Massachusetts Home Buyer Guide

Sales of existing homes in the United States increased 0.4 percent in January while the supply of homes on the market declined to its lowest level in 13 years, Reuters reported February 21, 2012. 

The National Association of Realtors provided the data. 

January was the second highest rate of sales since November 2009 when the federal home buyer tax credit was set to expire.

Massachusetts isn't the only state where the real estate market has perked up.

Overall, it doesn't appear the New Hampshire real estate market has turned the corner as fast as the Bay State, but New Hampshire home buyers drove residential home sales up 21.2 percent in January compared to January 2012, the New Hampshire Business Review reported February 21, 2013. 

The New Hampshire Association of Realtors provided the data, which also showed that median home prices decreased 2.7 percent despite the jump in sales. 

There were 800 residential NH home sales in January, up from 660 sold in January 2012; however, the 800 unit sales were 23 percent lower than the 1,037 units sold in December 2012.

For those Massachusetts home buyers that have benefited or will benefit from purchasing a home at prices at or near the bottom of the real estate market, they may have to share their good fortune with the Commonwealth of Massachusetts, if a proposal by Governor Deval Patrick is enacted by the legislature.    

As part of a package of tax increases and the elimination of a variety of tax breaks, Governor Patrick hopes to raise $1.9 billion annually in revenue. One proposal is to eliminate the capital gains tax exemption on home sales.

Presently, Massachusetts follows federal tax law in exempting up to $500,000 in capital gains on the sale of homeowners primary residence. Governor Patrick's proposal to the eliminate capital gains exemption is in conjunction with raising the income tax from 5.25 percent to 6.25 percent, effectively raising the capital gains rate to 6.25 percent.  

For example, if a homeowner sells a home after livng in it for a number of years for a gain of $200,000, that homeowner will have $12,500 in tax liability. 

So how much house could you afford, if you ditched your $1,825 per month rent payment for a mortgage? Property taxes vary from town to town, and so do condo fees, but home buyers could probably afford about a $300,000 single-family home or condominium for $1,825 per month, give or take about $15,000.

Using today's interest rates – about 3.5 percent – you can calculate the cost of principal and interest on our simple mortgage calculator.

The Boston Businnes Journal reported February 8, 2013 that one sector of the economy is great. That's Boston's rental housing market, and landloards in the Greater Boston Area are making a killing. 

In an effort to help affordable housing owners reduce costs and make their properties more energy efficient, the Massachusetts Housing Partnership (MHP) announced January 18, 2013 a new loan program to help its borrowers make energy improvements in their homes.

In real estate, there are dozens of industry terms that can be confusing or overwhelming.  Condex, LTV, ARM, Assessed vs. Appraise valued, FSBO, REO, Short Sale, BOM, etc.  It’s endless.

There are even many different ways to refer to real estate agents: agent, broker, realtor.  Are these terms all the same thing; can they be used interchangeably?  Here is some clarification on what each title means and what exactly is a Massachusetts Realtor.

New Hampshire saw a dramatic increase in home sales in 2012 while median prices were flat last year, the New Hampshire Union Leader reported January 24, 2013.  

For Boston condo buyers and buyer agents serving the Downtown Boston condo market, including the luxury condo market, it probably isn't news that condo sales soared in 2012.

The inventory of Massachusetts single-family homes as of December 31, 2012 decreased 28.1 percent from December 2011 (25,073 listings in 2011 to 18,021 listings in 2012), according to the Massachusetts Association of Realtors. 

A total of 1,617 single-family home sales were bank-owned properties, representing 3.4 percent of all single-family sales in 2012. The number of foreclosed homes sold decreased from 2011, when bank-owned properties accounted for 3.8 percent of all single-family home sales in Massachusetts, according to The Warren Group, publisher of Banker & Tradesman.