Home Foreclosures Hitting Record Highs in Massachusetts!

The number of foreclosed properties in Massachusetts hit a record high in May! According to the Warren group, a publisher of Real Estate information, foreclosure deeds jumped by 107.5 % from May of 2007 to May of 2008. The number of foreclosure homes went from 677 to 1405.


Below are the statistics for a few of the towns in the Metrowest and Greater Worcester area:


Milford


YTD petitions to foreclose 2007: 57

YTD petitions to foreclose 2008: 90

* A jump of 57.89%


YTD foreclosure deeds 2007: 5

YTD foreclosure deeds 2008: 42

* A jump of 740%


Medway

YTD petitions to foreclose 2007: 11

YTD petitions to foreclose 2008: 14

* A jump of 27.27%


YTD forecosure deeds 2007: 2

YTD foreclosure deeds 2008: 6

* A jump of 200%


Northbridge


YTD petitions to foreclose 2007:

YTD petitions to foreclose 2008

* A jump of 31.82%


YTD foreclosue deeds 2007: 11

YTD foreclosure deeds 2008: 15

* A jump of 36.36%


Hopkinton

YTD petitions to foreclose 2007: 17

YTD petitions to foreclose 2008: 19

* A jump of 11.76%

YTD foreclosure deeds 2007: 1

YTD foreclosure deeds 2008: 5

* A jump of 400%


Most people are aware that the local Real Estate market peaked in the Spring of 2005. Since that time we have seen the local Real Estate market continue to slide. This is know as a "buyers market". There are many home sellers today that have still not come to the realization that their home is not what it was worth a few years ago. Unfortunately, most peoples homes are not worth the same as they were 6 months ago! Market values have not hit bottom either. If I were a betting man, I would venture to guess we have a ways to go before we hit the bottom.

We have been lucky locally as there really has not been that many foreclosed homes. With the number of foreclosed homes on the rise and home values continuing to drop, it really makes sense as a home seller to be smart when you get an offer on your home. Losing a deal over a few thousand dollars is usually a big mistake.

If the foreclosure market does increase to the point where there are many more bank owned homes hitting the market, we will see a bigger drop in home values. When a similar or better bank owned home down the Street is on the market for X, don't expect that you can put your home on the market for X + 20k and expect to sell it. It is not going to happen. Short sales can also drag the Real Estate market down as well and we will be seeing more of that too.

The take home message is to make sure you make a wise decision when you think about holding out for a few extra $$$. Don't cut off your nose despite your face in this challenging market.