Somerville MA is located in Middlesex County, Massachusetts just 2 miles North of Downtown Boston.  Originally settled as part of Charlestown in 1630, Somerville officially was incorporated into a city in 1872.  Occupying 4.1 square miles, its population of 77,478 (as of the 2000 census) and a myriad of immigrants from all over the world make Somerville the most densely populated community in New England and one of the most ethnically diverse cities in the nation.  With its robust housing stock of multi families and condos, Somerville is an eclectic mix of blue-collar families, young professionals, college students and recent immigrants from countries as diverse as El Salvador, Haiti, and Brazil.  Somerville MA is defined by its city squares.  It is known for its large number of squares, which help mark neighborhood boundaries while also featuring bustling businesses and entertainment centers.  Among the most active today are Davis Square, Union Square, Ball Square, Teele Square, and Magoun Square.  Each offers a mix of ethnic restaurants, bars and shops and small businesses to fit every taste and occasion.

According to The Warren Group:

In June of 2008 the median single family home price in Somerville MA was $515,000, an increase of 13.3% from June 2007.  In June 2008 the median price for a condominium in Somerville MA was $346,500, a 2.9% decrease from June 2007.  Year to date (Jan-June) there have been 312 home sales, down 20.6% from the previous year. 

Arlington MA Real Estate is some of the best investment property available in the state.  Arlington offers residential single families, multi-family investment homes, condominiums, new construction, adult living communities (55+ communities), retirement homes & facilities, land, and waterfront property.  Located just 6 miles from Downtown Boston, property values in Arlington MA have remained strong in the last several years and as many people will tell you, have a very bright future ahead of them as well.  Arlington Mass offers a magic blend of proximity to the city, respectable schools, desirable housing stock with prices notably lower than surrounding areas including Winchester, Belmont, and Lexington.  There is also a theater nearby to catch a movie, or you can enjoy the bustling restaurant scene.

According to The Warren Group:

In June of 2008 the median single family home price in Arlington MA was $462,500, a decrease of .4% from June 2007.  In June 2008 the median price for a condominium in Arlington MA was $355,500, a 5% increase from June 2007.  Year to date (Jan-June) there have been 285 home sales, down 8.6% from the previous year. 

Medford MA is a city located on the Mystic River in Middlesex County, Massachusetts just a few miles from Downtown Boston.  Home of Tufts University, Medford was founded in 1630 is the 4th oldest English settlement in the country and is one of the oldest in the Commonwealth.  Medford was a leader in the Clipper Ship building industry and also manufactured brick and tile. In addition, Medford was famous for it's "Medford Rum" and "Medford Crackers.  In a tavern and boarding house on High Street (Simpson's Tavern) in the late 19th century, local resident James Pierpont wrote "Jingle Bells" after watching a sleigh race from Medford to Malden.  Medford was also home to Fannie Farmer, author of one of the world's most famous cookbooks.  Today Medford is home to old school residents, new school young professionals, students, and investors who's rental property have proven profitable over the years.

According to The Warren Group:

In June of 2008 the median single family home price in Medford MA was $362,000, a decrease of 9.6% from June 2007.  In June 2008 the median price for a condominium in Medford MA was $335,000, a 16.4% increase from June 2007.  Year to date (Jan-June) there have been 270 home sales, down 14% from the previous year.

The Federal Housing Administration (FHA) runs several programs to promote home ownership.  In most cases, FHA loans are mortgages obtained with the help of the FHA.  With a small down payment, buyers can purchase a home. FHA loans make it easier for people to qualify for a mortgage, however they’re not for everybody.

What is an FHA Loan?

An FHA loan is a loan insured against default by the FHA.  In other words, the FHA guarantees that a lender won’t have to write off a loan if the borrower defaults – the FHA will pay.  Because of this guarantee, lenders are willing to make large mortgage loans.

Who Can Get an FHA Loan?

Almost anybody can get an FHA loan. There are no income limits like you may find with other first-time buyer programs.  However, there are limits on how much you can borrow.  In general, you’re limited to relatively small mortgage loans relative to home prices in your area.  To find the limits in your region, visit HUD's Website.

To qualify for an FHA loan, you’ll need to have reasonable debt to income ratio.  In general, you have to be better than 29/41.  In addition, you have to have decent credit.  You don’t need wonderful credit to get an FHA loan, it just needs to be decent.

Why are FHA Loans so Great?

FHA loans are not for everybody.  Nevertheless, they are a great help to some borrowers.  FHA loans allow people to buy a home with a down payment as small as 3%.  Other loans might not allow such a low down payment.

FHA loans offer a few other bells and whistles:

• Easier to use gifts for down payment and closing costs
• No prepayment penalty (a big plus for subprime borrowers)
• An FHA loan may be assumable
• Possible leniency during financial hard times

How do FHA Loans Work?

The FHA promises to pay lenders if a borrower defaults on an FHA loan. To fund this obligation, the FHA charges borrowers a fee. Home buyers who use FHA loans pay an upfront mortgage insurance premium (MIP) of 1.5%. They also pay a small ongoing fee with each monthly payment.

If a borrower defaults on an FHA loan, the FHA uses collected insurance premiums to pay off the mortgage.

Why Not Use an FHA Loan?

You may find that FHA loans are not for you. An FHA loan may not offer enough money if you need a large mortgage. In addition, the upfront mortgage insurance premium (and ongoing premiums) can cost more than private mortgage insurance.

In many cases, you can still buy a house with a very little down using a standard loan (not an FHA loan). In particular, home buyers with good credit can find competitive offers that beat FHA loans.

As always, you should compare offers for FHA loans against other offers.

This is a question that comes up quite frequently with my buyer clients.  It’s a tough question to answer.  I guess it depends on a few variables.  First, if the property just came on the market and is aggressively priced compared to the competition, and when you went to the open house it was bombarded with people.  In a situation like this I would say it’s a good possibility that there will be offers coming in.  Second, a property that has been on the market for a while all of a sudden has a drastic price reduction, I could also see the possibility of an offer coming in.  However, if the property has been sitting on the market and hasn't really moved in price I would be a bit weary, especially if the listing broker is claiming that time is of the essence and if you make an offer now they will present it to the seller before others come in.  This is where a good buyer’s agent comes into the picture.   Although it is hard to say for sure if the listing agent is being sincere or just trying to get the deal, but an experienced buyers agent should be able to weigh the variables and consult their buyers accordingly.  Not to mention, if you have been in the industry long enough you start to know who to look out for!!!

For you to understand how much to offer for a home you’re interested in, it’s important for you to know how sellers price their homes. Here are 4 common strategies you’ll start to recognize when you begin to view homes:

1. Clearly Overpriced:

Every seller wants to realize the most amount of money they can for their home, and real estate agents know this. If more than one agent is competing for your listing, an easy way to win the battle is to over inflate the value of your home.  This is done far too often, with many homes that are priced 10- 20% over their true market value.
 
This is not in your best interest, because in most cases the market won't be fooled. As a result, your home could languish on the market for months, leaving you with a couple of important drawbacks:

• Your home is likely to be labeled as a "troubled" house by other agents, leading to a lower than fair market price when an offer is finally made.
• You have been greatly inconvenienced with having to constantly have your home in "showing" condition . . . for nothing.  These homes often expire off the market, forcing you to go through the listing process all over again.

2. Somewhat Overpriced:

About 3/4 of the homes on the market are 5-10% overpriced. These homes will also sit on the market longer than they should.  There is usually one of two factors at play here: either you believe in your heart that your home is really worth this much despite what the market has indicated (after all, there's a lot of emotion caught up in this issue), OR you've left some room for negotiating. Either way, this strategy will cost you both in terms of time on the market and ultimate price received
 
3. Priced Correctly at Market Value

Some sellers understand that real estate is part of the capitalistic system of supply and demand and will carefully and realistically price their homes based on a thorough analysis of other homes on the market.  These competitively priced homes usually sell within a reasonable time-frame and very close to the asking price.
 
4.  Priced Below the Fair Market Value
Some sellers are motivated by a quick sale.  These homes attract multiple offers and sell fast - usually in a few days - at, or above, the asking price. Be cautious that the agent suggesting this method is doing so with your best interest in mind.

In a recent Wall Street Journal article, Cyril Moulle-Berteaux talked about this very subject.  Being in the industry I can see things heating up.  And I don't mean that prices are going to immediately skyrocket again,  I simply mean that I see buyers finally realizing that there are good deals out there and actually going to get them.

In the article Cyril states:

Most people forget that the current housing bust is nearly three years old. Home sales peaked in July 2005. New home sales are down a staggering 63% from peak levels of 1.4 million. Housing starts have fallen more than 50% and, adjusted for population growth, are back to the trough levels of 1982.

Furthermore, residential construction is close to 15-year lows at 3.8% of GDP; by the fourth quarter of this year, it will probably hit the lowest level ever. So what's going to stop the housing decline? Very simply, the same thing that caused the bust: affordability.

I agree with this.  Most people do forget that we have been in a declining market for the past 3 years.   Us Realtors don't forget thats for sure.

More at:  The Wall Street Journal

A related article states:

“It’s bottom-fishing time, I think,” says Wellesley College Prof. Karl E. Case in the column. Mr. Arends says that he is one of the leading experts on the housing market in the country. “There’s got to be bargains in Florida, Arizona and Nevada.”

Mr. Arends points out that Bill Wheaton, a legendary real-estate professor at the Massachusetts Institute of Technology, has also suggested that fears about the real-estate crash were overdone. And he points to a private portfolio manager in London, who said the homebuilding stocks on Wall Street were at last a “buy.”

More at: The Wall Street Journal

If you are looking for a single family in Arlington you may want to stop by this home situated in the Bishop School district.  Listed by the Friel Team of RE/MAX Leading Edge, this 4 bed, 2 bath Colonial sits on just about a 1/4 acre of land, has a renovated granite kitchen w/maple cabinets, natural gumwood moldings, beamed ceilings, a lower level game room, and hardwood floors throughout.   Not to mention it has a private in-ground pool for summer entertaining.   With inventory of Arlington single families being slim these days I think this place is definitely worthy of a look.  You won't be disappointed!

The number of foreclosure deeds more than doubled in March when compared to the same month the year before, hitting the highest mark since 2005, according to The Warren Group, publisher of Banker & Tradesman.

 

“The number of people losing their homes to foreclosure shows no sign of abating,” said Timothy Warren Jr., CEO of The Warren Group. “Nearly 3,000 homeowners in the BayState fell victim to foreclosure during the first quarter of the year.”

 

Foreclosure deeds rose 140.1 percent in March when compared to March 2007. There were 1,167 deeds this year, compared to 486 in March 2007. There were also 35.7 percent more foreclosure deeds in March 2008 than in February 2008, when there were 860.

 

Deeds filed in the first quarter of the year numbered 2,827, 138.4 percent more than the 1,186 filed during the same time period in 2007.

 

Petitions to foreclosure in March rose 33.3 percent, with 2,918 filed in March 2008 compared with 2,189 filed in March 2007. In the first quarter, there were 8,968 petitions filed, 39.5 percent more than the 6,429 filed in the first quarter of 2007.

 

Petitions to foreclose do not always end in actual foreclosure. Some homeowners eventually sell their homes, refinance or otherwise find a way to halt the foreclosure.

 

“The last time more than 1,000 foreclosure deeds were filed during one month was in August 2007, when 1,018 were filed,” Warren said. “We hoped that represented something of a peak, but March’s numbers have shown us that Massachusetts’ foreclosure problems continue to worsen. With steady increases in petitions, I don’t see this problem going away anytime soon.”

 

Foreclosure auction announcements also rose in March, with 2,028 announcements, 85.5 percent more than the 1,093 in March 2007. First quarter auction announcements were up 61.2 percent from 3,082 to 4,968.

Source: The Warren Group

This is finally in motion after 40 years of discussion.  This project will extend existing MBTA Green Line service from Lechmere Station through the northwest Boston corridor communities of Cambridge, Somerville, and Medford, with an extension of the main line to Medford and a spur line to Union Square in Somerville.  Somerville being the most densely populated city in New England is in dire need of more public transportation hubs.  The Green Line will provide just that.   Although the exact stops are not set in stone they are discussing potential stops in Union Square,  Somerville  High School & City Hall,  Lowell Street, Magoun/Ball Square, Tufts, and ending in W. Medford.  Neighborhoods in East Arlington will also benefit from this.  The goals of the project are to increase mobility, encourage public transit usage, improve regional air quality, ensure a more equitable distribution of transit services, and support opportunities for sustainable development.  The current phase for  this project is scheduled to last 18 months and is focused on finalizing best route and station locations for the new transit service by moving into conceptual engineering and preparing the necessary state and federal environmental review documents.  The project is expected to open by the last day of 2014 and is projected to cost $700 million. Katherine Fichter of the Office of Transportation Planning said the EOTPW “hopes to get half of the project costs from FTA grants,” and the rest will be borne by the state. If no FTA funds are granted, the state will bear the entirety of the cost.

Overall I think there is a tremendous opportunity for buyers to take advantage of investing in property near neighborhoods that will be seeing the Green Line.  Just remember what the Red Line did to Davis Square back in 1984.  I particularly would pay attention to the Somerville neighborhood behind Ball Square in between Broadway and Highland Ave on either side of Willow Ave.  Residents in these neighborhoods will not only be walking distance from the Red line, but also the Green Line as well. 


More at :  Green Line Extension