Massachusetts Real Estate Value

With the media running rampant with stories about foreclosures and high-sky inventory, it is no surprise that potential real estate buyers are fearful of the current market conditions. However, as pointed out by Brad Reagan in Smart Money, that fear is not entirely warranted. In the Massachusetts real estate market, that depends entirely on where you are buying.

According to Reagan, looking at the average home price fluctuation from 2005 to 2nd quarter 2007, it is easy to identify what areas are likely to already have hit bottom and are only moving up. This is good news for Boston-Quincy homebuyers. After seeing a deflation of home prices since 2005, the market is in a slight upturn and average prices are undervalued by about 2%. In the Cambridge real estate market, the story is even better, currently undervalued by 5%. This means a purchase now is likely to be a good investment.

On top of this projection, CNN Money named Milton, MA, near Boston and Quincy, number 7 in the Best Places to Live for 2007. This area, despite the overall US market, has value.

Another factor to consider is the high inventory which means lots to choose from. According to boston.com, the online edition of The Boston Globe, “28.41 percent of subprime borrowers in Massachusetts are delinquent on their payments. Lenders have initiated foreclosure proceedings against almost one in three of those borrowers.” Not only are more homes available as a result, but with sellers who are delinquent, there may be a better chance of your Realtor negotiating a great deal for you and saving the seller from foreclosure.

This could be a golden opportunity for the first time buyer with great credit or an investor with no need to sell. With the advice of an experienced Realtor, you can determine if buying now is a smart decision. First, check out Movoto, where you can view what’s available on the Massachusetts MLS in a convenient map, conduct detailed property searches, and connect with a top local agent.