Massachusetts Home Buyer Guide

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.

The number of homes listed for sale across the U.S. increased by 4.3 percent in June to 1.9 million homes, the highest level in the last year, Realtor.com reported July 15, 2013. 

Nationally, the number of homes listed for sale stood 7.3 percent below year ago levels; however, the year-over-year decline stood at 18.6 percent in February 2013. June was the sixth straight month real estate inventories rose. 

Boston homeowners didn't get the memo.

This current Massachusetts real estate market has seen a significant increase in demand in home buyers looking to purchase over the past year. At the same time the number of homeowners willing to sell has plummeted, causing a dramatic decrease in inventory.

Many factors play a role in the condition of any real estate market, including, but not limited to, the economy, interest rates and employment; however, the most important factor is supply vs. demand. 

New Hampshire first-time home buyers looking for an extra tax break will want to investigate the New Hampshire Housing Finance Authority home buyer tax credit program.

Launched in March 2013, NH Housing designed the program to save first-time home buyers in the Granite State up to $2,000 a year on their federal income taxes, making homeownership more affordable for low- to moderate-income home buyers that qualify.

The median price of a single-family home in Duxbury, Massachusetts increased 11.2 percent in the first half of 2013 compared to the first six months of 2012. 

MLS Property Information Network, Inc., the local multiple listing service, provided the data.

The following are brief summaries of the latest real estate news in Massachusetts and around the United States to keep home buyers informed. 

A couple of weeks ago two Buyers Brokers Only, LLC home buyers closed on Massachusetts homes on consecutive days with fixed, 30-year mortgage interest rates of less than 3.5 percent. One couple were first-time home buyers and the other couple were moving to a newer, more modern, home.

Mortgage interest rates may not be that low again in their lifetime; however, not everyone thinks it is a bad thing for the real estate market, especially hot markets, such as in Greater Boston, where home prices have been rapidly rising over the past year and real estate inventory is tight.