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Massachusetts

In real estate, so goes the nation, so goes Massachusetts. Well, yes and no. – The Boston Globe

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In real estate, so goes the nation, so goes Massachusetts. Well, yes and no. – The Boston Globe


You will need to be aware that the Nationwide Affiliation of Realtor knowledge additionally don’t mirror vital mortgage price hikes since June. In line with Freddie Mac, the common price for a 30-year, fixed-rate mortgage was 3.22 p.c at the start of the yr. By mid-June, it was as much as 5.78 p.c and on Nov. 3, it was 6.95 p.c.

Listed here are some takeaways from the report — and reflections from native specialists:

1. First-time consumers

Nation First-timers made up 26 p.c of all consumers, the smallest proportion of whole consumers since knowledge assortment started. That determine was 34 p.c final yr, and the historic norm is 40 p.c. Their common age was 36, up from 33 in 2021.

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Right here “Youthful first-time residence consumers, on common, have decrease incomes and fewer cash for down funds than different residence consumers,” mentioned Richard J. Rosa, cofounder and co-owner of Consumers Brokers Solely. “Till lately, that group of consumers confronted a tough Larger Boston actual property market.”

2. Gross sales costs

Nation The median gross sales worth was one hundred pc of the itemizing worth, the best recorded since 2002, and 28 p.c of consumers paid over asking.

Right here Everybody interviewed for this story mentioned that is additionally true in Massachusetts, however Rosa mentioned these days could also be over.

“The fierce competitors in the course of the first half of 2022 resulted in residence consumers paying tens of hundreds of {dollars} over asking costs,” Rosa mentioned. “Over the past month of the NAR survey interval, June 2022, residence consumers within the Commonwealth paid 106.2 p.c, on common, of the unique itemizing worth, based on the Massachusetts Affiliation of Realtors. That’s altering rapidly. In September, residence consumers paid 99.9 p.c of the unique itemizing worth.”

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3. The racial hole in homeownership

Nation Of all residence consumers, 88 p.c had been white, up from 82 p.c in 2021.

Right here However what about in Larger Boston? “Sure, the racial hole has gotten worse throughout the metropolis of Boston,” mentioned Melvin A. Vieira Jr., a realtor with RE/Max and president of the Larger Boston Affiliation of Realtors. “Although we had document gross sales and document costs, the minority neighborhood wasn’t in a position to reap the benefits of it. They needed to depend on conventional lending practices corresponding to FHA, MFHA, the MassDream program, the One program, the STASH program, or a 5 p.c or ten p.c down fee, whereas others had the posh of placing down twenty p.c or extra, utilizing money or leveraging their financial savings for a big down fee.”

The 2022 report by MassHousing’s Racial Fairness Advisory Council for Homeownership discovered that debt-to-income ratio was the commonest motive why Black and Latino consumers had been denied mortgage credit score and that denial charges for folks of colour had been larger no matter that ratio or combos of DTI and earnings.

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4. Days on market

Nation Houses had been staying in the marketplace for 14 days, up from seven in 2021.

Right here Cohen mentioned properties in Larger Boston could keep in the marketplace even longer than that this fall.

“That’s most likely about proper, relying upon the time of yr,” he mentioned. “It’s a bit longer than that proper now. That’s the sort of determine that lulls consumers and sellers alike into the false sense that actual property is a readily liquid asset. Relying in the marketplace you’re in, it may not be.”

5. The hunt

Nation The median consumers’ residence search took 10 weeks, up from eight in 2021 and 2020.

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Right here Anthony Lamacchia, dealer/proprietor of Lamacchia Realty, mentioned consumers are taking longer to search out their houses right here as properly. “With all of the bidding wars, many consumers misplaced out on the homes they wished and needed to proceed their search earlier than lastly getting a proposal accepted on a house,” Lamacchia mentioned.

6. Financing

Nation Seventy-eight p.c of consumers financed their buy, down from 87 p.c in 2021.

Right here This rang true to Lamacchia.

“Due to rising costs over the past two years, consumers have needed to get inventive about the best way to come to the desk with a money provide, and plenty of did,” he mentioned. “Many pulled cash from their 401Ks, borrowed cash from household, took out fairness traces on present houses, and so forth.”

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7. Typical purchaser

Nation The common vendor age was 60, up from 56 in 2021.

Right here “Many owners who would have listed their houses in 2020 or 2021 delayed as a result of COVID and out of concern of getting strangers coming of their houses,” Lamacchia mentioned. “These metrics will doubtless present these results for years.”

8. So little analysis for such an enormous purchase

Nation Sixty-seven p.c of the consumers and 80 p.c of the sellers interviewed only one actual property agent earlier than deciding whom to rent.

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Right here James Nemetz, senior vp and supervisor of Hammond Residential Actual Property mentioned Massachusetts sellers are extra savvy and interview a number of brokers.

“You at all times hear that axiom that sellers at all times must get three opinions,” Nemetz mentioned. “We at all times assume after we go to an inventory appointment that we’re up in opposition to different opponents. On this area, particularly within the excessive finish, we’re often competing in opposition to one other agent.”

9. Keep just a little longer

Nation The standard vendor owned the house for 10 years, up from eight in 2021.

Right here Nemetz finds that situation is taking part in out in Larger Boston as properly: “Suppose an empty-nester nonetheless has a mortgage. Let’s simply say that the youngsters went to school, they took a half-a-million-dollar mortgage on the home, they usually have that mortgage at two level seven 5 p.c,” he mentioned. “Unexpectedly, downsizing turns into costly for them, as a result of truly, they’ll must pay extra for a smaller residence. They usually’ll lose that two level seven 5 p.c price, and the brand new price can be nearer to seven p.c.”

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10. Down funds

Nation The median down fee was 14 p.c of the acquisition worth. Of their 2021 report, NAR mentioned the funds have shrunk since 1989, when the common was 20 p.c.

Right here Shant Banosian, govt vp of gross sales at Assured Charge, mentioned Larger Boston consumers are placing down much less, however he provided a ray of hope for residence consumers.

“Consumers who’re staying available in the market are literally beginning to win as a result of there’s much less competitors,” Banosian mentioned. “Houses are priced higher than they had been six months in the past. Issues like mortgage contingencies and residential inspections are again. It’s a bit much less overwhelming as a result of issues are transferring slower and consumers have extra safety.”

Jim Morrison may be reached at JamesAndrewMorrison@gmail.com. Subscribe to the Globe’s free actual property e-newsletter — our weekly digest on shopping for, promoting, and design — at Boston.com/realestate. Observe us on Twitter @GlobeHomes.

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Massachusetts

Severe thunderstorm watch in effect for Massachusetts throughout Sunday

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Severe thunderstorm watch in effect for Massachusetts throughout Sunday


A week after a tornado watch was issued to Massachusetts and some parts of New England, more inclement weather could hit the region Sunday.

A severe thunderstorm watch is in effect until 7 p.m. Sunday for the Bay State, Rhode Island and most of Connecticut, according to the National Weather Service Forecast office. Southern New Hampshire, Maine and Vermont face a hazardous weather outlook.

A detailed forecast for Massachusetts shows a chance of showers and thunderstorms Sunday afternoon after 2 p.m. with a high around 84 degrees and winds from the southwest coming in around 16 mph.

“Some of the storms could be severe and produce heavy rainfall.” the forecast reads.

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This evening, showers and thunderstorms remain likely throughout the state, mainly before 10 p.m. The forecast calls for cloud coverage in the early portion of the evening which should clear up later on. The temperature could drop as low as 61 degrees with winds coming in from the west around 11 mph.

Total rainfall on Sunday could range from a little over an inch to almost three, according to the forecast.

Additionally, the National Weather Service’s storm prediction center upgraded the southern part of New England to an enhanced risk (a level 3 out of 5) for severe weather on Sunday.

“Areal coverage of storms will increase this afternoon with damaging wind the primary threat, but large hail and an isolated tornado is also possible,” NWS said in a post on X, formerly Twitter.



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Massachusetts

Six things to know about the state’s deal with Uber and Lyft – The Boston Globe

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Six things to know about the state’s deal with Uber and Lyft – The Boston Globe


Drivers gained a lot, but still won’t have many rights guaranteed for traditional employees

Under the agreement, the drivers will earn at least $32.50 an hour and get annual raises, health insurance, paid sick time, medical leave, and occupational accident insurance. Many will be entitled to restitution pay, and there is now an official appeals process for drivers who have been deactivated.

But they won’t have access to unemployment benefits and traditional workers’ compensation insurance. If drivers have legal claims, they will still have to file individual arbitration claims with the attorney general’s office instead of filing lawsuits in court.

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Drivers are also responsible for gas, car maintenance, and insurance, and aren’t paid for the estimated 25 percent of the time when they’re between passengers, meaning their actual earnings are far lower than $32.50.

“Once you do the math and consider the expenses, I doubt they would be paid much more, if anything, above minimum wage,” said Shannon Liss-Riordan, a labor lawyer who has represented numerous gig drivers and founding member of the Massachusetts Is Not for Sale coalition that advocates for driver employee status. “This allows Uber and Lyft to continue shifting the cost of running a business to their low-wage workers, and this agreement does absolutely nothing to rectify that.”

Uber and Lyft did not respond to questions about concerns with the agreement.

Uber and Lyft drivers protest their classification as independent contractors in Boston in April 2020.
Blake Nissen/The Boston Globe

Some labor advocates are disappointed that drivers will still be independent contractors

Due to the control companies have over drivers’ job duties, wages, and customers, gig drivers should be classified as employees under Massachusetts state law, labor advocates say, which is why the attorney general took the companies to court in the first place. And the trial was the state’s best chance to show this.

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Without a judge ruling that drivers are employees, it will be more difficult for other states to try to establish this, worker advocates note, and independent contractor business models will continue to proliferate.

“You’re creating a separate system of public regulation for two companies,” said David Weil, a labor economist at Brandeis University and former head of the wage and hour division in President Obama’s Labor Department who served as the lead expert for the state in the trial. “And that is what they’ve done all over the country. They carve out different rules that they get to live by. … Because if you could get away with this, and you could not have to make people your employees, who can resist that?”

Liss-Riordan said she is concerned about the many unanswered questions still out there.

“The attorney general was the only body who was capable of getting a ruling in court that they were breaking the law, and the attorney general has thrown away that opportunity,” she said. “There’s a lot of room in here for [Uber and Lyft] to do a lot of mischief.”

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Uber and Lyft are still saving a lot of money

Because the drivers still won’t be employees, the companies aren’t required to contribute payroll taxes. According to a recent state auditor’s report, if Uber and Lyft drivers were classified as employees, their earnings would have generated estimated payments of more than $266 million into state unemployment insurance, workers’ comp, and paid family and medical leave funds between 2013 and 2023.

Campbell’s office said the $32.50 wage floor for drivers is meant to offset the lack of payroll taxes being paid into state programs for employees.

Drivers will still be responsible for their own income taxes.

Consumers are concerned about fares rising

Other cities that have raised wages for gig workers have seen mixed results.

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Seattle set a minimum pay for delivery apps drivers earlier this year, but later looked to amend the measure after it pushed up prices for consumers and hurt participating restaurants.

After wages for New York City drivers went up in 2019, fares did go up, but they also increased in Chicago, where driver pay hadn’t been raised, according to a study by James A. Parrott, director of economic and fiscal policies at the Center for New York City Affairs at The New School.

“It’s hard to imagine that there would be any price effect from [the Massachusetts deal] unless the companies use it as an occasion to say that, because we’re now paying better than we used to, we’re going to raise the fares,” Parrott said.

And driver wages may not actually go up that much. Driver Charles Clemons said he already averages $25 to $35 an hour ferrying people around in his minivan. If there is a fare increase, he said, passengers will likely be willing to absorb the shock.

“They already charge the customers a little more when it rains,” Clemons said. “It’s still cheaper than a taxi cab, and the availability is there.”

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Still, consumers are concerned.

Bram Shapiro of Brookline takes an Uber or Lyft to the airport or to get home after a night out because they’re more affordable than taxis. But he wonders if that will last. “It feels like an inevitability for consumers to take the hit,” he said.

Many drivers are excited

The settlement is a huge win for drivers, many of whom rely on the flexibility ride-hailing platforms provide to make money whenever they want — a luxury the companies threatened would disappear if drivers became employees.

But it seems doubtful that the companies would do away with this flexibility because it’s an intrinsic part of their business model, Weil said: “Flexibility is essential for them. … It’s not a gift to the drivers. It’s part of the profit model.”

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Many drivers pick up fares for both Uber and Lyft. Lane Turner/Globe Staff/file

Awet Teame, a Brookline-based driver, said she balances driving full time for Lyft with her artistic pursuits in acting and comedy. Before she joined the platform, it was difficult to accept production gigs or attend classes while reporting to a second job with strict hours. Now she makes between $1,000 and $1,500 a week on her own time.

Extending employment to Lyft workers would’ve “felt like turning them into taxi drivers,” Teame said. “Who doesn’t like being their own manager? That’s just a load off your back.”

But some drivers are concerned

In New York City, a similar wage rule led Uber to lock drivers out of its app during periods of low demand, reducing some drivers’ revenue by up to 50 percent.

Leonel De Andrade, a driver from Brockton, said the settlement is proof that the corporations “were stealing something for us.” But becoming an employee would have been even better — with more stability and protections in the long term.

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“We need a guarantee that this situation — these protections — will remain for us,” he said.


Katie Johnston can be reached at katie.johnston@globe.com. Follow her @ktkjohnston. Diti Kohli can be reached at diti.kohli@globe.com. Follow her @ditikohli_.





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Massachusetts

‘Oh, God! Oh, God!’: Massachusetts couple frightened by huge shark by their boat (WATCH)

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‘Oh, God! Oh, God!’: Massachusetts couple frightened by huge shark by their boat (WATCH)


A Massachusetts couple, out boating, were startled and frightened by a 20-foot shark this week.

WATCH THE VIDEO HERE

One started videotaping the experience, while the shark came close to the boat.

“Oh, God!, Oh God!” the woman said.

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The main responded, “Wow!”

Because the fish was so big, the woman, at first, thought it was a whale, but the man said, “No, that is a shark.”

“That is a shark like I’ve never seen,” said the woman after realizing it was indeed a shark.

The shark swam toward the boat, before the video ends.



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