Massachusetts Real Estate Tax Burden: Among Top Five Nationwide

  The analysis, based on real estate tax rates, positioned Massachusetts at No. 34 overall but within the top 10 states where homeowners pay the most.   In this article, we delve into the key findings of the report, shedding light on the annual tax figures and exploring how Massachusetts compares to neighboring states. Additionally, we'll discuss the implications of these tax rates against the backdrop of the recent surge in median home prices. Understanding the Numbers Homeowners in Massachusetts face an annual tax bill of $5,584 on properties valued at the state's median home value of $483,900. The report, which calculated rankings by dividing each state's median real estate tax payment by the median home price, placed Massachusetts behind only New Jersey, Connecticut, New Hampshire, and New York in terms of annual tax burdens. Comparisons with Neighboring States While Massachusetts ranks at No. 34, the states surrounding it generally fared worse due to their high tax rates. Maine, Rhode Island, New York, Vermont, New Hampshire, and Connecticut were listed lower on WalletHub's ranking, with Massachusetts having higher median home values. The report emphasizes that Massachusetts not only contends with moderately high tax rates but also grapples with significantly high home values, impacting the overall real estate tax burden on its residents. Impact on Housing Market Trends The data becomes particularly relevant when considering the broader context of the real estate market. In January, median single-family home prices in Massachusetts surged by 10.2%, reaching $550,000 compared to January 2023. Similarly, the median condominium price increased from $480,500 to $507,000 in the same period. The analyst from WalletHub, Cassandra Happe, points out that the state's high home values play a significant role in shaping the impact of moderately high tax rates. Navigating the Real Estate Landscape Prospective homebuyers are advised to research property tax rates in their target towns and cities, seeking insights from realtors and homeowners to gain a nuanced understanding beyond numerical figures. As the real estate tax landscape continues to influence housing decisions, this report serves as a valuable resource for those looking to make informed choices in the Massachusetts real estate market.

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April 2023 - Greater Boston Real Estate Market Update

Are you curious about the Greater Boston real estate market in April 2023? In this blog post, we will show you how competitive the market is and what you need to know to succeed in this environment. Single Family Homes In April 2023, the median sales price for single-family homes in the Greater Boston Area remained the same as in March at $825,000. This figure represents a 2.4% decrease compared to April 2022, when the median sales price was $845,000. The market seems to be cooling off and remaining relatively flat year over year. The sale-to-list price ratio for single-family homes in April 2023 was 104%, meaning that on average, homes were selling for 4% above their list price. This ratio reflects a 2.2% increase compared to March 2023 and a 3.0% increase compared to April 2022. Overall, the market remains highly competitive for single-family homes. Condominiums In April 2023, the sale-to-list price ratio for condominiums in the Greater Boston area was slightly less competitive at 100.8%. Condos were selling at just about their list price, reflecting a 0.7% increase compared to March 2023 and a 2.3% decrease compared to April 2022. The condo market is following a similar trend as single-family homes but is slightly less competitive. Inventory For single-family homes in April 2023, there were 1,188 new listings on the market. This figure represents a 9.7% decrease compared to March 2023 and a surprising 31.3% decrease compared to April 2022. The low inventory is driving the market's competitiveness and causing offers to go above the list price. For condominiums, there was a 24.9% decrease in new listings compared to April 2022. Both single-family homes and condominiums are experiencing a significant drop in new listings year over year. Factors and Expectations One reason for the low inventory is that many current homeowners have lower interest rates on their existing homes compared to what they could get if they were to sell and buy a new home. As a result, many homeowners are choosing to stay in their current homes rather than sell and buy a new property with higher interest rates. We expect the market to remain competitive throughout the spring and summer, with homes continuing to sell for above their list price. The volume of new listings over the next few months will influence the extent to which prices rise. We anticipate a continued double-digit decrease in new listings year over year, leading to upward pressure on sales prices for both single-family homes and condominiums in the Greater Boston area. Advice for Buyers If you're considering buying a home, we recommend starting your search a few months ahead of when you plan to purchase. This approach will give you plenty of time to find the right property without feeling rushed to meet specific deadlines. Conclusion Stay tuned for our market update next month, and don't forget to subscribe for more tips and news about the Greater Boston real estate market. If you found this information helpful, please like and share this post!

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Homebuyers with Good Credit Face New Challenges with Loan Level Pricing Adjustments

Introduction Recent changes to loan level pricing adjustments (LLPAs) at Fannie Mae and Freddie Mac, ordered by the Federal Housing Finance Agency (FHFA), have resulted in higher upfront fees for many homebuyers, especially those with good credit scores. While the changes bring some positive developments for first-time buyers and those with low or moderate incomes, middle-wealth borrowers with good credit are facing financial challenges. Let's delve into the implications of these new adjustments and the concerns raised by industry stakeholders. Key Points Background: Since 2008, Fannie Mae and Freddie Mac have charged LLPAs based on individual borrowers' credit score, down payment, and other risk factors. Last year, the FHFA raised guarantee fees on second homes, conforming jumbo mortgages, and high-balance cash out refinancing loans. The Latest Changes: The new LLPAs penalize many buyers with good credit scores (above 680) who put down 5% to 25%, as well as those with high-balance adjustable rate loans. However, these fees do not apply to Fannie and Freddie’s affordable mortgage programs, HomeReady and Home Possible, or to non-conventional government-backed loans. Impact on Borrowers with Good Credit: Homebuyers with good credit scores are now being penalized with increased fees, making it more difficult for them to secure affordable mortgages. This new approach has raised concerns among industry stakeholders. Positive Changes for Higher-Risk Borrowers: Borrowers with lower credit scores and large down payments are now seeing reduced fees, although they can still expect to pay more than those with good credit. Additionally, changes made in 2022 that reduced or eliminated the LLPA fee for first-time buyers and those with low or moderate incomes have been made permanent. Industry Response: The National Association of Realtors® (NAR) has urged the FHFA to rescind the higher fees for middle-wealth borrowers with good credit scores, arguing that the increases are unnecessary given the current financial strength of the GSEs. NAR is also opposing a new fee on borrowers with debt-to-income ratios (DTIs) greater than 40%, which the FHFA plans to impose starting August 1st. Conclusion The recent changes to LLPAs have raised significant concerns for homebuyers with good credit scores, who now face higher upfront fees. These fees, coupled with the recent jump in mortgage rates, create an increasingly challenging environment for middle-wealth borrowers. As industry stakeholders continue to advocate for more equitable adjustments, homebuyers with good credit should stay informed about how these changes could affect their mortgage costs.

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