Massachusetts Home Buyer Guide

The foreclosure crisis that has plagued the U.S. housing market for more than six years seems to be wrapping up, with the number of completed foreclosures and potential foreclosures declining. 

There were 49,000 completed foreclosures in July 2013, down from a 65,000 the previous July, CoreLogic, Inc., a provider of residential real estate data, reported August 29, 2013. The 49,000 completed U.S. foreclosures represented a 25 percent decline from the previous year and an 8.6 percent decline from June. There were 53,000 foreclosures in June 2013, down from an originally reported 55,000.

The median price of a condo in Acton, Massachusetts increased nearly 19 percent in July to $264,000 from $222,000 in July 2012, according to data provided by The Warren Group. 

Through the first seven months of 2013, the median price of a condominium in Acton increased nearly 65 percent from $222,000 last January through July to $366,300 this year. 

Twenty months and counting.

New Hampshire marked its 20th consecutive month of year-over-year home sale increases in July, The Conway Daily Sun reported August 30, 2013.

New Hampshire homes sales increased 23 percent in July compared to July 2013, and the price of homes in the Granite State increased 11 percent in July compared to the previous year.  The New Hampshire Association of Realtors provided the data. 

With average U.S. 30-year mortgage interest rates more than 1 percent higher than average rates in May, sales of new construction homes across the nation declined 13.4 percent in July 2013 compared to June 2013, Yahoo! Finance reported August 23, 2013.

Sales of newly built homes stood at a seasonally adjusted rate of 394,000 in July, according to U.S. Commerce Department data. July's sales numbers for new homes were the lowest in nine months, as sales fell from a rate of 455,000 in June. The June numbers were revised down from a previously reported 497,000 sales. 

Depending on your perspective, Massachusetts home buyers continued to purchase homes in July despite, or because of, rising mortgage interest rates. Mortgage interest rates began to rise in May and currently are about 1 percent higher than three months ago. 

Our neighbors to the north also are experiencing a real estate recovery. 

The New Hampshire Association of Realtors said that 1,587 single-family homes sold in June, the most sales since the September 2005 housing peak, the New Hampshire Union Leader reported July 31, 2013. 

If the do-nothing landlord and the noisy neighbors weren't incentive enough, three straight years of rising rents in Boston have many renters weighing their first-time home buyer options.

For three straight years, rents in five of Boston’s student populated neighborhoods are rising while the vacancy rate has fallen below 2 percent, the Boston Business Journal reported July 19, 2013. Rental Beast, a Somerville-based real estate market tracker, compiled the data.

Higher mortgage interest rates over the past couple of months may have discouraged some home buyers from seeking a mortgage loan, but that doesn't mean lenders are just going to stand by make less money. 

Only 254 foreclosure petitions in Massachusetts were recorded in June 2013, an 84 percent decrease from the 1,548 foreclosure petitions recorded in June 2012, The Warren Group, publisher of Banker & Tradesman, reported July 30, 2013. 

Foreclosure petitions are the first step in the foreclosure process in Massachusetts. From January through June this year, 2,943 petitions to foreclose have been filed statewide, a decline of almost 69 percent from 9,425 during the same period in 2012. The June petition numbers were the lowest since The Warren Group began tracking foreclosure data in 2006. 

An increase in home prices, lenders' willingness to modify home loans and a slightly improved economy have certainly rescued some homeowners from losing their home to foreclosure, and the decline of "shadow inventory" has played a role too. 

Many Massachusetts home buyers already desire homes close to public transportation, but the Bay State's gas tax hike that went into effect July 31, 2013 may increase the popularity of such homes.  

According to a study released March 20, 2013 by the American Public Transportation Association (APTA) and the National Association of Realtors (NAR), Boston real estate values during the last recession performed 129 percent better on average if they were located near public transportation with high-frequency service.

The number of single-family homes sold in Lexington, Massachusetts in June 2013 declined 29 percent to 51 sales from 72 homes sold in June 2012, the Lexington Patch reported July 25, 2013, but home prices increased.  

Through the first six months of 2013 198 single-family homes sold in Lexington, down from 204 homes sold in the first half of 2012. The Warren Group, publisher of Banker & Tradesman, tracked the data.

The median price of a single-family home in Massachusetts increased 12 percent during the first six months of the year compared to the same period in 2012, The Warren Group, publisher of Banker & Tradesman, reported July 23, 2013.

The median price of a single-family home during the first half of the year stood at $315,000, up from $281,000 during the first half of 2012. Home prices increased almost 9 percent in June to $350,000, up from $321,800 in June 2012. June marked the ninth consecutive month of year-over-year home price increases, and the highest median price since August 2007. Quarterly home prices increased more than 10 percent to $330,000, up from $299,700 during the second quarter 2012.