Massachusetts Home Buyer Guide

New-home Sales Decline

The Commerce Department reported that sales of new homes in the U.S. declined 8.3 percent in August compared to July, the Boston Herald reported September 27, 2007.

The decline in new-home sales reached a seven-year low.

"The median sales price in August fell by 7.5 percent from a year earlier to $225,700. That was the biggest drop in percentage terms in nearly 37 years. The median price is the middle point at which half sell for more and half for less. The average sales price dropped by 8 percent in August from a year earlier to $292,000. That was the biggest decline in 17 years."

Read The Boston Herald Article

Mortgage Interest Rates Rise

Average U.S. 30-year, fixed-rate mortgage interest rates rose to 6.42 percent compared to 6.34 the previous week, MarketWatch.com reported September 27, 2007.

The same mortgage stood at 6.31 percent during the same period last year.

Home Price Index - CNBC Video

This CNBC video clip is a discussion of the S&P Case-Shiller Home Price Index.

The Associated Press reported September 25, 2007 that, "... [a] report on housing prices done by Case-Shiller showed home prices fell by 3.9 percent in July in its 20-city index. Economists said that decline was probably a better reflection of where the market is right now."

Mortgage Applications Fall Third Straight Week

USA Today reported September 26, 2007 that U.S. mortgage applications decreased 2.8 percent compared to the previous week.

The overall decline was the result of a 7.3 percent decline in applications for home purchases. Refinance applications rose for a fourth straight week.

"Prior increases in the MBA application indexes that seemed to run counter to widespread evidence of a troubled housing market largely reflected borrowers submitting multiple applications in the hope of getting one approved, economists have said."

Read The USA Today Article

Massachusetts Homes Sales Up Again In August?

Were single-family home sales up again in August? Well, it depends on who you ask.

The Massachusetts Association of REALTORS® (MAR) released data September 24, 2007 that showed single-family homes sales in August increased 6.6 percent compared to August 2006. The trade group also reported that condo sales in the Commonwealth rose 3.4 percent.

"The median selling price for single-family homes in August was $357,000, an increase of 1.4 percent compared to $352,000 in August 2006.  On a month-to-month basis, the August median selling price is down 2.4% percent compared to July."

More Massachusetts Housing Data: Download MAR_August_2007_Data.pdf

On the other hand, The Warren Group, a Boston-based publisher of real estate data, reported September 25, 2007 that single-family home sales were down 1.5 percent in August compared to August 2007 and single-family homes prices fell (4.9 percent) for the 16th straight month.

Year-to-date sales as of the end of August fell 4.7 percent, according to The Warren Group.

Condominium sales and prices across the state also fell in August. Sales were down 2.2 percent from August 2006 to August 2007. Year-to-date sales fell 4.7 percent. The median price of condominiums dropped 1.1 percent in August, The Warren Group reported.

Boston A "Positive Market"

This September 25, 2007 CNBC video clip discusses the housing market, and homebuilders in particular, with Yale professor Robert Shiller (S&P Case-Shiller Home Price Index) and an economist, David Seiders, from the National Association of Builders.

Shiller described Boston as a "positive market."

More Video On Existing Home Sales

CNBC couldn't report enough on the September 25, 2007 existing U.S. homes sales report.

Watch the CNBC video clip.

U.S. Existing Home Sales Drop - CNBC Video

Watch a September 25, 2007 CNBC video clip about existing U.S. home sales, which  dropped for the sixth straight month in August 2007. The current pace of existing home sales have slowed to 2002 levels.

Existing single-family home sales in the U.S. declined 4.3 percent in August compared to July, according to the National Association of REALTORS®.

The sales decline pushed the inventory of unsold homes to a record 4.58 million in August.

Single-family home sales were down in all parts of the country in August. The West saw the biggest price dip, a drop of 9.8 percent, followed by declines of 5.2 percent in the Midwest, 2.7 percent in the South and 2 percent in the Northeast.

U.S. House Approved Expansion Of FHA

In an effort to help struggling home owners faced with foreclosure, the United States House of Representatives voted to expand the Federal Housing Administration (FHA), the Boston Herald reported September 18, 2007.

"The bill, which passed the House, 348-72, would allow the Federal Housing Administration, which insures mortgages for low- and middle-income borrowers, to back refinanced loans for tens of thousands of borrowers who are delinquent on payments because their mortgages are resetting to sharply higher rates from low initial 'teaser' levels."

The bill also included $300 million in grants for rental housing and homeownership assistance for low-income families.

"An estimated 2 million to 2.5 million adjustable-rate mortgages are scheduled to 'reset' this year and next, jumping from low 'teaser' rates for the first two or three years to much steeper rates that could cost borrowers their homes. The wave of resets could crest during the presidential and congressional election campaigns next year, and the issue has brought politically charged debate in recent weeks over possible responses by the government."

Read The Boston Herald Article

Homebuilder Sentiment Continues To Slide

The Boston Herald reported September 18, 2007 that the National Association of Home Builders' index that tracks future expectations for home sales over the next six months fell for the seventh straight month.

The index fell two points to 20. That is the same reading as January 1991.

"Index readings higher than 50 indicate positive sentiment about the market. The seasonally adjusted index has been below 50 since May 2006, and has fallen every month since March."

An economist for the National Association of Home Builders believes the market will turn around in less than a year, and home sales should start trending up again by the middle of next year, with housing construction recovering by the third quarter of 2008.

Read The Boston Herald Article