Easy access to detailed information

Look no further! The links below will give you a lot of good, reliable information on issues pertaining to Title 5. We review how waste water and septage are handled by on-site residential treatment systems. Then we address how Title 5’s mandatory system inspection affects the purchase and sale of homes in MA. We also cover how septic system repairs and upgrades are regulated in the Commonwealth of Massachusetts by Title 5.

What is a septic system?

Click the image above or click here to download the .pdf file that shows you what a septic system is and how it functions.  The proper care of your septic system is key to its longevity and this file simply and concisely reviews how to make sure you gets many years of use out of your septic system.

Pumping your septic system

Click here or on the above image to download a helpful .pdf that reviews why periodic pumping of your  septic system is needed.  The .pdf is published by the University of Rhode Island and addresses Rhode Island law, but it is still useful for MA residents.

What is Title 5 in Massachusetts?

You can access an excellent overview of Title 5 by clicking the hotlink or clicking the image above.  The .pdf goes into great detail on how Title 5 impacts residential real estate transfers in Massachusetts and draws on content published by the Massachusetts Association of Realtors.

Title 5 inspections

Here is where things start to get complicated.  There are potential pitfalls with Title 5 inspections, many more than can be discussed in a post.  Click here or on the image above to download a .pdf on the ins and outs of Title 5 inspections in MA.

Buying or selling a home with private sewerage

Except in the limited areas of the state with high water table or lots of ledge rock close to the surface of the ground, septic systems are an affordable, ecologically sensible means of handling septage and generally work well for many years if properly maintained.  However, home buyers and sellers can sometimes feel intimidated by Title 5, so please click the hotlink or on the above image to download a .pdf that gives answers to many of the common questions about Title 5 that can arise during a home sale.

What if the system does not pass inspection?

Many systems that do not pass the Title 5 inspection need simple and relatively inexpensive repairs.  In some instances, the system will require a full replacement with a new septic system.  Click here or on the image above to download a .pdf that covers some of the issues pertaining to system repairs and upgrades.

Help paying for system upgrades

If your septic system needs a major upgrade, there are programs to help you with the cost.  Click here or on the image above to access a .pdf on loans and grants available to MA home owners with troubled septic systems.

 Specific questions

If you have questions about a particular situation involving Title 5, please feel free to contact me.  If I can’t help you I should be able to put you in touch with someone who can.

Copyright ©2011 02038.com

Whether you’ve lived in the region for years or are just in the early stages of relocating to MA, this Facebook page has something for you.

What can you get for . . .?

From  a $3 million+ home in Sherborn to a $300,000 split level in Hopkinton, see exactly what your money will buy right now in some of the most popular towns west of Boston . . . in real time!

If you’re thinking of moving or just want to have fun looking at dream homes, click here or on the image above to see how much home you can get west of Boston.

How’s the MA real estate market?

Keep up on current events in MA real estate and national economic trends affecting the value of your home by clicking here or on the image below:

You’ll see exclusive content and lots of charts and graphs created by Warren to help you better understand what the future may hold for what is likely your most important personal investment: your home.

Fun activities west of Boston 

Looking for interesting things to do west of Boston?  Click here or on the image below to sample interesting area events and activities that prove why so many people love living west of Boston.

Explore why Massachusetts is a very special place and how the region west of Boston has a lot to offer just about everyone!

Like the page to get updates

Please take the opportunity to like Warren’s Facebook page:

It’s an easy way to get updates from Warren.  He promises to make it worth your while – thank you!

Copyright ©2011 02038.com

Another American Century?

The Telegraph Media Group of the UK just published an interesting article on why we may all soon be reaping the benefits of a radically improving competitive position for the US in the world economy.

The article is a well worth reading.  Below are summaries of the key points made in the piece:

US energy imports may fall sharply

The huge outflows of dollars from the US to buy Middle East oil – a depressing staple of American economics since the 1970s – may end by mid-decade.  If we could keep that money home, there would be profound benefits to the US economy.

This may become a reality due to new oil extraction techniques that are opening immense oil shale fields in the US to production.

You can read more about the Bakken fields here.  There’s even a large shale oil field in Ohio!

There are also huge amounts of  natural gas in US shale deposits.  These supplies have been coming into production with a lot more on the way.  Because of this, natural gas prices have dropped significantly over the last three years and US manufacturing is  just now experiencing the economic benefits.

The US is now the top producer of natural gas in the world.  We are looking at soon becoming a major EXPORTER of natural gas – what a profound (and beneficial) change!

Manufacturing renaissance in US

America is poised to add 2 to 3 million jobs in the next 5 years as manufacturing returns to the US according to a new report by the Boston Consulting Group.  Manufacturing jobs are being “re-shored” back to the US from overseas in increasing numbers as the costs of production keep rising in China and other offshore manufacturing centers.

You can download the full report by clicking here or on the image above.

America is making some high quality products these days; we recently bought a Ford Focus SEL 5 door automobile and love it!

You can help this trend by buying American-made products as much as you can.  This can be hard to do, but well worth the effort in terms of creating a better economy for all of us.

ABC News has created a website to help you buy American.

Low fertility rates will hurt the economies of other industrial nations

New research is exposing a fundamental weakness in China, Japan and most European nations: demographics.

Low birth rates have put China and many other economic competitors of the US on a disastrous demographic path towards an aged population.  These economies may soon lack enough young workers to support all their upcoming retirees.

The US birth rate while declining is not nearly as low as China’s and Japan’s.  Demographics will help America compete in the world economy and grow its way out of its current debt problems as the 21st Century unfolds.

So there are seemingly many good reasons for optimism about your economic future as Americans – the current difficulties will end and better times are coming!

Copyright ©2011 02038.com

Regional  markets even better

As set forth in a separate report issued recently by The MetroWest Economic Research Center at Framingham State College (MERC), the employment picture is even better in many regions to the west of Boston in the greater I-495 area.  The MERC report covers employment rates as of August 2011:

The MetroWest region especially stands out with an impressive unemployment rate of 5 percent in August.  That’s nearly half the national rate.

Employment has improved dramatically over the last 12 months in all I-495 regions tracked by MERC.

Long-term unemployed still face challenges

Despite the drop in Massachusetts unemployment this year, there is still a lot of pain and frustration among MA job seekers.

Those who lack skills that are in demand and those who have been out of work for an extended period face still serious difficulties finding work.

Job sectors doing especially well in MA

As shown in the chart below, the professional, scientific and business services sector in Massachusetts has done every well this year, adding nearly 16,000 jobs through August.

Coming in second with over 13,000 jobs created in so far in 2011 is the education and health services.  Only the government job sector has suffered significant net losses in MA during 2011, MERC reports.

Improving jobs outlook and low interest rates should help local real estate

Times remain tough for many in Massachusetts.  However it is clear that the Commonwealth as a whole, and the Greater I-495 area in particular, are doing much better in terms of employment than the US average.

As the MA economy adds jobs, consumer confidence and discretionary spending should strengthen in coming months.

Improving economic conditions coupled with The Fed’s recent commitment to keep interest rates historically low int0 2013 should help the Massachusetts housing market in 2012.

The time to buy MA real estate is now!

Copyright ©2011 02038.com

The startling news is contained in the non-seasonally adjusted S&P/Case-Shiller Home Price Index for Boston which climbed 2.3% in June, after leaping 2.7% the month before.

Good news tempered by seasonally adjusted results

Although the 5% jump in MA home prices should be a wake-up call to prospective home buyers who have been sitting on the sidelines, MA buyers may not need to panic yet: the seasonally adjusted version of the Case-Shiller Home Price Index for Boston shows a much less buoyant 1.7% rise in MA home prices over the same last 2 month period.

The seasonally adjusted Boston Index rose +0.69% in June after increasing nearly one percent in last May.

While these seasonally adjusted increases are respectable, they still leave Greater Boston home prices 2.3% below where they were in June 2010 and just 2.7% higher than the market low set back in April 2009 during the nadir of worldwide financial crises.

Buyers need to take heed

Whether you use the exuberant 5% unadjusted home price increase figure or the more modest 1.7% rise on a seasonally adjusted basis, the fact remains that Greater Boston home prices have risen over the last 2 months reported on by S&P.

This illustrates the danger of holding off on a home purchase hoping to buy at the absolute bottom.  Home prices tend to lurch upward and downwards in spurts and you may find yourself on the wrong end of a market move if you try to time the Massachusetts real estate market.

If you need to buy a home, by all means do so now.  Interest rates are low and there are lots of affordable homes from which to choose.

I honestly believe that in five years home prices will be a lot higher than where they are today.

You will be very happy then that you bought your home or investment property at today’s attractive prices and great mortgage interest rates!

Copyright ©2011 02038.com

July sales way up over July 2010 levels

The +19% jump in MA homes sales last month over July 2010 production levels may be an early sign of a market seeking to regain its footing.

July’s good performance comes on the heels of the announcement late last month by Standard and Poors that Greater Boston home prices recently rose for the first time in months.

The Franklin, MA real estate market likewise shared in the good sales volume of the month just ended:

Homes are selling

It is way too early for unbridled optimism, but a recent personal experience of mine lends credence to the suggestion that there is potential for Massachusetts home sellers to do well in today’s market.

I sold an appealing antique home in Westborough for full price in less than a week of marketing time!

The excellent location contributed to this quick sale, but this does prove that if you price your Massachusetts home correctly, the property will sell!

Market has a long way to go

If you are a prospective home buyer or real estate investor, let July’s sales boost motivate you to grab a good deal; there are still considerable bargains to be had.

Despite the strong sales figures for July, a look back at July home sale results for years past shows how far MA real estate has to go before regaining the vigorous activity levels of the 2003 – 2005 boom years:

July 2011′s results were only 7.2% off the pace of July 2008 and 10% below that of July 2006, so in that context today’s market activity is encouraging.

But the difference in home sales activity is a lot greater when July 2011′s results are compared to July 2005 (-31.5%) and July 2004 (-38.3%).

Smart time to trade-up or buy your first home

Clearly in light of those latter percentages, the turnover of homes in the current market is still greatly reduced.  Today’s buyers are being cautious and there are fewer of them.

For many practical reasons, that relative lack of demand means now’s a highly advantageous time to buy your first home or trade up/out to a better home.

The home of your dreams costs a lot less than it did in 2005 and mortgage interest rates are very low.  That means your cost of ownership is low.  If you own a home, you CAN sell it quickly and for a fair price; you just need to price properly and have an expert marketing representative.

So if you are thinking of buying your first home or moving to a better one, Fall 2011 looks to present an ideal opportunity!

Copyright ©2011 02038.com

Consensus: prices to fall in 2011, go up in 2012

Last month we saw that a consensus has emerged among housing analysts and economists. The experts agree that home prices in MA will likely fall in 2011 followed by a rebound in 2012.

The real estate market so far has been confirming the validity of the consensus forecast as home prices and sales volume have been trending downwards in Massachusetts.

Greater Boston home prices slip for third month in row

Massachusetts single family home prices have been declining for most of 2011 according to the influential S&P/Case-Shiller Index.  The above chart shows the seasonally-adjusted version of the Index for the metro-Boston region.

At 150.02 on the Index, seasonally-adjusted home prices in MA are now just 1% higher than they were at their 148.59 Index low set back in April 2009.  (April 2011 is the most current monthly reading available from Standard and Poors.)

Home sale activity down as well

The number of homes sold in Massachusetts last month (shown in blue in the chart below) hit a new 9 year low.  The data from MLS-PIN confirms persistent weakness in MA housing demand, making now the smart time to buy a home.  Buyers face less competition in the market, giving them leverage to negotiate a good purchase price.

The sharp spike in home closings in June 2010 was solely due to the expiration of the Federal home buyer tax credits.  Buyers rushed sign purchase contracts before an April 30, 2010 qualification deadline and a lot of those deals went to closing that June.

Without that government tax credit stimulus, MA home sales slumped back down in June 2011.

The only good news last month was the fact that pending home sales in Massachusetts (shown in red in the chart above) rose over 2010 production.  But even with that increase, pending home sale volume in MA remains at depressed  levels.

News the same in Franklin, MA

The chart pretty much says it all: June 2011 was a weak month for home sales in Franklin, MA.

The case for buying in 2011

Bottom Line just published an insightful article on the U.S. housing market:

The upcoming presidential election creates a powerful incentive for the current administration to spur housing activity by encouraging buyer demand:

“The housing market will rebound strongly when the federal government starts to encourage rather than discourage making mortgage loans . . . Next year is an election year. The president is no doubt aware that his odds of reelection improve dramatically if unemployment falls significantly before the conventions early next September. The most effective way to significantly reduce unemployment is to increase home construction, which in normal times provides huge numbers of jobs… and the most effective way to boost home construction is to make it easier for would-be buyers to obtain mortgages.”

So prospective home buyers should weigh the advantages of buying in 2011 when so few other buyers are actively in the market.

There are plenty of would-be buyers sitting on the sidelines.  These buyers may reenter the market as soon as signs of a housing rebound become clear.

You’ll do best to act while others hesitate – that way you’ll get a good home at a great price that you’ll likely be bragging about to friends five years from now!

Copyright ©2011 02038.com

15,000 visitors enjoy the fun

Up to 15,000 were expected to be on hand at the Celebration this year.  There was lots of family fun for kids and plenty to do for teens and adults too!

Here’s a video of the July 4 Celebration at the Franklin, MA Town Common this year:

Variety of fun things to do for all ages

There was a lot of things to see and do at the 2011 July 4 Celebration.

Holiday-goers could enjoy:

carnival rides

games

live entertainment

talent contests

an elaborate fireworks display and

and a super parade.

Video of Franklin July 4 Parade

Here’s a video of the 2011 July 4th Parade in Franklin, MA:

The Fourth of July Celebration in Franklin, Massachusetts is just one reason why Family Circle Magazine named Franklin one of the Top Ten Towns in the entire U.S. in which to raise a family!

Home prices to rise in 2012?

But the consensus forecast also calls for a home price rebound in 2012, so what gives?  Is now the time to buy a home in Massachusetts?

The answers may lie in putting today’s inventory levels in context with both 2010 and 2009 supply:

When viewed as depicted in the chart above, the current quantity of homes for sale in MA seems more consistent with a market seeking equilibrium after the end of the Federal home buyer tax credits in 2010 and hopefully getting ready for a stronger 2012.

Supply of MA homes way up over 2010 levels

In the three regional MA markets tracked by this blog, the supply of homes currently for sale is substantially higher than 2010 levels.

Using data supplied by MLSPIN, there is an 11.5 month supply of single family homes for sale in Massachusetts.  This is a 21% increase in standing inventory over the 9.5 months of inventory in June 2010.

The situation is similar in the Town of Franklin, MA (26% bulge in supply over June 2010) and the regional market surrounding Franklin (17.4% increase).

Current inventory comparable to 2009 levels

But today’s housing inventory looks dangerously bloated only if compared to 2010 when supply was depleted by a massive rush to buy homes caused by the two Federal home buyer tax credits.

Once the tax credits expired, the market cooled, sales declined and the inventory of homes for sale began to rise back to 2009 levels.

Compared with the 11.2 months of housing supply that existed 2 years ago in June 2009, today’s 11.5 months of inventory in MA is only 2.7% higher.  This may represent more of a reversion to the post-financial-crash baseline rather than a new collapse of housing demand.

While the current supply of homes for sale in Franklin (up 6.6%) and the Franklin regional market (8.3% rise) is more steeply elevated over where it stood in June 2009, these are small market samples that may be subject to more variation than the state-wide inventory readings.

Time to buy?

Current inventory conditions do seem conducive to weakness in MA home prices for the rest of 2011.

But there is nothing in today’s housing inventory levels in Massachusetts that make the forecast 2012 MA home price rise improbable.

So now may be a great home buying opportunity; indeed it is according to:

The Wall Street Journal

Forbes Magazine and

CBS Moneywatch

Copyright ©2011 02038.com

The survey calls for MA home prices to fall in 2011, followed by higher real estate prices in 2012 and possibly for several years beyond.

MA homes price to rise in 2012

The Macromarkets survey covers 384 regional real estate markets across the U.S. Results are downloadable in a comprehensive .xls file. I did the download and created the following projection for select regions in MA:

The Macromarkets survey calls for 2011 home price declines on the magnitude of 4.8% for the Cambridge-Newton-Framingham region and 4.5% for Boston-Quincy.

For 2012, Boston-Quincy home prices are projected to rise 2.2% while Cambridge-Newton-Framingham prices are pegged to climb 3.6%

The Worcester region of MA is forecast to experience roughly similar price performances in 2011 and 2012.

2013 and beyond

Macromarkets’ survey projections for years beyond 2012 are not provided for individual regions.  But they do exist  for the U.S. as a whole for the years 2013 – 2015:

The survey consensus calls for an increase in U.S. home prices every year from 2012 through 2015.

This upcoming 4 year consecutive run-up in home prices would be great news for the U.S. economy.

Such a rise is tantalizingly plausible and a look at the past real estate market cycle in Massachusetts helps lend credence to the forecast.

A look back to the 1990s

I took the opportunity to look at the Case-Shiller Home Price Index as it appeared after the lows of the last MA real estate market cycle back in the early 1990s; I used the seasonally adjusted Index for this analysis as it strips out the strong seasonal swings that typically influence MA home prices:

The early 1990s in Massachusetts did not see home prices rise in a straight line after the market hit bottom.  Prices zigged and zagged up and down for about 18 months after true bottom before moving into a prolonged upward rise.

You can see in the above chart that after a false bottom in 1991, the Massachusetts real estate market hit its true low point in early 1992.  After rising sharply for several months thereafter, the market bottom of 1991 was severely tested as home prices slipped for much of the rest of 1992.

Home prices surged again at the end of 1992 and early 1993 only to retrench again that spring.

In mid-1993 MA home prices began a pronounced,  long-term rise that ran through the rest of the decade and essentially kept going strong into 2005.

Short intense price surges made the difference

Despite the intra-year price volatility during the early 1990s detailed above, the yearly price performance figures for 1992 through 1995 look a lot like the 2012 – 2015 consensus forecast from Macromarkets.

The Boston Index rose 2% in 1992, 3% in 1993, and 2.9% in 1994.  A further 2.2% price rise in 1995 confirmed that home prices were clearly on the rise in Massachusetts.

The month-to-month volatility in 1991 though 1993 helped mask the overall trend of the market and proves how hard it is to “see” a market bottom while you are living through the events in real time.

Where MA home prices stand today

The forecast 2011 MA home price decline is being confirmed so far this year by the Boston Index.

The seasonally adjusted Index for Greater Boston has fallen 1.5% so far in 2011. (March is the latest month available in the Index.)

The Boston Index now stands 3% below its May 2010 high and only 1.6% higher than the market low of March 2009.

Some real estate experts are saying that the Federal home buyer tax credits helped boost home prices above what would have been their natural recovery trajectory through early 2010.  When the credits expired April 30, 2010, the price inflation ended and Massachusetts home prices began to stagnate.

2011 weakness a buying opportunity

It may be that the lows of early 2009 were the true market bottom in Massachusetts.  Or it may be that 2011 will see new home price lows.

Whatever the second half 2011 brings, the MA economy is doing a lot better than the rest of the U.S. and the consensus forecast is calling for a MA home price rebound in 2012.

There’s truth to the adage that “you have to be in it to win it”.  You’ll never perfectly time the market – if you want to buy, now’s the time.

Given the Macromarkets forecast, any further weakness in Massachusetts real estate prices in 2011 should be viewed as a buying opportunity for anyone looking to buy a home or investment real estate in MA.

Copyright ©2011 02038.com