Massachusetts Real Estate Market Update

Posted by: Jeffrey Bastress on July 15th, 2008

Massachusetts is glutted with homes for sale that are either over priced or simply not ‚Äúdesirable‚ÄĚ 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 ‚Äúnormal‚ÄĚ in Massachusetts, as the market build up experienced since 2001 was not ‚Äúnormal‚ÄĚ 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 ‚Äúnormalize‚ÄĚ here in Massachusetts a while longer to be sure.

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

For more regional market updates, click here.

Or click here to read more about Massachusetts real estate.

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Comments

4 Comments on “Massachusetts Real Estate Market Update”

Ken in Elgin

I just commented on Ryan’s post about the Atlanta market and how financing issues are really effecting condo sales. It is amazing how strict the lenders are being with lending for condos. The banks have killed the demand for an entire market segment.

Liz Provo, Massachusetts 4 Sale By Owner

It all comes down to price. Whether listed with an agent, or selling solo, an overpriced home with an unmotivated seller at the helm is not a good mix. As a for-sale-by-owner service in the Western Mass region, we are finding that home prices are holding up well, compared to Eastern Mass. We recommend that our sellers obtain a professional appraisal and use that report carefully in order to establish a fair asking price for the market. Given the level of exposure we provide, sellers have found their buyers quickly, often within a few weeks. Buyers are definitely out there, but are taking their time right now. With the amount of inventory, both MLS and privately offered properties, that is currently available, they want to make sure they are performing “due diligence”.

Jim Johnson

I enjoy following your blog. The Bend Oregon real estate market continues to slow. It looks like a good time to buy in your market.

ericcarlos111

‚ÄĘ Hat‚Äôs off. Well done, as we know that ‚Äúhard work always pays off‚ÄĚ, after a long struggle with sincere effort it‚Äôs done.
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ericcarlos111

Fixed Mortgages

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