Massachusetts Home Buyer Guide

Massachusetts Home Sales Plunge In September

The Warren Group, a publisher of real estate market information, released data showing that single-family home sales declined 18.7 percent in September compared to September 2006, the Boston Herald reported October 22, 2007.

Median single-family home prices hit a three-year low in September, falling 4.27 percent from year-earlier levels to $304,000.

Condos sales in September fell 19.6 percent compared to a year earlier and prices declined 3 percent.

The Massachusetts Association of REALTORS® (MAR) reported a 13.7 decline in single-family home sales and a 13 percent decline in condominium sales.

Sales and price data from the MAR report reflects transactions occurring through REALTOR®-affiliated multiple listing services (MLS) in Massachusetts and account for approximately 80 percent of all real estate sales in Massachusetts. The Warren Group gets its data from the registries of deeds around the state.

Read The Boston Herald Article

September Sales Data From The MAR

Read The Boston Globe Article on Massachusetts Home Sales in September

Housing Slump To Continue Through 2008?

Mortgage industry executives at the Mortgage Bankers Association's annual convention predicted that U.S. housing prices will continue to decline at least through the end of next year and may not begin creeping upward again until 2010, the Boston Herald reported October 15, 2007.

The predictions are a result of the continuing spike in foreclosures and a glut of unsold homes, which will prevent any quick price rebound.

Read The Boston Herald Article

U.S. Mortgage Interest Rates Hold Steady

Average interest rates for U.S. mortgage loans held steady at 6.40 percent, MarketWatch reported October 18, 2007.

The same mortgage averaged 6.36 percent one year ago.

Read The MarketWatch Article

Mortgage Applications Rise

For the second straight week, U.S. mortgage applications rose with help from home-purchase applications, USA Today reported October 17, 2007.

The number of applications, which includes home-purchase and refinance applications, rose 0.7 percent compared to the previous week. Purchase applications climbed 2.1 percent while refinance applications fell 1.1 percent.

Mortgage applications were 12.0 percent higher than the same period one year ago.

Read The USA Today Article

Gov. Patrick Attempts To Slow Foreclosures

In an attempt to slow the rising number of foreclosures in cities such as Lawrence, MA, Governor Deval Patrick has started a pilot program to encourage lenders to make homes available for purchase by first-time buyers or local community development agencies rather than take them through foreclosure, The Eagle-Tribune reported October 18, 2007.

"With the pilot program, according to Brooks, lenders would agree to a "short sale" with homeowners late with their monthly payment. In a short sale, the lender accepts less than the full mortgage balance due, typically the assessed value of a home. Short sales help troubled homeowners because they won't have a foreclosure blotting their credit history, while lenders prefer a guaranteed return for a home rather than taking their chances trying to sell the property in the distressed Bay State housing market."

Lawrence foreclosures have increased 165 percent for the year ending July 31, 2007, according to ForeclosuresMass.com. In Essex County, foreclosures increased 90 percent. That compares with a statewide increase of 76 percent during the same period.

As I've said in a previous post, I like this idea. Buyers just need to be careful that they are actually getting a good deal.

Read The Eagle-Tribune Article

You Never Know What You'll Find At An Open House

How's this for a MLS photo?

Thanks again to Athol Kay for this bad MLS photo of the day.

Foreclosure Crisis To Spread To Suburbs

The Boston Globe reported October 15, 2007 that Massachusetts Attorney General Martha Coakley said she believes the foreclosure crisis will spread from urban areas into the suburbs.

"But 'you are going to see foreclosures in some of our middle and more tony communities, and that is going to affect everybody's health and well-being in the market,’ she said."

It's true. There are more and more foreclosures hitting the market in wealthier suburbs.

Read The Boston Globe Article

U.S. Foreclosure Filings Nearly Double In September

U.S. foreclosure filings nearly doubled in September 2007 compared to September 2006, the Boston Herald reported October 11, 2007.

A total of 223,538 foreclosure filings were reported in September, up from 112,210 in the same month a year ago, according to RealtyTrac Inc, a real estate information company; however, the number of filings in September was down 8 percent from August’s 243,947.

"The filings include default notices, auction sale notices and bank repossessions. Some properties might have received more than one notice if the owners have multiple mortgages."

The foreclosure rate for the nation in September was one foreclosure filing for every 557 households.

Read The Boston Herald Article

The Most Expensive Listing In Newburyport

To buy the most expensive home for sale in Newburyport, MA you'll need $2.6 million or something close. The 10-room, four-bedroom cape on the river boasts more than 4,000 square feet and panoramic views of the water.

Built in 2003, the home has a three-car garage and a master suite with a jacuzzi bath, walk-in closet and gas fireplace.

Located on a half acre, the home also has a 150-foot, deep-water dock and a glass solarium that overlooks the river.

Massachusetts Foreclosure Filings Rise In August

The Boston Herald reported October 10, 2007 that foreclosure petitions in Massachusetts rose by a relatively modest 12 percent in August compared to the previous year.

Foreclosure filings rose 67 percent in July and are up 45 percent over the first eight months of 2007.

"The Warren Group, a Boston-based publisher of real estate data, reported just under 2,000 petitions in August. A petition is the first step toward foreclosure, but doesn’t necessarily lead to the homeowner losing their property."

Announcements of actual foreclosure auctions rose 52 percent in August compared with August 2006, and, so far in 2007, auction announcements in the Commonwealth have increased nearly 2.5 times compared to the  same period in 2006.

The number of bank-owned properties on the MLS certainly have increased significantly over the past six months.

Read The Boston Herald Article

Mortgage Interest Rates Rise

Average rates on 30-year, fixed-rate mortgage loans rose to 6.40 percent, up from 6.37 percent the previous week, CNNMoney reported October 11, 2007.

Last year the same loan stood at 6.37 percent.

Average rates on 15-year, fixed-rate loans averaged 6.06 percent, up from 6.03 percent the previous week. A year ago, the 15-year rate averaged 6.06 percent.

Read The CNNMoney Article

Mortgage Applications Increase

U.S. mortgage applications rose 2.4 percent compared to the previous week, Bloomberg reported October 10, 2007.

"The Mortgage Bankers Association's index of applications to buy a home or refinance a loan increased to 652 from 636.7 the prior week. The group's purchase index rose 2.1 percent to 420.2, and its refinancing gauge moved up 2.7 percent."

Many economists no longer believe the index is an accurate depiction of housing demand.

"Most economists agree the applications report exaggerates demand because it only includes retail lenders, which have probably seen an increase in business as many wholesale brokers closed their doors. Also, it counts all applications, even those that are ultimately rejected, and some borrowers submit multiple applications."

Read The Bloomberg Article

MA Gov. Has Plans For Foreclosed Homes

Governor Deval Patrick's administration hopes to work out a plan to sell foreclosed homes to new owners in an effort to stabilize neighborhoods hit hardest by rising foreclosure rates, the Boston Herald reported October 8, 2007.

"Under the direction of Tina Brooks, undersecretary of housing and economic development, state officials are weighing plans to strike deals with the subprime lenders most active in the distressed neighborhoods, said Clark Ziegler, executive director of the Massachusetts Housing Partnership. The lenders, under this plan, would agree to reduce the asking price of their foreclosed homes, writing off some of the debt in question."

I like this idea because the lenders will be writing off this bad debt sooner or later, especially as 2008 rolls around. It mind as well be sooner. Neighborhoods with many empty homes is not good for anyone. My only concern is whether home buyers will be getting truly good deals.

The plan initially will focus on Lawrence and Worcester. The foreclosure rate in Lawrence is five times the state medium, according to the Herald article.

Read The Boston Herald Article

Mortgage Interest Rates Fall 2nd Straight Week

For the second straight week, U.S. average rates for 30-year, fixed-rate decreased, falling from 6.42 percent to 6.37 percent, the Boston Herald reported October 4, 2007.

Rates on 15-year, fixed-rate mortgages, a popular loan for refinancing, averaged 6.03, compared to 6.09 percent last week.

A year ago, 30-year mortgages stood at 6.30 percent, and 15-year mortgages were at 5.98 percent.

Read The Boston Herald Article

Mortgage Applications Fall

The Mortgage Bankers Association's weekly survey of mortgage applications showed a 2.7 percent decline across the nation compared to the previous week, MarketWatch reported October 3, 2007.

Read The MarketWatch Article