Archive for the 'Massachusetts Articles' Category

The growing inventory of Boston repossessed houses for sale and the high rates of foreclosures among various areas of the state are still considered primary concerns in Massachusetts. The housing market problem is further exacerbated by the continuous increase in the unemployment rates of various local areas.

As more and more people in the state find it hard to find jobs, the total of repo properties in Massachusetts also continues to increase. Foreclosure rates are said to be rising again in certain parts of the area, with the North Shore region being just one of these places. However, local analysts have stated that North Shore is not the hardest hit among counties and cities in Massachusetts and that there are other areas that are suffering higher than usual foreclosure numbers.

Analysts have also added that in some areas of Massachusetts, the high number of repo houses for sale is often not obvious, with the usual signs, like derelict and abandoned homes, not seen in some areas. However, this does not mean that foreclosure is not hitting certain communities like others where signs of foreclosures are quite obvious.

The growing quantity of Boston repossessed houses for sale is probably one of the highest in the whole state. However, other counties recorded higher foreclosure rate increases than Boston during the period of January-June 2010, with Peabody recording an almost 50% rise in the number of foreclosure deeds for the month of June.

Meanwhile, the number of bank owned foreclosures and other types of distressed properties also rose in Danvers and Beverly counties. Salem, on the other hand, recorded a decline in the total number of foreclosure deeds, taking its total from 40 down to 35 as of June 2010. The figures were compared with the same six-month period of 2009.

Local housing market statistics also showed that smaller towns are experiencing rising foreclosure rates, with Marblehead recording a jump in total foreclosure to 13 from a low of five. In Hamilton, foreclosure rose to nine from a low of one. Despite these increases, most analysts believe that the problem of Boston repossessed houses for sale and foreclosure properties in various areas of the state will soon level off and the state will be on its way towards a recovery.

Search repossessed houses for sale in Massachusetts cities:

• Brockton repossessed houses for sale
• Worcester repossessed houses for sale
• Orange repossessed houses for sale

Although the number of Boston repossessed houses for sale and foreclosure rates in almost all areas of Massachusetts remain huge concerns, some analysts believe that the state's property market might have a better chance for a quick recovery than other areas due to improving job market conditions.

Just like in other states, majority of foreclosures and repo homes in Massachusetts are due to job loss. That is why the recent surge in employment in the state is being seen by real property market analysts as a potential sign that the area is on its way towards a recovery. Some have even stated that Massachusetts will have a quicker recovery than most regions in the U.S.

The huge number of repossessed houses for sale might be offset by the broad-based increase in the number of Massachusetts jobs, according to some economists. Job market statistics for July saw the state adding more than 6,000 jobs in restaurants and hotels, 1,600 in retail industry and 2,800 in manufacturing.

According to real estate market observers, Massachusetts was one of the first regions to experience a housing market downturn, with huge numbers of Boston repossessed houses for sale contributing to the decline of the whole state's real estate market. Some analysts believe that, because of this, the state might also be one of the first areas to recover from the property industry crisis.

They stated that Massachusetts might be reaching the bottom ahead of other states and its market for distressed homes for sale might be starting to level off. This could mean that the state will exit the housing industry downturn ahead of other regions, particularly with job growth happening in the area.

Despite the increase in the total number of jobs for July, the state posted the same unemployment rate as June 2010 which is 9%. Analysts have stated though, that the total number of jobs added is the more important factor and can be considered a significant step towards a recovery.

The number of Boston repossessed houses for sale is expected to remain a problem for the whole state of Massachusetts, but the growth in the number of jobs during July is also being seen as a factor that could somehow ease the burden caused by these repossessions.

The jobless rate in Massachusetts slightly increased in April to 8 percent from its March level of 7.7 percent despite a slowdown in the pace of foreclosed houses for sale in the state, based on data released by the state Labor and Workforce Development Office and by Warren Group.

Warren Group is a Boston-based firm that compiles real estate data and that publishes the banking and real estate weekly newspaper Banker & Tradesman.

Meanwhile, the nationwide jobless rate reached 8.9 percent last month, an increase from the 8.5 percent level in March, as the labor market effects of foreclosed houses for sale continued. In April last year, the jobless rate in Massachusetts was 4.8 percent while the nationwide jobless rate was 5 percent.

The state lost a total of 12,100 jobs in April, but this figure is significantly less than the nearly 20,000 jobs lost in March. Massachusetts continues to be affected by the nationwide recession, but the information industry added more jobs in April and job levels in the government sector were unchanged.

Job gains in federal offices offset job losses in local and state government offices. All other sectors reported job losses during the month of April.

The statewide total of 3,183,000 jobs is 3.5 percent below the level in April 2008, with a total of 93,900 job losses occurring in the last six months as a lot of homes continue to become foreclosed houses for sale.

According to Warren Group, the statewide total of foreclosure deeds in April dropped by 43.8 percent to 755 from the April 2008 deeds of 1,344 and fell by 20.8 percent compared to the 953 deeds in March.

The number of petitions to foreclose, which is the first stage of foreclosure in the state, fell by nearly 40 percent from the April 2008 level of 3,328 to 2,013 in April this year. The number of petitions also declined by 15.5 percent compared to the 2,381 level in March.

Timothy Warren Jr., chief executive of Warren Group, said that April’s foreclosure deeds represented the lowest monthly deeds in the last 12 months. Mortgage lenders have also been observed to be filing fewer deeds to turn homes into foreclosed houses for sale.

However, Warren is cautious about being excessively optimistic. He contended that the unemployment problem will continue to cause more homes to become foreclosed houses for sale, as shown in the rise in mortgage loan defaults.