

2010-02-03T06:52:00.000-08:00

Ken's Journey to Tanzania: Journal Entry #1

2010-02-01T06:46:00.000-08:00

Can you use $6,500?

2010-01-30T08:58:00.000-08:00

Are you aware that you don’t have to be a first time home-buyer to benefit from the current tax credit program offered by the federal government? In addition to extending the first time home buyer tax credit until the end of April, there is now a credit available to move-up or repeat home buyers in this same time frame for 10% of the purchase price up to a maximum of $6500.

Those who are eligible must have owned and resided in the same home for at least FIVE of the previous EIGHT years. Repeat home buyers do not have to purchase a home that is more expensive than their previous home in order to qualify.

Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000. You can even build a new home and have the credit applied.

For more specifics, click here.

Does it Pay to Remodel?

2010-01-23T08:44:00.000-08:00

Attention sellers: the 2009 Remodeling Cost versus Value Report indicates that 8 of the top 10 remodeling projects that provided greatest value were exterior projects costing less than $14,000. The importance of curb appeal must not be minimized if you are selling. You may find that doing an exterior project may help attract a buyer sooner than if you hadn’t done it.

With so much competition out there, do what you can to make your property stand out. And, you stand to recoup a good portion of your costs! Don’t look at the portion that you don’t recoup as a total loss. Compare it to your carrying costs for holding the property for a longer period of time.

Some projects with good returns were:

Wood deck addition - 80% of cost recouped at sale
Window replacement, wood or vinyl – 76.6% - 77.3%
Steel entry door replacement - 128.9%

Top interior projects were:

Attic bedroom addition - 83.1%
Minor kitchen remodel - 78.3%
Major kitchen remodel – 72%
Bathroom remodel: 71%
Basement remodel: 75.4%

To see how 33 projects fared in the report, click here.

The Year in Review Part 3: Wellfleet 2009 Sales Activity

2010-01-16T07:05:00.000-08:00

This week we have our last year end report with a look at Wellfleet’s final sales figures from MLS along with a comparative analysis of this year in relation to the prior two years. Our data comes from the Multiple Listing Service and does not include private sales. The vast majority of sales that occur in this market are MLS sales.

For more on "The Year in Review," click here.

The Year in Review Part 2: Truro 2009 Sales Activity

2010-01-09T14:28:00.000-08:00

The Year in Review Part 1: Provincetown 2009 Sales Activity

2010-01-02T14:26:00.000-08:00

The year-end numbers are in! Over the next three weeks, we will review the final sales figures from MLS along with a comparative analysis of this year in relation to the prior two years. We’ll start with Provincetown this week, and we’ll look at Truro and Wellfleet in the coming weeks.

For more on "The Year in Review," click here.

Market Uptick?

2009-12-18T13:03:00.000-08:00

In recent weeks, we have seen several sales in Provincetown at or above asking price indicating that there was more than one bidder on these properties. Just this week, there were two full price sales, and one over asking. (See this weeks sales: click here) This is good news for the market! From analysis of our office activity, the number of buyers in the market for this time of year is up notably over previous years, with many buyers looking to close by the end of the year.
Could this be the beginning of a turn-around or at least a leveling off? We’ll continue to monitor the sales and report back to you!

First Time Home-Buyer Tax Credit Extended

2009-11-06T07:05:00.000-08:00

Yesterday saw unanimous support in Senate and overwhelming support in the House for an extension of the First Time Home Buyer Tax Credit. Here’s a quick summary of the bill that the President is expected to sign today:

First time home buyers must have a sale agreement in hand by April 30 and close escrow by June 30, 2010 and would get the full $8,000
NEW ADDITION: CURRENT HOMEOWNERS looking for a new home could also qualify for a $6,500 credit if they have lived in their existing PRIMARY residence for at least FIVE (5) YEARS
CHANGE IN INCOME RESTRICTIONS: The home buyer's credit would be available to: individuals with earnings up to $125,000; or $225,000 for couples. This is up from $75,000 for individuals and $150,000 for couples under the current law
EXCLUSIONS FROM THE TAX CREDIT: Homes that cost more than $800,000 are NOT eligible and the buyer must be over the age of 18 years old to claim the credit. Those who SELL their new home or STOP USING IT AS THEIR PRIMARY RESIDENCE within THREE (3) years would have to REPAY THE CREDIT

Extension is Likely for the First Time Home-Buyer Tax Credit

2009-10-30T11:21:00.000-07:00

With the deadline on the First Time Home-Buyer Tax Credit program looming just one month away, the Obama administration is backing an extension from the original date of November 30, 2009 until April 30, 2010. The program, which has been helpful in stimulating the housing market, offers first time home buyers a straight $8000 credit on their taxes. (Previous credits were more of a loan that required the buyer to repay the government). More than 1.2 million borrowers have claimed $8.5 billion of the $13.6 billion set aside for the homebuyer tax credits this year, according to the Treasury Department.

With so many buyers scrambling to close before November 30, many buyers face the possibility of losing out simply because underwriters are swamped and may not be able to deal with the demand in time. In addition, if a buyer has not yet begun the purchase process, it is unlikely they will make the deadline. The present discussion would extend the credit until April, but there are also new components up for review, like an addition credit of $6500 for home buyers who have lived in their prior homes for a minimum of 5 years and new increased income eligibility requirements, opening up the field of potential buyers considerably.

For more details about the current tax credit program, read our April 30, 2009 article (click here)

National Rebound in Existing Home Sales

2009-10-24T06:41:00.000-07:00

Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of Realtors®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million units in September from a level of 5.10 million in August, and are 9.2 percent higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in over two years, since it hit 5.73 million in July 2007.

Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said. “We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.”

Even with the improvement, Yun said the market is underperforming. “Despite spectacular gains in the stock market, principally from the financial sector recovery, most of the 75 million home owning families have more wealth tied to their homes. Home values could soon turn consistently positive and help the broad base of middle-class families, but we are not there yet,” he said. “We’re getting early indications of price stabilization, but we need a steady supply of qualified buyers to meaningfully bring inventories down and return us to a period of normal, steady price growth and to fully remove consumer fears, which would then revive the broader economy. Without a firm foundation for middle-class wealth recovery, the post-recession economic growth likely will be one of the weakest in U.S. history.”

Total housing inventory at the end of September fell 7.5 percent to 3.63 million existing homes available for sale, which represents an 7.8-month supply2 at the current sales pace, down from an 9.3-month supply in August. Unsold inventory totals are 15.0 percent below a year ago.

“The current housing supply is the lowest we’ve seen in two and a half years,” Yun said. “If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.06 percent in September from 5.19 percent in August; the rate was 6.04 percent in September 2008.

Excerpted from Realtor.org
Big Rebound in Existing-Home Sales Shows First-Time Buyer Momentum

Third Quarter Activity Report

2009-10-02T18:44:00.000-07:00

The summer real estate market picked up markedly beginning in June and July, resulting in many third quarter sales. Many buyers, who had been waiting out the market for the past few years, came off the sidelines this summer and decided to buy. Low interest rates and the first time homebuyer credit have also helped to spur activity. The general feeling is that the market has leveled off and is not expected to drop significantly further. Despite the increased summer activity, the number of sales in Provincetown and Truro are still down about 50% off of last year’s figures while Wellfleet held fairly even with last year’s sales (which had already suffered a large decrease over the previous year).

Check out the "Real Estate Blog" on our Web site for charts compare year-to-date sales figures for Provincetown, Truro and Wellfleet with the same period last year and report on the average Days on Market of the property that sold.

Provincetown

The most active segment of the condominium market has been in the $300K - $600K range, which is accounts for 36 of the 55 sales and comprises 16 of the 30 pending sales. In the single family market, most of the activity is in the $750K and under market, with 9 sales thus far in this category and 6 more pending.

Truro

Most of the activity in Truro is in lower priced single family homes. 8 of the 15 sales were under 600K. 3 Sales were between 600K-800K and 4 were over 1M. There have been no sales this year between 800K – 1M.

Wellfleet

In Wellfleet, interest in single family homes comprises most of the activity in this market. The heaviest concentration of sales has been between 300K-600K, with all of the sales being under 900K.

Mortgage Rates Fall

2009-09-18T10:44:00.000-07:00

The 30-year, fixed-rate mortgage averaged 5.04 percent, with points averaging 0.7 for the week ended Sept. 17. That is down from previous week, when it averaged 5.07 percent, according to Freddie Mac.

Last year at this time, the 30-year, fixed-rate mortgage averaged 5.78 percent.
The 15-year, fixed-rate mortgage this week averaged 4.47 percent, with points averaging 0.6, down from the previous week, when it averaged 4.5 percent. A year ago at this time, the 15-year, fixed-rate mortgage averaged 5.35 percent. This is the lowest it has been since the McLean, Va.-based lender (NYSE: FRE) started tracking it in 1991.

“Interest rates for fixed-rate mortgages eased for the third consecutive week and remained at three-month lows,” said Frank Nothaft, Freddie Mac VP and chief economist, in a news release.

On Wednesday, the Mortgage Bankers Association reported that loan applications fell by a seasonally adjusted 8.6 percent, the result of the Labor Day holiday.

Reprinted from Los Angeles Business from bizjournals – Sept. 17, 2009

Uptrend Continues in Pending Home Sales Nationwide

2009-08-21T08:51:00.000-07:00

Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to the National Association of Realtors®.

The Pending Home Sales Index, 1 a forward-looking indicator based on contracts signed in June, rose 3.6 percent to 94.6 from an upwardly revised reading of 91.3 in May, and is 6.7 percent above June 2008 when it was 88.7. The last time there were five consecutive monthly gains was in July 2003.

Lawrence Yun, NAR chief economist, said a combination of positive market factors is fueling the gains. “Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who’ve been on the sidelines. Activity has been consistently much stronger for lower priced homes,” he said. “Because it may take as long as two months to close on a home after signing a contract, first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by November 30.”

The Pending Home Sales Index in the Northeast rose 0.4 percent to 81.2 in June and is 5.8 percent above a year ago. In the Midwest the index increased 0.8 percent to 89.9 and is 11.6 percent above June 2008. The index in the South jumped 7.1 percent to 100.7 in June and is 8.9 percent higher than a year ago. In the West the index rose 2.9 percent to 100.4 but is 0.2 percent below June 2008.

Reprinted from Realtor.org

Mid Summer Activity Report

2009-07-31T06:03:00.000-07:00

Summer is heating up and so is activity in the Provincetown real estate market. Showings have increased significantly since the early months of this year and so have the figures for residential properties that have sold or gone into contract. You can see the surge of activity in the fact that there are almost as many properties pending as the total that have sold for the entire year.

For figures of year-to-date sales, current inventory and pending sales for Provincetown, Truro and Wellfleet, check out the Atlantic Bay Sotheby's International Realty Web Site.

The Impact of Interest Rates

2009-07-24T08:28:00.000-07:00

Some potential homebuyers are sitting on the sidelines waiting for housing prices to hit bottom. It makes sense to buy a house at the lowest price possible but there are other critical considerations to keep in mind. Trying to time the bottom of any market is always difficult. Also, interest rates are at historic lows, and many homebuyers fail to consider the savings that come with low interest rates, particularly over the life of the loan, or even the partial life of the loan.

Mortgage rates are low because of the recession and foreclosures. In addition, the Federal Reserve has moved aggressively to push down mortgage rates by buying as much as $1.75 trillion of housing debt and Treasuries this year. This policy has been successful. Rates on 15-year and 30-year fixed-rate mortgages are hovering at historic lows.

What does this mean for you? On a 30-year fixed-rate loan amount of $200,000 at 5%, the interest paid over the life of the loan is $186,512. That brings the total loan payments to $386,512. At 6%, the amount of interest paid rises to $231,676, a 24% increase. At 7%, it’s $279,018, a 49% increase. The lesson here: Keep in mind, what might be gained from a further drop in housing prices could easily be lost by a rise in interest rates.

With regards to the market, let’s review some recent indicators. Pending home sales, a forward-looking indicator based on signed contracts, rose 6.7% in April, the biggest monthly jump since October 2001. Existing home sales rose 2.4% in May with some homes, once again, receiving multiple offers. And the most recent Standard & Poor’s/Case-Shiller 20-city housing price index shows the month-to-month decline in housing prices has stalled from 2.8% in January to February, 2.2% in February to March and 0.6% in March to April. This has led many industry experts to anticipate that soon the decline in housing prices will bottom out.

If you have a house in mind, this might be a great opportunity to purchase a second home or investment property.

This article was reprinted with permission from David Bolton, Loan Officer, Prospect Mortgage.

Market Activity First Two Quarters 2009

2009-07-02T16:09:00.000-07:00

A look at the market activity for the first two quarters reveals some ups and downs in the market. First the downs: the charts below report that sales volume is down 65-66% in Truro and Provincetown for the first half of this year over last, while Wellfleet is down 35% from last year. The nation’s economic crisis this past Fall and Winter caused many buyers to pause and put on the brakes.

The good news is, the market started to loosen up this Spring, when mortgage rates dropped into the high 4’s. Even though 30 year fixed rates have risen some and are now in the range of 5.4%, buyers are leaving the sidelines and stepping back into the market. Offer activity has soared over the past few weeks, and as of this writing, almost 30 properties are pending in Provincetown, 8 are pending in Truro and 12 are pending in Wellfleet.

Check out this week's Real Estate Blog on Atlantic Bay Sotheby's International Realty Web Site for sales figures in Provincetown, Truro and Wellfleet for the first two quarters (click here).

The Economy is Looking Up!

2009-06-11T06:49:00.000-07:00

On Monday, June 1, the Commerce Department reported total construction spending unexpectedly rose 0.8% in April. Economists had expected a 1.2% decline. It was the biggest gain since August 2008 and marked the second straight month that construction spending has risen after a 0.4% increase in March.

The Institute for Supply Management reported the monthly index of manufacturing activity rose in May to 42.8 from 40.1 in April. Though any reading below 50 signals contraction, it was the fifth consecutive monthly increase from a record low of 32.9 in December. Most importantly, the index of new orders rose to 51.1. This is the first expansion since November 2007, one month before the recession began.

The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, rose 6.7% to 90.3 in April from 84.6 in March. It was the biggest monthly jump since October 2001 and the third consecutive monthly increase after the index hit a record low in January. The reading is 3.2% above the April 2008 level.

The Commerce Department reported factory orders rose 0.7% in April, after a revised 0.9% drop in March. The report reflected increased demand for automobiles, electrical equipment and construction machinery.

The Institute for Supply Management reported the monthly index of non-manufacturing activity rose in May to 44 from 43.7 in April. Economists had expected a reading of 42. Figures below 50 indicate contraction.

Initial claims for unemployment benefits fell by 4,000 to 621,000 in the week ending May 30 from a revised figure of 625,000 in the previous week. The number of people continuing to claim jobless benefits in the week ending May 23 fell to 6.74 million. It was the first decrease in almost five months of uninterrupted weekly gains.

All good news….any movement in the upward direction, however small, is the right direction. Things are looking up!

This article was reprinted with permission from David Bolton, Loan Officer, Prospect Mortgage.

Why Rates Change

2009-06-04T06:30:00.000-07:00

How often have you heard of the Federal Reserve cutting rates only to find that mortgage rates haven’t moved? One common mortgage industry misconception is the correlation between the Federal Reserve Board's announcements to raise or lower interest rates and the direct effect on fixed mortgage rates. While the two are connected, they don't always go hand-in-hand.

Kinds of Rates
To better understand why mortgage rates change, we must first look at why interest rates change. First, it is important to realize that there is not just one interest rate, but many:

Prime Rate: The rate offered to a bank's best customers and subject to change monthly.

Treasury Bill Rates: Treasury Bills are short-term debt instruments used by the U.S. Government to finance their debt. Commonly know as T-Bills, they come in denominations of 3 months, 6 months and 1 year. Each Treasury bill has a corresponding interest rate (i.e. 3-month T-bill rate, 1-year T-bill rate).

Treasury Notes: Intermediate-term debt instruments used by the U.S. Government to finance their debt. They come in denominations of 2 years, 5 years and 10 years.

Treasury Bonds: Long-debt instruments used by the U.S. Government to finance its debt.

Federal Funds Rate: Rates that banks charge each other for overnight loans.

Federal Discount Rate: Rate that the Federal Reserve charges to member banks.

LIBOR: London Interbank Offered Rates. Average London Eurodollar rates.

6-month CD Rate: The average rate that you get when you invest in a 6-month Certificate of Deposit.

11th District Cost of Funds: Rate determined by averaging a composite of depository rates at Savings & Loan institutions in the Western United States.

Fannie Mae-Backed Security Rates: Fannie Mae pools large quantities of mortgages, creates securities with them, and sells them as Fannie Mae-backed securities. The rates on these securities strongly influence mortgage rates.

Ginnie Mae-Backed Security Rates: Ginnie Mae pools large quantities of mortgages, secures them and sells them as Ginnie Mae-backed securities. The rates on these securities influence mortgage rates on FHA and VA loans.

Mortgage Rates Refresher
Fixed interest-rate fluctuations are based on the concept of supply and demand. If demand for credit (loans) increases, so do interest rates. More buyers mean sellers can command a better price (i.e., higher rates). If demand for credit reduces, then so do interest rates. This is because there are more sellers, so buyers can command a lower better price (i.e., lower rates). When the economy expands, there is higher demand for credit, so rates increase. When the economy slows, the demand for credit decreases and so do rates.

Effects of Inflation
A major factor driving interest rates is inflation. Higher inflation is associated with a growing economy. When the economy grows too strongly, the Federal Reserve increases interest rates to slow the economy down and reduce inflationary risk. Inflation results from prices of goods and services increasing. When the economy is strong, there is more demand for goods and services, so the producers of those goods and services can increase prices. A strong economy therefore results in higher mortgage rates.

Mortgage Rates vs. Interest Rates
Fixed mortgage rates tend to move in the same direction as interest rates. However, actual mortgage rates are also based on supply and demand for mortgages. The supply/demand equation for mortgage rates may be different from the supply/demand equation for interest rates. This may result in mortgage rates moving somewhat differently from other rates.

Significance of Bond Prices
There is an inverse relationship between bond prices and bond yields. This can be confusing. When bond prices move up, interest rates move down and vice versa. This is because bonds tend to have a fixed price at maturity--typically $1000. If the price of the bond is currently $900 with 10 years left until maturity, and interest rates start moving higher, the price of the bond starts dropping. The higher interest rates accumulate over the next five years, meaning that a lower price (e.g. $880) will result in the same maturity price, i.e. $1000.

This article was reprinted with permission from David Bolton, Loan Officer, Prospect Mortgage.

June on the Outer Cape

2009-05-28T07:23:00.000-07:00

June has long been a well-kept secret of outer Cape residents, but word is getting out! The gardens are in bloom. All of the businesses are open and in full swing. But because the full summer crowds have not quite arrived in full, the beaches, bike trails, shops, shows and restaurants are all very accessible this month. And most years, the weather cooperates! Don’t miss out on these special festivals, or come just for a weekend get-away to eat out and see a show.

June 4-7
Women of Color and Friends Weekend: Join hundreds of women of color, their friends, families, & supporters in Provincetown for the third annual gathering! Click Here

June 17-21
Provincetown International Film Festival: Celebrating 11 years of cutting edge, independent filmmaking on the edge. Enjoy 5-days of films, panels and parties Click Here

June 25-28
Provincetown Portuguese Festival & Blessing of the Fleet: Music, great food and parade festivities! Click Here

The 2009 Theatre schedules have been set. Don’t miss these great performances.

Wellfleet Harbor Actors Theatre Click Here

Provincetown Players Click Here

Mortgage Rate Update

2009-05-21T06:07:00.000-07:00

It appears spring flowers aren’t the only things inching up this time of year. Mortgage interest rates for 30 year products have been slowly increasing after reaching record lows in late April.

The national average mortgage rate is now 4.84%, this is up from 4.78% a few weeks ago as reported by Freddie Mac. The rates have been hovering in the high 4’s for two months straight and all eyes are watching this movement. The low rates have created a flood of business for banks and mortgage brokers catering to consumers seeking to refinance and save thousands a year in monthly payments. The latest increases in rates may push even more consumers to act.

The 30 year rates were impacted positively in March when the Federal Reserve announced that it would purchase $1.2 trillion in mortgage backed securities and $300 billion in government debt. 15 year mortgages have also been affected. The rates for these less traditional mortgages are around 4.5% according to The Boston Globe.

Local banks are offering 30 year products at or around 5% with no points. A local branch of a large national lender is offering a rate in the high 4’s with points attached.

Here’s a note of caution. Be careful when shopping for a new mortgage. Although the days of teaser products are gone, read the fine print and make sure all fees, including points are disclosed up front. You don’t want the illusion of paying a 5% interest rate and find out that it adds up to 6% when all is said and done.

Going Green means Saving Green!

2009-05-14T09:21:00.000-07:00

Are you considering any renovations to your property this year? If you make energy efficient choices, you may be eligible for significant tax credits. The American Recovery and Reinvestment Act of 2009 encourages homeowners to help the nation reduce its great dependence on energy by making green choices.

New energy efficient windows, doors, insulation, roofs, HVAC systems, water heaters and biomass stoves will bring a credit to you of up to 30% of the cost, with a cap at $1500. But more heavy duty systems, like solar panels, solar water heaters, geothermal heat pumps, small wind energy systems and fuel cells, will bring a credit of 30% of the cost with no upper limit and you can benefit from these credits through the end of 2016!

If you are not planning any major work, there are still some relatively easy things you can do to live greener and save energy along the way.

Install low flow toilets and showerheads in your bathrooms.
Update your thermostats for maximum efficiency.
Insulate your attic.
Seal air leaks.
Use energy efficient light bulbs.
Unplug your chargers when they are not in use.

For more information on Federal Tax Credits for Energy Efficiency, click here.

Lets be Optimistic about Real Estate

2009-05-07T07:21:00.000-07:00

This week brought some peculiar behavior in the real estate market which led to conflicting reports and opinions as to whether we’ve reached a turning point.

The past few Saturdays have been buzzing with real estate shoppers. Realtors from Provincetown to Orleans reported that the combination of scheduled showings, walk in inquiries and busy open houses, were reminiscent of a stronger market. The weather cooperated as well.

Mortgage brokers reported that although the majority of their traffic is refinance business, the number of buyers seeking pre-approval letters, are increasing.

The Boston Globe reports that home values slipped an average of 15% in Massachusetts since the market peak in 2005. This is not a tremendous slip compared to other states which saw a 50-60% decrease in value. Outer Cape property is in line with the rest of the state experienced an average 10-20% adverse adjustment in value. The Globe also reported that sales have consistently increased over the past three months, although by a small margin.

It’s hard to predict when the curve will turn upwards, but here are some significant signs that momentum is building for something to happen:

Pre-approved buyers are shopping. Getting a mortgage these days is not an easy thing and going through the process shows commitment to buy.
The interest rates remain historically low.
Low prices are creating extreme opportunity.
Closed sales in the hardest hit markets of Phoenix and South Florida have already increased three months in a row due to the purchase of foreclosed properties and short sales.
The Housing stimulus package is helping sellers keep their homes and avoid slipping into foreclosure or listing their homes at fire sale prices.

Stability may be returning to the real estate market. Although there is a long road ahead, it appears that there is change on the horizon.

First Time Home Buyer Tax Credit

2009-04-30T06:10:00.000-07:00

The clock is ticking on one of the most enticing features of the American Recovery and Reinvestment Act of 2009: the first time home buyer tax credit. The act authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence between January 1, 2009 and December 1, 2009.

Before you stop reading this because you have owned a home in the past, note that the definition of ‘First time home buyer’ is a buyer who has not owned a principal residence during the three-year period prior to the purchase. So even if you have owned a home in the past, but have been renting for the past three years, you would qualify!

What does the credit really mean? Plain and simple, it is cash back to you from the government. It is a dollar for dollar reduction in what you owe. If you owe $8000 in taxes for 2009, the credit would be applied and you will owe nothing. If your tax liability is only $1000, then you will receive a check for $7000.

What types of properties qualify? Any property that you will use a primary residence will qualify, including but not limited to single family homes, and condominiums. You will even qualify if you build a new home and occupy it before December 1.

Only 7 months remain in which to take advantage of this credit. Don’t miss out.

Source for this article and for more information: www.federalhousingtaxcredit.com/2009

Spring Into Lawn Care

2009-04-23T07:05:00.000-07:00

It is late April and spring lawn care is important for lush, thick grass.

If you have a lawn, here are some quick tips you may want to follow:

Rake the lawn to remove all dead leaves that the blustery winds of winter blew onto your lawn. If there are no leaves, rake the lawn thoroughly to remove dead grass. Raking removes thatch, a build up of dead leaves and grass which prevents the proper growth of individual blades of grass.
If you have mossy type plants growing in your lawn, you may want to apply lime to ensure the soil acidity is proper for grass. Not every lawn needs lime so exercise caution and read instructions.
Seed the lawn. If you have bare spots that need to be seeded or a part of the lawn is worn after being used as a walkway during the winter, get out the rake again. Pay special attention to these areas with the rake to make sure all thatch is removed. Then, use a garden rake to create grooves for the seed. Spread the grass seed. Ask your garden center expert about which seed is best for your location.
Once the lawn is raked and seed planted, buy a multi step fertilizer and weed killer. Spread this over the entire lawn. Follow the instructions and make sure you don’t over apply. If you use too much fertilizer, it will burn the grass causing more harm than good. Make sure your fertilizer is a cool season fertilizer depending on where you live.

A typical time to start spring lawn care is now if you have warm weather. You can wait as until late April providing the weather is cool. Temperature for spring lawn care should be consistently in the 50’s.

Once you follow these simple steps, you too, can enjoy tall glasses of cool lemonade while standing.

Staging to Sell

2009-04-16T18:37:00.000-07:00

Spring selling season is upon us and it’s time for a refresher on staging tips. With inventory still high, and so many properties competing with yours, you will want to do everything you can to help your property stand out from the others.

Real estate expert Barbara Corcoran said recently during an interview that a buyer decides if he or she has interest in a property within 8 seconds of walking through the door. That doesn’t leave much time to make a good impression! Use every second wisely by considering some of the following suggestions.

Curb appeal is important. When a buyer approaches your house, he or she makes the first judgment. Make sure your house is nicely painted. Repair that broken screen door. Tidy the front yard and plant some flowers. The buyer should feel drawn into the house and made to feel welcome by a warm and inviting entry hall.
Clear your house of clutter and personal belongings and scrub the house to within an inch of its life. Since your goal is to move out of the house, start packing today. Eliminate as many knick knacks as possible. Pack away any collections and replace photos of friends and family with neutral artwork. As far as cleanliness, everything should sparkle.
Straighten your closets and cabinets. Expect that buyers will open every door and cabinet. If your closets are packed to the gills, it will leave the buyer with the impression that the house does not have enough storage space.
Take the packing a step further and put extra furniture in storage. A sparse and simple approach to furnishings will make your rooms appear larger. Define a use for each room and furnish it accordingly. If you have a bedroom that has become a ‘junk room,’ pack the junk away and make the bed with inviting linens. It is important to show the buyer how the space can be used. When rearranging furniture, pull pieces away from the walls and keep in mind that you want to have a clear walking path between rooms.
A fresh coat of paint is inexpensive and goes a long way to making your home feel clean and fresh. Keep the colors earthy and neutral to appeal to the broadest audience. If you have a brightly colored room, consider re-painting it.
Shed some light on the subject. Open the blinds and turn on all the lights for showings. Bright spaces appear larger and overall create a positive impression. If you have heavy or dark drapes, consider replacing them with light colored window treatments.
Remove evidence of pets. When you are expecting a showing, pack up the pets and take a drive. That includes stowing away dog beds, crates and food dishes.
Make sure the house smells nice. Baking cookies before a showing makes the house smell yummy and inviting. This bit of advice is an oldie but goodie.

The common thread behind all of these suggestions is to present your home in as neutral a manner as possible so that the potential buyer can envision him or herself living in the property. While it is possible to achieve these goals on your own with very little expense, don’t rule out calling a professional stager to assist you if you are feeling overwhelmed. Being a proactive seller will ensure that you have done everything possible to help your property rise above its competition.

First Quarter Recap on Cape Cod

2009-04-09T07:04:00.000-07:00

Here's information on properties sold, under agreement and for sale in Provincetown, Truro and Wellfleet ...

Property Sold: January 1- March 31, 2009

Provincetown

Homes = 5
Condominiums = 8
Ave Days on Market = 324
Ave Sales Price = $531,664

Truro

Homes = 4
Condominiums = 2
Ave Days on Market = 177
Ave Sales Price = $466,767

Wellfleet

Homes = 8
Condominiums = 1
Ave Days on Market = 139
Ave Sales Price = $420,333

Property Sold: January 1- March 31, 2008

Provincetown

Homes = 5
Condominiums = 31
Ave Days on Market = 193
Ave Sales Price = $424,344

Truro

Homes = 4
Condominiums = 4
Ave Days on Market = 237
Ave Sales Price = $515,713

Wellfleet

Homes = 8
Condominiums = 2
Ave Days on Market = 300
Ave Sales Price = $600,250

Property Under Agreement as of April 8, 2009

Provincetown

Homes = 4
Condominiums = 11
Ave Days on Market = 241
Ave Sales Price = $527,920

Truro

Homes = 1
Condominiums = 12
Ave Days on Market = 149
Ave Sales Price = $448,954

Wellfleet

Homes = 4
Condominiums = 0
Ave Days on Market = 288
Ave Sales Price = $609,475

Property On the Market for Sale as of April 8, 2009

Provincetown

Homes = 74
Condominiums = 162
Ave Days on Market = 274
Ave Sales Price = $685,532

Truro

Homes = 80
Condominiums = 56
Ave Days on Market = 334
Ave Sales Price = $878,063

Wellfleet

Homes = 85
Condominiums = 23
Ave Days on Market = 290
Ave Sales Price = $763,135

Is Mortgage Insurance the Latest Incentive to Attract Buyers?

2009-04-09T07:03:00.000-07:00

President Obama announced last week from the G20 Summit that the recession has turned a corner. With rescue packages in place for struggling homeowners, interest rates as low as they’ve been in years and the stock market performing favorably, we are hoping he is right. A little spring sunshine in our economy may be just around the corner.

However, with the jobless rate the lowest it has been in 26 years, consumers are not motivated to buy a home out of fear of losing their jobs. Builders have identified this as the number one issue in selling new construction. Not having the resources to pay a mortgage due to a lay off ranks among the top anxieties in the United States today. Developers have stepped up to the plate and are now offering targeted incentives to overcome this obstacle.

Free upgrades like granite countertops, swimming pools and finished landscaping are a nice touch, but seem to have no impact on a buyer’s decision. These finishes are practically expected in today’s market and major developers recognize this.

Major builders are offering to pay for the buyer’s mortgage unemployment insurance as an added amenity to overcome the buyer’s fear of losing a job. Typically, this policy is valid in case the homeowner loses his or her job within the first two years of the purchase date. Up to six months worth of payments can be made while the buyer looks for a new job. The estimated cost of the insurance is around $450 to $900 per customer.

This is definitely a bold marketing move and numerous builders are adopting this strategy daily. As with any sales promotion, time will tell how effective this program will be.

Calculating your Cost Basis

2009-04-02T09:00:00.000-07:00

As tax time approaches, those who sold property in 2008 are faced with figuring out their capital gains or losses incurred. The task is less daunting than it seems. In order to calculate your profit or loss, you must subtract your cost basis from the sale price. The formula for calculating your cost basis is as follows:

Purchase price
+ Costs associated with purchase (attorney’s fees, title fees, escrow fees, real estate agent commissions …if you paid a Buyer’s Agent, etc.)
+ Improvements (Capital improvements like replacing the roof or furnace, etc. Interior painting, for example, does not qualify)
+ Costs associated with selling (attorney’s fees, real estate agent commissions, etc.)
- Accumulated depreciation (for example, if you ever took the office in the home deduction)
= Cost Basis

Then, if you subtract the cost basis from your sale price, you arrive at your taxable gain or loss incurred.

Don’t forget, the Taxpayer Relief Act of 1997 outlines a huge deduction available to individuals and couples in the sale of their primary residences. It states that if you lived in the property you sold for 2 of the past 5 years, individuals are entitled to deduct $250,000, and couples are entitled to deduct $500,000, from the total taxable gain. This tax break is a huge benefit for homeowners. (There are some exceptions to the 2 out of 5 rule based upon health concerns or other unforeseen circumstances. Seek professional guidance in these cases).

Two bits of advice: 1- Always consult your accountant and your attorney before buying or selling real estate to understand all of the tax ramifications. 2 - Keep good records of all of your capital improvements in order to assist your accountant with the task of determining your cost basis when it’s time to sell.

The Tale of the Incredible Shrinking Rate

2009-03-26T10:20:00.000-07:00

As we reported last week, mortgage rates decreased after The Federal Reserve purchased $750 billion in mortgage related securities. This was done in order to bring the rates under 5% and stimulate activity in the home purchase and refinance segments of the housing market. This action may even cause rates to decrease further as mortgage rates adjust in response to action in the bond market. Mortgage Tracker HSH Associates expect rates to level off at 4.9% and not decrease further.

30 year fixed mortgage products are now being offered by both local banks and national lenders in the 4.6% to 4.75% range with no points. You may want to read the small print as points may be added.

There is so much refinance and new loan business that some banks are not reducing interest rates since they cannot handle the demand. Rates were already in the mid to low 5% range and many homeowners were already in the refinance process. Mortgage brokers are experiencing an overwhelming increase in just one week of refinance and purchase loans according to The Boston Globe. Consumers who are refinancing today are saving thousands of dollars a year in monthly payments. Buyers who take advantage of low prices and low fixed rates will be in the incredible situation of having more “house” at a lower carrying cost.

There is an important side note: Homebuyers will, in most cases, have to put down at least 25% to benefit from these low rates. Also, jumbo loan rates remain around 6%. Jumbo loans start at $523,750 in the Greater Boston and Barnstable County areas. Congress has defined a new segment of loans between $417,000 and the jumbo starting point to be a class similar to jumbo but partially conforming. Lenders have not embraced this area of financing as of yet, however, it will definitely be pertinent to our market in Provincetown and Truro. We’ll keep you updated.

Fed Invests Another $750B In Mortgage Backed Securities

2009-03-19T08:14:00.001-07:00

Good news for buyers and homeowners! In a move designed to lower interest rates and make credit more widely available, the Fed has committed to buy another $750B in Mortgage Backed Securities.

There are speculations that this action will push mortgage rates down close to 4%. That remains to be seen. However, the present rates are at near historic lows. Wells Fargo is posting 4.625% today on a 30-year fixed conforming loan!

With prices near or at bottom, and rates at extraordinary lows, the time is right for purchasing or refinancing. Call your mortgage broker today and explore your options.

Obama Housing plan

2009-03-12T06:11:00.000-07:00

The finer details of the Obama Housing Policy have been released. What does this overly complex plan entail and who will benefit from it?

Firstly, primary homeowners who are having a hard time paying their mortgages can now work with their lender to modify their mortgages. $75 billion in incentives will be offered to help prevent foreclosures. Mortgage servicers will be able to take advantage of financial benefits if they work to modify loans. Adjusted monthly payments are prohibited from being in excess of up to 38% of the homeowner’s income. The government will subsidize part of if not all the difference and ensure that not more than 31% of the borrower’s monthly income is tied up in a mortgage payment.

Secondly, homeowners who have not been able to refinance due to decreased property values and have a mortgage higher than their home’s worth, may be able to take advantage of loan modification and refinance. $200 billion has been slated to help these homeowners refinance. The administration estimates there are 5 million homeowners in need of this assistance. However, the current mortgage must be at most 5% higher than the value of their home. Mortgages must be owned by Fannie Mae or Freddie Mac and homeowners must be current on their existing loans.

There is speculation that refinanced and modified mortgages may have interest rates as low as 2% for five years. That, however, is not a reality as of yet, and it is not easy for all lenders to arbitrarily modify mortgage products. The investors behind the mortgages will have the final say. If a lender takes bailout money then the law requires them to modify mortgages that are in danger of defaulting. This can cause conflict between the bank and the investor behind the product.

The plan is very complex and full of details. For more information on President Obama’s Housing Plan, please visit www.financialstability.gov.

If you are not sure how Fannie Mae, Freddie Mac or the housing plan pertains to you or pertains to your loan situation, please call your mortgage service provider or bank.

If you are interested in more information about Fannie Mae or Freddie Mac, please click on one of the following links.

- Fannie Mae at 1-800-7FANNIE , online at www.Fanniemae.com
- Freddie Mac at 1-800-FREDDIE, online at www.freddiemac.com

Creative Thinking

2009-03-05T08:18:00.001-08:00

Getting creative just may be the answer to working out a vacation home purchase or sale in today’s economic environment. Buyers and sellers are thinking outside the box to bring deals together for win-win situations. Whether buying or selling, your success will improve if you open yourself up to broader and more creative solutions.

Consider these options:

Lease purchase: Back in the height of the seller’s market, it was rare for a property owner to consider an offer that proposed renting with an option to buy. In today’s market, this is one way to creatively bring a negotiation together. Sellers benefit by receiving income from the property and by having a commitment from the tenant to move toward purchase, and the buyer/tenant benefits by having longer period in which to gather financing while beginning to build equity in the property by having a portion of their rent applied toward the purchase. For more details about how lease purchase agreements work, click here.

Seller Financing: Owner financing was also more of a rarity in the boom markets of the early 2000’s, but more buyers are asking for it today, and more owners are accepting these offers. With the lending markets tightening their restrictions, many well-qualified borrowers are being turned away from traditional financing. Owner financing offers a win-win solution in many cases. Owners who don’t have an immediate need for the proceeds stand to make more in the end by adding interest payments to their bottom line and buyers who otherwise couldn’t get financing are able to move toward their dream of owning an investment property or second home. For more details about seller financing, click here.

Sharing a Purchase: Many experts espouse that the time is now for buyers to make a move, but due to the daily negative reports on the credit and housing markets, some buyers are being held back by fear. Consider sharing the risk with a friend by investing in a property together. When you invest in a property in Provincetown, Truro or Wellfleet, you have the opportunity to offset many of your expenses with rental income. If you are sharing the cost burden with a partner, you enjoy all the benefits, while feeling more secure with less at stake. Investing with a friend or partner is another path to realizing your dream of owning a vacation home on Cape Cod.

New Stimulus Law and Outer Cape Cod Real Estate

2009-02-26T07:07:00.000-08:00

The long awaited stimulus package is now law. But how will this impact our local housing market here in Provincetown, Truro and Wellfleet? Although the finer details of the housing plan will not be released until March 4th, there are definite components of this law that may help our local housing market.

Up to four million homeowners nationwide who have mortgages owned by Fannie Mae and Freddie Mac will be able to refinance to a mortgage product in the 5% range. This is directed at homeowners who are in negative equity situations and have not been able to refinance due to current strict qualifying criteria and low appraisals. There are homeowners on the Outer Cape who find themselves in this position. The double benefit here will be helping struggling homeowners keep their homes from foreclosure, thus protecting home values. The other plus is the potential extra monthly cash that may be spent at our local businesses.

The government will also step in to prevent foreclosures on millions of homeowners. There will be a potential modification of monthly payments for seriously delinquent homeowners to an estimated 31-38% of their income. Lenders who cooperate with this plan will receive a co-payment from the federal government. An additional incentive for homeowners to stay current and Lenders to participate is a potential yearly bonus set in place for five years of up to $1,000 per annually. This will serve our community by preventing foreclosures and preserving home values.

Fannie Mae and Freddie Mac will each receive $200 billion from the government. The US Treasury will continue to purchase their mortgage backed securities in order to keep rates low. This is good for the resort market. Low mortgage rates combined with low prices and the potential of vacation rental income make a second home purchase in Provincetown, Truro or Wellfleet palatable for many seeking an alternative investment to the faltering stock market.

There is a tax credit of $8,000 for first time homebuyers purchasing a primary residence. This isn’t as pertinent on the Outer Cape. However, for those of us who live here year round, you can qualify for this tax credit if you haven’t owned a home in three years. The definition of first time homebuyer has been adapted.

The next few weeks will be telltale and should provide a clearer picture of how all this will ultimately impact the real estate market. The true test will be in the months ahead.

Certifying Your Rental Property

2009-02-19T08:17:00.000-08:00

The time of year for summer planning is upon us. Many property owners are considering how much use they will get out of their property this coming summer and the question of whether or not to rent the property arises. If you decide to list your property for weekly or seasonal rental (under 90 days), be aware that the town of Provincetown has a by-law requiring property owners to obtain a Certificate to Rent from the town licensing department.

The town will send a building inspector and the health inspector to the property who will be looking for the following:

Building Inspector:

1. street number on your building or unit
2. the electrical panel/circuit breaker panel must be labeled
3. you must have a carbon monoxide detector on each floor (plug-in with battery back-up is acceptable)
4. a certified fired extinguisher must be mounted on the wall no more than 5 feet from the floor, with a current yellow tag certification
5. working emergency lights (if applicable)

Health Inspector:

6. total occupancy for unit will be determined
7. sanitation overview
8. overall condition of the property will be assessed

Certificates cost $140 each year and must be prominently posted in your property during rentals. For more information about the rental certification process, visit the licensing department’s Web site. If you would like assistance with this process or if you would like to list your property with our rental department, please contact us info@provincetownrealestatenow.com.

Pricing, Pricing, Pricing

2009-02-12T06:12:00.000-08:00

A well-known mantra for homebuyers has long been summed up in three words: location, location, location. We are now offering three critical words for home sellers: pricing, pricing, pricing.

The transition from sellers marketto buyers market began on the Outer Cape in the fall of 2005. The emotional transition has proven difficult for many sellers, who lived through the meteoric rise in home values in the early 2000’s. During those years, it was very common for sellers to list their property over the suggested value with a fair amount of success. That nudging upward of prices was contagious and pricing became a game of ‘let’s give it shot.’ This was all possible in an environment where credit was easy to come by and personal wealth was on the upswing.

The climate couldn’t be more different these days. Buying a second home has fallen in priority on many peoples’ TO-DO lists, making the field of buyers much smaller. For those who really want to sell, making your property stand out in the competing inventory boils down to one simple principle: pricing.

Consider that approximately 85% of homebuyers begin their search for a property on the Internet. The first criterion (after location) that a buyer enters on a site like trullia.com or realtor.com is a price range. If your property is not priced correctly, you risk being excluded from the search results of your potential future buyer. Your home will not even be considered.

Many buyers in our area are working with Buyers Agents who are sending them automatic email updates about new listings. What drives the selection of these properties? You guessed it, price.

The “sweet spot” for marketing a property is the first 30 days. It is during this period that the greatest numbers of showings typically occur. This is when the property first appears in advertisements and on real estate websites and excitement is generated for buyers closely monitoring the market. Today’s buyers are very savvy and they are using the Internet to study home values. They recognize when a property is priced right. Capitalize on this momentum by positioning your property so that it attracts a bonafide buyer during this period.

Here is the good news: there are buyers out there! During the past few months, we have seen flurries of activity around well-priced properties, with several of them generating bidding wars. There are buyers waiting on the sidelines for that next good deal to come along. Price your property correctly and yours could be the one they are waiting for!

New Features: MLS Property Finder and Messenger

2009-02-05T10:56:00.001-08:00

This week we stray from the typical real estate topic to inform you about our latest attraction on the blog. In case you haven’t noticed, we’ve added two exciting new features called “MLS Property Finder” and “MLS Property Messenger.”

The “MLS Property Finder” lets you surf all properties in Provincetown, Truro and Wellfleet that are actively listed on the Cape Cod and Islands Multiple Listing Service. You are in control to choose the town, category of property and so much more. It is very easy to do. Choose property type, town, price range and hit search. You can click on “custom search” for more specialized results. It is easy to do, fun and free. Now all the information we see as Realtors is just a click away for you.

The “MLS Property Messenger” is designed to send you automated emails with property listings that meet your customized criteria. It is free to you and signing up has never been easier. It is a quick two step process. Step one is an input of your contact information, which will be kept private. Step two instructs you to complete a search criteria page. Before you know it, you will be receiving emails containing newly listed homes, price changes and more directly from the system. You are in control of what you receive. Check in anytime, anywhere to see what's going on with the market as you will be assigned a username and password. A special amenity to “MLS Property Messenger,” is an icon alert system. You can download an icon to your desktop that will issue an alert whenever a property within your search parameters is listed or any change to existing properties occurs.

We hope you enjoy these new features. Call or email us if you have any questions. Happy house hunting and please let us know if there is anything that catches your eye.

Loan Modification Will Protect Home Values

2009-01-29T07:00:00.000-08:00

This week we’ve decided to write about an issue that has many of us scratching our heads. When it comes to the real estate market right now one thing is very true, low prices and low interest rates have never made it a better time to buy. Some markets have actually started to turn around. Phoenix, AZ and South Florida, have reported a significant increase in sales.

Many of these sales are most likely due to the high foreclosure rate which continues to saturate our market with inventory, thus bringing prices down. If foreclosures were to stall and loan modification mandated by the government, then we may have a chance to move more property and preserve home values.

Massachusetts Attorney General Martha Coakley has filed legislation to require lendors to work with struggling homeowners who are current, modify their loans and prevent foreclosure. This law would apply only to homeowners who need to modify their risky interest only, adjustable mortgages or teaser rate mortgages. Homeowners would modify their loans to a more financially palatable product, thus preventing an unnecessary foreclosure.

In 2008, 12,430 homeowners lost their properties due to foreclosure. This was a 62% increase from 2007.

But how do banks feel about loan modification? We called two large lendors to find out what their policy is for homeowners who are struggling, yet current on their loans.

Let’s take Countrywide Home Mortgage and Indymac Bank. Giants in the industry, who were saved from demise themselves last year, have it in their control to save homeowners from going under.

Both banks have the following plan: Don’t pay your mortgage for three months then they’ll talk to you. Until then, they won’t work with you, period. Indymac does have an online form that can be completed in order to put you on a waiting list, just in case you default.

Here’s the problem. Honest, hardworking mortgagors, who are now victims of the recession, are trying to make good. The inability of these banks to effectively address this large demographic, will only lead to more foreclosures and further deterioration of the real estate market and will ultimately further impact the failed economy.

Attorney General Coakley adds that "Loan modifications stabilize the marketplace, stop the escalation of foreclosures, and ensure cash flow so that mortgage and mortgage-backed investments can again be valued,"

With refinancing difficult for some consumers, modification may be their only choice. It is just good business to work with loan modification when the average foreclosure costs a bank roughly $50,000. When a consumer’s credit is already negatively impacted, their level of motivation to work with a bank and prevent foreclosure is dramatically different than when they have something to save.

It will be interesting to see what the outcome will be of the Attorney General’s efforts.

The Year in Review Part 3: Wellfleet

2009-01-22T06:20:00.000-08:00

This week, we review Wellfleet’s final sales figures from MLS along with a comparative analysis of this year in relation to the prior two years. Our data comes from the Multiple Listing Service and does not include private sales. The vast majority of sales that occur in this market are MLS sales.

There were 60 properties sold in Wellfleet in 2008 with a total sales volume of $31,733,802.
There were 93 properties sold in Wellfleet in 2007 with a total sales volume of $55,814,425.
There were 74 properties sold in Wellfleet in 2006 with a total sales volume of $42,099,750.

See the SIR Web site's "Real Estate News" Blog (click here) for tables on the following: Number of Properties Sold with Median Sale prices in Wellfleet, Average Days on Market of Sold Properties in Wellfleet and Percentage of Sale Price to List Price in Wellfleet.

Highs and Lows

The lowest priced condominium property to sell this year was a 2BR cottage located at 420 Chequessett Neck Road which sold for $244,000. The unit, located at Chequessett Village Condo, is 3-season and has 352 SF. The lowest priced single family was located at 80 Pleasant Point Road and sold for $255,000. It is a 1BR/1BA home located on a 3/4 acre lot in South Wellfleet.

The highest priced condominium to sell was a year round waterfront unit located at the Sea Shells Complex with a private association beach. The 900 SF free standing unit with 3BR/2BA sold for $644,000. The highest priced single family home to sell was a contemporary home built in 1996 and located at 60 D Street on Lieutenant’s Island. The property consists of 5 BR, 3.5 BA, with 3238 SF and is a quick walk to a sandy beach.

Market Trends

Wellfleet appeared to be hardest hit by the market down turn in 2008, with sales volume down 44% over the prior year. The slow down is also reflected in the increased Days on Market figure for single family homes which is averaging 249 days. The market has seen some activity of late however. There are currently 84 Single Family homes for sale, with 7 properties under agreement. There are 23 condos on the market with 1 unit under agreement.

The Year In Review Part 2: Truro

2009-01-14T17:21:00.001-08:00

This week, we review Truro’s final sales figures from MLS along with a comparative analysis of this year in relation to the prior two years. Our data comes from the Multiple Listing Service and does not include private sales. The vast majority of sales that occur in this market are MLS sales.

There were 74 properties sold in Truro in 2008 with a total sales volume of $42,903,850.
There were 61 properties sold in Truro in 2007 with a total sales volume of $36,974,833.
There were 56 properties sold in Truro in 2006 with a total sales volume of $37,325,075.

See the SIR Web site's "Real Estate News" Blog (click here) for tables on the following: Number of Properties Sold with Median Sale prices in Truro, Average Days on Market of Sold Properties in Truro and Percentage of Sale Price to List Price in Truro.

Highs and Lows

The lowest priced condominium property to sell this year was a unit located at 82 Shore Road which sold for $126,000. The unit, located at Salt Air Condominiums, is seasonal and has 806 SF. The lowest priced single family was located at 9 Highland Road and sold for $360,000. It is a 3BR/2BA home with approximately 1500 SF and an in-ground pool.

The highest priced condominium to sell was a seasonal cottage located at Roseville Condo on Corn Hill Beach. The 820 SF cottage with 3BR/1BA sold for $425,000. The highest priced single family home to sell was a contemporary home located high on a bluff at 20 Great Hills Road. The property consists of 4 BR, 3.5 BA, with 4650 SF and has panoramic water views.

The Year in Review Part 1: Provincetown

2009-01-08T10:53:00.000-08:00

The year-end numbers are in. Over the next three weeks, we will review the final sales figures from MLS along with a comparative analysis of this year in relation to the prior two years. We’ll start with Provincetown this week, and we’ll look at Truro and Wellfleet in the coming weeks.

Our data comes from the Multiple Listing Service and does not include private sales. The vast majority of sales that occur in this market are MLS sales.

There were 151 properties sold in Provincetown in 2008 with a total sales volume of $88,098,251.*
There were 165 properties sold in Provincetown in 2007 with a total sales volume of $85,902,800.
There were 158 properties sold in Provincetown in 2006 with a total sales volume of $82,653,453.

* Sales figures exclude timeshare properties.

See the SIR Web site's "Real Estate News" Blog (click here) for tables on the following: Number of Properties sold with Median Sale prices in Provincetown, Average Days on Market of Sold Properties in Provincetown and Percentage of Sale Price to List Price in Provincetown.

Highs and Lows

The lowest priced residential property to sell this year was a studio condominium located at 962 Commercial Street at the Last Unicorn Condominiums in the East End. The unit has 190 SF and sold for $130,000.

The highest priced property to sell was the Murchison Estate located at 2 Commercial Street in the West End. The property is a landmark in Provincetown, with the main residence having been developed under the supervision of Walter Gropius and associates and completed in 1957. The estate consists of 3 buildings and a pool on 3.5 acres. It sold for $6,550,000. As of this writing, the word is that the new owners have plans to develop the property into 9 building lots.

Life Changes

2008-12-18T08:30:00.001-08:00

Change is in the air. With the next administration, our nation is facing a new era of leadership. With shifts in the economy, individuals may face job changes. And as a result of the need to change jobs, many face lifestyle changes. Although there is a lot of uncertainty in the air, there is also a lot of hope and excitement. For those who find one door closing, there may be another door opening in Provincetown.

Consider that this may be the perfect time to explore your dream of moving here and having your own business. Many people dream of someday owning a Bed & Breakfast and there is no time like the present to make that shift. By investing in a B&B property, you take care of home and job with one purchase. You will meet people from all over the world, you will become part of a supportive business community, and you stand to make a strong return on your investment. Depending upon your down payment, you could be realizing a much greater return on your cash by investing it in an income producing property in a resort town, than by investing it the financial markets or even a typical CD.

Or, why wait to open that restaurant you have always dreamed of owning? Or that retail store? There are many opportunities available. Commercial rates are low and local banks are eager to invest in our local economy. The recent actions taken by the Fed have offered new hope for the country to work its way out of the recession in the coming year.

With just days left to complete your list of New Year’s resolutions, why not place your personal happiness and life dreams at the top of your list for 2009?

For a complete list of all of the commercial and B&B properties currently on the market, please email us.

Mortgage Rates

2008-12-11T05:43:00.000-08:00

This is truly an interesting time.

Never before have there been so many opportunities in the real estate market. The economic climate has kept the real estate market progressing at a slow pace. This has led to numerous price reductions and aggressive selling.

Values on the Outer Cape have adjusted on an average of 15-20% in the buyer’s favor.

Right now, mortgage interest rates can be as low as 5.1% for a 30 year fixed mortgage. These rates are incredibly low.

The combination of significantly adjusted prices with the low interest rates, make it an ideal time to buy. We are reporting this to you as it is a fact and not just a sales pitch. If you are qualified to make a purchase, it is indisputable that now is the time.

Don't Miss Holly Folly This Weekend

2008-12-04T08:19:00.000-08:00

If you don’t yet have plans for this weekend, your problem is solved! Come to Provincetown for Holly Folly, our annual holiday festival. In addition to great deals in all the shops and great exhibits at the Fine Arts Work Center and the Provincetown Art Association Museum, these are some events not to miss:

Friday December 5

5-9PM, Holiday Open House Party at the unique and historic Land’s End Inn (click here). If you have never seen this exquisite property, you are in for a treat. The décor is a beautiful homage to the art nouveau period of our history and the views are unparalleled. There will be lots of cheer and tree trimming and complimentary cocktails and hors d’oeuvres will be served.
7:30 “Thom Paine” Counter Productions presents Tim Babcock in Will Eno’s play, Provincetown Theatre, 238 Bradford Street
10PM –1AM The Snow Ball The Atlantic House, 4 – 6 Masonic Place

Saturday December 6

11AM-1PM, Mr & Mrs. Santa Photo-Op Have your photo taken with Santa, Mrs. Santa or both. Professional photography by Brad Fowler, Song of Myself Photography, 349 Commercial Street.
2PM-4PM, Holly Folly Holiday Stroll, Various Inns and Businesses around Provincetown Visit Holly Folly headquarters or a Welcome Center to get a list of participating businesses. This is a great way to get a look at all the lovely inns for a future stay.
7PM & 9PM, Boston Gay Men’s Chorus performs “Stars: A Holiday Concert,” Unitarian Universalist Meeting House, 236 Commercial Street. This is usually the highlight event of the weekend. If you have never seen the Chorus, get ready to have a great time! Be sure to get your tickets early for this as they usually sell out! Tickets are available online or in person at the Holly Folly Headquarters. $20 in advance, $25 at door.

Sunday December 7

2pm, “The Santaland Diaries,” Art House, 214 Commercial Street
This hilarious one-person play by David Sedaris performed by Scott Hayes. For mature elves only. ($20)

These are only a few of the many events planned for this weekend. For a full look at the schedule, click here.

Our beautifully decorated town awaits you!

Grand Union Is Empty

2008-11-25T06:07:00.000-08:00

Happy Thanksgiving! We hope you have an enjoyable holiday this week with friends and family.

Please note that if you plan to come to the Cape for Thanksgiving, you may want to shop before you get here. Due to The Grand Union being sold to Stop and Shop, the store is pretty much empty. There seems to be no plans to re-stock, so if you need turkey and trimmings plan ahead.

Change More Than Just the Clocks

2008-11-20T06:11:00.000-08:00

A few weeks ago we turned the clocks back one hour. Besides the extra hour of sleep that you hopefully were able to take advantage of, it is also a good time to change the batteries in your smoke and carbon monoxide detectors. Wherever you live, whether you own or rent, inspecting your smoke and carbon monoxide detectors and changing the batteries twice a year is strongly encouraged. Please note that you do need both smoke and carbon monoxide detectors in your house.

Even if your detectors are hardwired, which means they are attached to a separate electrical source, you may want to ensure that they are working and that the battery backup has a fresh battery.

Landlords, this is a good time to check both your smoke and carbon monoxide detectors in your rental units. Whether you have seasonal, vacation or year round renters, its wise to take the preventive step and make sure the detectors are functioning properly.

Renters, if you rent year round, making sure your detectors work is very important. If you do not have a smoke detector call your landlord immediately. If you do have one, you may want to check it yourself or call your landlord to inspect it.
And finally, it may seem like a hassle to always be changing the batteries, or worse some people gripe about the cost of a battery. These are life saving devices. Think about what could happen if a smoke or carbon monoxide detector has no battery and there is a fire.

It is always better to be safe than sorry especially when it comes to detectors.

Preparing Your Home for Winter

2008-11-13T03:10:00.000-08:00

Having experienced such a beautiful fall on the outer cape, it is hard to face the reality that winter’s chill will soon be arriving. A challenging economy and fuel costs have given rise to our paying extra attention to keeping properties protected in the off season.

For those who continue to use their second homes, it is time to think about setting the thermostat at a temperature warm enough to keep the pipes from freezing. Usually, 50 to 55 degrees is adequate, but a higher temperature may be necessary if the outside temperature drops below 15 - 20 degrees for an extended period of time and is accompanied by strong winds.

Check all sinks and toilets to be certain that there is no dripping or running water as this can result in very high water bills. Also, keep vanity doors under sinks open for maximum warm air flow.

Many property owners have decided to close their homes for the winter by shutting down their heating systems and draining all pipes in the house. Be sure to consult your heating professionals and/or plumbers about how this should be accomplished. Done properly, owners can experience considerable fuel savings.

Free energy audits are available from many providers. The Cape Light Compact for example, will provide audits for their customers (Click here).

Having a friend or property manager check in on your property while you are away during the winter or for an extended period of time, is also a good recommendation. (See our Q&A from October 30, 2008 about hiring a winter watch company - Click here).

Three Great Reasons to Come to Provincetown Before the End of the Year

2008-11-06T05:54:00.001-08:00

If you’ve never been to Provincetown in the ‘quiet’ season, you might be surprised to find out that it is not always so quiet. There are several fun events that occur between the summer and New Year’s each year, and there are still three big weekends on this year’s calendar.

November 6 – November 9: Meet Your Man 2008, a weekend of fun and friendship for single men in an unforgettable location. Highlights include speed dating, wine tastings, gallery strolls, concerts, dance parties, sing-alongs and an inn stroll. For a complete schedule of events, www.ptown.org/Meetyourman.asp.

December 5 - December 7: Holly Folly, Provincetown’s Annual Holiday Festival, a great time to experience the unique beauty of winter in New England. Highlights include a performance by the Boston Gay Men’s Chorus, lots of shopping specials and an inn stroll of the bed and breakfasts decorated for the holidays. For more information, www.ptown.org/HollyFolly.asp.

December 29 – January 4, 2009 : New Year’s Week, a great way to ring in the New Year. Stay in a romantic inn with a fireplace in your room and enjoy a special New Year’s Eve meal at your favorite restaurant. Many shops and restaurants will be open.

Mischief Night

2008-10-30T06:18:00.000-07:00

Halloween can leave you with it a variety of tricks that make you cry Boo Hoo.

Mischief night, October 30th, is notorious for the evening that trees get toilet papered, houses get egged and cars get covered with shaving cream.

Although there is no preventing hooligans from targeting your property, and usually it is random and not personal, there are measures to take to lesson the chances your home will get smattered, creamed or papered.

The only real preventive measure you can take is to turn on every exterior light you have and leave them on all night. The bright lights may deter tricksters and have them move on.

You may want to leave some interior lights on in living room as well and bedrooms. This will make it appear as if someone is home and awake.

However, the thrill of getting caught is what really drives these youngsters and having their handy work seen by many is what motivates them to run amuck. The more visible your property is, the stronger the chances you’ll be hit.

If after illuminating your property, the eggs still fly and your home and car is covered, wash the egg off your house as soon as you can. It could stain. Also, remove toilet paper from trees before it rains. That is a mess. And remember, most of the time this isn’t personal as hard as it is to take, its only kids playing pranks.

Hopefully none of us will be the recipient of such annoyances, but tis the season for candy and fun and tricks galore!

Know Your Credit Report

2008-10-23T07:56:00.000-07:00

Knowledge is power when it comes to knowing your credit scores. If you are contemplating a purchase, it’s a great idea to know your full credit picture before you apply for a mortgage. By planning ahead, you can be proactive about positioning yourself to get the best interest rates.

Borrowers with the highest FICO scores (760-850) can expect to be offered lower interest rates and more loan choices. On the other end of the spectrum, a FICO score of 500-520 is usually the minimum required to even apply for a mortgage.

Several months prior to applying for a mortgage, we recommend obtaining a copy of your FICO score through www.myfico.com. Also, in accordance with the Fair and Accurate Credit Transactions Act (FACT Act), you are entitled to one free copy per year of your report from each of the three credit bureaus (Equifax, Experian and TransUnion). Find out more by going to www.annualcreditreport.com.

There may be errors on your credit report pertaining a missed payment or pertaining to your history that could take a few months to clear up. You can also work to improve your credit score by paying off outstanding balances. One bit of advice: don’t close out any of those credit card accounts once you have paid them off. In some cases, this can hurt your credit score.

By taking the initiative to improve and maximize your credit profile well ahead of time, you can move forward with confidence once you find your dream home. AND, you stand to save a significant amount of money over the term of your loan by qualifying for the lower interest rate.

How Low Will It Go?

2008-10-16T01:00:00.000-07:00

A few weeks back, we speculated about how much farther the real estate market will adjust before hitting bottom. At the time, we felt the market was more or less bouncing along the bottom due to the upheaval in the mortgage industry and numerous price reductions of active listings.

More evidence that we are potentially close to the bottom continues to make itself known. New properties that are listed for sale are in line with what the market is bearing. We are seeing fewer if any, overpriced listings go on the market. Properties priced right, are indeed selling.

Many sellers are now taking their homes off the market and not making further price reductions. Other sellers are putting year round renters in their properties to hold the investment until this cycle ends.

It will be interesting to see what will happen in the coming months. The stock market activity will have an impact on all of us in one form or another. We'll have to see how this plays out.

Preparing your Lawn for Winter

2008-10-09T09:58:00.000-07:00

Many properties on Cape Cod are planted with low maintenance, indigenous plants and grasses. But, if you have a more manicured landscape, which includes a traditional lawn, now is the time to plan and execute fall fertilization.

In early to mid-October, mow your lawn one final time. Rake up any clippings and apply a weed killer and grass fertilizer (NOTE: there are organic options available). This will help prepare your lawn for winter, while it lay dormant, and it will assist in spring growth. Most of our soil on the Outer Cape is sandy, so plan on using a fertilizer that has slow release nitrogen. You may want to ask your garden center professional to help you pick out the proper fertilizer for your area.

It is important to follow instructions when applying fertilizer. Never overdo, and base your application on your lawn’s square footage. It is best to use a rotary spreader for an even application. Once you finish one direction, repeat in the opposite for thorough coverage.
Make sure your grass is dry when applying the fertilizer, then, water lightly immediately afterwards. This helps the fertilizer to adhere to the blades of grass and also to mix into the soil. It is important to use the proper product for grass and a different fertilizer for shrubs, plants and flowers. Using an incorrect product can impact evergreen growth and decrease fruit and flower count in the spring.

With these helpful tips, your lawn should be preserved through the cold winter months and ready for regular yard maintenance once spring arrives.

Market Analysis: Buyers & Sellers - Real Estate's Players

2008-10-02T07:00:00.000-07:00

This week, let us take time to discuss the consumers in this crazy real estate market we’re in. As the economy collapses and the government works diligently on an economic bail out plan, let’s discuss the players in the real estate market.

Buyers: The market is riddled with opportunity. Are there some over-priced listings out there? Of course and in this market they are easy to identify. There are more properties priced to sell, however. Don’t let analysis paralysis stop you from moving forward on a property you like. This term describes buyers who are paralyzed in moving forward by using price per square foot, comparable sales and waiting for the next statistic to be added. These tools are ideal and should be used to make an educated offer on your dream Cape Cod property, not to remain on the sidelines and lose out. The media also adds to this phenomenon. A buyer may be ready to make a well thought offer and then the media reports that prices are falling even more. Thus, the buyer suspends the process. This is common place these days. If you find a property you like, have your realtor provide the statistical data for you to make an effective offer. If the seller does not respond in kind, then move on. There are plenty of properties out there.

Sellers: Every offer in this market is a good offer and should be treated as such. If a buyer presents an offer and is pre-qualified, work the transaction until it is abundantly clear, there is no hope. You have nothing to lose by countering to a low offer, not in this market. Buyers today are looking at comparable sales, percentage of list to sell price and price per square foot. This is real data they are using to make their offers. Seller responses of “try again” or “a smaller unit may be better for you” or “I’m not bidding against myself” should be left for the scrapbooks of 2004 when another buyer was waiting in line to make an offer. Keep this in mind: buyers in this market are looking for opportunity. If they are taking the time, are pre-approved by a bank, which is no small feat these days, do you really want to send them to another seller to see if he/she will engage in negotiations? If so, you may want to remove your unit from the market and lessen the amount of inventory. Tossing an active buyer aside in this market, before negotiating to see where they will go, is most likely not in your best interest.

Examining Your Portfolio

2008-09-25T07:30:00.000-07:00

Record losses, depreciation and short sales. Sound like the real estate market? Well, it actually describes last week's activity in the stock market. Chicken Little went running and yes, the sky did fall.

Many of us were impacted the week of September 15th by the extreme volatility in the stock market. Reported losses didn't have anyone jumping out of windows as they did in 1929, but many people are examining their investment portfolios. Now money market accounts, traditionally viewed as safe investment tools, are in question. Money managers are mixed in their opinions about where to invest.

In our opinion (and Donald Trump’s if you saw him on Larry King Live this week), now is the time to invest in real estate. Yes, we've seen losses in the current market and no one knows when it will turn around. However, the current conditions present many opportunities for buyers. Prices are lower than they have been in years.

If you remember the most important aspect to real estate investment...location, location, location, you'll be a winner. If you find a property you deem to be a good investment, buy it and expect to hold it for a few years. We all know that real estate values are cyclical. By having a tangible investment, especially in resort towns like Provincetown, Truro and Wellfleet, you can expect some appreciation in the coming years. Also, there is the potential to generate extra income through rentals.

Considering how the mortgage industry has become stricter in qualifying buyers, if a lender is willing to finance a purchase in this market, then you know the property is worth it. If you are a cash buyer....you are king and queen once again.

The West End Racing Club

2008-09-18T09:13:00.001-07:00

You may have strolled past the West End Racing Club during a recent visit to Provincetown and wondered what goes on there and how one becomes a member. Well for starters, you have to be a kid. You see, this gathering place, located on the beach at 87 Commercial Street, is one of Provincetown’s best kept secrets. The non-profit club was founded in 1950 by Flyer Santos with the mission to: Give kids in Provincetown an opportunity to learn how to sail and enrich their lives with nautical knowledge and experience. The local and summer kids, ages 8-16, pay $50 for the summer. Every day, they congregate at the club and, under the supervision of an adult instructor, the older kids teach the younger kids how to sail and swim. The kids are taught a sense of responsibility for each other and the club. Each year, they sell raffle tickets to support the club so that it can purchase new equipment (they can also reclaim their $50 registration fee if they hit a certain ticket goal). The kids are taught the very valuable lesson of ‘giving back’ to each other and the community. These refreshing, old fashioned values are alive and well and continue to thrive year after year. Feel free to stop by next summer to check out this unique place that is kept alive by tradition.

Fannie, Freddie and Foreclosures

2008-09-11T07:00:00.000-07:00

It appears the Federal Government will be taking over Fannie Mae and Freddie Mac. What’s happening to these two pillars of the mortgage industry is indicative of the real estate market as a whole. Too many consumers who could not afford homes, bought them in the early 2000’s which created this situation.

Although Fannie Mae and Freddie Mac did not purchase high risk adjustable rate mortgage products, the overall impact of the sour real estate market is now taking its effect on them.
Foreclosure rates are still on the rise as well, meaning that more consumers will lose their homes and loans will go unpaid.

We’ll keep our eyes on the Federal bail out plan, which now, will include running Fannie Mae and Freddie Mac.

The only potential upside to a Federally operated Fannie Mae and Freddie Mac, is the potential for lower interest rates.

If interest rates drop below 6%, buying activity could be generated. However, sellers will have to keep their homes priced according to market conditions.

No one has a crystal ball and can predict when this slow cycle we are in will turn around.

Some say another year and perhaps all of 2009. Signs of a reversal will be more transactions, less inventory, price increases for active listings and less foreclosures.

One thing is for sure, the breaking of Freddie Mac and Fannie Mae is a clear sign that things need to change, and will. We’ll see how this impacts the industry in the coming weeks.

Season's End

2008-09-04T06:08:00.001-07:00

It's Labor Day week and with it comes an end to the fast paced energy that our short season brings us here on the outer cape.

The resort town lifestyle resembles the real estate market performance, in a way. Amuse me if you will and let me explain.

The mad rush of buying, selling, refinancing and exponential appreciation from 2001-early 2005 fueled what can only be described as a frenzied real estate market, not unlike our summer from Memorial Day through Labor Day.

With the summer season officially over, we now enter fall, a quieter time, yet still a little busy with tourists. However, after New Years… we all know, its like hitting a brick wall of silence and isolation. Dinner parties and the occasional holiday weekend may pop up… but let’s face it, its pretty dead. That’s where we are right now in the real estate market. It’s the winter. We have seen pockets of activity and some large commercial transactions, but overall, we are not immune to the national trend.

Some experts are saying the market is starting to turn around. Others say it will still be another 9 months to one year.

With prices low, interest rates hovering in the mid 6’s, new federal and state laws created to stimulate the housing market, hopefully, we’ll see a new season begin shortly for real estate.

Even though we are most likely skidding along the bottom, until homebuyers truly believe this is where we are and start buying, activity will remain sluggish.

How far away is Memorial Day for real estate? No one really knows. Stay tuned.

Build New or Buy Turn Key?

2008-08-28T07:10:00.000-07:00

To build or not to build and buy turn key. That seems to be the question these days. Second home buyers looking for that deal in today’s environment are increasingly inquiring about land to design and build their dream vacation home.

Although the idea seems romantic, you may want to think about the costs involved…not just the financial cost but the stress that may accompany new construction. Take into consideration the following when it comes to new construction:

Once you identify a lot of land ask your realtor about setbacks, basically how close to the boundary are you allowed to build and….. facilities…this being electricity, potable water supply and title v capability.
Hire an attorney who is versed in new construction. They will guide you through homeowners association covenants, growth management by-laws and other issues that will arise.
Hire a good architect to design the house. Make sure they can work well with town officials for your application with the planning and zoning boards and building department.
Plan on spending an estimated $200 to $250 per square foot on construction depending on your finishes. This may even be higher in certain areas. Count on delays.
And finally, it may be more challenging to acquire financing for the purchase of land.

Progress Update: Herring Cove Village

2008-08-21T08:56:00.000-07:00

Things are moving along at a swift pace at the West End’s new premier development! Floors, cabinets, tiling and other finishes are under way in the first two units. There are 1, 2 and 3 bedroom units being offered.

The windows in the first unit are all trimmed out, and the attractive chair rail in the bedrooms provides a lovely finish detail. The paint colors are soothing and dynamic, all at once! Light maple flooring is being installed and the custom cabinets are hanging in Unit 1. The beautiful glass tiles are being laid in all the bathrooms and the railings are in on the mahogany decks.

Property Details: click here.

For more information, email (Emily@atlanticbaysir.com) or check out the Herring Cove Village Web site.

Check out the latest photos on our Web Site's Written Blog (entry is dated August 21, 2008).

Stimulating the Market

2008-08-14T00:00:00.000-07:00

This week we’ll briefly outline the new federal housing legislation to help stimulate the failed housing market and take a peek at the state’s law to address the foreclosure issue.

The Federal program, which became active in late July, provides the following:

Tax relief to first time homebuyers in the amount of a $7,500 tax credit. This will be issued providing it is used by July 1 of next year. The credit must be paid back, interest free, at a rate of $500 per year over 15 years.

Homeowners who claim the standard tax deduction can receive a tax relief of $500 for single and $1,000 if married.

Bonds will be made more attractive to investors potentially lowering the cost to develop affordable housing.

For some owners here on the cape…the capital gains you claim when selling your second or vacation home may be impacted if you used it as a primary residence for a certain period of time leading up to the sale.

Lendors will need to provide revised disclosure statements early in the process and provide mortgage documents no later than seven days prior to closing.

Freddie Mac and Fannie Mae will increase their lending amounts to markets with higher property values.

Homeowners facing foreclosure will now be able to take advantage of federally backed mortgages to get out of aggressive mortgage products.

Senior Citizens will benefit by an increase in the monthly payouts for reverse mortgages.

Veterans are protected from the foreclosure process until nine months after they return from active service

Communities hit by the demise of foreclosed properties will share a redevelopment fund to restore vacant homes.

We’ll see how the federal program works out. It is a massive step in the right direction to help correct the soft real estate market and rescue suffering homeowners trying to save their properties.

The state law which delays property foreclosures seems to be working. The law which became active May 1st, is designed to give homeowners a 90 day grace period before being foreclosed upon.

There were 2308 new foreclosures in June of 2007. This June there were only 350 according to The Warren Group, a Boston based real estate data publishing company. The law may be working. However, the overall number of foreclosures are due to double this year compared to 2007.

Completed foreclosures have dropped 19.5% from May to June. More time is needed in order to determine the results of this law.

Market Trends

2008-08-07T05:00:00.000-07:00

Every day, we are asked by Buyers how the market is performing and when would be the best time to buy. We wish we had a crystal ball to answer the latter part of that question. The best we can do is to report on market activity and to update you on any trends that we discover, leaving you to make your own decision about when to jump back into the market.

It is interesting to note that many buyers who have been in a holding pattern for the past two years have chosen this summer to make their move. Year to date sales volume is up in Provincetown and Truro compared with the same period in 2007. (Unlike those two towns, Wellfleet volume is lagging last year’s performance) Even though volume is up, we continue to see multiple price reductions each week, in all markets. Some feel that the increase in the number of buyers will lead to a slowing of pricing adjustments.

A recent property in Provincetown was introduced to the market at a price that was 5-10% below market value. Four offers were submitted and the property will likely sell for well over asking price. What does this tell us? Properties that are priced competitively are selling. It also illustrates that the buyers in today’s market are savvy and they are waiting for and recognize a good value when one presents itself.

Following find Sales Volume YTD compared with the same period in 2007.

Provincetown
2008 YTD Sales Volume $55,672,301
2007 1/1/07-8/6/07 $50,724,000

Truro
2008 YTD Sales Volume $26,588,500
2007 1/1/07-8/6/07 $21,080,433

Wellfleet
2008 YTD Sales Volume $13,687,190
2007 1/1/07-8/6/07 $29,180,925

New Luxury Development: Herring Cove Village

2008-07-31T09:24:00.000-07:00

We are proud to be listing a new luxury development in Provincetown’s West End. With beautiful views of the Moors and Wood End Light House, Herring Cove Village is presently under construction and will be available for fall occupancy. The developers have partnered with Boston and Cape Cod’s finest architects, engineers, builders, and landscape architects to create a property that will offer the ultimate in Provincetown living. The village will be beautifully landscaped, and the units themselves will offer luxury finishes and high-end amenities. The builders, Cape Associates, are renowned in the region for their high quality construction.

First to the market will be two free standing 3 BR, 3.5BA homes which boast wonderful views and spacious living with five exclusive use outside areas, including a roof deck which offers sweeping 360 degree views. The two bedroom and one bedroom units will share the same wonderful designs and finishes.

Herring Cove Village is conveniently located near Herring Cove Beach, Herring Cove Tennis Club and near Provincetown’s popular West End restaurants at the Red Inn and Victor’s.

The developers understand that buyers of this type of property may wish to customize their finishes, and they are completely open to working with you in these early stages to help you achieve your dream house.

To follow the project’s progress, visit the Website for Herring Cove Village.

To see a video tour of the construction site, visist our Video Blog.

Are you interested in receiving email updates about the progress of this project? If so, email Emily@atlanticbaysir.com.

Marketing Shift

2008-07-24T10:04:00.000-07:00

Virtual tours, polished video tours and print advertising are taking their places in the history books of real estate marketing. Generation X and Y’s are a completely different breed of real estate consumer and their needs and methods of doing business are completely different than the needs of baby boomers. Text messaging, email and reality type video tours are what home shoppers look at when perusing the internet for a potential real estate purchase.

Today’s real estate agents have become consultants, guiding clients through the process and providing information every step of the way. In some cases, the realtor may meet a client once and the rest is done via email and texting. You will be hard pressed to hear a Gen y’r on the telephone with his/her realtor. You will however, see them texting messages, demanding answers to questions regarding specific properties they found on the internet. The requirement is that the realtor be available for constant communication via text or email. Instant gratification is a must in commerce today and answering a client’s question in a timely manner is key.

The changing face of real estate sales is evolving more so today than ever before. Agent websites and blogging are the new medium for advertising and promoting properties. Properties that are advertised in print media are all but invisible to the next generation of home buyer. With advances in technology constantly changing, it will be interesting to see what methods realtors use to sell listings in just a few short years.

The History of Days Cottages in North Truro

2008-07-17T15:22:00.000-07:00

Recently we listed for sale the iconic Days Cottages on the beach in North Truro. Ask any visitor to the Outer Cape if he or she is familiar with Days Cottages, and the answer will be a resounding YES. Each with the name of a different flower, these green and white cottages are a symbol of the region.

While many recognize them, few know the history behind them. In the mid 1910’s. an enterprising young man named Joseph A Days bought the waterfront strip with the idea of moving his home from Provincetown to sit on this new location. In the 1930’s, after the depression, and after dismantling his house, Joe changed his mind and decided it wasn’t worth it to move his house, and he burned the sections in a massive bonfire! Instead, he envisioned a colony of cottages. Since he ran a construction company, and there was no work for his people due to the Depression, he put them to work building his vision. In 1931, Days was open for business with 9 cottages! And what a success it was. By 1933, there were 22 cottages built and being rented out and finally a 23rd cottage was built across the street next to the market. At that time, it was Joe’s wife Amelia who brainstormed the names of 23 flowers to give each cottage its own identity. The cottages weathered a few hurricanes in the 30’s and 40’s and in mid 1940’s, a sea wall was built to protect them from erosion. Throughout the years, they have been lovingly maintained by the Days family.

The cottages have been a popular tourist destination for decades, with the same visitors returning year after year. Now, for the first time, private ownership of individual cottages in this colony is being offered. New owners can use the cottage themselves, or continue to rent the property through the on-site management.

For more history on the Days Cottages, visit here.

For more information about purchasing a cottage, visit here.

For a VIDEO TOUR, click here.

The Summer Rental

2008-07-10T08:25:00.001-07:00

It's Saturday evening in Provincetown and your summer renter is just getting back from the beach to shower for dinner. Your west end condo is a beautiful. It’s a two bedroom, two full bathroom free standing cottage with granite countertops, stainless appliances, recessed lighting….and views of the bay. Truly breathtaking. But what also makes the renter gasp is the fact that there is no hot water as he steps into the shower. Who does he call? What does he do?

This is a common problem in resort communities where second homeowners often rent their homes to generate income. It’s important to have contact information set in a prominent location (usually on the fridge) for renters to use in case of an emergency.

In resort towns such as Provincetown, there are management companies that address these issues. Usually you can contract with these companies as your need requires. They are on call to handle any emergency issues that may arise. Ultimately, a skilled and reliable property management company will save you money, maintain your rental retention and potentially get you new business through word of mouth.

The Half-Way Mark

2008-07-03T08:00:00.000-07:00

The end of the second quarter and first half of 2008 is a good time to review the performance of the real estate market. We compiled the following table for a year to date review with three year comparison for the towns of Provincetown, Truro and Wellfeet.

Provincetown

2008 to date
Properties Sold: 89
Dollar Value: $48,409,301.00

2007
Properties Sold: 165
Dollar Value: $85,902,800.00

2006
Properties Sold: 158
Dollar Value: $82,653,453.00

2005
Properties Sold: 228
Dollar Value: $139,366,255.00

Truro

2008 to date
Properties Sold: 31
Dollar Value: $19,619,500.00

2007
Properties Sold: 61
Dollar Value: $36,974,833.00

2006
Properties Sold: 56
Dollar Value: $37,325,075.00

2005
Properties Sold: 91
Dollar Value: $55,464,466.00

Wellfleet

2008 to date
Properties Sold: 26
Dollar Value: $13,137,190.00

2007
Properties Sold: 93
Dollar Value: $55,814,425.00

2006
Properties Sold: 74
Dollar Value: $42,099,750.00

2005
Properties Sold: 105
Dollar Value: $57,164,800.00

Seller Incentives

2008-06-26T15:43:00.000-07:00

If you are selling a property, you have no doubt seen other sellers offering incentives to make their properties stand out, and you are wondering if you should jump on the bandwagon. In a market with increased inventory, the challenge for sellers and their agents is to figure out what will capture the attention of the buyers. Incentives are more common in traditional markets, but we are beginning to see them crop up on the outer Cape. Some sellers are offering to: pay condo-fees or property taxes for a year, pre-pay for a year of parking, pay a bonus to the selling agent, hold a part of the mortgage, or pick up the closing costs for their would-be buyer. One seller even offered a new motor scooter with the purchase of his property!

Do these incentives work? In some cases, they may initially help to draw attention to the property. But do they increase the likelihood of a sale? In our experience, the answer is NO. With so much competition, there are two fairly simple ways to make your property stand out. 1 – Clean, repair and stage your property. Get rid of clutter, make obvious repairs, and consult a staging expert. A property that appears well maintained and presents in a clean and stylish manner will rise to the top of the buyer’s list. It’s all about making an impression. 2 – Price you property appropriately. This is the single most important factor. Instead of offering to pay expenses for the buyer, use that money to bring the price down to where it belongs in the marketplace. Get an appraisal of your property, and price the property accordingly. In the end, it’s the property that will win the buyer over, not the perks.

Aim for an 'A' on Title V

2008-06-19T15:43:00.000-07:00

There has been a lot of talk about Title V lately. Title V refers to the state regulation of the type of septic system your house or condo association has in order to dispose of waste. Many homes on the outer cape have cesspools or a version of a septic system. However, these systems do not pass as title v systems.

When selling your home or condo, you must be sure that the health department for the town where your property is located, has a passing Title V report. This means that your system has been tested by a licensed inspector and filed with the town. Your system should be tested every two years to keep the report current. If you are not selling your property there is no need to test, but proper maintenance by pumping should be done occasionally. If you are not aware of the type of system you have and you are planning to sell your home, make sure your realtor gets a copy of the title V report prior to listing your home for sale. You should know what type of system you have and whether or not it passes.

Effective February 1, 2005, all homes and condo associations in Provincetown and most other communities in the state, must have a passing Title V when selling property. Sellers who offer town approved engineering plans are on the right track, however, it is difficult for a buyer to obtain financing with competitive interest rates when a property does not have a passing Title V. Seller beware, considering the current market conditions, this could make your property a challenge to sell.

Introducing the CLIENTS’ CORNER

2008-06-12T15:42:00.000-07:00

It has occurred to us that many of our clients have exciting businesses or interesting information to share, and we would like to provide a networking forum for you. Do you have a show in Provincetown you would like to promote? Have you just opened a shop in Greenwich Village? Will you be performing at a Boston café? Did you just win an award? Are you hosting a fundraiser for a special charity? Do you want to publicize your website address?

Our Blog announcement goes out to over 500 people each week, and we’d be happy to post your information. Just send us an email with the information you’d like to share and look for our new CLIENTS’ CORNER feature to appear on our Blog home page within the next couple of weeks.

Send information to: info@provincetownrealestatenow.com.

Mortgage Rates Garner Interest

2008-06-05T15:42:00.000-07:00

Mortgage interest rates have been the topic of many dinner conversations lately. Right now, with low rates and low prices it’s a good time to buy. This is indisputable. Refinancing can be a little tougher as property values continue to decrease, impacting appraisals and creating an impossible loan to value ratio for banks. Many homeowners, who took advantage of adjustable rate mortgages a few years ago, find themselves stuck in unfriendly products and unable to refinance to take advantage of lower rates.

The upcoming presidential election has generated some interesting predictions for mortgage interest rates. Some say that if a Democrat is elected, the mortgage interest rates will increase. Others say that there will be no impact whatsoever.

Historically, starting with the Reagan administration, rates were high, up to 15%. The rates started to decrease as the first Bush administration neared its end, hovering around 9-10%. They continued a slow decline under the Clinton administration and increased slightly right after George II was sworn in. During the current Bush administration rates hit all time lows, around 5%.

Where the rates will go is hard to tell. The mortgage industry is still suffering from its recent meltdown. Inflation, price of oil and whether or not we enter a recession will be major factors.

With instability in the mortgage industry and the upcoming election a possible factor in impacting the rates, a good time to act on that special property is now. Never before has there been a genuine sense of opportunity to invest if you are qualified to do so.

Year-To-Date Sales Data

2008-05-29T15:41:00.000-07:00

The real estate market on the Outer Cape is holding its own. In comparing sales from January through May of 2007 with activity from these same months in 2008, the sales volume in Provincetown is up slightly this year, Truro is about even and Wellfleet is down by 30%.

Following find a breakdown of the Sales this year by town:

PROVINCETOWN (2008 YTD Sales Volume: $40,460,801 vs 1/1/07-5/29/07: $35,875,000)

Single Family 13 have sold with an average price of $938,000.
Multi Family 2 have sold with an average price of $1,175,000
Lots and Land 0 have sold
Commercial 1 sale with a price of $1,650,000
Condominium 52 have sold with an average price of $349,362
Hotel/Motel 1 sale with a price of $6,1000,000

TRURO (2008 YTD Sales Volume: $15,122,000 vs 1/1/07-5/29/07: $16,020,100)

Single Family 13 have sold with an average price of $697,792
Multi Family 0 have sold
Lots and Land 4 have sold with an average price of $812,500
Commercial 0 have sold
Condominium 8 have sold with an average price of $350,088
Hotel/Motel 0 have sold

WELLFLEET (2008 YTD Sales Volume: $11,645,190 vs 1/1/07-5/29/07: $16,746,175)

Single Family 14 have sold with an average price of $639,928
Multi Family 0 have sold
Lots and Land 2 have sold with an average price of $212,100
Commercial 3 have sold with an average price of $182,667
Condominium 4 have sold with an average price of $428,500
Hotel/Motel 0 have sold

Quite the Scenic 'Scene'

2008-05-22T15:41:00.000-07:00

In conversations we’ve had throughout the years with various individuals who decide to move here, the natural beauty of Cape Cod always comes up as one of the reasons.

A few week’s ago, as recorded on our video blog, we were treated to a spectacular show of Right Whales feeding off Race Point and Herring Cove Beach. Viewing a breaching whale from the beach is rare.

With that being said, the wonders experienced on the Outer Cape are breathtaking. From our sunsets and world’s most beautiful beaches to the manic culture of summer and isolation of winter, there is nowhere like the outer cape.

Why do I bring this up? Well, it seems that folks are buying on the Outer Cape now for the absolute love of the area, not for a quick buck to be made on a flip. This is good news for us year round residents as it means more concern and care from homeowners who vacation here.

Since 2005 the median real estate price for a single family home in Provincetown dropped 12.6% to $594,500. In Truro, a drop of 8.7% to $582,500 and Wellfleet a 10.7% drop to $500,000. This means opportunity for buyers who are ready to make the investment in a Cape Cod home.

If you are a second homebuyer who missed out on opportunities before the radical appreciation of the early 2000’s, come back, and make that dream of owning a vacation home on Cape Cod a realty.

The Pitfalls of Overpricing

2008-05-15T15:40:00.000-07:00

The best indicator of what your property is worth is an examination of recent comparable sales. Your Seller’s Agent can provide you with a CMA, a comparative market analysis, which outlines these sales and estimates the value of your property. Try to remain unemotional when you review this information. You may be thinking of how nicely you re-tiled the bathroom or how much better the kitchen looks since you re-modeled, and because of your efforts, you feel your property is “better” than the comps, and therefore worth more. It can be very difficult to depersonalize the process of pricing, but it is the key to success.

The “sweet spot” for marketing a property is the first 30 days. The greatest number of showings typically occur during this period. This is when the property first appears in advertisements and on real estate websites. Buyers closely monitoring the market will become aware of your property and take immediate notice of the new offering. Excitement is generated by the new listing. Buyer’s Agents will be previewing the property for their clients. BUT, only if it’s priced right.

When a property is not priced properly, you essentially forego the benefits of the first 30 days. Buyer’s Agents will overlook the listing as being unrealistic and will not bother to alert their clients about the property. Realtors know their market, and why waste time with a property that is overpriced? Buyers conducting their own searches will compare the house to others like it, and will dismiss it. With the current market conditions, it is very risky to price your property higher than it’s worth. With increased inventories, there are too many other choices.

You may be thinking, “I am not desperate, so I will just wait for that one person who loves this house as much as I do and is willing to pay for it.” In most cases, this strategy does not bear out. Remember, most Buyers will be getting an appraisal to satisfy their lenders, and the appraisers use the same comps that your Agent used in the CMA. If the property doesn’t appraise for the asking price, you may find yourself re-negotiating the purchase price.

If you do not need to sell and you require a price higher than the market will support, it is best to wait until the market appreciates. Why relegate your property to becoming stale? When the market finally catches up, buyers will ask “what’s wrong with that property? It’s been on the market for so long.”

If you want results, price the house competitively. Remember, for every month the house doesn’t sell, you will pay carrying costs, and ultimately you must deduct those from any higher price that you may have achieved by waiting an extra year to get your price.

How Low Can It Go?

2008-05-08T15:39:00.000-07:00

Price reductions and new listings priced according to current market values continue to generate activity in this slow real estate market. Buyers are now acting to take advantage of opportunity. Some buyers, however, are waiting to see just how low, the sellers will go.

From the buyer’s perspective this strategy could create anxiety. Here’s the risk. If you find a property you like and decide to play the waiting game you could lose out. With interest rates still low and price reductions bringing many properties into reach for more buyers, you may lose that property you had wanted. We’ve seen this lately on the outer cape. A buyer passes on a property in order to play the waiting game. Suddenly, the property sells and the buyer feels dejected having not expected the property to sell.

Sellers on the other hand are not only reducing their prices, but are offering a buffet of enticements…some are paying condo fees for up to a year, large buyer bonuses and more. But the only thing that really matters is the listing price.

If you are in the market to buy and have identified your dream home on the outer cape, talk to your realtor about making an offer. If you are willing to make a realistic offer, it might surprise you as to what sellers are willing to do to sell their property.

Provincetown's Historic Floaters

2008-05-01T15:38:00.000-07:00

Have you ever wondered about the meaning of the blue plaque that is found on many Provincetown houses? Throughout Provincetown, but mostly in the West End, you will find antique homes that bear a blue and white ceramic tile that depicts a house on a boat.

These homes are known as Floaters. They were built beginning in 1818 on the peninsula that we know as Long Point. Many of today’s visitors are not aware that at one time, a settlement existed on Long Point. There was a thriving community, with a Salt Works being the primary industry. The Light House was built in 1826 and there were windmills, a store, a school, boat landings, and a total of 200 people that lived in 38 houses.

When a large salt deposit was found in Syracuse NY, it essentially put the Long Point Salt Works out of business and eventually in the 1850’s, the settlement was abandoned and the families moved to the mainland. Wood was a precious resource at the time, and rather than just leave their homes, the settlers brought their houses with them by floating them over on rafts. They were placed on foundations, and many still stand today.

A Time To Buy

2008-04-24T15:38:00.000-07:00

The stars are aligned and conditions are prime to buy real estate. It is beyond textbook perfect...almost.

Listed prices for condominiums and single family homes are the lowest they have been in years. This is most likely due to sellers now pricing their homes realistically per market performance. Low listed prices combined with the fact that interest rates for 30 year fixed mortgages are now around 5.5%, makes it very clear that something magical is occurring for those who want to buy real estate.

Rarely, have both the listing prices and mortgage rates been simultaneously low.
Historically, even in the early nineties this phenomenon did not occur. The market was only sluggish for roughly four years before the extreme escalation in values started.

If the market starts to rebound one year from now, it could take another three years to see the same levels of appreciation as we did before the recent correction.
Consumers would serve themselves well to pay attention to the signs. Low mortgage rates, low listing prices, multiple foreclosures and short sales. This is indeed the time to make that leap.

But there is a double edged sword. Obtaining a mortgage in today's market is not as easy as it once was and can be downright impossible. The recent mortgage meltdown has put stricter qualifications on potential homebuyers. Although there is tremendous opportunity reflected in low listing prices and foreclosures, not everyone can take advantage. Lenders are no longer giving away money. If you plan on buying a foreclosed property keep in mind that you have to be pre qualified and bring a deposit of up to $5,000 the day of the auction.

So although it is a good time to buy, you have to have clean credit, strong income and a good eye for opportunity.

Financial Benefits of Owning a Second Home

2008-04-17T15:37:00.000-07:00

Owning a second home may afford you many of the benefits of primary homeownership, whether it is for your own vacation use or it’s a property that you lease out for income purposes.

If you intend to use the property as your personal getaway, you can deduct your mortgage interest and property taxes. In addition to those savings each year, you will possibly enjoy increased appreciation, and your increased equity in the property will eventually put more money in your pocket. You may also opt to occasionally rent the property out to offset some of your costs.

Although you are not allowed to deduct mortgage interest from a property that is used strictly as a rental property, you can deduct operating expenses up to and exceeding your rental income. You can also deduct any losses when you sell the property.

Before you invest in a second home or income property, speak with your accountant or tax advisor. There are strict rules about personal usage and length of ownership that apply to investment property if you hope to enjoy the maximum tax benefits. Either way, owning a second home can prove to be a smart move in your financial future.

Multi-Part Series on Our Favorite Walking Trails - Part 2: CLAPPS POND

2008-04-10T15:37:00.000-07:00

The largest pond in Provincetown is called Clapps Pond and there is a beautiful walking trail that encircles it. The pond and its environs are located off of Route 6 near Shank Painter Road on approximately 47 acres. The area surrounding the pond is a scrub pine forest and because it is more protected, the pines will be taller and you will also see oak and birch trees. Always keep to your left on this trail. As you walk up a slight incline, Clapps Pond will come into view on your left. Keep your eyes open for other kettle ponds on your right. You can leave the world behind as you encounter few others. This is a wonderful place to walk with your dog. You may see exciting wildlife during your walk, including wild turkeys, coyotes, foxes and deer, in addition to abundant bird life.

To return, retrace your steps back to your car. Don’t forget to bring water, especially if you take your dog. During late spring and early summer, pack insect repellent. Don’t forget sunscreen and check for ticks when you return.

If you walk this trail or Hatches Harbor, which we described last week, let us know your impressions. Enjoy.

Directions: You access this trail off Route 6. From town, drive down Shank Painter Road (the Grand Union is on this road) toward Route 6. Take a left on Route 6 toward Herring Cove. Almost immediately you will see the entrance to a fire road on your right. You can park on Route 6 here but take care not to block the fire road entrance.

Multi-Part Series on Our Favorite Walking Trails - Part 1: HATCHES HARBOR

2008-04-03T15:34:00.001-07:00

As spring approaches, thoughts turn to the outdoors here on the Outer Cape. Provincetown, Truro, Wellfleet and the National Seashore offer many beautiful walking trails near the ocean and deep into the woods past sparkling kettle ponds. Thanks to President John F. Kennedy, much of our wildlife and natural environment was protected when he signed a law in 1961 authorizing the creation of the Cape Cod National Seashore, which encompasses 43,500 acres and 40 miles of seashore along the Atlantic Ocean.

One of our favorites in the Seashore is the Trail to Hatches Harbor. You access this trail off of Provincelands Road. (Directions Below) The first section is on a level, packed sand trail which takes you through a scrub pine forest. You will notice the trees seem stunted. This is due to the harsh environment of salt spray and high winds especially in the winter. After approximately one half mile the trail opens up to Hatches Harbor tidal marsh. You will now be walking on an earthen dike which splits the marsh in half. Race Point Light and the keeper’s house are in the distance and the dunes of the Provincelands are straight ahead. This area has abundant birdlife and spectacular views. Keep your eyes open for the Great Blue Heron. Walk as far as you like, even out to the Light House. (about 45 minutes each way). If you choose to walk out to the Light House, be mindful of the tides – it is best to go during low tide. Just beyond the Light House, the ocean awaits you for a refreshing swim on a hot day.

(Little known fact: The residence located at Race Point Light, which was built in 1840 and was originally occupied by the light house keeper, is available for overnight stays. It is maintained by a non-profit organization and more information can be found by clicking here)

Directions to Hatches Harbor: From Route 6 near the Conwell stop light, turn right onto Race Point Road. When you see the Seashore Visitor Center on the right, take the next left toward Herring Cove Beach. At the bottom of the hill (less than a mile) you will see a parking lot on your right near the bike trail tunnel. Park in the lot and walk toward the fire road. The trail is well marked.

Next week, we will take you on a walk around one of our favorite Kettle Ponds.

Assessing an Upgrade

2008-03-24T15:33:00.000-07:00

Q: "Mike, I am struggling over the fact that it is a great time to buy but I don’t have any liquid cash to do so. I don’t mean to exploit someone’s financial distress, however, I’ve identified a home in a location I’ve wanted for years that seems to have a selling price created out of urgency. In Provincetown dollars of course it is still pretty high, but manageable for me if I can sell my house and apply the equity. Is it realistic to think that I can sell my property in this market and upgrade to this house in what I perceive as a better location? Should I wait for the house to foreclose?" - Matthew, Provincetown

A: Thanks Matthew and this is a very good question. Let me start by strongly advising not to wait for a foreclosure. In Provincetown, the foreclosures we’ve seen have not been Earth shattering deals. If you identify a property you like and the seller has disclosed extreme motivation, you are in the driver’s seat for a great deal. Maybe even a short sale. Once the bank takes over, they attempt to hold to their bottom line and recapture some of the expense of the actual foreclosure.

The real estate market remains soft. We are definitely seeing activity but 2007 is in line to be a slower year than 2006. However, with that said, what is selling is property priced according to the market conditions. I’ve said this before and I’ll say it again. Property priced right in any market sells. Priced right does not mean pricing high and it does not mean under-pricing either.

If you have sizeable equity in your home and you can afford to price it competitively. Then I recommend you go for it. The perceived loss on what you’d want to sell your existing property for in a stronger market will be re-couped in the appreciation of the home in the better location, not to mention the happiness you’ll feel achieving the goal of living in a location you really want to be in.

Consult your realtor and you’ll see that there are many incredible opportunities out there. Go for it and next year you’ll be thankful this week, that you made the move. Remember, in the current market, it is taking 9 months to one year to sell prop.

The Market is Active!

2008-03-17T15:33:00.000-07:00

Market Snapshot
Activity since January 1, 2008

For those of you who are wondering how the market is doing this year, here is a year-to-date account of what’s happening in the three towns on the Outer Cape!

Provincetown:
There are currently 317 properties for sale, including Single Family, Multi Family, Land, Commercial, Condominiums and Hotel/Motels.
33 properties are under agreement, and there have been 29 sales ( 24 condos, 3 single families, 1 hotel, and 1 Multi)

Truro:
There are currently 196 properties for sale, including Single Family, Multi Family, Land, Commercial, Condominiums and Hotel/Motels.
19 properties are under agreement, and there have been 7 sales (3 condos, 3 single families, 1 Piece of Land)

Wellfleet:
There are currently 131 properties for sale, including Single Family, Multi Family, Land, Commercial, and Condominiums.
12 properties are under agreement, and there have been 8 sales (6 single families, 2 Commercial Sales)

The Grass is Always Greener

2008-03-10T15:32:00.000-07:00

It's mid-March and soon the sun will shine brighter, days will get longer and spring will arrive.

If you have a lawn, here are some quick tips you may want to follow in order to make sure you have green and lush grass.

Rake the lawn to remove all dead leaves that the blustery winds of winter blew onto your lawn. If there are no leaves, rake the lawn thoroughly to remove dead grass. Raking removes thatch, a build up of dead leaves and grass which prevents the proper growth of individual blades of grass.
If you have mossy type plants growing in your lawn, you may want to apply lime to ensure the soil acidity is proper for grass. Not every lawn needs lime so exercise caution and read instructions.
Seed the lawn. If you have bare spots that need to be seeded or a part of the lawn is worn after being used as a walkway during the winter, get out the rake again. Pay special attention to these areas with the rake to make sure all thatch is removed. Then, use a garden rake to create grooves for the seed. Spread the grass seed. Ask your garden center expert about which seed is best for your location.
Once the lawn is raked and seed planted, buy a multi step fertilizer and weed killer. Spread this over the entire lawn. Follow the instructions and make sure you don’t over apply. If you use too much fertilizer, it will burn the grass causing more harm than good. Make sure your fertilizer is a cool season fertilizer depending on where you live.

A typical time to start spring lawn care is now if you have warm weather. You can wait as long as mid April providing the weather is cool. Temperature for sprig lawn care should be at least consistently in the 50’s.

Once you follow these simple steps, you too, can enjoy tall glasses of cool lemonade while standing barefoot in cool green grass.