Massachusetts Home Buyer Guide

Massachusetts Home Sales, Prices Up

Median prices for single-family homes and condominiums in Massachusetts increased significantly in January compared to January 2009, The Warren Group reported February 23, 2010.

The median price for single-family homes sold in January rose 9.6 percent to $285,000 from $260,000. It was the second consecutive month that median prices for single-family homes increased by nearly 10 percent when compared to the prior year; however, last month’s median selling price was 12 percent lower than it was in January 2008.

Sales of single-family homes jumped 11.8 percent to 2,153 from 1,926 in January 2009, posting the fourth consecutive month of double-digit percentage increases in single-family home sales.

Condominium sales and median prices also surged last month. The median condo price jumped 16.7 percent to $245,000 from $209,900 in January 2009. It was the third straight month that median condo prices increased year-over-year. Condo sales soared 25.3 percent to 1,011 in January from 807 the previous year. Condo sales have climbed by more than 10 percent year-over-year for four straight months.

MA Pending Homes Sales Increase 7th Straight Month

The number of single-family homes put under agreement in January increased 8 percent over the same time last year, while condominiums jumped 12 percent, the Massachusetts Association of REALTORS® reported February 2, 2010. 

January marked the seventh straight month that the number of both single-family homes and condominiums put under agreement had increased over the previous year.

The number of single-family homes put under agreement in January increased 8 percent compared to the same time last year (2,576 homes in 2009 to 2,791 homes in 2010).  On a month-to-month basis, single-family homes put under agreement were up 1.7 percent from 2,743 homes in December 2009. 

The number of condos put under agreement in January jumped 10 percent compared to January 2009 (1,069 units in 2009 to 1,194 units in 2010).  On a month-to-month basis, condos put under agreement declined 4.4 percent from 1,249 units in December 2009.

A pending sale or a sale “under agreement” is when the buyer and seller agree on the terms of the sale of a home and have a signed purchase and sale agreement, but have yet to close the sale.

Carlisle, MA Homes Sales Flat, Median Price Down

In 2009 the single-family median home price in Carlisle, Massachusetts was 5.3 percent lower than it was in 2006, and median prices were down 2.6 percent compared to 2008.

Carlisle, MA experienced its lowest median price in 2007 when prices dropped by 9.4 percent compared to the previous year.

In the past two years the same amount (51) of single-family homes were sold in Carlisle. In 2007, 65 homes were sold, 27.5 percent more than in 2008 and 2009, and 32.7 percent more than in 2006.

Compared to 2008, the amount of time homes spent on the market in Carlisle, MA went down by 27.3 percent, or by 51 days in 2009.

The data come from MLS Property Information Network, Inc.

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Carlisle, MA Real Estate Market Data

	Median Price	Number of Sales	Days on the Market
2006	$800,000	49	138
2007	$725,000	65	188
2008	$777,500	51	187
2009	$757,500	51	136

Peabody, MA Home Prices Down, Sales Up

Over the past four years single-family homes in Peabody, Massachusetts have decreased in median price each year. In 2009 home prices dropped below $300K for the first time, declining nearly $20,000, or 6.4 percent compared to 2008.

Since 2006 single-family home prices in Peabody, MA have fallen 18.8 percent, or by $69,000.

From 2006 to 2008 the number of single-family homes sold in Peabody dropped each year totaling a decrease of 8.9 percent in sales. After two years of decline in home sales, sales in 2009 increased 8.2 percent.

Over the past four years the amount of time single-family homes spent on the market has fluctuated. In 2008 homes spent the most amount of time on the market, up 8.65 percent from the previous year. Compared to 2008 the amount of time homes spent on the market dropped 21.2 percent in 2009.

The data come from MLS Property Information Network, Inc.

Search for homes for sale in Peabody, Massachusetts.

Peabody, MA Real Estate Market Data

	Median Price	Number of Sales	Days on the Market
2006	$368,000	281	105
2007	$350,000	270	104
2008	$319,500	256	113
2009	$299,000	277	89

Mortgage Applications Decline

U.S. mortgage applications declined 1.2 percent compared to the previous week, MarketWatch.com reported February 10, 2010.

Mortgage applications for home purchases declined 7 percent. Refinance applications rose 1.4 percent.

Haverhill, MA Home Prices, Sales Decline in 2009

Since 2006 the median price of single-family homes in Haverhill, Massachusetts have dropped $70,900 or 22.1 percent. Each year since 2006 the median price has declined in Haverhill, MA.

In 2009 median prices were down 7.4 percent compared to 2008. The largest drop in median price came in 2008 when the price dropped more $30,000, a 10.03 percent decrease.

In 2009 there was a 7.6 percent decrease in home sales compared to 2008. Compared to sales in 2006, Haverhill single-family home sales in 2009 were down 19.8 percent. 

From 2006 to 2008 the amount of times homes were spending on the market increased. Finally in 2009 there was a 15.2 percent drop in the amount of time homes spent on the market. On average, homes only spent 6 days longer on the market in 2009 than in 2006.

The data come from MLS Property Information Network, Inc.

Search for single-family and condominium homes for sale in Haverhill, Massachusetts.

Haverhill, MA Real Estate Market Data

	Median Price	Number of Sales	Days on the Market
2006	$320,900	395	117
2007	$300,000	338	130
2008	$269,900	343	145
2009	$250,000	317	123

Massachusetts Real Estate Market: The Big Story

The media and the pundits have written about and discussed the increase in home sales in the Massachusetts real estate market, but not much has been said about what I think is the most important story playing out right now: Inventory.

The Massachusetts housing supply in December was at its lowest level since December 2001.

The inventory for homes on the market in Massachusetts has significantly declined overall, and first-time home buyers looking for homes for less than $300,000 know that inventory is extremely tight. Home buyers in the $250,000 to about $325,000 price range need to be extremely focused on one or two communities in order to be ready to identify and act when a good home, in a good location, price right hits the market.

The inventory of single-family homes as of December 30, 2009 decreased 14 percent from December 2008 (25,178 listings in 2008 to 21,743 listings in 2009) which translates into 7.2 months of supply in December 2009, the Massachusetts Association of Realtors® reported January 26, 2010.

December 2009's inventory is down from 9.6 months of supply last year and slightly up from 6.5 months in November 2009.  December supply was at its lowest level since December 2001. The December peak was 30,651 homes in 2006.  This was the 21st  straight month that single-family inventory has gone down compared to the year before.

The condominium market saw December inventory decrease by 16 percent from last year (10,620 listings in 2008 to 8,942 listings in 2009), which translates into 5.6 months of supply, which is down from 11.3 months in December 2008 and down from 6.5 months this past November.  This also was the 21th straight month that condo inventory has gone down compared to the year before.
 
Unless substantially more homes hit the market over the next three or four weeks, multiply-offer situations on decent properties will be common as the April 30, 2010 home buyer tax credit deadline approaches.
 

U.S. Home Buyers Looking For Smaller Homes

First-time home buyers are purchasing smaller homes due to the 2009 economy and home buyers in general are seeking smaller homes, RISMedia reported January 28, 2010.

For the first time in 27 years, new construction homes size has declined. In addition, a survey of homeowners conducted by Better Homes and Gardens found 36 percent of those surveys said their new home would be smaller than their current home. 

Not only has the sale of larger homes been falling, the sale of homes with more than four bedrooms has been falling since 2007. There are definitely some obvious factors playing a role in the shift to smaller homes. First-time home buyers are drawn to the market because of the $8,000 tax credit, making them more likely to purchase a smaller home in exchange for lower prices. Those over age of 55 are usually looking to downsize, mainly a smaller, single-story home.

Home builders are focusing on homes that are more prone to sell, which are these smaller homes with lower prices. Builders are also including standard features in their new construction in order to meet demands and maintain prices. Some of the features becoming standard in homes are walk-in closets, great rooms, laundry rooms and energy efficient appliances and lighting. Builders are less likely to include outdoor fireplaces, sun rooms, smaller kitchens and media rooms.     

Number of Massachusetts Foreclosures Initiated Jump

The number of foreclosures initiated in Massachusetts increased 28.1 percent in 2009 to 27,928 from 21,804 in 2008, but 2009's numbers reflected a 5.5 percent decline compared to 2007, according to a blog post at MassForeclosed.com.

Meanwhile, the number of completed foreclosures declined 25.4 percent to 9,269 last year from 12,430 in 2008, but 2009 had 21.1 percent more completed foreclosures than the 7,653 foreclosures recorded in 2007.

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U.S. New Home Sales Decline

A report by the U.S. Commerce Department found a 7.2 percent drop in new home sales in December, Reuters reported January 27, 2010.

During December the annual rate dropped to 342,000 units, down from the 370,000 unit annual rate seen in November.

The drop of new home sales in December was a surprise as many expected sales to rise above the November mark. The Commerce Department also reported that new home sales for all of 2009 dropped 22.9 percent to 374,000 units, a record low.

The new home supply dropped by 1.7 percent in December to 231,000 units, the lowest number of units on market since April of 1971.  One would think that prices would begin to rise with such a small supply; however, the slow pace of new home sales in December actually translates into a supply of more than eight months worth of homes, skewing the market slightly in favor of home buyers.

Although new home sales were down and supply up, there was one bright spot for builders in the market in December. Median prices of new homes rose 5.2 percent compared to November prices.

One in Four U.S. Homeowners Underwater

One in four U.S. homeowners holds a mortgage with a balance higher than the property’s value, BusinessWeek reported January 29, 2010.

The number of borrowers with negative equity, also know as being "underwater" on your mortgage, reached 10.7 million, or 23 percent, at the end of Q3 2009, according to a November 24, 2009 report by First American CoreLogic, a Santa Ana, California-based real estate research firm.

Government programs to help underwater borrowers exclude jumbo mortgages, which are not eligible to be purchased by Washington-based Fannie Mae and Freddie Mac of McLean, Virginia.