Good News on Martha's Vineyard

Foreclosures on the Island (yes, there are foreclosures here!) increased in 2011, for the fourth consecutive year, but predictions are that these will decrease significantly in 2012.  37 foreclosure deeds were recorded in 2011, as compared to 32 in 2010, and 29 in 2009.  

A foreclosure deed recording is the final step in a long series of steps necessary for a lender to "repossess" a home.  The initial step is an "order of notice", which is recorded at the Registry of Deeds and basically notifies all that there is a problem that could lead to a foreclosure.  In 2011 the number of orders or notice filed totaled 60, as compared to 92 in 2010.  It can take anywhere from 6 months to a year, sometimes longer, for a foreclosure to take place. With the recent settlement with 4 major lending institutions, which included restitution and refinancing, this number could decrease further.

As for home sales outside of the foreclosure or "short sale" arena, the numbers for 2011 are down in number of homes sold (319 in 2011) and the average price fell as well - down 10.9% in one year.  Since 2007, the average price of a house on the Island fell 34 percent!  These numbers closely follow national trends, although it took the Vineyard a bit longer to hit what is considered to be the low point.

Foreclosures do effect value, but most real estate professionals and appraisers discount/disregard these properties from consideration when evaluating market value.  The Island is unique in that homes of considerable size and value are often within close proximity to those of modest size and value.

Mortgage rates continue to be at record lows and while you must have good credit to be approved for a mortgage, there is money available and homes at record low prices.  It's time to stop "putting your life on hold" and jump into the market.  Real estate, long term, is still a great investment and the only one you can sleep in!

A real estate professional is the best guide to buying your next home.  Consult a professional!

Some of this information was gleaned from an article in the Martha's Vineyard Times - 2/2/12.