Cheap Houses on Sale Numbers Expected to Rise in Massachusetts in 2011

by on States

Cheap houses on sale will likely become more common in Massachusetts in 2011 as values of residential properties continue to depreciate in the state. According to a report from Standard & Poor's, those who purchased houses in the region during 2003 are likely in possession of properties that are currently valued at the same level as seven years ago.

Although the prices of Milford foreclosures for sale and other residential properties in the whole state rebounded a bit in the start of 2010, any improvement was canceled out by the accelerated depreciation of residential property values recorded in the last quarter of the same year, analysts reported. According to the S&P report, prices of houses in most areas of Massachusetts peaked in 2005 and reached the apex earlier than other U.S. markets.

The report also stated that prices of homes in the state have been increasing since 2000 until 2005, when values of homes jumped by as high as 80% before falling to current levels. With huge supplies of bank foreclosures in Massachusetts pulling the values of residences down, the area recorded a drop in prices between 15 and 20%, starting in 2005 until the last quarter of 2010.

The decline, analysts stated, will likely cancel out the improvement in the housing industry recorded during the last quarter of 2009 and the first half of 2010. Although the improvements were largely attributed to the presence of the federal government's tax incentive, which helped unload a big number of cheap houses on sale, analysts stated that any improvement would have been welcome, particularly in markets hit hardest by the industry crisis.

Analysts report that in the latter part of 2010, prices of non-foreclosed and bank forclosed homes, sales of houses and residential construction starts reverted to the level almost at par with the lowest level recorded by the state's housing market. Despite the gloomy situation, some positive developments did emerge from the 2010 second half.

According to local housing reports, although cheap houses on sale continue to account for a big percentage of home purchases, prices of condominiums in the state did improve in 2010 based on year-over-year comparisons. Condo prices reportedly increased by 0.3% in 2010.