Massachusetts Real Estate Market Update

Posted by Jeffrey Bastress on Jul 15, 2008

Massachusetts is glutted with homes for sale that are either over priced or simply not “desirable” to be kind here. These Single Family Homes for Sale in Massachusetts, especially in suburban areas outside of Boston such as Worcester County, Essex County, Middlesex County, Norfolk County and Plymouth County make up 80% of single family homes for sale and increase the overall marketing time to 8-10 months on average.

However, there is no shortage of qualified buyers as evidenced by multi offers on well priced nice homes. These homes will have 2 or 3 offers in just a few days from entering the market.

There are 2 types of home buyers in the Massachusetts market right now. Investors looking for cheap foreclosed distressed rehabs and buyers that want well priced, great location, and meticulously maintained homes. Any home for sale that falls in the middle, which is 80% of all homes in Massachusetts for sale right now, will sit on the market.

It seems that home sellers that can afford to wait and buyers that are in no hurry are both just sitting on the fence and waiting in general. This indicates that when the market does turn finally in Massachusetts, that it will come back quickly and in full force.

Condominiums are another story, as there are many gorgeous and well priced condo’s throughout Massachusetts for sale. New construction included. However, condominiums are scrutinized for mortgage lending criteria that is not subject to single family lending guidelines. Condominiums with less than 5 units, or less than 51% owner occupied, or not on FHA or Fannie approved lists, or lack of proper management to even fill out the proper mortgage condo questionnaires required, precludes these condo’s from being financed conventionally.

This has affected the overall condo market tremendously in Massachusetts, with greater declines in value continuing and much longer marketing times than single family homes.

Overall the market is “normal” in Massachusetts, as the market build up experienced since 2001 was not “normal” with the subprime mortgages, no money or no income required mortgages, the option arms, which are now gone. These are what fueled the 20% annual price increases and is the reason we are experiencing the same decline in values now.

So back to business as we “normalize” here in Massachusetts a while longer to be sure.

Jeffrey Bastress, Broker Owner of Startpoint Realty in Massachusetts, www.Startpoint.com

For more regional updates, click here.

Or click here to read more about Massachusetts real estate.

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