Massachusetts Home Buyer Guide

Massachusetts Single-family Home Sales Up January 2012

Single-family home sales in Massachusetts increased more than 3 percent in January, but median prices decreased nearly 4 percent, according to data from The Warren Group, publisher of Banker & Tradesman.

A total of 2,425 single-family homes sold across Massachusetts in January, up from 2,348 in January 2011. This is the highest January sales volume for single-family homes in Massachusetts since January 2007, when there were 2,953 transactions.

If my office (Buyers Brokers Only, LLC) is any indication of transactions statewide, the February and March numbers should come in higher than 2011 too. Low interest rates, lower prices, pent-up demand and a mild winter have all contributed to the increase in sales.

The median sale price of single-family homes decreased for the fourth consecutive month in January. Median sale prices dropped 3.7 percent in January to $260,000, down from $270,000 in January 2011. This is the fifth consecutive month that median home prices have remained below $300,000.

Condominium sales statewide decreased in January, dropping 4.3 percent to 903 from 944 in January 2011. The median condo price in January inched up 1 percent to $247,500 from $245,000 in January 2011.

In some communities, the median price of condomiums has declined to prices not seen in more than a decade.

Purchase Mortgage Applications Up 8%

U.S. mortgage applications for those purchasing homes were on the upswing last week. Applications for purchases grew a seasonally adjusted 8.2 percent during the week ending Feb. 24, the Mortgage Bankers Association (MBA) reported.

Mortgage refinance applications, on the other hand, dropped 2.2 percent during the same period, which brought overall mortgage applications down 0.3 percent compared to a week earlier.

The MBA report was adjusted to take into account the President’s Day holiday.

U.S. Pending Home Sales Increase January 2012

U.S. pending home sales are on an upward trend, moving higher from last year, according to the National Association of Realtors®.

The "Pending Home Sales Index" (PHSI) a forward-looking indicator based on contract signings, rose 2 percent to 97.0 in January from a downwardly revised 95.1 in December, and the index is 8 percent higher than January 2011 when it was 89.8. The data reflects contracts but not closings.

The January index is the highest since April 2010 when it reached 111.3, as buyers were rushing to take advantage of the home buyer tax credit.

The PHSI in the Northeast rose 7.6 percent to 78.2 in January and is 9.8 percent above a year ago. In the Midwest the index declined 3.8 percent to 88.1 but is 10.8 percent higher than January 2011. Pending home sales in the South increased 7.7 percent to an index of 109.1 in January and are 10.5 percent above a year ago. In the West the index declined 4.4 percent in January to 101.9, but is 0.7 percent above January 2011.

Franklin, MA Homes Prices Decline 2011, Spur Increase in Home Sales

The median price of single-family homes in Franklin, Massachusetts decreased in 2011, but lower prices may be the cause of increased home sales, according to data compiled using MLS Property Information Network, Inc, a local multiple listing service.

The median price of single-family homes fell 3.2 percent in 2011 compared to the previous year, a difference of $12,000.  On the other hand, single-family home sales in Franklin, MA increased 9.7 percent in 2011, a difference of 20 sales compared to 2010.  

Condominium sales decreased 19.1 percent in 2011, a difference of 18 sales compared to 2010. The median price of condos fell 16.1 percent in 2011, a difference of $44,000 compared to the previous year.

Multi-family home sales increased 85.7 percent in 2011, a difference of six sales compared to 2010. The median price of multi-family homes rose 3.6 percent in 2011, a difference of $9,500 compared to the previous 12 months.

Franklin, Massachusetts Real Estate Market Report

            Sales / Median Price

Single family:
2010 – 206 / $377,000
2011 – 226 / $365,000

Condominiums:
2010 – 94 / $272,500
2011 – 76 / $228,500

Multi family:
2010 – 7 / $260,500
2011 – 13 / $270,000

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Arlington, MA Single-family Home Prices Buck Trend

Someone forgot to tell Arlington, Massachusetts that real estate prices have declined over the past few years.

The median price of single-family homes in Arlington, MA has increased each year over the past five years. Since 2007, median home prices have risen 9.4 percent, a difference of $44,500. The largest year-over-year jump in prices came in 2011 when prices increased 3.5 percent or $17,500 compared to the previous year.

        Median Price l Sales  l Days on the Market
2007    $473,000         291       69
2008    $475,000         218       49
2009    $487,438         248       52
2010    $500,000         277       49
2011    $517,500         264       62

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Median Price Falls, But 2011 Single-family Home Sales Jump in Bridgewater, MA

The median price of single-family homes in Bridgewater, Massachusetts decreased in 2011, but sales increased, according to data compiled using MLS Property Information Network, Inc, a local multiple listing service.

The median price of single-family homes fell 7.2 percent in 2011 compared to the previous year, a difference of $21,450.  Single-family home sales in Bridgewater, MA jumped 16.7 percent in 2011, a difference of 21 sales compared to 2010.  

Condominium sales plunged 40.9 percent in 2011, a difference of 25 sales compared to 2010. The median price of condos fell 0.7 percent in 2011, a difference of $1,050 compared to the previous year.

Multi-family home sales rose 11.1 percent in 2011, a difference of just one sale compared to 2010. The median price of multi-family homes dropped 14.9 percent in 2011, a difference of $36,450 compared to 2010.

Bridgewater, Massachusetts Real Estate Market Report                     

              Sales / Median Price

Single-family Homes:
2010 – 126 / $298,950
2011 – 147 / $277,500

Condominiums:
2010 – 61 / $155,000
2011 – 36 / $153,950

Multi-family Homes:
2010 – 9 / $244,900
2011 – 10 / $208.450

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Haverhill, MA Single-family Home Sales Up In 2011, Condominium Prices Continue Steep Decline to Lowest Price Since 2000

The median price of single-family homes in Haverhill, Massachusetts decreased in 2011; however, single-family home sales increased, according to data compiled using MLS Property Information Network, Inc, the local multiple listing service.

The median price of single-family homes fell 6.4 percent in 2011 compared to the previous 12 months, a difference of $16,000.  Single-family home sales in Haverhill, MA increased 3.3 percent in 2011, a difference of 11 sales compared to 2010.  

Condominium sales decreased 22.9 percent in 2011, a difference of 50 sales compared to 2010. The median price of condos fell 9.7 percent in 2011, a difference of $15,750 compared to the previous year. Condo prices in Haverhill have not been as affordable as they are now in many years. The last year the median price of a condominium in Haverhill, MA was lower than 2011's $146,250 was in 2000 when the median price was $126,450.

Mutli-family home sales fell 32.3 percent in 2011, a difference of 40 sales compared to 2010. The median price of multi-family homes rose 11.6 percent in 2011, a difference of $16,500 compared to 2010.

Haverhill, Massachusetts Real Estate Market Report

         Sales / Median Price

Single-family Homes:
2010 – 330 / $251,000
2011 – 341 / $235,000

Condominiums:
2010 – 218 / $162,000
2011 – 168 / $146,250

Multi-family Homes:
2010 – 124 / $142,500
2011 – 84 / $159,000

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Massachusetts Buyer Agent Group 'Cautions' Consumers Regarding the Purchase of Short Sale Homes

A mini controversy erupted last week when the Massachusetts Association of Buyer Agents (MABA) issued a press release that cautioned home buyers about the potential pitfalls of purchasing short sale properties, which are homes that are being marketed at a price that is below the mortgage balance owed.

In a short sale, sellers must receive approval from their lender in order to proceed with a short sale. Simply put, the seller is asking a lender to forgive the balance of the loan, and, in case you haven't heard, there isn't anything short about a short sale. Lenders are not in any hurry to forgive the balance of the loan, but lenders do in many cases. Nearly all short sales involve homeowners behind on their mortgage.

I should disclose that I have been on the MABA Board of Directors since 2010, and I can tell you the nonprofit organization is made up of men and women who really care about protecting home buyers from making real estate mistakes they'll regret in the future and getting those home buyers the best deal possible.

The press release resulted in an article in Banker & Tradesman that had a headline, which read "Buyers’ Agents Caution: Stay Away From Short Sales, If You Can." The article quoted MABA president Sam Schneiderman, and it led to many angry comments on the B&T Web site from individuals making money from short sales. That article led to a post on Attorney Richard Vetstein's real estate law blog titled, "Why Is The Massachusetts Association of Buyers Agents Scaring Short Sale Buyers?" Even Boston.com's Boston Real Estate Now blog reported on the brouhaha in a post titled, "Why is Sam and MABA so down on short sales?"

There are a few important points that should be made about this war of words. First, the MABA press release, which is printed in its entirety below, doesn't urge consumers to stay away from short sales. It urges consumers to use caution and to work with qualified professionals who understand the short sale process and potential pitfalls. That sounds like pretty solid advice to me.

Second, short sales are a hassle for buyers because they are unpredictable. From my perspective as an exclusive buyer agent, it isn't a whole lot more work than any other transaction. The agreement just potentially takes a long time to close. I have made offers on many short sales over the past several years for clients and some have proceeded to closing and others have not. Some deals take a couple of months to get lender approval and other short sales take six to 12 months for short sale approval. The lender may choose to not approve the short sale. Most of the short sales that I've worked on that didn't make it to closing involved buyers that just got tired of waiting for lender approval. The experience of the listing agent plays a large role in whether short sale transactions proceed smoothly. Of course, as a buyer, you have no control over who the seller hires to list his or her home. 

The third point I want to make is that buyers of short sales really should have an attorney experienced with short sales draft the offer. The standard form offer used by most real estate professionals, in my opinion, is not adequate to use for a short sale offer. In many cases, the lender will want a purchase and sale agreement signed before it will consider approving the short sale. 

Well, here is the press release in question. As you'll see, it really wasn't that controversial, but the subsequent dust up was fun to observe none the less.

 

ASSOCIATION OF MASS BUYER’S AGENTS CAUTIONS CONSUMERS ABOUT SHORT SALES

‘Despite All the Activity in the Short Sale Market, Many Never Close,’ says MABA President

Boston, MA – February 6, 2012 – Short sales, for some time now touted as a way for sellers to get out of homes that are “underwater” and for buyers to get that dream house at a bargain price, may not be delivering on either count.  Despite all the activity in the short sale market here in Massachusetts, many of these transactions never close, says Sam Schneiderman, president of the Massachusetts Association of Buyer Agents.

If you’re not familiar with how short sales work, here’s a brief rundown.  The short sale is an option for a homeowner who may be facing foreclosure – or is simply looking to move or divest of a property.  The bottom line is the seller can’t get enough money for the property to pay off the mortgage balance in full.  The process can become quite complex as the mortgage holders are under no obligation to accept any offers by prospective buyers.  The homeowner must convince the lender or lenders to accept less than the total amount due.  Some will, some won’t – depends on the lender, the property involved, market conditions, and the seller’s financial position.

Schneiderman, who has been in the real estate business for the past 28 years, has been tracking short sales for MABA and says the figures don’t lie.  “I found that depending on the community, 30 to 50 percent of these deals never closed,” he says.  “There’s this excitement, this fantasy about short sales, because they appear to be good deals, but the reality is quite different and consumers need to beware of the challenges and difficulties associated with these transactions.”

According to Schneiderman, many buyers who pursue short sales have little or no idea what they’re getting into.  They don’t understand the process or know what questions to ask – who is the lender or are there multiple lenders, are there other liens on the property, how are offers to be submitted/reviewed, etc. – and vastly underestimate how long a successful (yes, some go through) short sale can take.  It could be six months or more.

If you’re inclined to pursue a short sale, teaming up with a qualified buyer’s agent who has a thorough knowledge of the short sale experience is essential, says Schneiderman.  “First off, they’ll know the fair market value of the property, and they’ll know what questions to ask up front, and what documents to request and review.  And while it doesn’t guarantee that the short sale will work out for you, at least you’ll know what you’re getting into and with the right agent – one who is both committed and loyal to you – your interests will be protected.”

Here are some key questions that Schneiderman and MABA recommend asking buyer’s agents before making the decision to work with them on a short sale or other real estate transaction; additional tips and resources can be found on the organization’s website at www.massbuyersagent.org. 

• What specific training and designations do you have as a buyer’s agent? 
• How long have you worked as an agent and how long have you worked on the buyer’s side?
• What types of properties and transactions are you most knowledgeable about?
• Do you show For Sale by Owner (FSBO), short sales, and foreclosed properties?
• How will working with you give me a competitive advantage when I make an offer?

About the Massachusetts Association of Buyer Agents (MABA)
Founded in 1990, the Massachusetts Association of Buyer Agents (MABA) is a non-profit organization of select real estate agents dedicated to the highest ethical standards of buyer agency.  They advocate for buyers at each step of the process – from initial negotiations through closings – when purchasing a home or condominium.  With their comprehensive knowledge, member agents are a critical resource to first-time buyers, those moving into the state through relocation, and repeat buyers seeking to streamline the purchase process.  When working with home buyers, MABA agents’ allegiance is to the buyer only and their transaction – never to the seller, the seller’s agent or the listing brokerage company.  For additional information on MABA and a free list of MABA buyer’s agents, go to www.massbuyeragents.org.

Massachusetts Real Estate Market Had Fewest Single-family Home Sales in 2011 Since 1990. Q4 Sales Increase.

Single-family home sales in Massachusetts declined 5 percent in December, putting an end to five previous months of year-over-year sales gains, and a fitting end to a year in which the lowest number of single-family homes were sold since 1990, The Warren Group, publisher of Banker & Tradesman, reported January 24, 2012.

Single-family home sales in Massachusetts dropped to 3,380 last month, down from 3,558 in December 2010. In all of 2011, single-family home sales across Massachusetts decreased almost 6 percent to 38,994, down from 41,389 home sales in 2010. This is the fewest amount of annual single-family home sales recorded in Massachusetts since 1990, when there were 35,819 sales.

Despite the year-over-year decline, fourth quarter home sales were up. A total of 9,991 sales were recorded in the fourth quarter 2011, up from 9,461 during the same period in 2010. The first quarter 2011 was the worst quarter of the year, posting just 6,643 sales. June was the strongest month of the year, when 4,349 single-family properties traded hands.

The median sale price of single-family homes in Massachusetts dropped 4.2 percent in December to $267,250, down from $279,000 in December 2010, the lowest median sales price recorded since February's $252,250 price mark. Median home prices have remained below $300,000 since August. Prices in the fourth quarter dropped to $270,000, compared to $285,000 during the fourth quarter 2010.

The median price for single-family homes dropped more than 3 percent to $286,000 in 2011, down from $295,000 in 2010.

A total of 1,492 single-family home sales were of bank-owned properties or about 3.8 percent of all single-family sales in 2011. That's down from 2010, when bank-owned properties accounted for 6.45 percent of all single-family home sales in Massachusetts.

Condominium sales also declined in 2011, dropping 16.2 percent to 15,122 from 18,048 in all of 2010. Condo sales in 2011 were the fewest number in Massachusetts since 1995, when there were 14,919 condo sales.

Condo sales also decreased in December, falling 15.75 percent to 1,327 from 1,575 in December 2010. Fourth quarter condo sales also dropped, falling more than 7 percent to 3,639 from 3,929 during the same period in 2010.

The median condo price in December dropped almost 2 percent to $255,000 from $260,000 in December 2010. The year-to-date median condo price rose almost 2 percent to $270,000 from $265,000 in 2010. Median prices dropped in the fourth quarter to $255,000 from $260,000 a year earlier.

A total of 533 condominium sales were of bank-owned properties or 3.5 percent of all condominium sales in 2011. That's down from 2010, when bank-owned condo sales represented 5.6 percent of all condo sales.

Tips For Preventing And Removing Mold

The following eHow video provides some quick tips on preventing and removing mold in your home. The video is one minute and 57 seconds long.

Obviously, you should call a professional for more serious mold problems.

 

Five Quick Tips After You Move In To Your New Home

There is more to moving into your new home than just unpacking

So you moved into your new home. Packed boxes sit on your floors and furniture has yet to find its proper place. While unpacking and arranging the rooms within your new home are typically the focus of the move-in process, there are several other equally as important tasks that should be carried out before you settle in.

Change the locks
Although you were given the keys to your home at closing, there is no telling how many copies are out there. The past owners likely gave keys to family and possibly to friends or a neighbor. Changing locks is relatively easy and not very expensive.

Re-program the garage door opener
Same as changing your locks, you never know if there is another garage door opener out there. Most garage door openers have reset buttons that will change the code used to open your door. If you do not have the original manual with instructions, give the manufacturer a call for help or download the manual from the Internet. If there is a keypad mounted by the door, make sure to also change that password.

Install new batteries in smoke and carbon monoxide detectors
In Massachusetts, the local fire department has tested on behalf of the seller the smoke and carbon monoxide detectors in your home before the closing; however, it doesn't hurt to replace the batteries.

Change the furnace filter
Many furnace manufacturers recommend filters being replaced once a month during the heating season. Not all heating systems have filters, but those that do should be replace per manufacturer's instructions. While some of the high-end filters don’t require so much attention, it is still a good idea to check the filter each month, and it is always a good idea to change the filter when moving into a new place. Who knows how long it’s been since the past owners changed the filter. A good home inspecter probably showed you how to change the filter, or as least located it for you, during the home inspection. 

Replace the toilet seats
Maybe you won’t be bothered by using the current toilet seat, but most people prefer to purchase new ones.  Enough said.

U.S. Housing Starts Decline December 2011

U.S. housing starts declined 4.1 percent in December 2011, the Commerce Department reported, but analysts said the figure was "distorted by seasonal and year-end adjustments," Yahoo! News reported January 19, 2012.

There were 657,000 housing starts in December, down from 685,000 in November. The number of housing That was 7.8 percent above the level of December 2010, the Commerce Department said.

Construction starts of buildings with five or more units dropped 27.8 percent to a 164,000-unit rate, the biggest drop since February 2011.

Tempering the overall decline, single family housinf starts increased 4.5 percent to a 470,000-unit rate.

Permits fell 0.1 percent to an annual rate of 679,000 units.

Massachusetts Single-family and Condominium Home Sales Up, Median Price Down November 2011

Both single-family and condominium home sales in Massachusetts increased in November compared to November 2010; however, median prices declined compared to the same period last year, The Massachusetts Association of REALTORS® (MAR) reported December 21, 2011.
 
Single-family homes sales jumped 13.15 percent in November, the fifth straight month of year-over-year increases. On a month-to-month basis, home sales were up 1.83 percent compared October.
 
The median selling price for single-family homes in November was $284,500, a decrease of 3.9 percent compared to $295,950 in November 2010.  On a month-to-month basis, the November median selling price went up 3.83 percent from October.
 
November saw condominium sales increase 6.51 percent compared to the same time last year. On a month-to-month basis, Massachusetts condominium sales were up 2.43 percent.
 
Condo median selling prices in November declined 6.47 percent from November 2010.  The median price went from $270,510 in November 2010 to $253,000 in November 2011. On a month-to-month basis, the median selling price of a condominium in Massachusetts was down 0.78 percent from an October median of $255,000.

Ayer, Massachusetts Single-family Home Sales, Median Prices Up October 2011

The October real estate market looked good in Ayer, Massachusetts.

The median price and sales of single-family homes in Ayer, MA increased in October 2011, according to data compiled from MLS Property Information Network, Inc, a local multiple listing service. 

The median price of single-family homes increased 9.5 percent in October 2011 compared to the previous year, a difference of $36,995.  Single-family home sales in Ayer rose 100 percent in October 2011, a difference of two sales compared to the previous year.

Condominium sales in Ayer, MA were flat, with one sale in both October 2010 and October 2011. 

There was one multi-family home sold in October 2011, up from zero sales in the previous October.

Ayer, Massachusetts Real Estate Market Report 

                       Sales / Median Price

Single-family Homes:
October 2010 – 2 / $387,450 
October 2011 – 4 / $424,445

Condominiums: 
October 2010 – 1 / $185,000 
October 2011 – 1 / $62,000

Multi-family Homes:
October 2010 – 0 / $0 
October 2011 – 1 / $101,000

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NAR Revises Down 2007-11 Home Sales Data

In what can only be described as a shocking announcement, the National Association of Realtors (NAR) reported last month that it overstated about 3.5 million home sales in the United States from 2007 through last month.

NAR revised down its sales from 2007 through October 2011 more than 14 percent, from 24.8 million to nearly 21.3 million. The trade group said that among the reasons/excuses for the lower figures were changes in the way the Census Bureau collects data, population shifts and some sales being counted twice.

The sharp revisions could cast doubt (or further doubt depending on your opinion) on future sales numbers from NAR.

NAR said it trusts its new figures, which were checked by government agencies and CoreLogic, the California-based real estate data firm that first opposed issues with NAR's numbers earlier this year. The new figures show that sales fell in three of the past four years since the national housing market began to drop in 2006. Declining prices and record-low mortgage rates haven't been enough to boost sales.

The NAR numbers are important to economists and large corporations interested in the national economy; however, NAR housing numbers are not very relevant to an individual home buyer. An exclusive buyer agent can provide market data for specific cities and towns and even neighborhoods. That specific data is much more relevant.