Sales of existing homes slipped in July even as median prices sustained their record-high levels. The National Association of Realtors® (NAR) said the month’s sales of single-family homes, townhomes, condominiums, and cooperative apartments were at a seasonally adjusted annual rate of 4.07 million units, down 2.2 percent compared to June and 16.6 percent lower than in in the same month in 2022.
Single-family home sales slid to a seasonally adjusted annual rate of 3.65 million, a 1.9 percent month-over-month decline and down 16.3 percent from the previous year. Condo and co-op sales slipped 4.5 percent to 420,000 annual units: 19.2 percent fewer than a year earlier.
The median existing-home price for all housing types in July was $406,700, a 1.9 percent annual increase. NAR said It was the fourth time the monthly median sales price had exceeded $400,000 since it started keeping records. Previous such prices were logged in June 2023 ($410,000), and in both May and June of last year at $408,600 and $413,800, respectively. The median existing single-family home price was $412,300 in July, up 1.6 percent year-over-year, while condo prices rose 4.5 percent to a median of $357,600.
There were 1.11 million housing units available for sale at the end of July, an estimated 3.3-month supply at the current sales pace. This is an increase of 3.7 percent from the end of June when there was a 3.1-month supply but 14.6 percent below total inventory in July 2022.
NAR Chief Economist Lawrence Yun said, “Two factors are driving current sales activity – inventory availability and mortgage rates. Unfortunately, both have been unfavorable to buyers.”
“Most homeowners continue to enjoy large wealth gains from recent years with little concern about home price declines,” Yun said. “However, many renters are concerned as they’re facing growing affordability challenges because of high interest rates.”
Properties typically remained on the market for 20 days in July, up from 18 days in June and 14 days in July 2022. Seventy-four percent of homes sold in July were on the market for less than a month.
Thirty percent of homes sold during the month were purchased by first-time buyers, up from 27 percent in June and 29 percent a year earlier. Individual investors or second-home buyers accounted for 16 percent of sales and 26 percent of all transactions were all cash. Only 1 percent of sales were considered distressed, i.e., foreclosures or short sales.
Existing-home sales in the Northeast fell 5.9 percent from June and 23.8 percent on an annual basis to an annual rate of 480,000 units. The median price rose 5.5 percent on an annual basis to $467,500. The Midwest saw sales slip 3.0 percent to an annual rate of 960,000, a 20.0 percent deficit compared to the previous year. The median price in the Midwest was $304,600, up 3.9 percent compared to the prior July.
Sales in the South decreased by 2.6 percent and 14.3 percent from the two earlier periods to an annual rate of 1.86 million. Prices increased 1.7 percent to a median of $366,200. In the West, sales rose 2.7 percent to an annual rate of 770,000, down 12.5 percent from a year earlier. The median price was flat at $610,500.
Don’t call it a comeback, Good demographics and low mortgage rates have been here for years, Rockin’ the bubble boys Puttin’ the bears in fear
That’s a reference to the song “Mama Said Knock You Out” from L.L Cool J. I have used this in other articles and interviews, which runs in line with my big macro take that what drives the housing market are mortgage rates and demographics. So, you shouldn’t be surprised about what I am writing today.
Today, purchase application data confirmed what I needed to see to justify that we should get a positive total existing-home sales year in 2020. Yes, as crazy as it sounds, we can do this for the existing home sales market in 2020.
I wanted to see at least 20 straight weeks of double-digit year-over-year growth on average to make up for the nine negative weeks we saw due to COVID-19. Those nine negative weeks came at a crucial time for the MBA purchase application data as it was right in the data line’s heat months. So, we had a lot of work to do to get back to the point where we can go positive, but it happened.
The MBA report shows the year-over-year growth for the last eight weeks has been +21%, +22%,+25%,+6%, +40%,+28% +33% and +27%. As you can see in the chart, these last eight weeks have created enough demand to move the total volumes higher than we would see during the heat months, which is during the second week of January to the first week of May. Since this data looks out 30-90 days, it’s enough demand to help the existing home sales market, which is still a negative year to date, to be positive for the year. The only thing that can stop this is some non-economic events at this stage since we are in October.
Also, throwing this out there. What happened to the ‘we have no homes to buy’ crowd, and the idea that credit is getting too tight? It looks like credit is getting tighter on the surface, and that we have no homes to buy. However, both ideas are incorrect, as I have been talking about all year. Once demand picks up, sales will pick as we have plenty of homes to buy to get sales back positive. I have also tried my best all year to try to debunk the tight credit thesis, which is a common fairy tale these days. More on that here.
While the Bubble Boys were talking smack that we were in trouble and the Forbearance Crash Bros were snarling at us, king demographics and low mortgage rates showed these kids who was really in charge. However, jobs are not done; let’s get 2020 into positive territory to show these overrated rookies who are the real bosses.
Let me be contrarian: Get ready, because mortgage rates are going to rise in 2021. Now before you respond, just read the rest as to why.
The Mortgage Bankers Association in its most recent forecast sees two things that stand out. First, 2020 will prove itself to be the second biggest mortgage year in history. Topping $3 trillion will put it only behind 2003 in single family mortgage production history.
Second, the MBA joined the GSEs and other economists who forecast a significant drop in mortgage production in 2021, with most estimating declines in the range of $700 – $800 billion year over year.
Some will try to argue, “but wait, Powell said the Federal Reserve would keep rates low for the foreseeable future! You must be wrong.” There is a difference here. Yes, the Fed will likely keep short rates low, but mortgage rates and some longer-term Treasuries likely won’t enjoy the same ride.
Here are the reasons why upward pressure on mortgage rates could stall the refinance wave and cut overall national originations volume in 2021:
1. The Fed: The Federal reserve is the single biggest buyer of agency mortgage backed securities (MBS) in the world. According to the Urban Institute, “In March the Fed bought $292.2 billion in agency MBS, and April clocked in at $295.1 billion, the largest two months of mortgage purchases ever; and well over 100 percent of gross issuance for each of those two months. After the market stabilized, the Fed slowed its purchases to around $100 billion per month in May, June and July. Fed purchases in July were $104.6 billion, 35 percent of monthly issuance, still sizable from a historical perspective.”
The question is what happens after a covid vaccine and a normalization of economic activity which is expected next year. The Fed is already being very careful not to commit to MBS purchases after the end of this year, a lack of commitment very different to their clear stance on fed funds. If the fed continues to slow or stop, something which is inevitable, the supply imbalance will force rates higher as MBS prices drop in search buyers to take up the excess.
2. The Debt: The national debt is now at 100% of GDP, the highest level since WWII. Per
CBO’s September paper, “By the end of 2020, federal debt held by the public is projected to equal 98% of GDP. The projected budget deficits would boost federal debt to 104% of GDP in 2021, to 107% of GDP (the highest amount in the nation’s history) in 2023, and to 195% of GDP by 2050.”
The CBO’s projections for the U.S. deficits looking forward and the mounting debt load threaten the nation’s ability to do many things, as the majority of spending will be to mandatory expenditures that include interest on the growing debt load. Inflationary pressure will result from the need to finance these deficits through new issuance of treasuries, thus putting upward pressure across the stack of interest rates, a far different outcome than what the Fed may do to keep short rates low.
3. The GSE Capital Rule: The FHFA just closed off the comment window on the proposed capital rule for Fannie and Freddie. This rule is a critical component to FHFA’s plan to release the GSEs from conservatorship. The proposed rule is considered onerous by many with the consensus view stating in comment letters that rates would rise between 20-30 bps. Former Freddie Mac CEO Don Layton, former Arch MI CEO Andrew Reppert, and Fannie Mae each stated the same in their comment letters.
4. The Adverse Market Fee: This arbitrary add-on for most refinance mortgages from the GSEs of 50 bps equates to roughly an increase in rate of .125. This goes into effect on Dec. 1 of this year.
5. Release from Conservatorship: FHFA Director Calabria is working feverishly to release Fannie and Freddie from conservatorship and moving at a pace to lock in as much of this as possible quickly given the risk of an administration change. There have been outcries from MBS investors, including some of the largest buyers.
As reported, in a letter to Mark Calabria, director of the Federal Housing Finance Agency, PIMCO said freeing the companies by executive fiat would be interpreted by investors as an end to the government’s guarantee of the MBS. “That would boost mortgage rates and force some investors to sell the bonds,” the PIMCO executives said. Investors would demand a higher return for the increased risk. “Mortgage rates will increase, homeownership will likely suffer and the national mortgage rate will no longer exist,” the executives wrote.
For those in the mortgage industry, it doesn’t take all of these things to result in the forecasted 700-800 billion drop next year. Frankly just the slowing of MBS purchases and the implementation of the capital rule alone would do it. In fact, MBA’s forecast of the volume decline assumes only the slightest increase in mortgage rates, remaining in the low 3% range next year. In my conversations with economists, the view is that we will end the year with a good first quarter in 2021 simply based on year end overflow.
The second quarter may start off well, but the general sense is that by the third and fourth quarters the market will reflect the impact of coupon burn out and any of these events above beginning to take shape. One thing for certain is that the Fed does not like being in this deep, we saw that following QE activities during the Great Recession.
As MBA’sFratantoni states in his recent Housing Wire article, “2020 has been a banner year for mortgage originators and the millions of households who have benefitted from record-low rates through refinancing. The industry will enjoy this boom for a while longer, but our expectation is that the refi wave is cresting.”
“Make hay while the sun shines” is an old expression. The sun is clearly shining on our industry this year. But it’s important for mortgage banking executives to not misread the statements of Chairman Powell as a commitment to anything more than short rates. The rally you are experiencing this year is due to interventions in the market due to a pandemic recession. Normalization will take out buyers, eliminate the supply “short,” and inflation will ultimately do its thing on rates just enough to cut the market by 25%-30% in 2021 and a bit more in 2022.
Planning ahead for that environment is critically important as market contractions will reduce spreads as well as volume. Thinking about the appropriate right sizing and forward-looking market strategies now will separate the winners from the rest.
Bay Area home prices are falling as mortgage rates climb to their highest levels in more than two decades, squeezing many house-hunters out of the market and keeping would-be sellers on the fence.
The median price of existing single-family homes dropped 5.2% to $1.26 million across the region from June to July, according to the California Association of Realtors. The decline followed steady price gains most of the year as sales picked up during the traditionally busier spring and early summer home-buying seasons.
But now, spiking mortgage rates are slamming the brakes on an already challenged local real estate market. On Thursday, Freddie Mac reported the average rate for a typical 30-year fixed mortgage rose to 7.09%, up from 6.96% last week, reaching the highest peak since 2002.
“People are just not jumping into buying a home right now at these interest rates,” South Bay real estate agent Ramesh Rao said.
Meanwhile, a 30-year fixed “jumbo” home loan — which is common for more expensive houses — averaged 7.65% on Thursday, according to Bankrate.com. In the Bay Area, a jumbo loan is a mortgage that exceeds $1,089,200.
Mortgage rates have been on a sharp upward trajectory since last year when the Federal Reserve began raising the cost of borrowing to rein in inflation. Rates have more than doubled their recent sub-3% lows, in turn boosting monthly home payments for new mortgages by thousands of dollars and squashing a record-setting pandemic real estate boom.
In November, rates briefly topped 7% before falling to around 6% in February. They’ve been trending up again since.
Despite slowing inflation, Oscar Wei, an economist with the realtors association, said rates could reach as high as 7.5% in the coming weeks before dropping to around 6.5% by the end of the year.
That will likely put more downward pressure on home prices in the near term. And even if rates decline in the months ahead, fewer people typically look for homes during the second half of the year, meaning prices should continue to soften in line with seasonal trends.
“For buyers who are interested in buying in the fall and winter, there could be some opportunities because it might not be as competitive,” Wei said. “There may be a little more negotiation power for buyers.”
From June to July, median home prices dropped 8.5% in San Francisco to $1.46 million, 3.4% in Alameda County to $1.26 million, 3.2% in Contra Costa County to $900,000, 2.7% in San Mateo County to $1.98 million and 1.4% in Santa Clara County to $1.8 million.
For more than a year now, buyers who’ve been able to stomach the steeper rates have been left with few homes to choose from. That’s partly due to the Bay Area’s chronic housing shortage. But many homeowners who might otherwise be willing to sell have also been unwilling to give up the lower rates they locked in before the recent spike.
Sellers now putting houses up on the market are often doing so reluctantly.
“It’s definitely more so out of necessity, and they’re doing so unhappily because they have a direct comparison point to just a year and a half ago,” said Montana Gabrielle Hooks, an Oakland real estate agent.
Hooks said some of her clients have been forced to sell as their employers put an end to full-time remote work. One is stuck selling a recently purchased, spacious new-build in suburban Fairfield after being required to show up to the office in San Francisco.
“They would have never have purchased it if there was even a decent chance that they had to come back to the office so soon,” she said.
After more than three years, federal student loan payments are restarting. A lot of new changes have been enacted, such as changes to income-driven repayment (IDR) and loan forgiveness, and some actions are still in the pipeline.
With the end of the federal loan interest and payment forbearance right around the corner, here are the important dates that borrowers may need to know.
Summer 2023: New SAVE Plan Revealed
What’s Happening
The Department of Education announced changes to its federal income-driven repayment plans. The Saving on a Valuable Education (SAVE) plan was introduced, replacing the current Revised Pay As You Earn (REPAYE) plan.
Partial benefits under the new repayment plan go into effect before the payment pause ends. This includes benefits that dramatically lower your monthly payment, subsidize any interest that isn’t covered by your payment, and exclude your spouse’s income for your payment calculation.
If you’re already enrolled in REPAYE, your plan will be automatically enrolled in the new SAVE plan. 💡 Quick Tip: Ready to refinance your student loan? With SoFi’s no-fee loans, you could save thousands.
Who’s Impacted (and Who Isn’t)
Borrowers who are already under the REPAYE plan, or are interested in getting on the SAVE plan.
This doesn’t affect borrowers who are on an alternative repayment plan, or those on an IDR plan who don’t wish to enroll in SAVE.
What You Need to Do to Prepare
If you’re already enrolled in REPAYE, there’s nothing you need to do at this time. If you’d like to be enrolled in SAVE, submit an IDR application to your loan servicer. This can easily be done online and takes about 10 minutes.
September 1, 2023: Interest Accrual Resumes
What’s Happening
The COVID-19 administrative pause will officially end on August 31, and interest charges on your federal loans will resume on September 1.
Also, you might start receiving your student loan bill in September. Your bill will be sent at least 21 days before your payment is due, and will include the payment amount and its due date.
Who’s Impacted (and Who Isn’t)
All borrowers with federal student loans that were included in the interest rate pause.
This date doesn’t affect student loans that were ineligible for the payment and interest pause. That includes private loans and Federal Perkins Loans and Federal Family Education Loans (FFEL) that weren’t owned by the Department of Education.
What You Need to Do to Prepare
First, confirm whether your federal loan servicer has changed by logging into your StudentAid.gov account. You can also call 1 (800) 433-3243 for assistance. During the payment pause, some companies left the federal loan servicing business while new ones were brought into the fold.
After confirming who your servicer is, create an online account on the servicer’s website to manage your repayment moving forward.
October 1 2023: First Payments Due
What’s Happening
Your first payment is due in October, based on the due date stated on your loan bill. However, borrowers who graduated after March 1, 2023 will receive a full six-month grace period before their first payment is due. That means that, for instance, undergraduates who graduated in May 2023 will begin making payments in December 2023.
Who’s Impacted (and Who Isn’t)
Borrowers who left or graduated school before March 1, 2023, and who have an unpaid federal student loan balance. This doesn’t apply to federal borrowers who had non-government held Perkins or FFELs which weren’t included in the emergency forbearance action.
What You Need to Do to Prepare
Log in to your servicer’s website to access your loan to review your payment amount and due date. If you were previously enrolled in auto-pay before the pause, you’ll need to re-enroll in automatic payments through your loan servicer’s site.
December 31, 2023: Last Day to Consolidate for IDR Adjustment
What’s Happening
This is the deadline to consolidate non-qualifying loans into a Direct Consolidation Loan to claim the one-time, temporary IDR Account Adjustment. Claiming this adjustment helps eligible borrowers get credit for past non-qualifying payments.
Borrowers who consolidate their non-qualifying loans by this time can accelerate their track toward loan forgiveness. Generally, if after the adjustment is applied, you made more qualifying payments than needed for loan forgiveness, you’ll have the amount refunded.
Who’s Impacted (and Who Isn’t)
Borrowers who are or were enrolled in an IDR plan, as well as borrowers who are participating in Public Service Loan Forgiveness (PSLF). Also, borrowers aren’t on an IDR plan yet, but want to enroll in one and have government-held Direct or FFEL Loans.
What You Need to Do to Prepare
Don’t wait until the last minute to consolidate your non-qualifying loans. Contact your federal student loan servicer ASAP to get the process started. If your non-qualifying loan is in default, you can still access this adjustment by getting your loan out of default (for instance, through Fresh Start ).
July 2024: Additional SAVE Plan Benefits Available
What’s Happening
The second wave of SAVE plan benefits start in July 2024. Some key benefits are even lower monthly payments, and an accelerated track toward loan forgiveness.
Borrowers who are only repaying undergraduate loans on the SAVE plan will have their monthly payment reduced from 10% of their discretionary income to only 5%. Those with a mix of undergraduate and graduate loans under SAVE will pay a weighted average between 5% to 10% of their discretionary income.
Additionally, borrowers whose original principal loan balance was $12,000 or less will have any remaining loan balance forgiven after making 10 years of repayment — a much faster timeline than SAVE’s usual 20- or 25-year forgiveness period.
Who’s Impacted (and Who Isn’t)
Borrowers who are enrolled in the SAVE plan, or are interested in getting on the SAVE plan. This doesn’t affect borrowers who are on an alternative repayment plan, or those on an IDR plan who don’t wish to enroll in SAVE.
What You Need to Do to Prepare
Make sure your contact information is up to date with your loan servicer so you receive announcements as this date nears. If you want to take advantage of these benefits, but aren’t enrolled in an IDR plan, submit an IDR request to your servicer to see if you qualify for SAVE.
September 30, 2024: End of “On-Ramp” Transition
What’s Happening
The Department of Education is enacting a 12-month “on-ramp” phase from October 1, 2023 to September 30, 2024. During this time, loan accounts that don’t receive a payment won’t be penalized, and although interest will accrue, it won’t capitalize after the on-ramp expires. However, after this date, student loans that are past due on a payment will be reported to the credit bureaus, marked as delinquent or in default, and the account might be sent to debt collection.
Who’s Impacted (and Who Isn’t)
Student loan borrowers who have not made a payment since the restart of federal student loan interest and payments, and borrowers who are struggling with their student loan payment.
What You Need to Do to Prepare
No action is necessary to participate in the on-ramp. However, reach out to your loan servicer if you can’t meet your loan obligation before this date to learn about your options to avoid severe consequences.
For example, you might be able to secure a lower payment under an IDR plan or qualify for temporary deferment or forbearance.
The Takeaway
In the last few years, there have been many changes to help borrowers with federal student loan repayment. However, the many different deadlines and moving parts can make staying on top of your to-do list challenging.
Keeping these dates in your calendar can help you track, and take advantage of, valuable federal programs.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
FAQ
Are student loan payments going to start?
Yes. Interest on federal student loans that were paused during the COVID-19 administrative forbearance will resume on September 1, 2023, and payments will be due in October 2023.
Is Biden going to pay student loan debt?
Certain federal student loan borrowers might have all or a portion of their remaining unpaid student debt canceled. A new administrative action is being put into place to recalculate payment credit toward loan forgiveness for 804,000 borrowers who are enrolled in an income-driven repayment plan.
The administration’s plans to cancel up to $20,000 of federal student loans for eligible borrowers, however, was struck down by the Supreme Court. No further forgiveness actions have been announced as of this writing.
How do I find out if my student loans have been forgiven?
If you received loan forgiveness as a result of recent changes in the federal student loan system, you’ll receive a notice from your loan servicer or the Department of Education. This might be sent via mail or electronically. Ensure that you can log in to your StudentAid.gov or servicer’s website, and your mailing address and email are correct.
Photo credit: iStock/FatCamera
SoFi Student Loan Refinance NOTICE: The debt ceiling legislation passed on June 2, 2023, codifies into law that federal student loan borrowers will be reentering repayment. The US Department of Education or your student loan servicer, or lender if you have FFEL loans, will notify you directly when your payments will resume For more information, please go to https://docs.house.gov/billsthisweek/20230529/BILLS-118hrPIH-fiscalresponsibility.pdf https://studentaid.gov/announcements-events/covid-19
If you are a federal student loan borrower you should take time now to prepare for your payments to restart, including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income based repayment plans or extended repayment plans.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
The Pilgrims landing at Plymouth Rock. The infamous Salem witch trials. The Boston Tea Party. New England fall foliage. Clam chowder. Harvard University. What do all these iconic places, things and events have in common? Massachusetts.
Living in this popular New England state, you’re living surrounded by the early history of the United States, from the first public library and the first Thanksgiving. You have access to world-class higher education at Massachusett’s many esteemed universities and colleges.
From fall foliage to breezy beaches, its landscapes capture that perfect mental picture of New England’s nature. It’s the home of Boston, one of the most popular cities on the East Coast. Also, you can’t beat the clam chowder and seafood.
Massachusetts also boasts a high median household income of $84,385. But, as one of the most desirable states to live in New England, the cost of living in Massachusetts often exceeds the national average. Boston, in particular, is very expensive. But other cities around the state are cheaper. Just because the cost of living is particularly high in one area doesn’t mean the entire state is unaffordable. The right place to live in Massachusetts depends on your budget and lifestyle. Here’s what you can expect in terms of the cost of living expenses around Massachusetts in 2022.
Massachusetts housing prices
Housing costs in Massachusetts are higher than the national average. This is true even of small cities located far from major metro areas. The average cost for an apartment or rental in small towns and cities around the state is higher than in other similarly-sized towns elsewhere. Rates are generally still manageable, though. Especially if you’re living in a small- or mid-sized college town, you won’t lack roommate options. But, in some cities, the cost of living in Montana for housing is scarily high.
This is what you can expect to pay for housing in two different Massachusetts cities. One is at the extreme western edge of the state, with a population of around 42,500. The closest big cities are Springfield and Albany, both roughly an hour away. The other city is at the complete opposite end of the state. It’s the most populous city in the state and a major, influential East Coast urban center.
Boston
You must really like baked beans and the Red Socks to put up with the cost of housing in Boston, which is 120.9 percent higher than the national average. This puts it up there among the most expensive places to live in the United States.
You can expect to pay around $3,887 for a one-bedroom apartment in the city. A two-bedroom apartment kicks things up significantly to $4,982. These prices are up 9 and 10 percent, respectively, from the previous year.
Home prices here exceed the statewide median sales price. Buying a home in Boston has a median sale price of $780,000, which is 3.6 percent higher than last year.
Pittsfield
Housing costs in the charming, peaceful city of Pittsfield in western Massachusetts are 12.5 percent higher than the national average. Prices are also on the rise. The average rent for a one-bedroom apartment is $1,250 per month, which is up 14 percent from last year. The cost for a two-bedroom has climbed even more. Jumping 57 percent from last year, the average two-bedroom apartment around town will set you back $1,450.
The cost of buying a home here is also rising. Up 37.2 percent from last year, the median sales price for a house around Pittsfield is $269,500. However, since the median home sale price around the state is $560,000, Pittsfield prices are a steal.
Food prices
People in Massachusetts love food. It’s no surprise why. Boston is a bonafide foodie destination thanks to its namesake baked beans and cream. The lengthy Massachusetts coastline serves up all kinds of fresh and delicious seafood like clams and lobsters.
Massachusetts is among the top five states for most expensive average grocery costs. Massachusetts residents shell out between $3,601 to $4,000 a year per person for food. So, consequently, the cost of living in Montana for food is higher than the national average.
Boston comes in first place for the highest food costs in the state. Pittsfield ranks a more reasonable amount above the national average:
Boston is 16 percent above the national average
Pittsfield is 7.3 percent above the national average
Doing a line-by-line comparison of food costs in the two cities reveals that most staple food items have fairly similar costs. Picking up a half-gallon of milk in Boston costs $2.76. Pittsfield is slightly cheaper at $2.52. A dozen eggs cost almost exactly the same at $2.22 in Boston and $2.23 in Pittsfield. Steak lovers will prefer Pittsfield over Boston when it comes to steak prices. You’ll be paying $17.92 for steak in the City on a Hill, but a more affordable $11.68 on Pittsfield.
Since Boston is such a big food town, expect to pay more for dining out, as well. Going out to a three-course meal at a nice restaurant for date night costs $82.50 compared to $69.50 in Pittsfield. You’ll pay the same for a casual meal out in both cities at $20.
Utility prices
Electricity, internet and water are the biggest slices of the utility pie. Massachusetts gets its energy and electricity from a mix of renewable and non-renewable energy sources. These include hydropower, coal and nuclear. Natural gas is the biggest supplier.
Utilities are the one area where Pittsfield or Boston dip below the national average for cost of living:
Pittsfield is 5.1 percent below the national average
Boston is 23.5 percent above the national average
Similar to its other cost of living categories, Boston residents pay more for utilities. Total energy costs for the month total around $250.47. But in Pittsfield, you’ll be paying around $161.38. But, in a twist, the internet is more expensive in Pittsfield than in Boston. Paying for 60 megabits per second in Pittsfield costs $104.33. But, in Boston, you’ll only pay around $62.40. That’s a difference of 67 percent.
Transportation prices
From buses to subway to ferry routes, there are tons of different ways to get around Massachusetts’ cities and towns. Not only does it save on gas, parking and other car-related expenses, but you can watch charming college towns or scenic bays glide by. Big cities like Boston have huge transit providers, and Massachusetts also has a robust regional transit system. Fifteen different agencies provide regional public transportation in smaller cities and towns around the state.
However, the cost of living in Massachusetts for transportation in all these cities is higher than the national average. So, while you save money on your car, you’ll be pay more for transportation than the average American:
Boston is 21.1 percent above the national average
Pittsfield is 23.2 percent above the national average
The cost of transportation in Pittsfield and Boston is pretty close. But Pittsfield beats Boston slightly for transportation prices. Here’s what you can expect to pay to ride local transit in these two cities.
Berkshire Regional Transit Authority in Pittsfield
This bus-only agency provides public transportation to the residents of Pittsfield and surrounding Greater Berkshire County. It operates 14 fixed bus routes, as well as paratransit services.
A single ride within the local network costs $1.75 if you pay in cash. Paying with a Charlie Card knocks off 20 cents, bringing it down to $1.55. A 30-day pass costs $52. For systemwide access, fares start at $4 with the Charlie Card and a 30-day pass is $140.
Public transportation around Pittsfield has a low transit score of 30. If you don’t want to take the bus or your car, there are other ways to get around town. As a safe, close-knit community, it’s easy to navigate town on foot. This is especially true of the downtown area and family-friendly neighborhoods. Pittsfield scores a high 70 for walking. But, it’s not so bike-friendly, ranking only 48 on the bike score.
Massachusetts Bay Transportation Authority in Boston
Boston gets its public transportation from the MBTA. Locals call it the “T”. Their fleet and services consist of bus routes, subway, rail and water ferry routes. Their service extends beyond the city of Boston to the Greater Boston metro area. It has 177 bus lines, three ferry routes and four subway lines accessing 128 stops.
MBTA fares vary depending on what type of service you’re using. A one-way adult ticket on the subway costs $2.40 with cash or Charlie Card. A single bus fare is $1.70. For the commuter rail and ferry, fares encompass a range based on the route or distance traveled. A one-way ferry ride costs between $3.70 and $9.75. On the commuter rail, you pay between $2.40 and $13.25 depending on how far you travel.
Passes similarly vary. A subway and bus day pass is $12.75. A monthly LinkPass for the two costs $90 with unlimited travel. Commuter rail monthly passes are as low as $90 and as high as $426. You’ll pay between $90 and $329 for a monthly ferry pass. Since monthly parking passes around Boston average $300, you need to decide for yourself if using public transit offers enough savings or convenience. If you choose to drive, you’ll have to pay tolls on the Massachusetts Turnpike. Toll rates depend on the length of time you’re using the toll road to use one of the harbor tunnels or go out to Logan Airport. Rates start at around $1.75 for two-axle vehicles.
With such diverse public transportation options, it’s no surprise Boston has a high transit score of 80. Its dense urban center and vibrant neighborhoods are why Boston also has very high walk and bike scores. This ultra-pedestrian-friendly city boasts a stellar 89 walk score and 77 bike score.
Healthcare prices
Similar to many other costs of living categories, the cost of living for healthcare around Massachusetts is higher than the national average. But that number is extremely subjective. Health, and therefore, healthcare costs can vary widely by person, even within the same city. Some people have to pay more for prescriptions, higher insurance premiums, out-of-pocket costs for check-ups and more. This is why it’s so difficult to find the average healthcare cost of an area and you should take any statistics or figures with a grain of salt. Here’s how these two Massachusetts cities stack up to the national average:
Pittsfield is 15.1 percent above the national average
Boston is 17 percent above the national average
That being said, Massachusetts has it pretty good healthcare-wise. The state is consistently ranked as being one of the healthiest nationwide, as well as having the best healthcare. It’s home to renowned hospitals like the Boston Children’s Hospital and Massachusetts General Hospital. Since Massachusetts is famous for its top universities, it also has many top-tier medical schools and leading research facilities. With universities around the state producing world-class doctors, nurses and healthcare professionals, naturally state hospitals staff the best.
Even for such a healthy state, it’s important to still go to see your doctors at least once a year. Out-of-pocket costs for a doctor visit cost roughly the same in both cities at $182.50 in Boston and $185 in Pittsfield. Going to the dentist in Boston is slightly pricier at $131.50 compared to Pittsfield’s $117. Even with higher costs above the national average, you’re still paying for the best in healthcare.
Goods and services prices
Spilled some baked beans on your shirt and need to take it to the dry cleaners? Going to get your hair cut before a sunny afternoon out in Pittsfield? These various services and items fall under the category of miscellaneous goods and services. While these may seem like small expenditures, they can add up fast. This is especially true in big cities like Boston. That’s why you need to consider how expensive these items and services are in a particular state. The average cost of living for goods and services in Massachusetts cities is above the national average:
Pittsfield is 8.2 percent above the national average
Boston is 19.9 percent above the national average
Just because one city has the highest overall rates doesn’t mean all services are more expensive. For that dry-cleaning run, you’ll actually be paying more in Pittsfield. It costs $23 to go to the dry cleaners there, but $16 in Boston. In Boston, it’s better to let your hair grow longer than pay $43.33 for a cut. Or, drive over to Pittsfield and get it done for half at $23.
Taxes in Massachusetts
Since you’ll also be paying taxes on those goods, services, food and other essentials, it’s important to know how much is going to tax. Massachusetts has a statewide sales tax rate of 6.25 percent. To put that into perspective, when you spend $1,000 on Red Sox tickets, you’ll pay an extra $62.50 for taxes.
But that’s all you’ll be paying in tax. Massachusetts doesn’t have any city or county sales taxes to add to the statewide rate. That means that:
Pittsfield has a combined tax rate of 6.25 percent
Boston has a combined tax rate of 6.25 percent
The other tax you need to consider is the income tax. A certain amount will come out of each paycheck, which impacts your monthly budget. In Massachusetts, income tax is a flat 5 percent. Massachusetts used to have high enough taxes that it earned the nickname Taxachusetts. But, they’ve cut taxes significantly to bring the rate down.
How much do I need to earn to live in Massachusetts?
Now the crucial question: Is life in Massachusetts within your means? Experts recommend not spending more than 30 percent of your gross monthly income on rent. The cost of living for housing in Massachusetts is generally the biggest slice of the monthly budget pie. You need enough left over for groceries, savings and other essentials and incidentals.
Considering the 30 percent rule, you’d need to make around $104,592 a year to afford Massachusetts’ average rental rate of $2,615 for a one-bedroom apartment. That comes out to roughly $8,719 per month in income. Since the median household income in the state is $84,385, showing that housing is priced out of the average person’s reach.
Cities like Boston are already getting prohibitively expensive. But, you may have more luck in smaller cities and towns.
Use our rent calculator to see if you can live comfortably in Massachusetts based on factors like monthly pre-tax income and expenses.
Living in Massachusetts
Massachusetts is not the cheapest state, and the cost of living is going up in many areas. Housing, in particular, is being hit hard. But living here has plenty of other benefits like fun cities, great access to the outdoors and all those great Boston foods. If you can comfortably afford the rising cost of living in Massachusetts, you, too can spend summers out on Cape Cod and study at world-class universities.
The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of July 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
Just days after awarding Zillow and National Association of Realtors (NAR) a major victory in their legal battle against REX Real Estate, the court made it clear that Zillow’s fight is far from over.
A federal court judge concluded on Friday that in regard to REX’s false advertising claims against Zillow, the firm has proven “falsity.” The ruling came after REX filed a motion for summary judgement on the matter.
In his order, Judge Thomas Zilly of the U.S. District Court for the Western District of Washington wrote that “for the purposes of REX’s Lanham Act Claim, the court concludes that ‘falsity’ has been established as a matter of law.”
The Lanham Act states that anyone who uses false or misleading facts or misrepresents the nature of goods or services, “shall be liable in a civil action by any person who believes that he or she is or is likely to be damaged by such act.”
In REX’s Lanham Act portion of its lawsuit, the firm alleges that Zillow “falsely labeled REX listings as ‘Other Listings’ rather than ‘Agent Listings’ when REX’s listings were in fact offered by licensed real estate agents,” according to earlier court documents.
“It is literally false not to characterize REX’s listings as ‘Agent Listings.’ Placing REX listings in the ‘Other listings’ category when juxtaposed with “Agent Listings” as the only other option is also literally false by necessary implication. Zillow’s display is not only false, it is also misleading.”
Originally filed by REX in March 2021, the suit alleges that changes made to Zillow’s website “unfairly hides certain listings, shrinking their exposure and diminishing competition among real estate brokers.”
Two months prior, in January 2021, Zillow began moving homes out of its initial search results for sellers who chose not to use agents adhering to the NAR and local multiple listing service (MLS) practices.
REX ceased its brokerage operations in mid-May of 2022.
According to earlier court filings from Zillow, the listing giant changed its website after making the decision to swap to the “gold standard source of listings data,” the Internet Data Exchange (IDX) feed that the multiple listing services use. Zillow said that it joined the MLSs to guarantee access to the IDX feeds.
However, according to REX, in January 2021, in some states, including Washington, the firm employed licensed brokers and agents, which should have qualified REX’s listings as “agent listings.”
“Nevertheless, REX’s for sale listings were relegated, along with FSBO and non-MLS listings, to the “Other listings” page because REX’s brokers and agents were not members of the MLSs from which Zillow was receiving IDX feeds,” the filing reads.
When Zillow launched its two-tab design, the company also created an “FAQ” page clarifying the differences between the tabs. REX pointed out that the FAQ page “did not indicate that the ‘Other listings’ tab might include homes for sale by agents or brokers who were not MLS members,” and that it “failed to define MLS or to clarify that some licensed real estate agents and brokers do not belong to an MLS.”
In his ruling, Zilly wrote: “When the labels are viewed side-by-side, the unambiguous assertion is that one tab includes homes listed for sale by agents and the second tab contains all other listings, i.e., homes for sale by their owners or by non-agents. When used in contrast to ‘agent listings,’ the phrase ‘other listings’ can only be understood as indicating those listings ‘remaining or not included’ in or ‘distinct’ or ‘different’ from agent listings, or in other words, non-agent listings.”
In an emailed statement, attorneys at Boise Schiller representing REX, said: “We believe the judge’s ruling on the Lanham Act will help us move the case and is in the best interest of the consumer.”
This ruling came just days after Zilly dismissed all antitrust allegations made by REX against NAR and Zillow.
“Last week’s antitrust ruling showed that REX’s primary claim was without merit. This victory was a big step towards us prevailing in this case given their main argument has been tossed. We look forward to presenting our case in court on these remaining claims,” Will Lemke, Zillow’s manager of corporate communications, wrote in an email. “We believe customers understand the two-tab system and are confident that the evidence will show that REX’s business failed for reasons unrelated to Zillow.”
The suit is scheduled to head to trial on Sept. 18.
This story was updated to include commentary from Zillow.
Entering 2023, the U.S. housing market found its footing across many regions, achieving a semblance of stability after weathering a mild price correction in the second half of 2022. A combination of factors, including mortgage rates slipping below the 6.5% mark, a shortage of available homes for sale, and the seasonal uptick in demand during the early spring months, contributed to this newfound equilibrium.
However, just as the housing market braces itself for the traditionally subdued fall and winter period, real estate professionals are closely watching the reemergence of a familiar threat: 7% mortgage rates.
On Tuesday, the average 30-year fixed mortgage rate ticked up to 7.13%. This figure stands in stark contrast to the sunnier days in February when the average 30-year fixed mortgage rate got as low as 5.99%. This latest jump puts mortgage rates just below the peak of 7.37% witnessed last October.
When considering current house price and income levels, researchers at the Federal Reserve Bank of Atlanta estimate that affordability, or rather the lack of affordability, reaches levels comparable to the peak of the housing bubble whenever mortgage rates approach the 7% range.
This sudden resurgence of 7% mortgage rates prompts a pressing question that now hangs over the housing market: Are we poised for a resumption of month-over-month home price declines, particularly as the market enters the historically subdued fall and winter? After U.S. home prices, as tracked by the Case-Shiller National Home Price Index, dipped 5.1% between June 2022 and January 2023, the index rebounded with vigor, showcasing a 4.2% surge from February 2023 to May 2023.
Housing economists are fairly divided as to whether the recent uptick in mortgage rates puts the housing market at risk for further house price declines. Economists at firms like Morgan Stanley, Moody’s Analytics, and Freddie Mac expect national house prices will decline enough in the second half of 2023 to wipe out all the national gains notched in the first half of the year. Property economists at Capital Economics also believe month-over-month house price declines are about to resume.
Meanwhile, housing economists at AEI Housing Center, Zillow, and CoreLogic believe U.S. home prices have bottomed. In their eyes, the lack of homes for sale—which according to Realtor.com in June 2023 was 49.7% below June 2019 levels—will be enough to prevent further house price declines even if mortgage rates do remain elevated for a prolonged period of time.
And while housing affordability has deteriorated significantly, economists at AEI Housing Center say onlookers should remember that the resilient labor market—which boosts a historically low 3.6% unemployment rate—also acts as support for national home price growth.
Keep in mind that whenever a group like Morgan Stanley or CoreLogic says “U.S. home prices,” it’s talking about a national aggregate. On a regional level the story might vary, with some overheated markets like Austin continuing to fall while relatively more affordable markets like Scranton keep inching higher.
Want to stay updated on the housing market? Follow me on Twitter at @NewsLambert.
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With the mortgage industry still rightsizing, mortgage professionals are worried about regulation of the industry and inflation that thins already tiny margins. Industry players are largely pessimistic about the economic climate and expect interest rates to trend up in the near term future, according to the HousingWire Q2 2023 LenderPulse survey.
Roughly 30% of 155 respondents of the LenderPulse survey pointed to increased regulation, rising interest rates and inflation as the biggest challenge they face in the next three months, out of a total of 11 options that included lender stability, underwriting problems and competitiveness of product offerings.
About 19.4% of the surveyed mortgage professionals said loans falling through was the biggest challenge, ranking as the second most challenging factor. Lead generation ranked as the third biggest hurdle at 15.5% and staying motivated trailed at the fourth place at 14.2%.
Other challenges selected by mortgage professionals were relationships with real estate agents at 8.4%; competitiveness of rate sheet and underwriting problems at 5.8%; lender stability at 3.9%; competitiveness of product offerings at 1.9%. None of the surveyed mortgage professionals said staff cuts caused decreased ability to close loans and lack of training were the challenges they faced.
LenderPulse requests surveys from 24,000 mortgage professionals across the country on market trends and lender opportunities and challenges. Of the 155 completed surveys, 32.3% of the respondents were from the Southwest, 21.3% from the Midwest, 16.8% from the Northeast, and 14.8% of the respondents from the Northwest and Southeast. RealTrends LenderPulse is a forward-looking quarterly survey. The survey was conducted from February 27 to April 3.
Economic and Housing Market Outlook
Amid theFederal Reserve‘s efforts to tame inflation, 44.5% of surveyed mortgage professionals expressed pessimism about the economy in the next three months. Of the total, 36.1% were neutral and 19.4% were optimistic.
Mortgage professionals’ pessimism about the economy in the near term stemmed from expectations of interest rates trending higher.
About 47.1% of the respondents said rates will likely go up in the next three months, 30.1% of the survey participants said rates will remain flat while 22% said rates will trend down.
A total of 45% of participants said home sales in their markets will remain flat for the next three months; 30.3% said sales will go up more than 5%; and 25.2% expected sales to go down more than 5%
In the latest report from the National Association of Realtors (NAR), existing home sales rose 14.5% in February month over month for the first time after 12 months of decline.
Incentives in the Market
In a higher-rate environment, temporary rate buydowns funded by sellers, lenders or builders were widely offered as an incentive for buyers.
The majority of the 155 respondents – about 70% of the total – noted temporary rate buydowns funded by the seller, builder or lender are offered as incentives to buyers.
“Sellers are entertaining offers with rate buydowns and concessions to keep this market going but also to sell their property,” a loan originator in California said.
In a high-rate environment, lenders call the temporary rate buydown a win-win strategy for both sellers and buyers when used appropriately.
For example, a 2-1 buydown can be paid for by the homebuyer or the home seller can pay for it as a seller concession. That payment can be made in the form of mortgage points or a lump sum deposited in an escrow account with the lender and used to subsidize the borrower’s reduced monthly payments.
“As it pertains to buydowns and or seller funded buydowns, in my opinion and from my perspective I feel this product is really only viable and something that makes sense for a borrower if the buydown is seller or builder funded,” an operations manager based in California said. “It is essentially free money that would be credited back to the borrower should they pay the loan off within the buy down structure (1/0, 2/1, or 3/2/1).”
Seller credit for closing costs, price reductions waiving of fees, and adjustable-rate mortgages (ARMs) were also mentioned by mortgage professionals as incentives offered in the market.
“The 2/1 buydowns were working great, but now the market has tightened with a lack of supply of homes on the market, so a lot of the sellers quit offering this or accepting this,” a mortgage broker in Arizona said.
“Borrowers opt for ARMs more often than a fixed rate for a more competitive rate. Many are curious about buydowns but we are currently operating in what is still a seller’s market so not seeing many seller-funded buydowns,” a loan officer in Boston noted.
Pivot to a purchase mortgage market
In a purchase mortgage-focused market, getting referrals from real estate agents is key to landing business.
Keeping in contact with Realtors periodically, forming new relationships at open houses and setting up in-person meetings were how mortgage professionals strengthened relationships with realtors, according to the submitted written responses.
“Volunteering with our local Board of Realtors, on three (3) committees; Education, Banking & Finance and Membership Engagement. Looking to form relationships that I can turn into referrals down the road once they realize how organized I am, how smart I am and that I am a relationship lender in a local community bank!” a loan officer in Washington noted.
Sharing leads and sending out newsletters are ways loan officers try to get themselves to stand out in a highly competitive industry.
“Actively engaging with them, monthly lending newsletter, training opportunities [is how we strengthen relationships with Realtors],” an executive at a regional bank in Michigan said in a written response.
“Our goal is to strengthen our Realtor partners relative to their competitors. To do this, we’re holding skills and knowledge classes and meeting face to face to share best practices,” a loan officer located in Texas said.
If you have questions about LendingPulse email RealTrends Editorial Director Tracey Velt at [email protected]. Also, be sure to sign up for the new Data Digest newsletter, a weekly breakdown of news, tips and strategies for success.
Inside: Are you looking for a safe and convenient way to buy and sell gift cards? If so, CardCash may be the perfect option for you. This comprehensive review will explore everything you need to know about this popular online marketplace.
Gift cards often seem like the perfect hassle-free gift solution, but receiving a card from a retailer that doesn’t align with your interests can result in unused potential and wasted money.
This is a common occurrence, with Americans currently holding around $21 billion in unused gift cards (source).
I know I have plenty of unused gift cards – probably around $300 worth laying around.
In response, companies like CardCash.com have stepped in to make these cards useful again and alleviate this universal frustration.
The simple goal is to help you extract value from those unwanted or unused gift cards by providing a platform to sell them safely. The solution not only converts unused cards into cash but also offers the opportunity to swap them for discounted cards from preferred retailers or a prepaid Mastercard.
Here is my CardCash review on the simplicity of getting cash for my unused gift cards.
In an era of savvy shopping and financial mindfulness, CardCash is a promising solution to make the most of every gift card.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What is CardCash?
CardCash is a valuable online platform you can tap into for buying, selling, and exchanging gift cards. A brainchild of Elliot Bohm and Marc Ackerman, it was launched in 2009 with the goal of solving the problem of unused gift cards in America.
Via the CardCash platform, you can:
Sell your gift cards for up to 92% of the card’s value based on the popularity of the retailer.
Use CardCash to purchase gift cards, at a discounted rate, in bulk from over 1100 brands including big names like Amazon, Walmart, Starbucks, and CVS.
Swap your gift card for another retailer. You won’t get the same value though.
Remember, though, you won’t quite get the full value of your card as CardCash keeps a small percentage.
Does CardCash pay you instantly?
No, CardCash does not provide instant payments with cash.
Instead, after your order is approved, payments are typically made within a 48-hour window. This is due to standard processing times.
However, if you select another gift card. That will be available once your order is approved.
The invoice for the gift card claims to offer approximately 92% of the card’s value, but it’s worth noting that the actual payout can be lower at times.
How Does CardCash Work?
CardCash is a brilliant platform if you’re looking to sell, buy, or exchange gift cards. Here’s a quick guide on how you can get started:
Sign up on CardCash.com.
To sell a gift card, enter the merchant’s name and the balance on the gift card.
CardCash will give you an offer; if you accept, you get paid via mailed check, ACH payment, or PayPal. Or you can opt for a Prepaid Mastercard or another retailer gift card of your choice.
To buy a gift card, browse through the list of available cards and pick one that suits you.
Proceed to payment and enjoy your discounted gift card!
Pro Tip: Always check the price differences between the card value and the purchase price for the best deals.
How much does CardCash pay for gift cards?
Contrary to what CardCash claims, you won’t receive the full 92% of your gift card’s value.
The actual amount you’ll get depends largely on how popular the issuing merchant is. For popular sellers like Amazon or Walmart, you might get closer to their claim, but not always.
Sadly, for less-known retailers, offers might sink as low as 50% of your gift card’s worth.
Pros of CardCash
Considering an online platform for buying, selling, or swapping gift cards? CardCash is definitely one to consider.
Personally, I wanted to test it out and today you can find my CardCash Review.
The distinct features of CardCash include:
A wide selection of gift cards from over 1100 retailers
Instant payment in cash or a swap for another gift card when you sell your unused gift cards
Exclusive offers and discount opportunities for regular users
Convenience as the platform is easy to use and provides a hassle-free experience for users who buy or sell gift cards.
Unused gift cards can be sold for cash or swapped for your preferred merchant’s gift cards, giving value to otherwise wasted money.
Very user-friendly: It’s simple and effortless to buy and sell gift cards on this platform – a massive plus for users.
With all these advantages, CardCash makes a pretty compelling case as your go-to online gift card marketplace.
CardCash, a reputable gift card marketplace, might just be the perfect match for your needs!
Cons of CardCash
Before you decide to use CardCash, it’s important to weigh the drawbacks of the platform against its benefits.
Recognizing these concerns helps you make an informed decision and avoid potential hiccups along the way.
Here are the top cons to using CardCash:
Lower Payouts: When you decide to sell your gift cards on the platform, you might receive lower payouts than you’d expect. Be sure to carefully evaluate these potential losses.
Merchant isn’t on Platform: Not all merchants are available on the platform, which is unfortunate.
Short Buyer Protection Guarantee: Compared to other gift card marketplaces, CardCash’s 45-day buyer protection guarantee feels rather insufficient. For comparison, Raise offers a guarantee for a full year.
Disappearing Balances: Many users have reported issues with their card balances mysteriously disappearing, which can be quite unsettling. Learnwhy this unfortunately happens.
Is CardCash Legit?
Yes, CardCash is legit.
They’re a longstanding player in the gift card industry, thanks to robust security measures and a user-friendly platform.
Established over a decade ago, they have experience in offering a secure platform for buying, selling, or trading gift cards.
How do you go about sending eGift cards to CardCash?
Converting eGift cards works essentially the same way as converting physical gift cards. You still get the same benefits whether you are converting eGift cards or physical ones.
All you need to provide is the relevant information about the eGift card.
The payment process for selling eGift and physical gift cards is the same.
You can receive payment in cash or you can exchange for another gift card of your choosing.
Expert Tip: Make sure to accurately provide all necessary details regarding your eGift card to ensure a smooth transaction process.
CardCash Common Questions
CardCash is a website that allows you to buy, sell, and trade gift cards.
I tested out the site with various gift cards as part of my Cardcash review.
As this concept may be new to you, let’s answer some common questions about CardCash and give you our honest opinion on whether or not it’s a legit website.
1. Are CardCash transactions safe?
CardCash transactions are generally safe.
As a reputable marketplace for gift cards, CardCash enforces strict security measures like other platforms such as eBay or Amazon. However, it’s important to remember that you’re dealing with third parties that could potentially misuse gift card PINs.
To counteract this, CardCash offers a money-back guarantee for unsatisfied purchases. For example, if a gift card you bought is exposed as fraudulent, you can get your money back.
Despite this, always exercise caution, and use common sense while making transactions.
2. Are there any fees when buying or selling a gift card?
When you’re buying or selling gift cards on CardCash, there are no fees applied to your transactions.
The platform allows free signup and doesn’t charge for usage.
Purchasing a gift card? Absolutely zero fees. All you pay for is the discounted cost of the card itself.
Selling a gift card? No worries, still no fees. After providing your card details and balance, you’ll receive an offer. If you accept, the payment goes directly to you via check, PayPal, or direct deposit with no extra charges.
For instance, you have a $50 Best Buy gift card. After inputting the details, CardCash offers $45. If you accept, the $45 is sent to you without any deductions.
3. Is there any risk of identity theft when buying or selling gift cards?
Identity theft is when someone unlawfully obtains and uses your personal information, often for fraudulent purposes.
No, there should not be the risk of identity theft when buying or selling gift cards.
4. Is CardCash safe to use?
CardCash is definitely safe for use.
Operating since 2009, the platform is not only registered but also provides users with advanced security measures to secure personal data and transactions.
With a physical address and listed contact number, assistance is always at hand. Think of CardCash like a vault – your unused gift cards are safe to sell on it and your personal details are locked away securely.
5. Does CardCash buy stolen gift cards?
No, CardCash does not buy stolen gift cards. That is 100%, not their intent.
When you sell a gift card to CardCash, they require you to provide certain personal details to comply with federal anti-money laundering laws. CardCash uses these details to verify the authenticity of the sale and the seller.
However, remember that CardCash is an online marketplace where third-party vendors sell cards. Although most users are honest, there’s a risk of encountering scams unfortunately, and you should always exercise caution when using the platform.
Learn how to handle an Amazon package says delivered but not received.
6. Is it safe to buy gift cards with a credit card?
It is safe to buy gift cards with a credit card as long as you are using a reputable source.
When you use a credit card, you have the added protection of being able to dispute the charges if you do not receive the gift card or if it is not what you expected.
Make sure you are on CardCash’s legit website and you see the lock on the search bar indicating a secured website.
7. Are there any drawbacks to using CardCash?
One key drawback is the misleading discount rates.
Partner websites listed on CardCash may promise higher discounts than they actually deliver, leaving you scratching your head when your wallet feels lighter than expected.
As part of my Cardcash review, my Red Robin gift card valued at $25 would only receive $15.75 cash, which is 63% of its value.
Another significant concern is the 45-day buyer protection. Your best bet is to use your gift card within this limited time frame to avoid losses.
8. What are CardCash’s payout options?
For most, you want a direct, monetary form of compensation which is quite advantageous for those individuals who prefer having cold, hard cash as opposed to holding onto a gift card that they will never use.
Here are CardCash’s payout options:
Cash: CardCash allows users to sell their gift cards in exchange for cash. You can get a mailed check, ACH payment, or PayPal.
Prepaid Mastercard: Besides cash, CardCash also gives users the option to receive their payment via a Prepaid Mastercard. This is a convenient option, especially for those who like to keep their funds digital or for those who might not have convenient access to a bank.
Another gift card: One of the unique payout options provided by CardCash is the ability to exchange a gift card for another one. This option typically gives you a higher payout amount as well. But, you are limited to the merchants offered.
Just remember, payouts can fluctuate and might be less depending on the popularity of the gift card’s merchant.
9. Is it safe to sell gift cards on CardCash?
CardCash is a trusted platform where you can safely sell your unwanted gift cards.
However, keep in mind that you probably won’t get the full face value of the card, as the company keeps around 8-10% of its value.
Despite this, it’s a reliable way to make some money from unused gift cards. Card Cash is not a scam
10. What should I do if I have a complaint about CardCash?
If you’ve got complaints about CardCash, it’s crucial to voice them right away – that’s how issues get resolved.
Try reaching out to their customer support using the “Contact Us” form on their website.
If your complaint is due to balance discrepancies within 45 days of purchase, then email [email protected].
If that doesn’t work, send a detailed email to [email protected]. Be sure to mention specific problems and desired outcomes.
Most importantly, if there’s an issue with a gift card you bought, ensure you file a complaint within 45 days of purchase to receive a full refund.
My CardCash Review
Having firsthand experience with CardCash, I can share my insights about the process and how it measures up to my expectations.
Firstly, the process was indeed straightforward to navigate. The platform has been designed in a very user-friendly way that facilitates convenience and efficiency. It’s quite simple to get onboard, sell, or purchase a gift card.
However, there was a slight hitch – the value percentage offered. This slippage is more than I anticipated.
According to my experience and perception, the payouts for selling gift cards felt a bit lower than expected.
Here were the values I was given:
=> Olive Garden = 71% of value => Red Robin = 63% of value => Chili’s = 70% of value => DoorDash = not an option to sell
Gauging the 45-day buyer protection guarantee initially, it seemed impressive as it ensures a refund if the gift cards don’t function as advertised. However, there’s a catch – the gift cards should be used within this 45-day window, as the 45-day guarantee goes away.
In a nutshell, the experience with CardCash has been a positive experience. Personally, I would have rather been given the cash to use as a please versus a gift card.
However, all of the local gift card exchange kiosks don’t trade in gift cards. So, I felt my options were limited and chose to use CardCash.
FAQ
Yes, selling gift cards for cash is legit.
You need to use a verified site to avoid a scam.
A credit card is needed on CardCash for several reasons.
In order to use the service, you must have a credit card so that you can be properly verified. This is necessary in order to protect both the buyer and the seller.
This CardCash Review Should Help You
So, you’re considering CardCash for buying or selling gift cards, huh?
Well, on the positive side, CardCash offers an easy channel for getting rid of unwanted gift cards or buying new ones with a discount – sounds like a good deal, right?
Buying gift cards with a credit card from sites like CardCash can be safe, provided you take some precautions.
For me, it was a simple process and I chose another gift card.
Consequently, it’s important to remember that you’re purchasing second-hand gift cards, which could potentially have odd issues come up.
To ensure your value, make use of the 45-day guarantee. For example, if you’re planning a big purchase next month, buy the gift card now and make sure to use it within this timeframe. This minimizes the risk of being left with a worthless card after the guarantee period.
So, do your homework, understand how CardCash operates before diving in, or consider other options for more reliable service.
Just remember, while buying, you pay about 90-92% of the card value, and while selling, you get the same.
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