Massachusetts Home Buyer Guide

U.S. House Passes Legislation To Help Homeowners

The U.S. House of Representatives easily passed legislation today aimed at helping about 400,000 homeowners avoid foreclosure and preventing the possible collapse of troubled mortgage companies Fannie Mae and Freddie Mac, the Associated Press (AP) reported.

Hours before the vote, President Bush dropped his opposition to the measure, which now is on track to pass the Senate and become law within days. President Bush reportedly did not want the $3.9 billion in grants for neighborhoods struggling to deal with foreclosures.

The U.S. Senate is expected to quickly pass the legislation without change, according to the AP.

"The bill would let the Federal Housing Administration back $300 billion in new loans so an estimated 400,000 homeowners who cannot afford their house payments could try to escape foreclosure by refinancing into safer, more affordable mortgages. Lenders would have to agree to take a substantial loss on the existing loans, and in return, they would walk away with at least some payoff and avoid the often-costly foreclosure process."

Read The AP Article.

America's Best Small Cities; MA Has Three On List

Money magazine has produced a list 100 of America's best small cities, and Massachusetts has three municipalities on the list.

Money looked at jobs/economy, safety, education, housing affordability, and leisure arts.

Newton, MA (population 82,800) came in at number 49 (clearly not due to affordability); Waltham, MA (population 59,400) placed in the 72nd spot; Brookline, MA (population 59,600) finished at number 87 (again, clearly not due to affordability) on the list.

West Hartford, CT (population 65,100), at number 76, was the only other New England city to make the top 100.

Plymouth MN topped the list. Fort Collins, CO; Naperville, IL; Irvine, CA; Franklin Township, NJ; Norman, OK; Round Rock, TX; Columbia/Ellicot City, MD; Overland Park, KS; and Fishers, IN rounded out the top 10.

Check out the top 100

Read About The Best Places To Live

Vacation

I am out of the office for most of the next two weeks. I am presently in North Conway. As you can see, Thomas The Train is here too, so my twin boys are very excited. I plan to be posting less frequently through the end of the month. I still can be reached by email: attyrosa @ gmail . com.

MA Foreclosure News And Home Listings

Just a reminder that the latest Massachusetts foreclosure news and listings for foreclosed homes and short sales is available at MassForeclosed.com.

Lowest Sale Price To List Price Ratio Communities

The following list of communities with lowest ratio of sale price to most recent list price is taken from Boston.com.

It might surprise a lot of people, but the ratio of sale price to last list price in many communities is more than 97 percent.

Community

1. Bourne	92.5%
2. North Reading	92.8%
3. Fairhaven	92.9%
4. Athol	93.4%
5. Westport	93.6%
6. Dartmouth	93.6%
7. Chelsea	93.9%
8. Ipswich	93.9%
9. Swampscott	93.9%
10. Falmouth	94.0%

Massachusetts Home Sales Decline In May

Massachusetts single-family home sales declined 12.7 percent in May compared to May 2007; however, prices did not fall as dramatically as they have during the last three months, The Warren Group, a publisher of real estate data, reported June 25, 2008.

“The first sign of a recovery in the housing market will be a rebound in home sales,” said Timothy Warren Jr. CEO of The Warren Group. “We’re not there yet, but this is the second month in a row that sales have shown smaller declines than we’ve been seeing since the last quarter of last year."

Sales of single-family homes fell from 4,284 in May 2007 to 3,739 in May 2008. Year-to-date sales are down 20.4 percent from 17,372 sales in the first five months of 2007 to 13,822 this year.

The median price for single-family homes dropped 7.8 percent in May, falling from $350,000 last year to $322,500. The year-to-date median price fell 8.6 percent from $342,000 to $312,500.

Condominium sales continued to fall dramatically in May, with a 29.6 percent decline, from 2,855 to 2,010. Year-to-date sales declined 29.7 percent, from 10,751 to 7,556. Condo prices rose 1 percent in May from $285,000 to $288,000. Year-to-date prices fell 1.8 percent from $276,000 to $271,000.

The Massachusetts Association of REALTORS® (MAR), which obtains it housing data strictly from the state's various multiple listing services, reported a 10.1 percent decline in sales in May 2008 compared to May 2007.

Also from the Massachusetts Association of REALTORS®:

• On a month-to-month basis, single-family home sales increased 24.5 percent compared to April 2008, the largest April-to-May increase in the past 10 years.
• The median selling price for single-family homes in May was $322,500 (same as The Warren Group), a decrease of 9.2 percent compared to $355,000 in May 2007.
• The inventory of residential properties (detached single-family homes and condos) on the market as of May 31, 2008 decreased 6.2 percent compared to the same time last year.
• On a month-to-month basis, median prices for both single-family homes and condominiums increased by 2.4 percent and 2.7 percent respectively from April 2007.

“While the number of sales for both single-family homes and condos were down in May, these decreases continue to narrow since the start of the year, which is definitely a move in the right direction,” said MAR President, Susan M. Renfrew.

More Massachusetts Housing Market Data From Massachusetts Association of REALTORS®.

Eco-friendly Rehab Of Marblehead Home

The Boston Globe provides a photo tour of an ocean-front home in Marblehead, MA that has received an environmentally-friendly rehab.

This green makeover is inside and out, from the recycled rubber roof to the cast iron (not plastic) pipes.

Landscaping Adds Curb Appeal, Not Value To Home

The Boston Globe published an article June 22, 2008 discussing whether spectacular landscaping and gardens add to a home's value.

The handful of real estate agents surveyed for the article seemed to agree that landscaping added to curb appeal, but didn't necessarily add to the value of a home. I tend to agree, but I think there is an important distinction between trees, shrubs and flowers and "hardscapes," such as stone walls and patios.

Many of my clients feel overwhelmed when they see extensive gardens and think about the prospect of maintaining an array of flowers, bushes and trees. For some home buyers, lush gardens are a turn off.

On the other hand, I always point of to my clients, especially first-time buyers, that having a stone wall, walkway or patio installed is quite expensive, and such work should be considered in the value of a home.

"The main selling season for real estate happily corresponds to the first big bloom of the year for gardeners. Yet despite the visual beauty and peaceful retreat that a garden can offer - often much more so than the inside of a house - they don't register much as an asset when it comes to selling a home."

Read The Boston Globe Article

Communities Fight Affordable Housing Projects

Many communities across the Commonwealth have fought plans for affordable housing projects under the state's affordable housing law, commonly referred to as Chapter 40B.

The North Shore Association of Realtors' government affairs blog keeps up with Chapter 40B projects on the North Shore.

Mortgage Applications Decline 8.8 Percent

After rising sharply the previous week, U.S. mortgage applications declined 8.8 percent last week, Bloomberg reported June 18, 2008.

The data comes from the Mortgage Bankers Association.

Purchase applications dropped 4.4 percent and refinance applications decreased 15 percent.

Read The Bloomberg Article

Not All Of The Nation Hurt By Housing Market

A recent article in The Boston Globe points out that the entire country isn't facing severe housing declines.

While Arizona, Florida, Nevada and Southern California are getting crushed from the real estate market slump, other areas of the country are doing just fine, such as Seattle, Dallas and Salt Lake City. The Globe received its information from homesmartreports.com.

The Greater Boston Area is considered "low risk."

Read The Boston Globe Article

Screen Porches Are Popular Addition

Done correctly, screen porches are a timeless, practical and family-centered addition to a home.

"To be sure, a screened porch has practical appeal. But another draw is its modest, old-fashioned charm, the jog of a childhood memory that occurs each time the screen door slaps against its frame. For both reasons, homeowners look to these sheltering spaces as the perfect place to while away the days of summer and beyond."

Contractors say homeowners should expect to spend at least $30,000 for a well-built screened porch.

"'You're really building an addition,' says Tim Burch, president of the local chapter of the National Association of the Remodeling Industry and of Burch Builders Group in Warrenton, Va. 'You're just not adding heating and cooling.'"

Read The Boston Globe Article

Mortgage Rates Increase

While many buyers stayed on the sidelines this year waiting for home prices to fall further, mortgage interest rates have risen from well below 6 percent earlier this year to 6.32 percent last week for 30-year, fixed rate loans, USA Today reported June 12, 2008

The data comes from Freddie Mac.  It was the highest rate for 30-year, fixed-rate mortgage loans since they averaged 6.33 percent for the week of October 25, 2007.

Smart buyers will get pre approved immediately and be ready to move on a the right property for the rest of the year.

Read The USAToday Article

Massachusetts Communities With Slowest Sales

The following communities, with at least 50 properties on the market, have the largest percentage of home on the market for 90 days or more, according to Boston.com. The data comes from Motovo.com.

1. Salisbury	66.4%
2. Northbridge	64.1%
3. Mattapoisett	63.5%
4. South Hadley	63.4%
5. Westport	62.6%
6. Templeton	62.1%
7. Berkley	62.1%
8. Hubbardston	61.1%
9. Douglas	61.0%
10. Whitman	60.9%

Mortgage Applications Rise 10.9 Percent

U.S. mortgage applications rose 10.9 percent compared to the previous week, CNN Money reported June 11, 2008.

Refinance applications increased 8.4 percent, and purchase applications jumped 12.8 percent. Refinance applications accounted for 39.8 percent of total applications.

The data comes from the Mortgage Bankers Association.

Read The CNN Money Article