Massachusetts Home Buyer Guide

July 2013 marked the ninth straight month of year-over-year declines in foreclosure starts in Massachusetts, The Warren Group, publisher of Banker & Tradesman, reported September 10, 2013.

A total of 407 foreclosures were initiated in Massachusetts in July, a 66 percent decline compared 1,198 foreclosure petitions in July 2012. Foreclosure petitions are the first step in the foreclosure process in Massachusetts. Through July 2013, there have been 3,350 petitions recorded, down more than 68 percent from 10,623 during the same seven-month period a year ago.

The median price of a single-family home in Haverhill, Massachusetts jumped nearly 32 percent in July compared July 2012, according to data tracked by The Warren Group, publisher of Banker & Tradesman. 

The median price for a single-family home in Haverhill, MA in July stood at $259,000, an increase from $196,500. During the first seven months of 2013, the median price increased 17.59 percent compared to the same period in 2012. Through July, the median price stood at $254,000 compared to $216,000 for a single-family home during the same seven-month period in 2012. 

Home sales in Haverhill increased 12 percent in July to 37 sales, up from 33 home sales in July 2012. Similar to other cities and towns around Massachusetts, tight inventory has put a cap on home sales in Haverhill. Through July, homes sales declined 1.54 percent compared to the first seven months of 2012. There were 195 single-family home sales January through July in 2012 and 192 sales during the same period this year. 

The number of single-family homes sold in Sharon, Massachusetts increased 25 percent from 28 sales in July 2012 to 35 home sales in July 2013. 

The Warren Group, publisher of Banker & Tradesman, provided the data. 

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. 

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. 

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. 

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 Massachusetts foreclosure petitions – the first step in the Bay State foreclosure process – declined 86 percent in May compared to May 2012, leaving little doubt that the Massachusetts foreclosure crisis is history. 

The Warren Group, publisher of Banker & Tradesman, reported June 20, 2013 that there were only 248 foreclosure starts, the first time the number of foreclosure petitions fell below 250 since The Warren Group started collecting foreclosure data in 2006.  

While the media and the real estate industry earlier this week trumpeted the fact that single-family home sales reached the highest level since 2006 in May 2013 the more important number for Massachusetts home buyers is the jump in the median price of homes compared to May 2012.

After reports last year about how affordable homes were historically speaking, the Massachusetts real estate market heated up. Now that home prices have increased and mortgage interest rates have begun to rise recently home buyers, especially first-time home buyers, are feeling squeezed in a market still lacking sufficient inventory.  

The number of advertised auction notices in Massachusetts plunged 75 percent in April, as well as other types of foreclosure activity, The Warren Group, publisher of Banker & Tradesman, reported June 5, 2013.

There were 348 auction announcements in April, down more than 75 percent from 1,403 in April 2012. Auction notices through the first four months of the year are down 74 percent to 1,450 from 5,577 during the same period in 2012. It appears that the chance to buy a foreclosure is about over for most Massachusetts home buyers. Investors will pounce on anything halfway decent, and properties that need substantial work are not usually a good fit for first-time home buyers. 

For many Massachusetts home buyers interested in purchasing a foreclosed property time may have run out. 

The number of foreclosure petitions – the first step in the foreclosure process in Massachusetts – plunged by 82 percent in March, declining to 284 foreclosure petitions compared to 1,621 petitions in March 2012, The Warren Group, publisher of Banker & Tradesman, reported May 13, 2013.