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Pre Foreclosures for Sale and New Homes Doing Poorly in Massachusetts

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By : John Cutts    99 or more times read
August housing data in Massachusetts showed residential property sales, including pre foreclosures for sale, declining to their worst level in over two decades. According to housing market analysts, the poor performance of the market is partly due to the area still adjusting to the tax credit deadline.

Sales of most types of residential structures, including foreclosed homes in Boston, MA, declined in almost all areas of the state. Single family dwellings recorded sales decline of almost 19% compared with previous year's numbers, according to housing research firm Warren Group.

Warren also reported that condominium unit sales declined by 23%, making August 2010 the poorest-performing period for the market since the firm started gathering data in 1987. According to most state housing analysts, the decline in the sale of new houses and foreclosed homes in Massachusetts has been widely expected since majority of buyers already made purchases during the months when the tax credit program was launched by the federal government.

They also added that, because of the distortion caused by the federal program on the houses for sale market, it has become harder to predict where the residential industry is going. However, the rise in housing prices is leaning towards a stabilizing market. Warren and the Massachusetts Association of Realtors both reported higher prices for residential properties for the month.

Pre foreclosures for sale, new homes and other types of residential structures recorded an average price increase of four to five percent during the month compared with the same period of 2009. Latest statistics show that the average price for a single family structure is a little over $300,000.

Meanwhile, Standard and Poor's Case-Shiller Index has reported that July home prices in Boston have risen by 3% when compared with July 2009. This led analysts to predict further improvement in the market, as long as the national economy continues its upward trend. They stated that while the economy is climbing, interest rates will remain low and the residential market will continue to rebound.

Although sales of residential properties in Massachusetts, including pre foreclosures for sale, performed poorly in August, nationwide sales improved, particularly when compared with July numbers. However, analysts predict that 2010 sales numbers will remain lower than 2009 figures.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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