Massachusetts Home Buyer Guide

Massachusetts Home Prices Decline 18 Percent Q1

Single-family median home prices in Massachusetts fell 18.2 percent during the first quarter compared to the same period in 2008, marking the steepest percentage decline for any quarter since The Warren Group began tracking prices in 1987.

The median price for homes sold during the first three months of 2009 fell to $253,500 from $310,000 in the first quarter of 2008. The March median home price was $255,000, or 16.1 percent lower than the $304,000 median price recorded in March 2008. Monthly median home prices have been falling by double-digit percentages year-over-year since last September, The Warren Group reported April 29, 2009.

“The single-family median home price has fallen below $300,000 for seven consecutive months. Reduced prices could help stimulate home sales going forward,” said Timothy Warren Jr., CEO of The Warren Group, a publisher of real estate data.

Sales of single-family homes during the first quarter dropped nearly 11 percent to 6,160 from 6,912 a year earlier. That’s the slowest sales pace for a first quarter since 1991. A total of 2,453 homes were sold in March, down 7.4 percent from 2,648 during the same month in 2008.

Median condominium prices in Massachusetts in the first quarter also posted the sharpest decline for any quarter since The Warren Group started recording price changes 22 years ago. The median condo price fell 16.9 percent in the first quarter to $220,100 from $264,900 during the same months in 2008. The March median condo price was down 15.2 percent to $229,000 from $270,000 in March 2008.

A total of 2,802 condos were sold from January through March, nearly 27 percent lower than the 3,832 condo sales transactions recorded during the same months in 2008. Condo sales in March totaled 1,135, a 22.3 percent decrease from 1,460 a year earlier. Condo sales have fallen by 20 percent or more for 12 out of the last 15 months.

In a separate report released April 29, 2009, the Massachusetts Association of REALTORS® reported that the median selling price for single-family homes in March was $255,000, a decrease of 19 percent compared to $315,000 in March 2008.  Median prices for single-family homes continue to be back at 2002 levels.

Condominium median prices in March were down 14.9 percent from $263,750 in 2008 to $224,500 in 2009.

$8,000 Tax Credit Moves Buyers

The following video on Boston.com is of a couple that bought a home in Watertown, MA. The first-time home buyers said that, among other things, the first-time home buyer federal tax credit influenced their decision to buy now.

U.S. Existing Home Sales Decline

U.S. existing home sales, which includes single-family, townhouses, condominiums and co-ops, declined 3 percent in March compared to February and dropped 7.1 percent compared to March 2008, the National Association of REALTORS® reported April 23, 2009.

Although prices rose from February to March, the national median existing home price for all housing types was $175,200, down 12.4 percent from March 2008. The price increase from February to March was 4.2 percent, which is higher than the typical 1.8 percent seasonal increase between those two months.

Distressed properties, which accounted for just over half of all transactions in March, typically are selling for 20 percent less than traditional homes.

Total housing inventory at the end of March fell 1.6 percent, to a 9.8-month supply at the current sales pace, compared with a 9.7-month supply in February.

Existing home sales in the Northeast fell 8 percent from February and 22.5 percent from March 2008. The median price in the Northeast was $231,700, down 18.4 percent from March 2008.

Existing home sales in the Midwest were unchanged in March compared to February, but are 11.1 percent lower than March 2008. The median price in the Midwest was $141,300, 6.1 percent below the year before.

In the South, existing home sales slipped 1.7 percent and 10.9 percent below a year ago. The median price in the South was $146,900, down 12.2 percent from March 2008.

Existing home sales in the West declined 4.2 percent from February, but 18.9 percent higher than a year earlier. The median price in the West was $252,400, which is 11.1 percent below March 2008.

Mortgage Applications Rise; Interest Rates Decline

U.S. mortgage applications rose 5.3 percent compared to the previous week, CNN Money reported April 22, 2009.

Refinance applications rose 7.7 percent while purchase applications declined 4.2 percent.

Meanwhile, average rates for 30-year, fixed-rate mortgage declined to 4.80 percent from 4.82 percent, FoxBusiness.com reported April 23, 2009.

The data comes from Freddie Mac

Westford, MA Home Sales, Median Price Q1 2009

Westford, Massachusetts single-family home sales in the first quarter of 2009 declined slightly from Q1 2008, from 18 to 16 home sales; however, home sales are down 57.8 percent compared to the first quarter of 2007.

The median price for a single-family home stood at $452,500, up 34.5 percent from $336,250 in Q1 2008. Median price for the first quarters of 2006 and 2007 were $487,500 and $408,250 respectively.

The average number of days on the market for single-family homes in Westford, MA increased 30.8 percent from 136 days in Q1 2008 to 178 days in the first quarter of this year. The average number of days on the market in the first quarter of 2007 was 177 while Q1 2006 saw an average of 125 days on the market.

                Median Price    Number of Sales    Days on the Market

Q1 2006:        $487,500                    32                                125     
Q1 2007:        $408,250                    38                                177
Q1 2008:        $336,250                    18                                136
Q1 2009:        $452,500                    16                                178

First Home Listings In Westford, MA

Weymouth, MA Real Estate Sales First Quarter 2009

Single-family home sales in Weymouth, Massachusetts increased 45.6 percent in the first quarter compared to Q1 2008, climbing from 46 sales to 67. Sales were up from 66 in the first quarter of 2006 and down from 74 sales in the first quarter of 2007.

The median price of a single family home in Weymouth, MA remained nearly unchanged at $285,000, up just slightly from $284,950; however, the median price is down 16.1 percent from Q1 2006 ($339,950).

The average number of days on the market remained the same at 116, which was also the average number of days on the market in the first quarter of 2006.

The data comes from MLS Property Information Network, Inc.

                  Median Price        Number of Sales        Days on the Market
Q1 2006:        $339,950                    66                                116
Q1 2007:        $314,750                    74                                136
Q1 2008:        $284,950                    46                                116
Q1 2009:        $285,000                    67                                116

Find a buyer agent to work with in Weymouth and the surrounding areas.

First-time Home Buyers Lift The Real Estate Market

With interest rates low, median home prices down and the government handing out $8,000 tax credits, it is no wonder that first-time home buyers are entering the real estate market.

A recent report by RE/MAX points to first-time home buyers as the reason home sales have begun to pick up. Watch the following video from NECN.

A Buyer Agent's View Of The Market

The Boston.com Boston Real Estate Now blog had a recent post with some real estate market perspectives from buyer agents working in the trenches.

I was quoted in the post.

"When the dust settles on the Spring market median home prices in most places will be down compared to the previous year, but single-family home sales will be up.

"I am seeing a lot of first-time home buyers who have been on the sidelines for a while ready to make a move. The buyers that study the market are ready to jump at a good deal. Homes that are well kept in nice locations are selling quickly, if priced appropriately. I have seen a few places sell in less than a week.

"Chelmsford, Billerica, Tewksbury and the Bradford and Riverside sections of Haverhill have been very popular locations with many of my first-time home buyers."

Read The Entire Post

Haverhill, MA Real Estate Sales Data First Quarter 2009

Compared to the first quarter of 2006, the median price of a single-family home in Haverhill, Massachusetts declined 23.9 percent in the first three months of 2009.

Compared to the first three months of 2008 ($270,500), median price was down a modest  5.76 percent in the first quarter of 2009 ($254,900). Home sales declined from 70 in Q1 2008 to 55 in Q1 2009, a decline of 21.4 percent. Home sales rose in Haverhill in 2008. 

After declining from 148 days to 132 days in 2008, the average number of days on the market for a single-family home during the first three months of 2009 rose to 173.

The data comes from MLS Property Information Network, Inc.

               Median Price    Number of Sales    Days on the Market

Q1 2006     $335,000              85                                112
Q1 2007     $302,500              68                                148
Q1 2008     $270,500              70                                132
Q1 2009     $254,900              55                                173

Find home listings in Haverhill, MA.

Mortgage Interest Rates Rise Slightly

Average interest rates for U.S. 30-year, fixed-rate mortgage loans rose to 4.87 percent, up from 4.78 percent the previous week, MarketWatch.com reported April 9, 2009.

Last year at this time the same loan stood at 5.88 percent.

Average rates for a 15-year loan rose to 4.54 percent, up from 4.52 percent the previous week and 5.42 percent the previous year.

Read The MarketWatch.com Article

Find A Competent, Ethical Mortgage Professional

Home Loan Applications Jump

U.S. mortgage applications rose as demand for home loans increased 11.1 percent compared to the previous week, Reuters reported April 8, 2009.

Refinancing applications rose 3.2 percent, for an overall mortgage application increase of 4.7 percent. The Mortgage Bankers Association provided the data.

Read The Reuters Article

Good News For MA Residents Living On NH Border

The New Hampshire State Senate did its part April 8, 2009 to save the money of Massachusetts residents who cross the border to shop tax free.

Under the bill, which heads to the NH House of Representatives next, neighboring states would have a tougher time collecting sales taxes from residents who spend their money in New Hampshire. The bill passed unanimously, the Associated Press reported.

The proposed law is a direct attack on a plan by Massachusetts Governor Deval Patrick's administration to require NH businesses to collect sales tax from Massachusetts residents.

Read The Associated Press Article

Real Estate News Round Up

I've been busy showing houses and putting properties under agreement, so I haven't posted to my blog in the past two weeks. Sorry. The following is some of the real estate news from the past two weeks or so.

Existing Homes Sales In U.S. Rise In February: The National Association of REALTORS® reported that sales of existing homes in the U.S. rose 5.1 percent in February 2009 compared to January 2009. It was the largest monthly sales increase since July 2003, with first-time home buyers accounting for about half of all transactions. Median home prices across the U.S. continue to decline.

Average Mortgage Interest Rates At Record Low Levels: Average rates on 30-year, fixed-rate mortgage loans in the U.S. fell to the lowest level on record for the second consecutive week. Rates declined from 4.85 percent to to 4.78 percent.

February Pending Home Sales In U.S. Rise: Pending sales of existing U.S. homes rose 2.1 in February compared to January 2009. Affordability and low interest rates seems to be the reasons for the jump in activity.

Case-Shiller Index Declines 19% In January: Home values in 20 major U.S. cities fell at the fastest rate on record in January 2009 and are now down a record 19 percent compared to January 2008. Prices are down 29 percent from the peak in mid 2006, according to Case-Shiller Index, and prices have now fallen to September 2003 levels.