Real Estate Market Bulletin Blog

The latest news about the Massachusetts Housing Market
June 21, 2009

Celebrities Have Real Estate Issues Too

Author: admin - Categories: Real Estate News, home sales trends, homeowners

Just like the average American, celebrities are having financial issues often springing from their real estate or leading to the sale or foreclosure of their real estate. It shouldn’t really come as a surprise to anyone given the size and cost of celebrities’ homes these days. On top of the size and cost of celebs mansions, the current housing market is anything but thriving. Let’s take a look at a few current celebrities facing real estate hardships.

Case 1: Timothy Geithner. After reducing the price of his home to $1.575 million he was attempting to sell he finally resorted to renting his New York suburb mansion out for just $7,500 a month, surely not covering his $27,000 a year taxes and two loans covering the cost of the house.

Case 2: 50 Cent. After having his Farmington, CT house on the market for 2 years he gave up on selling the mansion. It had gone from selling originally at $18.5 million eventually creeping down to $14 million, and even at that price it couldn’t sell. It didn’t help that the house had been known for its legal issues stemming from an issue where 50 Cent had the house repaired for $6 million whereas it had been appraised at only $500,000. On top of that a real estate appraiser leaked to the Hartford Courant that the house isn’t worth a $1 over $5 million.

Case 3: Mel Gibson. Only a short drive away from Mr. Cent in Greenwich, CT Mel Gibson has been having problems selling his mansion (not to mention his divorce). The mansion, nicknamed “Old Mill Farm” had been originally put on the market for a price of $39 million. Even with its 15 bedrooms and 17 bathrooms it couldn’t fetch that price. So Gibson lowered the price to $29 million where it has been sitting for some time now.

Case 4: Elle McPherson. The British model took $2 million off her asking price for her 1850s Victorian house which has been on the market for almost 2 years now. The 6 bedroom home hasn’t attracted much attraction from potential buyers apparently.

It may console you to know that it’s just the average joe having real estate problems. Then again, it confirms the fact that the real estate market is pretty stagnant.

Real Estate News
Real Estate Market
Celebrity Real Estate

May 22, 2009

Is it the Right Time to Buy?

Author: admin - Categories: Foreclosures, Lending Rate, Real Estate News, homeowners

The real estate market of today is an amalgamation of foreclosures, bank owned homes, and distressed sellers.  These circumstances have lead to unbelievable deals financially for those willing to make a quick decision and a commitment.  The market as it is now is inefficient and lacking order.  People who are buying are often seeking bargains meaning they’ll either pounce on the first and best deal they see out there, or they’re willing to wait a few months before swooping in for the purchase in a short sale process.  And still others prefer to take part in a chaotic bidding war for a bank-owned house being auctioned.  This leaves little room for the traditional, more relaxed methods of buying a house.  Buying houses on a whim is not everyone’s style however. 

There are several aspects artificially limiting the supply of residential property and at least temporarily bringing the housing market back to a more orderly, less chaotic fashion.  Some of these aspects include:

– New statutes requiring banks to engage in negotiations to work-it-out with homeowners before foreclosing
– The federal government asking for a voluntary cessation on foreclosures

– Borrowers filing lawsuits and bankruptcies

– The promise of bailout money for financially strapped borrowers.

 

Perhaps in response to these aspects, and perhaps not there has been a slowing of declining home prices and an increase in sales recently.  On top of that, interest rates on 30-year fixed loans remain extremely low.  And although unemployment is still increasing, median income appears to remain unchanged across the nation.

Overall, it is expected that market value of homes will continue to decline, but at a slower pace.  For the foreseeable future, the markets will be mixed, troubled and unpredictable.  In other words, don’t expect the current status quo to go away anytime soon.

Homeowners
Housing Market
Real Estate News

April 26, 2009

First-Time Homeowners May Help A Lousy Market

Author: admin - Categories: Foreclosures, Real Estate News, home sales trends, homeowners, real estate trends

About half of all homes sold last month were sold to first-time homeowners that however has not made up for an overall sub-par spring selling season.  The median price for a house in the month of March was $175,200, down 12% from the previous year.  Typically house prices rise in the Spring season however as was expected, prices are historically low in comparison with previous years.  The good news is that house prices are up 4% from February especially in the western states, the region of the US most effected by foreclosures and the economic slump.

Leading this surge in first-time homeowners purchasing houses this spring may be a new initiative for first-time home buyers where upon purchase they can receive an $8,000 tax credit.  Hopefully this recent surge in first-time home owners will last through the summer, boosting some much needed action and money into the housing market.

Click here to read more…

Homeowners
Housing Market
Real Estate News