The residential real estate market of Massachusetts is trailing the state's other economic sectors as shown by the decline in the sales of new residential properties, foreclosed homes and condominium foreclosures in September 2010. However, the overall economy of the state and the rest of the New England region economies are deemed to be expanding.
Although the number of Brockton foreclosed homes, MA and distressed property totals in the rest of the state remains high, Massachusetts is able to keep up with its neighboring states in terms of economic recovery, according to the Federal Reserve Bank of Boston. The residential market might be performing below par, but the commercial real estate sector of the whole region has reportedly improved in the past few weeks.
Compared with the same period of 2009, sales of residential Massachusetts foreclosures and newly built dwellings and condo units recorded some declines. The decline has been attributed by market analysts to the expiration of the federal tax credit program and the relatively high levels of unemployment, not only in the state, but in the rest of the New England region.
The poor performance of the residential property market, however, is being offset by improvements in the commercial sector. Multi-family properties, including condominium foreclosures, remain highly in demand among investors and property buyers. This is followed closely by the retail property sector. Analysts report that office rental vacancies remain high in most areas of Massachusetts, but moderate growth is still expected for the rest of the year.
Despite the fact that the high supplies of foreclosed houses for sale are holding the region back from a sustained economic recovery, Boston's Federal Reserve Bank believe that, in general, the economies of New England states are on their way to a marked recovery. According to the latest economic reports, industries like information technology, manufacturing and commercial real estate have shown improvements when compared with three months ago.
In addition, a number of regional companies have reported escalating their hiring programs, albeit slowly. The coming holiday season is also expected to increase retail sales. Although home and condominium foreclosures sales remain at low levels, economists are optimistic that the general economic condition of the region will be better in 2011 than it had been this year.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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