Massachusetts Home Buyer Guide

Massachusetts Housing Inventory Declines

The inventory of residential properties on the market as of October 31, 2009 decreased 15 percent compared to October 31, 2008 (from 45,118 listings in 2008 to 38,311 listings in 2009), and the October single-family supply is at its lowest since October 2002, the Massachusetts Association of REALTORS® reported November 24, 2009. 

At the current sales pace, current inventory represents approximately 7.2 months of supply, down from 9.9 months of supply in October 2008.  On a month-to-month basis, supply is down from 8.3 months in September.  It is considered a balanced market when there are between 7.5 and 8.5 months of supply.

The inventory of single-family homes decreased 15 percent from October 2008 (31,912 listings in 2008 to 27,204 listings in 2009), and that translates into 7.1 months of supply in October 2009.  This is down from 10.2 months of supply last year and down from 8 months in September.  October supply is at its lowest since October 2002.  The October peak was 40,254 homes in 2006.  This is the 19th straight month that single-family inventory has gone down compared to the year before.
 
The condominium market saw October inventory decrease by 16 percent from last year (13,206 listings in 2008 to 11,107 listings in 2009), and that translates into 7.3 months of supply, which is down from 10.2 months in October 2008 and down from 8 months in September.  It's the 19th straight month that condo inventory has gone down compared to the year before.

Massachusetts Pending Home Sales Increase

The number of single-family homes put under agreement in October was up 27 percent compared to October 2008 (3,662 homes in 2008 to 4,652 homes in 2009), the Massachusetts Association of REALTORS® reported November 24, 2009. 

On a month-to-month basis, single-family homes put under agreement were up 4 percent from 4,400 homes in September.  The number of condos put under agreement in October was up 33 percent compared to October 2008 (1,319 units in 2008 to 1,983 units in 2009).  On a month-to-month basis, condos put under agreement were down 15 percent from 1,770 units in September.

Pending sales or sales “under agreement” are homes that have a signed purchase and sale agreement, but have yet to close and be recorded.

Massachusetts Home Sales Surge In October

Sales of both single-family homes and condominiums in Massachusetts increased by double-digit percentages in October compared to October 2008, The Warren Group, publisher of Banker & Tradesman, reported November 24, 2009.

It was the fourth consecutive month that single-family home sales increased and the second straight month of increases for condo sales. The home buyer tax credit certainly has played a role in the spike in home sales. 

But while sales volume rose, median prices for both single-family homes and condominiums statewide slipped from year-ago levels.The decline in median home prices varies greatly depending on the community, with many communities seeing median price increases.

Single-family home sales shot up 17.2 percent to 4,295 from 3,664 in October 2008, posting the highest number of sales for the month of October since 2005. The 17.2 percent increase in October was also the biggest jump in year-over-year sales so far in 2009. Year-to-date sales dipped 1.4 percent to 34,176 from 34,651.

The median price for single-family homes sold in October fell 2.8 percent to $277,000 from $285,000 in October 2008. The drop was more moderate than in the winter months when year-over-year median price declines exceeded 10 percent. But October’s 2.8 percent slide in prices exceeded the modest 1 percent drop in September.

Meanwhile, condominium sales in Massachusetts increased 12 percent to 1,854 from 1,655 in October 2008. A total of 15,308 condos sold from January through October, down 13.3 percent from 17,659 in 2008.

The condominium market has really perked up. In the first six months of 2009, the condo market saw double-digit percentage declines in sales.

The median selling price for condos dropped 8.1 percent to $240,000 in October from $261,000 during the same month in 2008. The year-to-date condo price has retreated 8.5 percent to $255,000 from $278,629.

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Billerica MA Home Prices, Sales Decline

During the first nine months of the year, January through September, median home prices of single-family homes in Billerica, Massachusetts have declined over the past four years, but have stabilized this year.

Median prices dropped only 1.6 percent in the nine-month period in 2009 compared to 2008. This was the smallest year-to-year difference in median home prices over the past four years.

In 2009 there were 205 homes sold, a 5.5 percent drop from the previous 217 homes sold in the same 2008 time frame. The largest drop was seen from 2007 to 2008 when there was a 17.8 percent drop in single-family home sales in Braintree, MA.

Compared to the 2008 nine-month period, single-family homes that sold in 2009 spent 18.5 percent, or 28 days less time on the market.  From 2006 through 2008 homes took increasingly longer to sell. Over the past four years, the 2009 numbers were the closest to the 2006 numbers with only a 7.9 percent difference.

The data come from the MLS Property Information Network, Inc. Search Billerica, MA homes for sale.

Billerica, MA Real Estate Market Data

	Median Price	Number of Sales	Days on the Market
Jan-Sept 2006	$360,000	236	114
Jan-Sept 2007	$350,000	264	128
Jan-Sept 2008	$321,000	217	151
Jan-Sept 2009	$316,000	205	123

U.S. Existing Home Sales Increase In October

Driven by the first-time buyer tax credit, existing-home sales showed another big gain in October, with a strong uptrend established over the past seven months, the National Association of Realtors® (NAR) reported November 23, 2009.

In addition, inventories continue to decline across the country.

Existing-home sales – including single-family, townhouses, condominiums and co-ops – surged 10.1 percent to a seasonally adjusted annual rate of 6.10 million units in October. Sales activity is at the highest pace since February 2007 when it hit 6.55 million.

The five-minute video below is of a press conference releasing the NAR numbers and explaining the data in more detail.

Who Is The Typical First-time Home Buyer?

First-time home buyers reached the highest market share on record during the past year, according to a National Association of REALTORS® (NAR) survey of home buyers and sellers.

The profile shows the median age of first-time buyers was 30, and the median income was $61,600. The typical first-time buyer across the U.S. purchased a home costing $156,000, down from $165,000 in the 2008 study, and plans to stay in that home for 10 years.

Fifty-five percent of entry-level buyers reported they financed their purchase with an FHA loan, while another 8 percent used the VA loan program.

First-time buyers who made a down payment used a variety of sources: 61 percent used savings and 22 percent received a gift from a friend or relative, typically from their parents. Six percent received a loan from a relative or friend, 6 percent tapped into a 401(k) fund, and 6 percent sold stocks or bonds. Ninety-six percent chose a fixed-rate mortgage.

First-time buyers often make financial sacrifices to purchase a home: 39 percent cut spending on luxury items, 38 percent cut back on entertainment and 30 percent cut spending on clothes.

Only 12 percent said financing their first home was more difficult than expected, but 13 percent of successful buyers said they had experienced a purchase agreement that was canceled, terminated or fell through; and 8 percent had been rejected by a lender. Buyers searched a median of 12 weeks and viewed 12 homes. Among buyers who used an agent, 63 percent selected a buyer’s representative. 

Braintree, MA Home Sales Up, Prices Down

During the months of January through September of 2009, the median price of a single-family home in Braintree, Massachusetts was $329,900, a decrease of 7.07 percent compared to the same nine-month period in 2008. Median prices have been dropping the last several years, with a 3.65 percent drop from 2006 to 2007 and a 4.05 percent drop from 2007 to 2008.

The lower prices in 2009 led to more home sales. The number of sales in Braintree, MA in 2009, January through September, was 161, an 11.81 increase from the same time period of 2008. The 2009 sales data was a 7.10 percent increase compared to the same months in 2007. In 2007, the number of homes sold between January and September 30th was 155, a 2.52 increase from 2006 which had a total of 159 sales.

The average amount of time a single-family home stays on the market in Braintree has a range of 12 days, staying between 90 and 102 over the past four years. Between the months of January and September of 2009, the average number of days on the market was 98, a 8.89 percent increase from 2008.

The data come from MLS Property Information Network, Inc.

Braintree, MA Real Estate Market Data

                    Median Price    Number of Sales    Days on the Market
 Jan-Sept 2006:    $384,000            159                            96
 Jan-Sept 2007:    $370,000            155                            102
 Jan-Sept 2008:    $355,000            144                            90
 Jan-Sept 2009     $329,900            161                            98

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Dedham, MA Home Prices, Sales Decline

During the first nine months of the year, the median price of a single-family home in Dedham, Massachusetts declined each year except for in 2008. In 2008 there was a 2.49 percent increase in median prices compared to the same time period in 2007. Compared to 2008, there was a 10.81 percent decrease in median price in the first three quarters of 2009.

In 2009, there was 31.52 percent decline in home sales (52 less) compared, the same nine-month period of 2008. There was 180 home sales in 2007 through Q3 in Dedham, MA.

Compared to the first nine months of 2008, homes on the market in 2009 spent on average 16 days fewer, or 14.41 percent less time on the market. Compared to the highpoint in 2007, homes in 2009 spent an average of 21 less days on the market, or 18.10 percent less time.

The data come from MLS Property Information Network, Inc.

Dedham, MA Real Estate Market Data
 
                       Median Price     Number of Sales       Days on the Market
 Jan-Sept 2006:    $385,000                      160                         104
 Jan-Sept 2007:    $361,000                      180                         116
 Jan-Sept 2008:    $370,000                      165                         111
 Jan-Sept 2009:    $330,000                      113                           95

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Home Buyer Tax Credit Extended And Expanded

With the expiration of the first-time home buyer $8,000 tax credit set to expire in less than a month, the U.S. House of Representatives voted 403-12 November 5, 2009 to extend and expand the tax credit to include many buyers who already own homes, the Associated Press reported.

The U.S. Senate approved the measure Wednesday, and the White House said President Barack Obama would sign it Friday November 6, 2009.

Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time home buyers, defined as anyone who hasn't owned a home in the last three years, would still get up to a $8,000 tax credit. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30, 2010.

The latest extension is expected to be the last.

The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000. The previous income limits were $75,000 for individuals and $225,000 for joint filers.

The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.

U.S. Pending Homes Sales Up 8th Straight Month

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in September, increased 6.1 percent compared to August, and the index is 21.2 percent higher than September 2008.

The index, which covers the United States, is at the highest level since December 2006, the National Association of Realtors® (NAR) reported November 2, 2009. The following is a video featuring the NAR chief economist Lawrence Yun.

Massachusetts Sept. Condo Sales Up, YTD Down

Condominium sales in Massachusetts, which have plunged by double-digit percentages in 2009, took a turn for the better in September, marking the first year-over-year increase in condo sales in more than two years.

Condo sales increased 3.7 percent in September to 1,693 from 1,633 in September 2008. A total of 5,989 condos sold in the third quarter, 2.9 percent lower than the 6,166 condo transactions recorded in the third quarter of 2008.

In the first nine months of 2009, condo sales fell 15.9 percent to 13,453 from 16,004 during the same period in 2008.

September’s median selling price for a condominium declined 2.3 percent to $259,000 from $265,000. The third quarter median condo price dropped 4.2 percent to $273,000 from $285,000 in Q3 2008. Year-to-date, the median condo price has declined 8.2 percent to $257,000 from $280,000.

MA Q3 Single-Family Home Sales Up 6 Percent

Single-family home sales in Massachusetts increased for the third consecutive month in September, resulting in a third quarter sales increase of 6 percent compared to Q3 2008, The Warren Group, a publisher of real estate data, reported October 27, 2009.

“The increase in home sales for three months straight is giving us some hope that the housing market is truly on the mend. We believe that some of these gains were the result of [the] first-time home buyer tax credit, which is due to expire in several weeks,” said Timothy M. Warren Jr., CEO of The Warren Group. “If this trend of increased sales volume continues through October, we may end the year with about the same number of home sales as 2008.”

Single-family homes sales increased 4.5 percent in September to 3,785 from 3,623 in September 2008. Third quarter home sales totaled 13,215, a 6 percent increase from 12,466 in third quarter 2008.

Year-to-date single-family home sales declined 3.9 percent to 29,767 from 30,987 last year. About 5 percent of single-family home sales in the first nine months of the year were real estate-owned or bank-owned properties.

The median price for single-family homes sold in September slipped 1.4 percent to $285,000 from $289,000 last year. The median price decline was the smallest drop in year-over-year monthly median home prices in about two years. The third quarter median home price dipped 3.9 percent to $299,900 from $312,000 in the previous year’s third quarter. The year-to-date median price is down 9.5 percent to $285,000 from $315,000.

The Massachusetts Association of REALTORS® reported October 27, 2009 that single-family home sales increased 4.6 percent.

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Westford, MA Median Price, Sales Up In August

Median prices for single-family homes in Westford, Massachusetts in the month of August dropped significantly from August 2006 to August 2007 and again from August 2007 to August 2008; however, the median home price increased 11.1 percent ($440,000) in August 2009 compared to 2008.

The median home price in August 2006 was $557,000, then dropped 8.98 percent to $507,000 in August 2007, and again dropped in August 2008 by 21.89 percent to $396,000.

The number of single-family sales in Westford, MA has remained relatively stable over the last four years in the month of August, ranging from 29 sales in August 2006 to 23 sales in August 2007. Although the number of sales decreased by three sales between August 2006 and August 2007, and again decreased by three sales between August 2007 and August 2008, there was an increase of 8.7 percent between August 2008 and August 2009, from 23 to 25 sales. 

The number of days single-family homes in Westford were on the market decreased 47.2 percent from August 2008 compared to August 2009.

The data come from MLS Property Information Network, Inc.

Westford, Massachusetts Real Estate Market Data

               Median Price     Number of Sales     Days on the Market

August 2006:     557,000                 29                                 119
August 2007:     507,000                 26                                 110
August 2008:     396,000                 23                                 127
August 2009:     440,000                 25                                  67

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Westwood, MA Home Sales Jump In August

The number of single-family homes sold in Westwood, Massachusetts in August 2009 (23) increased 91.6 percent compared to August 2008 (12).

The median price of a single-family home in Westwood, MA increased 8.9 percent in August 2009 compared to August 2008.

The median price in August 2006 was $498,000. The median price spiked 41.6 percent to $705,400 in August 2007, and the median price declined 32.4 percent to $476,450 in August 2008. The median price increased to $519,000 in August 2009.

For both August of 2006 and August 2007 the number of days that single-family homes were on the market in Westwood was 104. August 2008 saw an average of 93 days on the market, a drop of 10.5 percent compared to August 2007. In August 2009, the number of days on the market for single-family homes rose 20.4 percent compared to August 2008, with an average of 112 days.

The data come from MLS Property Information Network, Inc.

Westwood, Massachusetts Real Estate Market Data

                      Median Price     Number of Sales     Days on the Market
August 2006:         498,000                 15                         104
August 2007:         705,400                 18                         104
August 2008:         476,450                 12                           93
August 2009:         519,000                 23                         112

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U.S. Existing Homes Sales Rise In September

Sales of existing homes in the U.S. increased 9.4 percent in September, marking the fifth month out of the last six that sales increased, the National Association of REALTORS® (NAR) reported October 23, 2009.

The home sales data includes single-family, townhouses, condominiums and co-ops.

“Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” Lawrence Yun, NAR chief economist said.

Regionally, existing-home sales in the Northeast increased 4.4 percent. In the Midwest sales jumped 9.6 percent. The South saw existing-home sales rise 9 percent, and existing-home sales in the West surged 13 percent.