Massachusetts Home Buyer Guide

Opportunity For First-time Home Buyers?

An article in The Boston Globe previewing the upcoming Spring real estate market, besides predicting a lousy Spring season for home sellers, suggests first-time home buyers have a chance to get a great deal.

"But real estate agents and analysts said the soft market presents the best opportunity in years for first-time home buyers. First-time buyers do not have to sell a house in a sluggish market before they are able to buy.

"With the supply of unsold homes rising, buyers have strong leverage in negotiating prices."

Add the above to low interest rates, and first-time home buyers have a great opportunity over the next several months (Latest Massachusetts sales data).

Read The Boston Globe Article

Massachusetts Home Sales Plummet In January

Two reports on single-family home sales in Massachusetts showed a decline of about 28 percent in January 2008 compared to January 2007, The Boston Globe reported February 26, 2008

The Warren Group, a publisher of real estate data, reported a 28.3 decline in single-family home sales and 4.4 decline in the medium price of a single-family home.

The Massachusetts Association of REALTORS® (MAR) reported a 27.7 percent decline in single-family home sales and 5.6 percent decline in medium prices for single-family homes.

The Warren Group said condo sales declined 36.2 percent in January.  MAR reported a 33.7 percent decline in condo sales.

Boston Globe reporter Binyamin Appelbaum has a good blog post on declining prices in the Greater Boston Area.

Read The Boston Globe Article

MAR Housing Data

S&P/Case-Shiller Home Price Index

Mortgage Interest Rates Rise

Average rates for U.S. 30-year, fixed-rate mortgage loans increased to 6.04 percent from 5.72 percent the previous week, United Press International reported February 21, 2008.

The 30-year loan stood at 6.22 percent during the same week in 2007.

Read The UPI Article

Don't Fear Gradually Falling Home Prices

Yale economics professor Robert Shiller says not to fear gradually falling home prices.

In a February 21, 2008 article by Reuters news service, Shiller is quoted as saying that, "'There's nothing troubling about a gradual correction of home prices. If we keep our incomes at the current level and home prices go down we are richer, we can buy more housing.'"

It is sharp declines that erode consumer confidence and bring on recession, Shiller believes.

Read The Reuters Article

Mortgage Applications Decline 23 Percent

U.S. mortgage applications fell 23 percent compared to the previous week, Bloomberg.com reported February 20, 2008.

The data, which comes from the Mortgage Bankers Association, showed that refinancing applications plunged 28 percent, the most in more than three years, and purchase applications declined 12 percent.

Read The Bloomberg.com Article

Home Builder Confidence Rises In January

Confidence among the nation's home builders rose in January, REALTOR® Magazine Online reported February 20, 2008.

The National Association of Home Builders//Wells Fargo Housing Market Index showed a slight increase in confidence.

"The index, which gauges current sales conditions for single-family homes, rose one point to 20, while the index gauging sales expectations for the next six months declined one point to 27. Meanwhile, the index gauging traffic of prospective buyers rose five points to 19, its highest level since July of 2007." 

Read The REALTOR® Magazine Online Article

Foreign Investors Eye U.S. Real Estate Market

With the slowdown in the U.S. housing market, the strength of the Canadian dollar, the euro and other foreign currencies is making the United States a promising investment for foreigners looking to buy property, according to news reports.

In South Florida, real estate practitioners say that buyers are especially coming from continental Europe, Scandinavia and Canada. Miami Beach's famous South Beach district is luring Italians, French, and German buyers, while many Russian buyers are flocking to Sunny Isles Beach to the north. And Venezuelan buyers are looking for housing deals in Doral, to the west.

Source: REALTOR® Magazine Online

Commuter Rail Service Increases Real Estate Values

If history is any indication, commuter rail service to Boston might just help your home increase in value.

As the state prepares to bring commuter rail service back to New Bedford and Fall River next month, statistics indicate an increase in property values in other communities that obtained commuter rail service in the 1990s, The Boston Globe reported February 17, 2008.

"Experience in other Massachusetts cities where commuter rail service has been restored since 1994 - Brockton, Newburyport, and Worcester - demonstrates that train service to the Hub can be a big shot in the arm economically. In all three cities, since the year commuter train service returned, real estate values have climbed faster than state and county averages by most measures, in some cases much faster."

Read The Boston Globe Article

Average Mortgage Interest Rates Rise

Average U.S. rates for 30-year, fixed-rate mortgage loans rose to 5.72 percent, an increase from 5.67 percent the previous week, MarketWatch reported February 14, 2008.

A year ago, the same loan had a rate of 6.30 percent.

"At a forecast delivered ... to the National Association of Home Builders, [Frank] Nothaft [Freddie Mac chief economist] said he expected the 30-year mortgage to average 5.5% for all of 2008, predicting that the Fed will again lower interest rates and bring mortgages down as well."

Read The MarketWatch Article

Mortgage Applications Dip

U.S. mortgage applications fell 2.1 percent compared to the previous week, Reuters reported February 13, 2008.

Purchase applications fell 0.3 percent and refinance applications dropped 3 percent.

Read The Reuters Article