Market Conditions
Foreclosure Update in MA
July 30th, 2008 Categories: Market Conditions, Real Estate
The Boston Business Journal and the Warren Group reported today that the foreclosures in Massachusetts doubled over the first 6 months of the year compared to last year.
Not good news, especially for the 6,707 homeowners who had foreclosure deeds recorded on their homes.
The recording of a foreclosure deed is the final step of a foreclosure process. In the lengthy process that the banks go thru in order to foreclose, looking at the different foreclosure filings is a great indicator as to how the MA market is doing.
The first step in the foreclosure process is called “petition to foreclose”. These numbers are a bit confusing. In June of 2007 there were 2,308 petitions filed, and in 2008 there were only 350. This is a huge drop. Perhaps a more accurate number may be the year-to-date petitions which increased to 13,076 from 12,899 in 2007, which is a 1.4% increase.
The explanation by The Warren Group is that a recent law passed postpones foreclosure petitions. Ah-ha, that explains it!
So back to that first number, with 6,707 foreclosure deeds recorded in the first half of this year. You have to compare it to the market as a whole to put it in perspective. (at least I do)
The Massachusetts housing market has experienced 40-50,000 single family home sales for the past 10 years. The condo market accounts for about another 20,000 sales per year.
Doubling our current pace brings us to a bit over 13,000 foreclosure deeds. That would be 22% of the yearly market. Sounds like a big number! I will keep you posted on how this changes and if this recording of foreclosure deeds turns out to not make it to a final foreclosure in the end.
| Discussion: 3 Comments »
Why low Housing Starts is good news for the market
June 20th, 2008 Categories: Market Conditions, Real Estate
I saw this graph of the Housing Starts for the past 3 years, and I fell that it is only good news for the overall depressed housing market.
The May stats fell by 3%. The May building permits also declined, and this number is widely looked upon as a leading indicator of future activity.
Here’s the explanation of my optimism:
Less supply = More demand = Home Prices Increase.
That was easy, now we just have to see it in action!
The President of the National Association of Home Builders (NAHB) suggested that home builders are “doing the right thing.” A decline in the production of new homes will lower the supply of available homes, which is a key step in stabilizing the housing market. The NAHB also pushed for Congress to pass a housing stimulus package to boost demand.
| Discussion: 1 Comment »
Mortgage Interest Rate Historical Perspective
June 18th, 2008 Categories: Market Conditions, Mortgage Updates
A mortgage broker friend sent over this chart to me a bit ago and I wanted to share it with the readers. Sometimes with all the reporting and the daily grind we lose perspectives on our current situation. In terms of mortgage interest rates, boy, do we have it good?
If you would like to research refinancing or getting a pre-approval, feel free to give me a call. I have worked with several mortgage brokers and lenders who would look at your financial picture for no charge or obligation. Service is an important factor in this area, and shopping for that last bit of the lowest interest rate may not be worth the headache. I can get you started in the right direction.
I also came across this graph of the Number of Home Sales in MA since 1991.
If the MAhome Team can answer any of your real estate related questions, give Ed or Doriane Daniels a call at 508-341-7880.
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Crystal Ball on Holliston Real Estate
May 15th, 2008 Categories: Holliston, Market Conditions
The market in Holliston is showing signs of life. OK, not out of the woods yet, but there are certainly some indications that the slide has ended.
Take a look at this market report graph on Median Price:
Since January, the 90-day trend line has Read the rest of this entry »
| Discussion: 1 Comment »
How Rumors Get Started 101
April 30th, 2008 Categories: Market Conditions, Real Estate
I read an article from the Milford Daily News this Sunday that made me pause. The article headline reads:
Clerk: 805 Vacant Homes in Franklin
Now that got my attention because the town is not THAT large and the housing stock isn’t all low end condos or multi-families, which I am noticing large inventories of vacant and bank owned properties.
So I dug a bit deeper…
My conclusion: what a great example of bad reporting on the market!
Am I sensitive because I am a Realtor? Am I more positive about the real estate market because I rely on the success of home sales to have food with my meals?
No, I determined that I am logical and analytical about this market, if I do say so myself. Show me the stats and I will buy into it.
So why don’t I agree with this article (read full text here)?
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No reliable source
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Sending wrong messages to the public
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No relevance to conclusions drawn
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Let’s take this article apart:
| Discussion: 2 Comments »
My Buyer Clients Want Your Home!
April 23rd, 2008 Categories: Market Conditions, Real Estate
I have searched the MLS for any indication of this phenomena that I am experiencing the past few weeks, and have come up empty. Stats or no stats, I am using my 10 years as a Realtor to tell you the following:
There is not enough inventory!
and
If you are considering a move, now is the time to list your home!
For the sake of the reading public thinking that this is another Realtor taking a positive spin on the bad market, here are my clients:
Read the rest of this entry »
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