Massachusetts Home Buyer Guide

After several years of declining prices, Massachusetts home buyers must navigate a real estate market with low inventory and increasing values in 2013. 

The median price for a single-family home in Massachusetts rose more than 12 percent last month to $275,000 from $245,500 in February 2012, The Warren Group, publisher of Banker & Tradesman, reported March 26, 2013. The year-to-date median home price is also up about 12 percent, rising to $279,000 from $250,750 last year.

The Town of Arlington, Massachusetts was founded more than 375 years ago in 1635. The settlement was originally known as Menotomy, an Algonquin word. In 1807 the town was set off from Cambridge, Massachusetts and incorporated as West Cambridge. After the Civil War in 1867 the name was changed to Arlington in honor of the heroes buried at Arlington National Cemetery.

Although pending home sales in Massachusetts were positive for the 22nd straight month compared to the previous year, the strong pending single-family home sales numbers seen in previous months were absent in February 2013, the Massachusetts Association of Realtors reported March 12, 2013. 

Real estate professionals blame two stormy weekends in February and a lack of inventory for the slow growth in pending home sales, which are a leading indicator of actual home sales in Massachusetts for the following 30 to 60 days. Massachusetts home buyers, especially first-time home buyers, are well aware of the current lack of inventory. 

First-time home buyers in Massachusetts and around the country will want to speed up their home search, if they plan to finance the purchase of a home with a Federal Housing Administration (FHA) loan. 

FHA announced recently that fee increases and underwriting rules for FHA loans will increase the cost of homeownership for first-time and other borrowers. FHA loans are especially popular with first-time home buyers because the minimum down payment required is 3.5 percent, as opposed to 5 percent to 20 percent or more for conventional loans. In addition, FHA will lend to home buyers with credit scores a little lower than scores acceptable to lenders of conventional loans. 

Home buyers searching for single-family homes in Wakefield, Massachusetts in 2012 witnessed an improving real estate market, with both sales and median price rising. 

The median price of a single-family house in Wakefield, MA increased 3.4 percent in 2012 compared to 2011. The median price stood at $391,000 in 2012, up from $377,988 the previous year. The most expensive single-family home sold for $1,300,000 in 2012. 

It appears that Massachusetts foreclosure activity may not even be newsworthy for much longer. 

In January, there were 292 foreclosure deeds filed in Massachusetts, a 63 percent decrease from 799 deeds recorded in January 2012, The Warren Group reported March 5, 2013. Foreclosure deeds represent completed foreclosures.

The number of Massachusetts foreclosure petitions declined almost 30 percent in January 2013, declining to 940 from 1,333 in January 2012. Foreclosure petitions, which mark the first step in the foreclosure process in the Bay State, have fallen for three consecutive months. Petitions rose nine out of twelve months in 2012. Not all foreclosure petitions result in a completed foreclosure. 

Massachusetts home buyers calculating the total cost of homeownership may need to remove the potential for tax breaks to repair or replace a septic system and/or for removal of lead paint. 

As part of a package of tax increases and the elimination of a variety of tax breaks, Massachusetts Governor, Deval Patrick, hopes to raise $1.9 billion annually in revenue. Two of his proposals are to eliminate the lead paint tax credit and the septic system repair / replacement credit. 

Massachusetts home buyers and home buyers around the United States still have the opportunity to take advantage of historically low mortgage interest rates. In fact, interest rates are a bit lower than they were a few weeks ago.  

The average rate for a 30-year, fixed rate mortgage loan in the U.S. declined .07 points last week to 3.70 percent, the lowest level in more than a month, the Mortgage Bankers Association (MBA) reported March 6, 2013. 

March has arrived, and we'll move the clocks forward an hour next week. It sounds like warmer temperatures and longer days are around the corner, but Massachusetts home buyers are wondering whether the spring real estate market will ever arrive.

The number of Massachusetts homes for sale has continued to decline over the past year. As of January 31, 2013, the inventory of single-family homes in the Bay State decreased 27.3 percent compared to January 2012, the Massachusetts Association of Realtors reported February 26, 2013.

Home to a diverse population, including many students attending several local universities, such as Harvard and Massachusetts Institute of Technology (MIT), and professionals in a myriad of fields and of various ages, Cambridge, Massachusetts is a much sought-after place to live in the Bay State.

Through the many unique communities, both residential and urban, its rich historical influences, and booming professional and cultural sectors, Cambridge, MA real estate, including single-family homes and condominiums, attracts individuals from many walks of life.

Cambridge has a vibrant history, giving residents a cultural experience that is unique from many other places in the country. Founded in 1630, Cambridge was originally named Newe Towne and settled by Puritan colonists under John Winthrop's leadership. Due to many prominent settlers and leaders in the area being graduates from England’s Cambridge University, the name of the city was changed to Cambridge in 1638.

Despite the lack of inventory, Massachusetts home buyers continue their quest for homes. 

Both single-family home sales and median price increased in January compared to January 2012, the Massachusetts Association of Realtors reported February 26, 2013.

Massachusetts real estate prices have increased four straight months, and single-family home sales have shown positive results in 19 straight months.

Brookline, Massachusetts home buyers took part in a real estate market that saw sales increase for both single-family homes and condominiums in 2012.

Single-family home sales increased 7.5 percent in 2012 on 172 sold properties, up from 160 sales in 2011. The median price of a single-family home in Brookline was $1,247,250 in 2012. The median price increased 3.5 percent from $1,205,000 in 2011. The most expensive home sold in 2012 set someone back a cool $10,500,000, more than double the most expensive home sold in 2011 ($4,900,000).