Massachusetts Home Buyer Guide

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. 

NECN's This Week in Business segment on April 7, 2013 took a look at the Spring real estate market in the Greater Boston Area. This 10:42-minute video is a discussion of the real estate market with Tim Warren of The Warren Group, publisher of Banker & Tradesman, and Kimberly Allard-Moccia, President of the Massachusetts Association of Realtors.  

The lack of real estate inventory had Massachusetts home buyers paying more for homes in March 2013 compared to March 2012.

The median price for single-family homes sold in March rose more than 8 percent to $285,000 from $263,000 a year earlier, The Warren Group, publisher of Banker & Tradesman, reported April 24, 2013. March marked the sixth consecutive month that monthly home prices have increased year-over-year. The first quarter median selling price was $282,500, a 10.6 percent increase from $255,500 in the first quarter of 2012.

The number of completed foreclosures in Massachusetts through February 2013 are down about two thirds compared to 2012, The Warren Group, publisher of Banker & Tradesman, reported April 2, 2013. 

In February, 240 foreclosure deeds – the final step of the foreclosure process – were filed in Massachusetts, down almost 69 percent from 767 foreclosure deeds filed in February 2012. The recording of a foreclosure deed represents a completed foreclosure. Through February, foreclosure deeds have plunged 66 percent. A total of 532 foreclosure deeds were filed in January and February compared to 1,566 during the same two months in 2012.

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.