Sorry I am so late with this post, but it has been a very busy year here in Holyoke and for Allyn & O'Donnell.   Being a small locally run company we spent all of our time assisting our clients in this market and just did not have the time to bring you this update.

I am sure that everyone has heard that the real estate market in most of the country has been booming.  Here in Holyoke I would not use the word 'booming' but it certainly has been very busy.  2017 had the most single family homes sales, 211, since I have been keeping records starting in 1994.  Last year, 2016 was the second highest volume with 199 sales. 

Values have gone up again.  Average sale prices have risen to $191,764 from $178,717 which is a 7% increase over 2016.  Median sale price rose 10% over 2016 to $183,250 from $167,500 last year.   Statisticians say that median is a more accurate reflection of prices since it is not skewed by a few high priced sales.   Either way we all can see that prices have gone up fairly significantly in 2017. 

There were few house on the market at any given time.  In the past, 70, 80 or more single family houses on the market was not unusual.  Last year 20 to 30 homes on the market was more of the norm.   Sellers were seeing multiple offers on their homes.  Sometimes mini bidding wars occurred because buyers had little to choose from.  Good houses were selling very quickly and buyers did not want to miss out.  Some were bidding too much, $5,000 to $10,000 and even more over what the house was worth. 

This caused some problems in the market.  When bidding high, buyers run the risk of not having the house appraise for the sale price.   If it does not appraise at or above the sale price, than many buyers will not get the loan since they are usually borrowing 95% to 100% of the sale price.    When this happens the buyers are forced to either not buy the house or go back to the seller to renegotiate the selling price down to the appraised value.  Some sellers would cooperate but others were adamant that if that buyer won't buy their house, then there is a list of other buyers that will.   Sometimes this works out for the sellers because maybe another appraiser will appraise the house for a higher amount.  But other times this strategy backfires because the next appraisal, for the new buyer, comes in at a similar value or even lower than the first appraisal. 

Remember the old adage, 'a bird in the hand is worth two in the bush'?  Well this could apply in these situations.  If only the seller worked with the first buyer and renegotiated the sale price they would not have had a delay and certainly a lot less anxiety over the sale.   Moral of this story- Don't be greedy it may not work out the way you want. 

Since we are well into 2018, I will give you a quick update on the market this year.  The first half of 2018 saw 98 sales with an average sale price of $216,724 which is an increase of 13% over 2017.  The median price is $203,000 which is an increase of just over 10% over 2017. 

Sorry about all the numbers but it is difficult to write about changes in the real estate market without using numbers.   I hope everybody is having a good 2018 so far and my best for the rest of the year. 

 It was a very busy year for real estate in Holyoke in 2016. 

According to MLS statistics more single family homes were sold in 2016 than in any year since I started keeping records in 1994.  We had 199 sales in 2016.  Back in 2005 and 2003 there were 198 sales in Holyoke.  In 2015 there were 184 sales of single family homes.   We had a low of 113 sales in 2008, which was the beginning of the downturn in the market.

The average sale price in 2016 was $178,717, which was practically the same as the $178,229 average sale price of 2015. 

There has been a lot of talk in the national media about real estate sales and values.  Here in Holyoke and in most of the area communities, the market does not necessarily follow the national market or even the market in the rest of Massachusetts.  I think that is OK.  

We have not yet regained the losses sustained in the econimic recession. Values were right around $200,000 in 2006 to 2008.  We still have 12% more to make up.  I think values are right around where they should be.  Home prices were just way too high in 2008.  Now, hopefully, we can experience a nice, slow sustained growth, which is much more healthy for the real estate market.

The year of 2017 will probably have a few less sales, but prices should remain the same with maybe a small increase.  A healty market is much better than a hot market.

Mary Michalik has recently retired after 52 years with Allyn & O'Donnell.     Mary sold hundreds of homes during her career and helped hundreds of people buy or sell in the area.  Over the years generations of families worked with Mary.  This is a testament to the genuine dedication and caring Mary showed during her career.   

In December the agents in our office and their guests honored Mary at the Yankee Pedlar Restaurant.   We had a great meal and lots of fun hearing some of Mary's stories about real estate over the years.   She will surely be missed. 

I am sure that you have heard and read all the stories about the real estate market in 2015.  There was a lot of hype, a lot of information but what really happened in the local market?

Well, Holyoke had an increase in volume in the last year.  184 single family homes sold in 2015 compared to 167 in 2014 and 151 in 2013.  This is a good sign for a healthy market.   The days on market remained steady at 118.  Technically if you look at the averages the days on market is 143. That includes two new construction homes that were on the market for over 2,000 days each which skewed the average.  These two houses were originally listed in 2010 as homes to be built.  They were not built until 2015 and both sold last year. 

The average sale price in Holyoke actually went down 3.5% from $184,586 in 2014 to $178,229 in 2015.   The reason behind this decrease may be because only two homes sold for over $400,000 in 2015 compared to three over $400,000 and one at $520,000 in 2014.   Overall a case could be made that values were pretty flat from 2014 to 2015 in most segments of the market in Holyoke.  

My outlook for 2016 is more of the same.  The interest rates went up a very small amount in 2015 and will continue to have very small increases in 2016.  I don't think this will have any measurable impact on the local real estate market.   Volume will be in the range of 170 to 185 single family sales in Holyoke.  Prices I think will remain steady. 

Stay tuned for periodic updates on the Holyoke market.

The market in 2015 started off pretty slow due to the cold snowy winter.  But once the warm weather arrived the market warmed up too! 

In the first four months of 2015, 41 single family homes sold in Holyoke at an average sale price of $154,941.   From 5/1/15 to 10/20/15 there have been 99 sales at an average sale price of $184,620.  Don't let the numbers mislead you.  In the first 4 months of the year there were few sales of higher priced homes.  In fact there was only one sale at $300,000 and none for more than that price.  After 5/1/15, 8 homes sold for over $300,000.   

When you look at the bigger picture 140 homes have sold since the beginning of the year at an average sale price of $175,928.  This is down from the average for all of 2014 of $184,586.  However, I don't think this is showing a decrease in values in 2015.  In 2014 we had a few sales over $400,000 and even one sale at $520,000.   As a whole it appears that values have been steady in 2015.

The best sign that the market has improved is the amount of sales.  So far in 2015 there have been 140 sales, in the same period of 2014 there were 137 sales but only 128 in 2013.   In 2008, the beginning of the downturn in the market, only 113 single family homes sold in the entire year.

What does this all mean?  It means that the market is just fine.  Houses are selling in Holyoke, and in a reasonable amount of time.  Of course only if they are priced correctly. 

Once you have enticed buyers to make an appointment to see your home.  The interior appearance comes into play.  Clutter can be a detriment to getting your home sold quickly and for a good price.  Clutter makes the home seem smaller that it actually is.  Clutter can make buyers feel uncomfortable.    So what is the answer?  Get rid of the clutter!

Go through the home with your Allyn & O'Donnell agent to identify areas that need attention.  Start at the front door.  Is the foyer inviting?  Move into the living areas.  The rooms should feel as large as possible.  Maybe you need to move some furniture, or maybe you need to move some things out of the room.   Bedrooms are equally important.  Many homes have one good sized bedroom and two or more smaller rooms.  Do whatever is possible to make these rooms seem larger.  Clear out children's toys, remove excess wall hangings and open the shades to make the room light and airy.   

Of course fresh paint and a good cleaning will always help.  Clean carpets and buff up the hardwood floors.  Wash the windows, keep the kitchen and bath clean and the counters free of clutter.

Buyers should feel like the home is welcoming them.  The buyers should be able to all stand in the rooms and feel like there is ample space for them and for their furniture.  They should fell comfortable.  Your home, should feel like their home.

In the next edition we will talk about pricing your home and the importance of getting the price right.  

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