Massachusetts Home Buyer Guide

The number of new single-family homes and condominiums listed on the market in Massachusetts increased in October, a real estate market move many potential home buyers are hoping will become a long-term trend.

Amesbury, Massachusetts is an idyllic little city situated in state’s northernmost region, along the New Hampshire border. Although it was originally settled as a farming town in 1645 and grew to be a busy industrial center during the 1800s and early 1900s – shipbuilding, shipping and fishing were important industries – today it is a small, mainly residential city that embodies all the intimate charm of a small New England town.

The number of single-family homes on the market in Newburyport, Massachusetts declined to 63 in September 2014 from 81 in September 2013, a 22.2 percent drop, according to the Massachusetts Association of Realtors. 

The median price of a single-family home in Haverhill, Massachusetts stood at $276,000 through the first nine months of 2014, an increase of 6.6 percent from $259,000 during the same period in 2013, according to data from the Massachusetts Association of Realtors. 

Through the first three quarters of 2014, the median price of a single-family home in Cambridge, Massachusetts increased 34.4 percent to $1,250,359 compared to $930,500 during the same nine-month period in 2013, according to data from the Massachusetts Association of Realtors.  

Whether they were looking for condominiums or single-family houses, home buyers shopping for a home in Arlington, Massachusetts have seen real estate prices increase throughout the year. Both single-family home and condominium prices have risen by double digits. 

Cash sales made up 24 percent of all residential real estate sales in Massachusetts, according to a report by real estate information provider CoreLogic, Banker & Tradesman reported November 13, 2014.  

Mortgage applications for home purchases rose 1.1 percent for the week ending November 7, 2014, according to a report by the Mortgage Bankers Association (MBA), Reuters reported November 12, 2014. 

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.