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According to the National Association of Realtors®, existing home sales in the Northeast for July 2008 declined close to 12 percent as compared to July 2007, with foreclosure sales dragging down prices in the entire region. The median home price in the Northeast was $278,700, down nearly 5 percent from July 2007.
A recent law passed this year in the Massachusetts area that allows the postponement of foreclosure petitions in order to stop the record number of foreclosures filed in the state this year. However, as a result of the sub-prime mortgage mess and declining real estate prices, there are still a large number of foreclosure and short-sale properties on the market in the Massachusetts area.
According to the Massachusetts Association of Realtors®, There were 3,928 single-family homes sold in July 2008, a 10 percent decrease from the 4,363 homes sold July 2007. The median selling price for Massachusetts single-family homes in July was $326,500, a decrease of 10.7 percent as compared with $365,775 in July 2007. The local condominium market experienced a 6.7 percent decrease in the number of units sold in July 2008 as compared to July 2007 with 1,933 units sold in July 2007 and 1,804 units sold in July 2008. Additionally, condominium median selling prices in July 2008 were down 2.9 percent from $293,500 in 2007 to $284,900 in 2008. The numbers show some positive changes overall for the year because the declining number of sales has narrowed a bit as of July 2008, compared to the rest of the year.
For the month of July 2008, home sales fell 12 percent. The Boston, MA condo market is starting to see a slight improvement, though condo sales in Boston remained flat from 2007 to 2008. There were 464 condos sold in July 2007, while July of 2008 saw 408 total sales. The median price of sold condos in July 2007 was $375,500 and rose slightly in July of 2008 to $379,250. This represents an increase of approximately 1 percent. These numbers are an indication that the Boston market has remained stronger, relatively-speaking, through the sub-prime mortgage crisis than other nearby cities because it has a very healthy luxury market keeping prices stable.
According to a real estate data provider, the Warren Group, purchases of foreclosed homes jumped to 193 in the Boston, MA area during the first six months of 2008, as compared to 37 foreclosure sales in July 2007. Statewide, there were 2,181 sales in the first half of the year—nearly five times the number of foreclosure sales than the year prior.
So there are good investment opportunities available in this area. The Northeast was hit hard this year by the number of foreclosures resulting from the sub-prime mortgages readjusting and homeowners not being able to afford their mortgage payments. As a result, there are many investment opportunities in short sales and in foreclosures in the Northeast and Boston. Boston home prices are also down compared to recent years. Now is one of the best times for investors to buy in the Boston, Massachusetts real estate market and surrounding areas.
Sources:
http://activerain.com/blogsview/623793/Boston-Condo-Sales-July
http://www.bankforeclosuressale.com/wp/article0731245.html
http://www.boston.com/realestate/news/blogs/renow/2008/08/foreclosure_pre.html
http://www.boston.com/realestate/news/articles/2008/08/19/the_upside_of_home_foreclosure/
http://www.boston.com/business/personalfinance/articles/2008/08/26/existing_home_sales_fall_in_july/
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