Banker & Tradesman March 13, 201

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www.bankerandtradesman.com

WEEK OF MONDAY, MARCH 13, 2017

financial

services

and

real

estate

weekly

for

massachusetts

A Publication of The Warren Group COMMERCIAL INTERESTS MARKET SHARE MAVENS

Which Companies DOMINATE The Biggest Single-Family Markets? Some Communities Favor Big Brands, Some Go Local

Eyeing The RE Market Boom’s Expiration Date Gateway Cities’ Recovery Picked Up In 2016

BY JIM MORRISON | BANKER & TRADESMAN STAFF

T

his week Banker & Tradesman looked at which real estate agencies and mortgage lenders did the most business in some of the busier, more expensive Boston suburbs. Mortgage market share data was provided by The Warren Group, publisher of Banker & Tradesman. The real estate market data includes the unit dollar volume using the double-count method and was provided by a Realtor. All data was derived from single-family home sales.

A

s we head into the spring market, all signs would appear to be point up, up and away, with home sales hitting new records and Wall Street turbo-charged by fanciful visions of massive Trumpian tax cuts, a military spending spree and a trillion dollars pumped into roads, bridges and airports. But scratch a little and you’ll see some market trends SCOTT VAN VOORHIS worth considering, especially when it comes to figuring out just how much longer the current real estate bash will last and whether we are truly headed towards the peak. The blue-collar suburbs and old factory towns are typically the first to take a hit when the real estate market heads south and the last to see big gains. And

Newton

There were 633 single-family homes sold in Newton in 2016, with a median sale price of just under $1.1 million. Newton is the largest of the markets in this story with a unit dollar volume (using the double count method) of nearly $1.4 billion. Hammond Residential sold the greatest share of them, with 212 sides (or halves of a transaction) totaling nearly $287 million, followed by Coldwell Banker Newton, with 117 sides worth $159 million. From a 10,000-foot perspective, the big winner in Newton is Realogy Inc. Realogy owns Hammond, Coldwell Banker, Century 21 and many other brands. Realogy owns five of the top 10 offices in the Garden City and garnered more than 40 percent of the market in one of the busiest and most expensive real estate markets in the commonwealth. LoanDepot.com got 6.7 percent of the market share in Newton in 2016, selling 215 mortgages (47 purchases) for a total of about $113 million. And in a win for the little guys, Newton-based Village Bank sold 163 mortgages (52 purchases) for more money – nearly $126 million – and 5.1 percent market share. There were 117 Newton homebuyers who paid cash in 2016. Continued on Page 9

Brookline Brookline Bank LoanDepot.com Bank of America Guaranteed Rate Wells Fargo

7.53% 7.08% 4.85% 4.85% 4.34%

BY SCOTT VAN VOORHIS BANKER & TRADESMAN COLUMNIST

Percent Market Share Figures For 2016 Lexington Bank of America Leader Bank Wells Fargo Bank Guaranteed Rate Santander Bank

7.12% 6.51% 6.13% 5.36% 4.82%

Needham Needham Bank LoanDepot.com Leader Bank Guaranteed Rate Bank of America

10.01% 8.76% 5.89% 4.64% 4.34%

Newton LoanDepot.com Bank of America Leader Bank Village Bank Guaranteed Rate

6.77% 5.60% 5.16% 5.13% 4.53%

Wellesley First Republic Bank Bank of America LoanDepot.com Wells Fargo Leader Bank

7.99% 7.89% 6.08% 4.63% 4.26%

Market share figures for 2016 are a percentage of the entire mortgage market, both purchase and refinance Source: The Warren Group

CONTENTS

By The Numbers ������������������������������������������������������� 6

Banking & Lending ������������������������������������������������ 11

Commercial & Industrial ������������������������������������� 3,10

In Person ������������������������������������������������������������������ 8

Classified Sections ������������������������������������������������� 13

Points ����������������������������������������������������������������������� 4

Residential �������������������������������������������������������������� 9

Records Section ������������������������������������������������������ B1

In your typical real estate cycle, this is what you would expect to see in the latter stages as the latecomers to the party – the lowerincome and working-class communities – finally start to benefit as the market reaches or heads to its peak.

since the so-called “Gateway Cities” and the lunch-bucket ’burbs are now seeing high single-digit and even double-digit home price growth, it has to make you wonder just exactly where we are in the current real estate cycle. Either the current real estate cycle is approaching a peak or we are, once again, in uncharted waters, a familiar place during these past eight years of stop-and-go economic growth and a political world gone off the deep end. Statewide, the median home price appears to be plateauing as it nears record levels again, rising a relatively modest 1.5 percent last year, according to data from The Warren Group, publisher of Banker & Tradesman. Continued on Page 10


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