Massachusetts Foreclosures Break Another Record

I want to stop writing this type of headline quarter after quarter. This news from a press release just out from foreclosuresmass.com. This comes on the heels of the National Association of Realtors report that pending home sales dropped to a new low…which was immediately followed by a report, from the same organization, that said that home sales were going to improve over the summer.

Foreclosuresmass reported

Q1 2008 Foreclosure Filings in Massachusetts Highest Quarter on Record

9,114 New Properties Enter Foreclosure From January 1 to March 31

3,023 March Foreclosure Filings Highest March Total in History

And this of course means more bank owned properties on the way in our area.

On the good news side of the NAR’s report they suggested

Existing-home sales are projected to rise from an annual pace of 4.95 million in the first quarter to 5.82 million in the fourth quarter, NAR said. Existing-home sales are likely to total 5.39 million, and then rise 6.1 percent to 5.72 million next year.

“Although more than half of local markets are expected to see price growth this year, the aggregate existing-home price will decline 2.4 percent in 2008, driven by a relatively few markets that are very oversupplied,” Yun said. (St. Louis Business Journal)

It would be hard to suggest that prices aren’t going to continue to fall this year with all of the evidence in front of us.

So What to Do?

If you’re someone who owns property that has appreciated significantly and you have equity and you don’t benefit from depreciation anymore and you have plans for your property in the next 5 years - SELL. It won’t be better for you for a while.

Still in the game? BUY RIGHT. There are a million deals on the market but they’re rarely sitting there screaming out DEAL! Right now, in this market, you have to look at a lot of dogs and make a lot of offers to find a seller. Many private sellers are still coming to grips with the fact that the party is over. Banks are basing their let-gos on appraisals that are out of date by the time they hit the desk. Both of these sellers find reality when they see offer after offer at a market price, and the motivated seller can no longer ignore reality.

Don’t try to time the market, create a deal.

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