Massachusetts Home Buyer Guide

Baystate Building Permits Drop Sharply

The Boston Herald reported September 14, 2007 that building permits for new homes in Massachusetts have declined more than 35 percent since 2005.

"A review of U.S. Census statistics by the Herald shows that building permits issued to state contractors for new single-family homes fell by a whopping 36 percent through the first seven months of 2007, compared with the same period in 2005, the peak year for home construction this decade."

The number of building permits issued for all housing units, including condominium, multi-family and other types, dropped to 9,224 during the first seven months in 2007 compared to 13,404 units two years ago, a 31 percent decline.

"Despite recent weakness in the housing market, state economic development officials have said the scarcity of affordable homes in Massachusetts has been a major obstacle to attracting businesses and talented workers to the Bay State. The drop in new building permits does not bode well for easing that shortage."

Read The Boston Herald Article

Tom Brady As Your Neighbor

Your high school quarterback son need some help reading defenses or spotting the open receiver?

Well, then move in next door to Patriots QB Tom Brady.

The Boston Herald reported (actually using the Boston Globe as a source) September 13, 2007 that Brady is selling two condo units he owns in a Beacon Hill brownstone. The new dad reportedly will keep the top two floors, which have "panoramic views of the Charles River."

As for the units for sale, "The Boston Globe reported Thursday that Brady is selling one unit, with three bedrooms and three-and-a-half baths, for $4.59 million. The other has three bedrooms, two-and-a-half baths and a $3.99 million asking price."

It might seem expensive, but just think of the signing bonus Junior will get after being drafted in the first round.

Read The Boston Herald Article

Career Options Outside The Mortgage Industry

CNN Money reported September 11, 2007 that a New York couple, both mortgage brokers, had been accused of turning their home into a brothel.

In addition, the couple apparently has another home going through the foreclosure process, CNN Money reported.

The alleged brothel sits across the street from a museum dedicated to Thomas Paine, the author of 1776 pamphlet "Common Sense," which helped started the American Revolution, CBS News in New York reported.

No word whether the couple were laid off from their mortgage broker jobs or whether the brothel was a lead generation tool.

NSAR Education Conference And Expo

On Friday I spoke at the North Shore Association REALTORS educational conference and expo at the Sheraton Ferncroft in Danvers, MA about blogging.

I created a blogging page for those who attended to get more information and links to resources.

Countrywide To Cut 20 Percent Of Employees

In an effort to withstand soaring foreclosures, Countrywide financial will cut as many as 12,000 jobs, the  Boston Herald reported September 8, 2007.

"The cuts, amounting to as much as 20 percent of its work force, are needed because the company expects new mortgages to fall about 25 percent in 2008 from this year’s levels ..."

In recent weeks, Countrywide reportedly borrowed $11.5 billion and sold a $2 billion stake to Bank of America, so it could keep operating its retail banking and mortgage lending businesses.

Read The Boston Herald Article

Big Drop In Mortgage Interest Rates

Average interest rates in the U.S. for 30-year, fixed-rate home loans fell to 6.31 percent, down from 6.46 percent the previous week, CNN Money reported September 13, 2007.

This time last year the same loan averaged 6.43 percent.

"In its latest report, Freddie Mac said rates on 15-year fixed-rate loans averaged 5.97 percent in the latest week, down from 6.15 percent last week. A year ago, the 15-year rate averaged 6.11 percent."

Read The CNN Money Article

NAR: On Second Thought, There Is A Housing Slump

The National Association of REALTORS® (NAR) released data that indicated the national real estate market is weaker than expected and the weakness is expected through 2008, CNN Money reported September 11, 2007.

• The NAR now expects a 3.7 percent decline in existing home prices in the third quarter of 2007 compared to a year earlier, which is worse than the previous forecast of a 2.2 percent decline.
• The NAR now expects fourth quarter prices to decline 1.3 percent from the previous year, rather than the 1 percent drop that was previously forecast.
• The NAR now expects prices down 1.7 percent for the entire year compared to its previous forecast of a 1.2 percent decline.
• The NAR now expects an 8.6 percent decline in existing home sales in 2007 compared to its previous estimate of a 6.8 percent.

In defense of the NAR, the problems in the mortgage industry continue to grow, making it increasingly more difficult to get a handle on the housing market outlook.

"The group has continually been revising price estimates lower as problems in the mortgage markets made it more difficult for potential buyers to find financing and helped feed the glut of homes for sale on the market. As recently as the March economic forecast, it had still been looking for an annual gain of 1.2 percent in existing home prices."

Read The CNN Money Article

Mortgage Applications Rise

The Mortgage Bankers Association (MBA) released data showing that mortgage applications in the U.S. increased 5.5 percent compared to the previous week, the second week in a row that applications rose, USA Today reported September 12, 2007.

Applications were up 12.5 percent compared to the same period a week ago. Home purchase applications rose 5.2 percent and refinance applications rose 6 percent.

Read The USA Today Article

Jean Chatzky Rules

I picked up this great video recommending exclusive buyer agents on MyBuyerAgent.com, a Web site operated by Richard Machado, who is a real estate professional in the New Bedford area.

The video is a clip from the Today Show featuring information about choosing a real estate agent from financial reporter Jean Chatzy.

"Exclusive buyer agent - this is a new wrinkle and if you have your druthers, if you have a choice, this is the way you want to go.... They work just for buyers, they never take a listing, they don't have the conflict of interest on the other side of the deal. These people consider themselves consumer advocates....that's the one you want - if you can get it," Jean Chatzky said.

View the video.

Carlisle, MA Real Estate Market Data

The rural Town of Carlisle, Massachusetts is a predominantly residential community located approximately 22 miles northwest of Boston. According to the town's Web site, Carlisle has more than 30 percent of its land under some form of conservation restriction.

The follow is some research I did on behalf of clients regarding real estate sales in Carlisle, MA. 

• During the first seven months of 2007, the median price for all types of single-family homes in Carlisle declined approximately 11.125%, and the median price for colonial-style homes declined about 8.5 percent compared to the first seven months of 2006.
• During the same period of time, the average number of days on the market increased about 50 percent.
• Comparing July 2006 to July 2007, the median price of a single-family home in Carlisle declined about 13.125%, and the average number of days on the market increased more than 100%.
• The median price of a single-family home in Carlisle during the first seven months of 2005 compared to 2007 showed a decline of almost $100,000.00.
• August 2007 saw seven homes sold in Carlisle. The least expensive home sold for $533,750 and the most expensive sold for $1.7 million.
• The number of homes sold in Carlisle so far this year is slightly up compared to 2006.

Search for homes for sale in Carlisle, MA.

Single-family home sales in Carlisle, MA from January 2007 through August 2007:
Download CarlisleMASingleFamilyHomeSalesJanThruAug2007.pdf

 

U.S. Foreclosure Notices Hit Record

The Boston Herald reported September 6, 2007 that foreclosure notices sent to U.S. homeowners over the spring hit a record.

The Mortgage Bankers Association released the data for April through June 2007. It was the third straight quarter that foreclosure notices broke the previous record.

Another frightening statistic is the number of home owners delinquent on their mortgage payments.

"The delinquency rate, which tracks the number of people who are behind in their payments but have not yet entered the foreclosure process, was also up sharply during the spring, rising to 5.12 percent of all loans, up nearly three-fourths of a percentage point from the same period a year ago."

Read The Boston Herald Article

Record-breaking Home Sales

According to CNN, an East Hampton, NY home that sold this year for $103 million was the most expensive home sale ever in the United States.

Don't worry, you still have several opportunities to be the proud owner of the most expensive home in the country.

View a CNN video about five remarkable homes currently for sale at eye-popping prices. Let's just say $103 million is sounding a little like a bargain.

What's Better, Renting or Buying?

Whether buying or renting is better depends on your personal circumstances.

Several factors need to be considered, including the rent you pay, the price of the home you plan to purchase, the mortgage interest rate, how long you plan to remain in the home and other factors.

Here's a handy free calculator from Ginnie Mae that will help you decide whether renting or buying makes more sense financially for you. It's a great tool.

The default amount for property taxes is 1 percent. That is probably a little low for our part of the country. I suggest changing that variable to 1.25 percent or 1.5 percent for Massachusetts and from 1.5 percent to 2 percent for New Hampshire to get a more accurate calculation.

List Of MA & NH Real Estate Transactions

View a list of Massachusetts real estate transactions published in The Eagle-Tribune newspaper on September 8, 2007.

Also, check out the New Hampshire real estate transactions.

More On The National Real Estate Market

Listen to audio from National Public Radio about the frustration many sellers across the nation are experiencing while trying to sell their homes.

The bottom line: sellers who must sell their homes in certain communities will have to continue reducing prices over the next few months in order to stay competitive and make their home attractive to home buyers in a declining market.

This report focuses specifically on the Kansas City real estate market, which apparently did not see the significant run up in prices that many other parts of the U.S. experienced