Massachusetts Home Buyer Guide

Massachusetts AG Delays New Mortgage Regulations

Massachusetts Attorney General Martha Coakley has decided to delay the implementation of new regulations designed to prevent the mortgage industry from taking advantage of consumers, the Boston Herald reported November 13, 2007.

The regulations were to take effect November 14, 2007, but have been delayed until January 2, 2007.

"Some lenders have indicated that the tougher regulations might cause them to drop out of the Massachusetts market for certain types of mortgages."

Isn't that the same threat the auto insurers make every year?

"Among other things, Coakley wants to change compensation rules for brokers who arrange mortgages. She says the current system creates potential conflicts of interest."

Mortgage brokers complained that the new rules would drastically cut their compensation.

In my humble opinion, there is enough blame to go around for the current mortgage mess, and the mortgage brokers shouldn't take it on the chin for the entire real estate industry. Don't get me wrong, there are some very ethically challenged folks working as mortgage brokers, but the same could be said for a lot of industries.

The bottom line: consumers need to do their homework, get referrals from people they trust and shop around.

Read The Boston Herald Article

Haverhill, MA To Build River Boardwalk

Massachusetts lawmakers have approved full funding of a $1.2 million boardwalk project on the Merrimack River along Haverhill's historic and revitalized downtown.

Recently re-elected Mayor James Fiorentini told the The Eagle-Tribune newspaper that construction is set to begin in the spring behind The Tap restaurant and brew pub on Washington Street.

The 300-foot walkway will extend from behind The Tap to the new condominium building at 66 Washington Street. The project also includes renovating the old city boardwalk behind Haverhill Bank on Merrimack Street. The new boardwalk is expected to take about a year to build.

Other parts of the City's plans for the riverfront include dredging the Merrimack to make the downtown stretch accessible to larger boats, installing more public docks, redeveloping rundown property along the riverbank and eventually extending the boardwalk along the entire downtown.

The City's long-term plans for the river walk to eventually be on both sides of the river, with the downtown side connecting each bridge and to a trail on the Bradford side of the river, creating a loop.

More on Haverhill, Massachusetts.

Read The Eagle Tribune Article

Read A Boston Globe Article About Haverhill (Image Above Copyright -- The Boston Globe)

More On Home Heating Oil Prices

Watch the video below for more on the rising cost of home heating oil, which has reached record levels.

 

Thank You Veterans

To all of those who have served in the United States armed forces in the past and to those who serve our nation today, thank you, on Veteran's Day and everyday.

 

Interest Rates Fall Again; Good News For Home Buyers

Average interest rates for 30-year, fixed-rate mortgage loans in the U.S. fell to 6.24 percent, down from 6.26 percent the previous week, CNN Money reported November 8, 2007.

Interest rates for home loans are at the lowest point since May. During the same time last year, the rate stood at 6.33 percent. With home prices down in many areas, opportunities for potential home buyers continue to rise.

The 15-year, fixed-rate loans averaged 5.90 percent, down from 5.91 percent the previous week. A year ago, the 15-year rate averaged 6.04 percent.

Read The CNN Money Article

Good Advice For Dealing With Builders And Contractors

Real Estate attorney Stephen E. Meltzer, writing for the Boston.com real estate blog on October 31, 2007, provides good advice for dealing with builders and contractors.

Many builders and contractors are feeling the pain brought on by the sluggish housing market. Attorney Meltzer provides some tips to protect yourself.

If you're planning on buying new construction or considering an addition or a renovation, you'll want to take a look at this post.

Read The Blog Post

Is Buying A Home Now A Good Investment?

An article in The Boston Globe on November 5, 2007 discusses whether now is a good time to buy a home.

The following excerpt from the article is all you need to know.

"HOUSE HUNTING TIP: Buying a home is still a good investment if you can afford it, if you are ready to put down roots in a community, and if you want to invest in your personal happiness. Profit potential shouldn't be your only reason for buying a home, even though in most cases your home will appreciate in value if you maintain it and if you own it long enough."

Read The Boston Globe Article

Mortgage Applications Dip

U.S. mortgage applications declined 1.6 percent compared to the previous week, CNN Money reported November 7, 2007.

The data comes from the Mortgage Bankers Association.

Refinance volume declined 3.2 percent, while purchase applications fell 0.05 percent.

Read The CNN Money Article

Heating Oil Reaches Record Levels

As if buying a home in Massachusetts wasn't already expensive enough, living in one with oil heat will cost you more over the winter.

The Boston Globe reported November 7, 2007 that the average price of heating oil in Massachusetts jumped 14 cents a gallon in a week, rising to a record $3.05 a gallon.

"This week, a Division of Energy Resources survey of full-service dealers found prices ranging from $2.80 a gallon to $3.30 a gallon."

The average price per gallon was 70 cents more expensive than it was last year at this time. That means filling a typical 275-gallon heating oil tank at the average statewide price would be $838.75, or $192.50 more than the same time last year.

Read The Boston Globe Article

Home Sales Decline In CT

The Connecticut Post reported November 5, 2007 that single-family homes sales in Connecticut fell 21.8 percent in September 2007 compared to August 2007.

Compared to a year ago, the median price for Connecticut homes fell from $275,000 to $268,000 in September 2007, a decline of 2.5 percent; however, in wealthy Fairfield County prices actually rose 1 percent.

While sales were down nearly 25 percent, the median price for a single-family home sold in Fairfield County was $505,000 in September 2007 compared to $500,000 the previous year.

Many wealthier communities in Massachusetts have seen a similar relationship between sales and median prices. Over the summer I helped a family purchase a home in Westford, MA. At the time, sales were down significantly, but prices had actually increased by about 1 percent or so.

Please do not hesitate to contact me if you would like market data specific to any Massachusetts or New Hampshire communities. I would be happy to provide the information.

Read The Connecticut Post Article

Tips For Real Estate Investors

The following tips come from the Minneapolis-based Real Estate Investors Association, a club for people interested in real estate investments.

Its members, who meet to ask questions and share advice, has grown from five to 100 over the last two years, despite the housing slowdown. In fact, the current market is a great opportunity for investors.

Here’s some advice from club members for potential investors:

1. Buy in a familiar neighborhood, near where you live, work or go to college.
2. Research the area thoroughly, identifying potential properties and other business opportunities.
3. Observe trends, costs, vacancies and potential appreciation.
4. Assess your own skills. If you have to hire out maintenance, costs will hit the bottom line.
5. Start small. A single-family home or a duplex is a good start. Plan to hold it for at least three years.
6. Avoid foreclosed properties. They are complicated to buy and they are not a guaranteed deal.
7. Be pre-approved for financing. Most investment property loans require at least 10 percent down.
8. Remember, dealing with people is key, so hold onto your sense of humor.

I agree with all of the above, except number six. Sure, purchasing foreclosed or bank-owned properties can be more complicated, but outstanding deals are available in the current market. It is true though that such properties are no guaranteed deal.

My business partner and I have helped several home buyers, including first-time home buyers, purchase bank-owned property. If you have questions about purchasing bank-owned properties or short sales, please contact me anytime.

If also can sign up to receive home listings, including bank-owned and short sales, at our Web site.

Source: REALTOR Magazine Online (October 31, 2007)

Marginal Credit? Bye, Bye No-down-payment Loans

A new Federal Housing Administration (FHA) policy means that prospective home buyers with marginal credit will have to act quickly if they want to buy houses without putting any money down, Bankrate.com reported October 11, 2007.

"For a decade, credit-challenged homebuyers have used a regulatory loophole that lets them get Federal Housing Administration mortgages without putting their own money down, while at the same time avoiding costly subprime loans. About 7,000 buyers per month were exploiting the loophole, and now the feds are squeezing it shut."

Read The BankRate.com Article

Mortgage Interest Rates Fall

Average interest rates for U.S. 30-year, fixed-rate mortgage loans stood at 6.33 percent compared to 6.40 percent the previous week, USA Today reported November 1, 2007.

A year ago the same loan stood at 6.40 percent.

Read The USA Today Article

U.S. Foreclosure Problems Double In Third Quarter

The number of U.S. homeowners facing foreclosure problems in the third quarter doubled compared to Q3 2006, the Boston Herald reported November 1, 2007.

The figures comes from RealtyTrac, Inc., a mortgage data company based in California that sells foreclosure information.

"The number of homes with foreclosure filings in Massachusetts surged more than twelvefold to 9,625 properties from last year, the largest year-over-year increase in the country. The state’s number was more than double the second quarter’s and was the second highest increase after Delaware."

These figures don't surprise me. More and more bank-owned properties are hitting the market. If you're interested in getting a good deal on a property that has been foreclosed on, please don't hesitate to contact me.
 

Read The Boston Herald Article

U.S. Home Prices Drop In Third Quarter

The Boston Herald reported November 27, 2007 that U.S. single-family home prices fell 4.5 percent in the third quarter compared to the same period a year earlier.

The data comes from Standard & Poor's (S&P), and it is the steepest decline in home prices since S&P began its nationwide housing index in 1987.

"One of the index’s creators also predicted that there’s a significant chance of a recession as the economy contends with falling housing prices, spiking foreclosures and turmoil in the financial markets."

Economist Robert Shiller believes there is a greater than 50 percent chance of recession; however, many other economists put the chance of recession at about one in three.

The index also showed that prices fell 1.7 percent from the previous three-month period (Q2), the largest quarter-to-quarter decline in the index’s history.

Read The Boston Herald Article