Massachusetts Home Buyer Guide

The median price of a condominium in Somerville, Massachusetts increased in September to $455,000, a 7.7 percent increase compared to the $422,500 median price in September 2013, according to the Massachusetts Association of Realtors. 

Through the first nine months of the year, Somerville, MA condo prices increased 17.3 percent. The median condo price through September was $488,000. During the same period last year, the median condominium price was $416,000. In September, home buyers paid 102.2 percent of the original list price for condos, and they paid 103.1 percent of the original list price through the first nine months of 2014. Bidding wars and offers for more than list price for condominiums have been the norm recently in Somerville.

The number of single-family homes on the market in September 2014 in Lexington, Massachusetts increased 3.8 percent to 83 from 80 in September 2013, and new listings increased 15 percent, according the Massachusetts Association of Realtors.

The months of supply in September increased to 2.8 months, an 11 percent increase from 2.5 months in September 2013; however, 2.8 months of inventory is still quite low. New listings increased to 46 from 40 in September 2013. 

Massachusetts first-time home buyers have a lot to think about, and obtaining an affordable home mortgage is certainly one of those considerations. Fortunately, first-time home buyers have some options to obtain a straightforward, low down payment mortgage, with competitive rates.

There are a few home loan programs that benefit different types of first-time home buyers; however, the two best arguably are the Massachusetts Housing Partnership ONE Mortgage and the MassHousing Mortgage. Both mortgage options have income limits and other requirements. 

Massachusetts saw the number of "zombie" foreclosures decline 46 percent in the third quarter of 2014 compared to Q3 2013, according to the "Zombie Foreclosure Report" released by RealtyTrac on October 30, 2014.  

RealtyTrac defines zombie foreclosures as residential properties in the process of foreclosure that have been vacated by the owners, but these properties have not gone through the entire foreclosure process yet. In Massachusetts – it is different from state to state – the recording of a foreclosure deed is the final step in the foreclosure process.

The number of zombie foreclosures nationwide totaled 117,298 in the third quarter, a 17 percent decline from the second quarter and 23 percent decline from Q3 2013 (152,033). Zombie properties comprised 18 percent of all active foreclosures in the United States during the third quarter. Not all of these properties will reach final foreclosure. Some will sell as short sales.

Although home prices fluctuate from town to town in Massachusetts, statewide home buyers finally got a break from rising home prices. The median price of a single-family home in Massachusetts decreased 1.5 percent in September 2014, marking the first year-over-year price decline since September 2012, The Warren Group, publisher of Banker & Tradesman, reported October 28, 2014. 

Massachusetts single-family home sales declined 6.6 percent in August compared to August 2013, The Warren Group, publisher of Banker & Tradesman, reported September 23, 2014. August was the sixth month in 2014 that single-family home sales decreased on a year-over-year basis. 

A total of 5,417 single-family homes sold in Massachusetts in August, down from 5,797 sales in August 2013. August was the third month in 2014 with more than 5,000 in sales. Through August, sales were down 3.1 percent at 32,382, compared with 33,399 during the same eight-month period last year.

Are you preparing for an upcoming move to a new home? Do you have concerns about how the transition will go for your child with autism? How will you prepare your autistic child for such a transition?

Home buying can be a stressful process for some families, even under the best circumstances. It is natural for people to struggle with change. For many children with autism, these issues are tenfold. Children don't have a lot of experience dealing with change, and children with autism often have great difficulty dealing with unanticipated changes or transitions, even small daily occurrences.

Several first-time home buyer programs require borrowers obtain a home-buying certificate in order to qualify for the loan program. MassHousing mortgages, as well as the Massachusetts Housing Partnership ONE Mortgage, require home buyers to participate in a qualified Massachusetts first-time home buyer class. 

BLUE, Inc., a not-for-profit organization, is offering a two-day class, Home Buying 101, at the Eastern Middlesex Association of Realtors in Reading, Massachusetts on September 20th and 21st. Participants who attend both days will receive a home buyer certificate required for MassHousing Mortgage loans.

Have you been on the fence about starting the home-buying process? You may want to take advantage of what may be a limited window of opportunity. 

ZIllow reported on its blog September 2, 2014, that 30-year, fixed-rate mortgage interest rates declined "12 basis points this week," with the current rate borrowers were quoted on Zillow Mortgages at 3.96 percent. The interest rate is down from 4.08 percent at the same time the previous week. These rates are averages across the United States, and may include points or other fees that increase the overall cost of borrowing, but overall rates are down.

Massachusetts foreclosure petitions jumped 72.5 percent in July compared to July 2013, The Warren Group, publisher of Banker & Tradesman, reported September 2, 2014. 

At an open house recently in Boston for a Back Bay condo, a potential home buyer could be easily overheard providing the agent representing the seller with all kinds of personal information, none of which would have helped her get a good deal, but all of which may have helped a seller during negotiations. 

The U.S. foreclosure inventory declined 34.4 percent in July compared to July 2013, according to a report by Black Knight Financial Services, a data services company for the mortgage and loan services industry, Banker & Tradesman reported August 26, 2014.   

July marked the lowest level of foreclosure inventory since March 2008. 

There were 90,700 foreclosure starts in July, up 2.7 percent compared with June, but down 19.6 percent compared to July 2013.