Massachusetts Home Buyer Guide

Competitive Spring Massachusetts Real Estate Market Requires Home Buyers to Plan Home Search

If you're presently in the market to buy a home, you already know that you're not alone. If you're planning on starting your home search now, you should be aware that the Massachusetts real estate market has dramatically turned around.

Who knows how long it will last, but home buyers are currently experiencing multiple offer situations and homes selling for more than list price. Of course, that's the situation for nice homes that are properly priced. The homes for sale that need extensive work are what is keeping downward pressure on home prices.

The following is a press real release from the not-for-profit Massachusetts Association of Buyer Agents about preparing for buying a home.

FOR IMMEDIATE RELEASE                 

COMING UP WITH A PLAN, LINING UP FINANCING KEY TO BUYING A HOME IN COMPETITIVE SPRING MARKET

‘As Market Shifts and Inventory Tightens, Importance of Working with a Savvy Agent Increases,’
 says President of Massachusetts Association of Buyer Agents

Boston, MA – May 1, 2012 – Real estate agents today will tell you there’s change in the air and they’re not just referring to the warm weather we’ve recently enjoyed.  The once-moribund housing market has come back to life – in fact, it’s been so good over the past couple months that some are now talking about 2012 being a turnaround year.  Already there’s concern about a shortage of homes for sale. 

According to Sam Schneiderman, president of the Massachusetts Association of Buyer Agents (MABA), buyer demand is up about five times over what it was last year at this time and is putting pressure on inventory.  “We knew there was pent-up demand out there and starting in January the buyers came out – and the buyers are buying.  Unfortunately, there aren’t a lot of quality homes out there.”

As a result, Schneiderman says MABA’s buyer agents are reporting bidding wars over the good properties on the market.  He cites the recent experience of one Cambridgeport, MA seller.  “They listed the house, put the ‘For Sale’ sign up and held Saturday and Sunday open houses.  More than 100 prospective buyers went through the home.  Fifteen made offers.  The house sold in days – at significantly more than asking price.”

In short, says Schneiderman, MABA buyer agents are seeing increased competition this spring for homes their clients want to buy – and multiple offers for properly priced, presented, and marketed properties.

As the inventory of homes for sale tightens and this scenario repeats itself, the importance of working with a savvy agent increases, says Schneiderman.  “Serious buyers have to have a plan.  They need to be focused and ready to buy when the house of their dreams appears.  The right buyer’s agent can give you the edge you need in a competitive market.”

Finding an agent who will take the time to understand the nuances of your particular situation and map out a plan with you is key, says Schneiderman.  A good buyer’s agent will start by asking you some questions.  What do you want to do?  What are your commitments?  What are your objectives?  Why do you want to buy?  Are you willing to buy a fixer-upper?  That way, says Schneiderman, they’ll be able to pinpoint the kind of home, neighborhood, and price point that’s right for you and ensure you get the most for your money. 

The next step is getting pre-approved for financing.  “With limited inventory, properties are moving fast, so pre-approval is critical,” says Schneiderman.  “Work with a bank, mortgage broker, or ‘hybrid’ lender – whatever makes the most sense for your situation – but get pre-approved.  And, by the way, make sure that they show you what your total monthly payment will be, including estimated taxes and insurance.”  Again, says Schneiderman, a good agent should be able to help you with this process.

When it comes to financing, look for a lender who’s reliable – meaning, they must be able to close the loan – competitive, and honest, says Schneiderman.  His own preference is for a number of local lenders that offer both personal service and a variety of products.  “Just make sure you don’t get boxed in by an agent who only works with one or two lenders and can’t provide a wide range of options.  You’ll likely get financing but it may not be optimized for your situation.” 
“For example, says Schneiderman, if you’re only going to be in the house for 7 to 10 years, you may not need a typical 30-year fixed mortgage.  With rates so low, everyone thinks why not go with a 30-year fixed rate?  The problem is there’s no significant amortization until the seventh year, so you won’t start building any equity until you’re about to move.  That means that you’ll owe about what you paid for the property.  For most folks – especially young people – that just doesn’t make sense.”  On the other hand, says Schneiderman, if you’re planning on staying in the home for 30 years, lock in that 30-year fixed rate mortgage. 
From finding the right agent to finding the right house to getting the right loan, it’s all about choosing – and choosing wisely, says Schneiderman.  Good buyer’s agents – like MABA agents, he’s quick to add – are committed to helping you make the right choices.  “Having a plan in this market and being confident you have someone working for your interests and your interests only can make a big difference,” says Schneiderman.  “We’re committed to the client and not the transaction – that’s an important distinction.”  For more information on MABA and MABA buyer’s agents, go to www.massbuyersagent.org. 

About the Massachusetts Association of Buyer Agents (MABA)

Founded in 1990, the Massachusetts Association of Buyer Agents (MABA) is a non-profit organization of select real estate agents dedicated to the highest ethical standards of buyer agency.  Less than one percent of the buyer agents in the state qualify for MABA membership.  MABA agents advocate for buyers at each step of the process – from initial negotiations through closings – when purchasing a home or condominium.  With their comprehensive knowledge, member agents are a critical resource to first-time buyers, those moving into the state through relocation, and repeat buyers seeking to streamline the purchase process.  When working with home buyers, MABA agents’ allegiance is to the buyer only and their transaction – never to the seller, the seller’s agent or the listing brokerage company.  For additional information on MABA and a free list of MABA buyer’s agents, go to www.massbuyeragents.org.

Haverhill, MA Homes Sales Increase February 2012

Sales of all housing types increased in Haverhill, MA in February 2012, according to data compiled using MLS Property Information Network, Inc, a local multiple listing service. Single-family home prices also increased.

Single-family homes prices rose 27.6 percent in February 2012 compared to the previous year, a difference of $51,000.  Single-family home sales in Haverhill, MA jumped 62.5 percent in February 2012, a difference of 10 sales compared to February 2011. 

In February 2012, the median price of condominiums decreased 15.1 percent, or $24,000 compared to February 2011.  Condo sales rose 16.7 percent in February 2012, a difference of just two sales.

Multi-family homes prices rose 22.6 percent in February 2012 compared to the previous year, a difference of $25,000.  Multi-family home sales rose 100 percent in February 2012, a difference of two sales compared to February 2011.


Haverhill, Massachusetts Real Estate Market Report

                   Sales / Median Price

Single-family Homes:

February 2011 – 16 / $185,000
February 2012 – 26 / $236,000

Condominiums:

February 2011 – 12 / $158,450
February 2012 – 14 / $134,450

Multi-family Homes:

February 2011 – 2 / $124,000
February 2012 – 4 / $152,000

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Single-family Median Home Prices Increase $24,000 in Natick, MA February 2012

The median price and sales of single-family homes in Natick, Massachusetts increased in February 2012, according to data compiled using MLS Property Information Network, Inc, a local multiple listing service.

Single-family homes prices increased 6.9 percent in February 2012 compared to the previous year, a difference of $24,000.  Single-family home sales in Natick, MA rose 8.3 percent in February 2012, a difference of one sale compared February of the previous year. 

In February 2012, the median price of condominiums decreased 13.6 percent, or $52,204 compared to February 2011.  Condo sales rose 12.5 percent in February 2012, a difference of just one sale.

There were not any multi-family homes sold in February 2012, and there was only one sale in the previous February.

Natick, Massachusetts Real Estate Market Report

                            Sales / Median Price

Single-family Homes:

February 2011 – 12 / $346,000
February 2012 – 13 / $370,000

Condominiums:

February 2011 – 8 / $385,204
February 2012 – 9 / $333,000

Multi-family Homes:

February 2011 – 1 / $615,000
February 2012 – 0 / $0

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Ayer, MA Home Prices Decline in January 2012, Home Sales Up

The median price of single-family homes in Ayer, Massachusetts decreased in January 2012 while sales increased, according to data compiled using MLS Property Information Network, Inc, a local multiple listing service.

The median price of single-family homes fell 20.4 percent in January 2012 compared to the previous year, a difference of $60,000.  Single-family home sales in Ayer, MA increased 50 percent in January 2012, a difference of just one sale compared to January 2011.  

The median price of condominiums increased 93.8 percent in January 2012, a difference of $75,000 compared to the previous January. Condominium sales rose 400 percent in January 2012, a difference of four sales compared to January 2011.

There were zero multi-family homes sold in Ayer, MA in January 2012, down from one sale the previous January,

Ayer, Massachusetts Real Estate Market Report

                        Sales / Median Price

Single-family Homes:
January 2011 – 2 / $294,000
January 2012 – 3 / $234,000

Condominiums:
January 2011 – 1 / $80,000
January 2012 – 5 / $155,000

Multi-family Homes:
January 2011 – 1 / $105,000
January 2012 – 0 / $0

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More Ayer, Massachusetts Real Estate Market Data

Westford, MA Single-family Home Sales Double February 2012

Lower single-family home prices apparently got the attention of home buyers in Westford, Massachusetts.

The median price of single-family homes in Westford, Massachusetts decreased in February 2012 while single-family home sales doubled, according to data compiled using MLS Property Information Network, Inc, a local multiple listing service.

The median price of single-family homes fell 11.9 percent in February 2012 compared to the previous year, a difference of $55,800.  Single-family home sales in Westford, MA increased 100 percent in February 2012, a difference of five sales compared to February 2011.  

The median price of condominiums increased 23.3 percent in February 2012, a difference of $66,835 compared to the previous February. Condominium sales also rose 100 percent in February 2012, a difference of just one sale compared to February 2011.

There were no multi-family homes sold in February 2012 in Westford, MA, down from one sale the  previous February.

Westford, Massachusetts Real Estate Market Report

                           Sales / Median Price

Single-family Homes:

February 2011 –    5 / $470,000
February 2012 – 10 / $414,200

Condominiums:

February 2011 – 1 / $286,500
February 2012 – 2 / $353,335

Multi-family Homes:

February 2011 – 1 / $227,000
February 2012 – 0 / $0

Search For Homes For Sale In Westford, Massachusetts

New Hampshire Home Sales Up, Median Price Declines February 2012

New Hampshire home sales increased in February 2012 while prices dropped compared to February 2011.  This year’s rise in home sales was the third straight year of February sales increases, the UnionLeader.com reported March 22, 2012.

New Hampshire home sales increased 13 percent in February 2012, a difference of 76 sales compared to February 2011 (661 sales in February 2012, 585 in February 2011). The 661 sales represented the most February sales since 2007.

The median price of New Hampshire homes decreased 3 percent in February 2012, a difference of $5,100 compared to February 2011 ($185,000 in February 2012, $179,900 in February 2011).  New Hampshire home prices are down 6 percent over the first two months of the year; however, the drop in median price in February was the second smallest drop in New England, with Massachusetts seeing only a 2.2 percent price drop.

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According to a New Hampshire Association of Realtors press release, New Hampshire home sales increased in February 2012 while prices dropped compared to February 2011.  This year’s rise in home sales was the third straight year of February sales increases, reported UnionLeader.com, March 22, 2012.

 

 New Hampshire home sales rose 13 percent in February 2012, a difference of 76 sales compared to February 2011 (661 sales in February 2012, 585 in February 2011). The 661 sales represented the most February sales since 2007.

 

The median price of New Hampshire homes dropped 3 percent in February 2012, a difference of $5,100 compared to February 2011 ($185,000 in February 2012, $179,900 in February 2011).  New Hampshire home prices are down 6 percent over the first two months of the year, however, the drop in median price in February was the second smallest drop in New England, with Massachusetts seeing only a 2.2 percent price drop.

Haverhill, MA Single-Family Median Home Prices Up January 2012

The median price of single-family homes in Haverhill, Massachusetts increased, but sales decreased in January 2012, according to data compiled using MLS Property Information Network, Inc, a local multiple listing service.

The median price of single-family homes increased 9.6 percent in January 2012 compared to the previous year, a difference of $23,950.  Single-family home sales dropped 41.6 percent in January 2012, a difference of 10 sales compared to January 2012.

The median price of condominiums decreased 19.4 percent in January 2012, a difference of $26,000 compared to January 2011. Condo sales in Haverhill, MA declined 45.5 percent in January 2012, a difference of five sales compared to the previous January.

Multi-family home prices increased 13 percent, a difference of $22,500 compared to the previous January. Sales of multi-family homes increased 16.6 percent, a difference of just one sale.

Haverhill, Massachusetts Real Estate Market Report

                        Sales / Median Price
 
Single-family Homes:

January 2011 – 24 / $250,500
January 2012 – 14 / $274,450

Condominiums:

January 2011 – 11 / $134,000
January 2012 – 6 / $108,000

Multi-family Homes:

January 2011 – 6 / $172,500
January 2012 – 7 / $195,000


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U.S. Mortgage Interest Rates Decline to Near Record Lows

Buying a home is starting to become a no-brainer for a lot of people. With home prices down as much as 40 percent in some areas of Massachusetts over the last five or six years, mortgage interest rates still at historic lows and rents rapidly going up, it's cheaper to buy a home than to rent for many people.

First-time home buyer programs help too.

The average rate on the 30-year fixed mortgage in the U.S. dropped near its all-time this week, making home-buying and refinancing a bargain for those who can qualify, USA Today reported April 12, 2012.

Mortgage buyer Freddie Mac reported that the rate on the 30-year loan fell to 3.88 percent from 3.98 percent. That's just above the rate of 3.87 percent reached in February, the lowest since long-term mortgages began in the 1950s.

The 15-year mortgage, a popular option for refinancing, plunged to a fresh low of 3.11 percent from 3.21 percent last week. The previous record low of 3.13 percent was reached last month.

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Massachusetts Single-family Homes Under Agreement Surge in March

The number of single-family homes put under agreement in March increased nearly 40 percent compared with March 2011, the Boston Business Journal reported April 10, 2012, citing new figures from the Massachusetts Association of Realtors (MAR).

The number of single-family homes put under agreement in March was up 38.8 percent to 4,519. According to MAR, March was the 11th straight month of increases and the first time since June 2011 that the number was more than 4,000.

Massachusetts Single-family Home Sales Jump Nearly 27 Percent in February 2012, Median Price Dips

Massachusetts single-family home sales increased nearly 27 percent in February compared to February 2011, the Massachusetts Association of REALTORS® (MAR) reported March 27, 2012.

February marked the eighth straight month of year-over-year increases and one of the largest February increases since MAR began tracking monthly sales.

There were 2,276 detached single-family homes sold this past February, a 26.8 percent increase from the 1,795 homes sold the previous February. There was a 24 percent February increase in 1997. On a month-to-month basis, home sales were down 4.6 percent from 2,385 homes sold this past January.

The median selling price for single-family homes in February was $255,000, a decrease of 3.8 percent compared to $265,000 in February 2011.  This is the fifth straight year-over-year decrease in median price.  On a month-to-month basis, the February median selling price was also down 3.8 percent from $265,000 in January 2012.

The February condominium market increased 21 percent compared to the same time last year (from 689 units sold in 2011 to 834 units sold in 2012) in Massachusetts. On a month-to-month basis, condominium sales were down less than half of one percent compared to the 837 units sold this past January.
 
Condo median selling prices in February were down 2.8 percent from the February 2011 median price (from $229,000 to $222,500). On a month-to-month basis, the median selling price of a condominium declined 10.2 percent from a January 2012 median price of $247,750.

With a 40 percent increase in pending sales in February, actual sales should continue to trend higher over the next month or two.

Search for homes for sale in Massachusetts.

Plymouth, MA Single-family Home Sales Increase More Than 8 Percent in 2011, Median Price Declines Nearly 3 Percent

The median price of single-family homes in Plymouth, Massachusetts decreased in 2011; however, single-family home sales increased, according to data compiled using MLS Property Information Network, Inc, a local multiple listing service.

The median price of single-family homes fell 2.9 percent in 2011 compared to 2010, a difference of $8,250.  On the other hand, single-family home sales in Plymouth, MA increased 8.7 percent in 2011, an additional 40 sales compared to the previous year.  

Condominium sales increased 20.2 percent in 2011, a difference of 23 sales compared to 2010. The median price of condos rose 3.4 percent in 2011, an increase of $7,500 compared to the previous year.

Multi-family home sales decreased 20 percent in 2011, a difference of three sales compared to 2010. The median price of multi-family homes fell 12.7 percent in 2011, a difference of $40,000 compared to 2010.

Plymouth, Massachusetts Real Estate Market Report

        Sales / Median Price

Single-family Homes:
2010 – 458 / $281,750
2011 – 498 / $273,500

Condominiums:
2010 – 114 / $222,500
2011 – 137 / $230,000

Multi-family Homes:
2010 – 15 / $315,000
2011 – 12 / $275,000

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Median Home Prices, Sales Drop in Lynn, MA 2011

The median price and sales of homes in Lynn, Massachusetts decreased in 2011, according to data compiled using MLS Property Information Network, Inc, a local multiple listing service. 

Single-family home prices in Lynn fell 5.6 percent in 2011 compared to the previous year, a difference of $11,000.  Single-family home sales in Lynn, MA fell 3 percent in 2011, a difference of 12 sales compared to 2010. 

In 2011, the median price of condominiums decreased 4 percent, or $4,500 compared to 2010.  Lynn, MA condo sales fell 13.8 percent in 2011, a difference of 17 sales.

Multi-family home prices increased 10.5 percent in 2011 compared to the previous year, a difference of $20,000.  Multi-family home sales in Lynn, MA fell 23.7 percent in 2011 compared to 2010, a difference of 60 sales.

Lynn, Massachusetts Real Estate Market Report

          Sales / Median Price

Single family:
2010 – 399 / $196,000
2011 – 387 / $185,000

Condominiums:
2010 – 123 / $112,500
2011 – 106 / $108,000

Multi family:
2010 – 253 / $185,000
2011 – 193 / $205,000

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NAR: Houses More Affordable Then In Last 40 Years

The affordability of housing is at a record high in the United States, rising to levels unseen since the National Association of Realtors’ Housing Affordability Index started keeping record in 1970, the National Association of Realtors reported March 6, 2012.

In January, the NAR Housing Affordability Index rose to 206.1. The number represents the relationship between median home prices, median family income and average mortgage interest rates. The higher the number the more affordable homes are to the median household.

A score of 100 represents the point in which a median-income household can qualify for the purchase of a median-priced existing single family home. The score of 206.1 found in January means that a typical family has more than double the income needed to purchase a median-priced home. This is the first time the housing affordability index has broken the 200 mark.

The 2012 Housing Affordability Index should remain at record-high levels over the course of 2012, with little change in home prices and interest rates expected this year.

Massachusetts Pending Home Sales Surge in February

Pending single-family home sales were up again in February, marking the 10th straight month of year-over-year increases. Pending home sale figures are the leading indicator of actual home sales to come in the subsequent one to three months, the Massachusetts Association of Realtors reported March 13, 2012.

The number of single-family homes put under agreement (pending) in February surged 44.2 percent compared to February 2011 (2,335 homes in 2011 to 3,368 homes in 2012). The 44.2 percent rise represented the largest year-over-year increase since the Massachusetts Association of Realtors began tracking pending sales data over the past several years. Single-family pending sales also increased month-over-month in February, rising 18.3 percent from January 2012.

Condominium pending sales were also up, rising 35.3 percent from the February 2011 numbers, and increased 20 percent from January 2012.

The pending sales numbers are not surprising to me based on how busy I and other brokers in my office have been over the last two months. Other real estate agents I speak with also report they are busy too. One home inspector I spoke with recently said he hasn't been this busy in five years.

A pending sale or a sale “under agreement” is when the buyer and seller agree on the terms of the sale of a home and have a signed purchase and sale agreement, but have yet to close and be recorded as a sale.

Higher Prices Lead to Fewer 2011 Sales in Needham, MA

The median price of single-family homes in Needham, Massachusetts increased as sales decreased in 2011, according to data compiled using MLS Property Information Network, Inc, a local multiple listing service.
 
The median price of single-family homes in Needham, MA increased 3.8 percent in 2011 compared to 2010, a difference of $25,000.  Single-family home sales fell 8.2 percent in 2011, a difference of 25 sales compared to 2010.

The median price of condominiums decreased 3.2 percent in 2011, a difference of $17,750 compared to the year before. Condo sales in Needham, MA were flat, with one less sale in 2011 than in the previous year.

Multi-family home prices decreased 1 percent in 2011, a difference of $5,000 compared to 2010. Sales of multi-family homes increased 250 percent in 2011, an increase of five sales compared to 2010.

Needham, Massachusetts Real Estate Market Report

        Sales / Median Price

Single-family Homes:
2010 – 306 / $665,000
2011 – 281 / $690,000

Condominiums:
2010 – 40 / $547,750
2011 – 39 / $530,000

Multi-family Homes:
2010 – 2 / $545,000
2011 – 7 / $540,000

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