Foreclosure Monitor: Market appetite for 3-families spurs concernsJune 17, 2010
BOSTON, June 17, 2010 --- MHP's latest Foreclosure Monitor has taken a look at three-family homes in Massachusetts to see what role they are playing in the foreclosure crisis and the state's real estate recovery.
In its analysis of real estate data from The Warren Group and other sources, Foreclosure Monitor found that there seems to be a market for three-family homes. Click here to read our latest analysis of foreclosure trends and what it means for policy makers.
Here are three key facts from the report:
- 3-family properties most volatile: The volatility of three-family properties can be seen in Boston where between 1997 and 2005, three-families saw the most dramatic median price increase, rising from $135,000 to $540,000 (300 percent). When prices began to slide, three-families saw the worst decline. From 2005 to 2009, median prices for three-families dropped 50 percent to $268,000.
- Market appetite for 3-family properties: Foreclosure Monitor found that 34 percent of three-family homes were sold before foreclosure, more than any other property type. Single-family sales were next (29 percent), followed by two-families (28 percent) and condominiums (22 percent). Also, bank-owned three-family properties are selling faster than other types.
- Message for policy makers: The data suggests that three-family homes are not being sidelined in the real estate market recovery, but in fact investor interest may be returning three-families to the boom-and-bust cycle. In this respect, local agencies may want to focus on getting three-family homes into the hands of responsible (for- and non-profit) owners who will own these properties for the long-term and create stable homes for renters.
For additional coverage of this issue, click here for a June 17 Boston Globe report on the three-family market in Boston.
Foreclosure Monitor is an ongoing effort by MHP to give policy leaders and local officials the latest data on how foreclosures and distressed properties are impacting communities and the Commonwealth of Massachusetts.
Foreclosure Monitor is able to provide this information through the CHAPA/Warren Group distressed property database, with support from the state Department of Housing and Community Development (DHCD). For updated information, check Foreclosure Monitor out regularly at www.mhp.net/foreclosuremonitor.