GOOD DEEDS: Homeownership and the American dream – News – Stoughton Journal – Stoughton, MA – Wicked Local Stoughton

According to a recent real estate trade publication, the most popular reason for homebuyers to buy a home was their desire to own it. Now that may not sound like rocket science, but just think for a second about what’s behind that statement.

After all, homeowners want to establish their independence. They want to lay down their family roots. They want to build equity. And no group longs more for those dreams than first-time homebuyers.

The real estate market is doing fine if you are a seller, but not so well if you are a buyer. It’s the classic case of supply and demand. One Boston metro-real broker said her clients, aspiring first-time homeowners, made a bid on a $500,000 home that came on the market on a Saturday, and by Tuesday there already were 25 other bidders.

Now that may be just one anecdote, but here’s some compelling data to back it up. In the Boston metro area, only 27.6 percent of young adults own homes, compared to 37 percent across the country.

In securing a piece of the American dream, there appears to be two major hindrances for potential first-time homeowners: housing prices and limited inventory.

Real estate prices in Massachusetts are some of the nation’s highest. For example, the Massachusetts Association of Realtors noted that in March the median price for a single-family house put under agreement was $390,000, and the median price for a condominium put under agreement was $375,000. It’s no wonder that a survey conducted of Massachusetts home-buyers noted that their biggest obstacle to buying a home is the down payment.

According to a recent article in Boston Magazine, the reason Massachusetts real estate is high is that “there aren’t enough houses for sale across the state to meet the demands of buyers, leading to a spike in housing costs.” The group noted that housing sales were down 9.5 percent last February compared to February 2017. MAR’s past president, Rita Coffey noted, “They (first-time buyers) can’t get a foot in the door without a solid inventory of affordable starter homes.”

February’s MAR’s noted that 84 times in the last 85 months saw year-over-year inventory decreases. So what’s causing lower inventory levels? You just might be surprised to know that many “baby boomers” that are in their 60s and 70s are staying in their homes. It’s called “aging out.”

While this group is living healthier and longer lives, some may consider moving to a one-floor house to meet their physical and space needs. MRA president Anne Meczywor said, “As our population ages, it makes sense that the desire for houses that allow people to age in place is also increasing.” A national report noted that 1.6 million older homeowners account for the 2.5 million houses held back from the market through 2018.

So is there hope for the first-time home buyer? The answer is a resounding yes. The Massachusetts consumer confidence real estate index remains strong. The market appears to be stabilizing with interest rates holding at around 4 perecent. In March, there was a 15 percent increase in the number of single-family homes put under agreement and a 9 percent increase in condominiums put under agreement compared to this time last year.

Additionally, young people are resilient when it comes to buying a home, especially in this state. First-time home buyers comprised 40 percent of the market, compared to 33 percent nationwide in 2018.

And finally, there’s one indisputable reason that first-time homebuyers will succeed: because there is no place like home, especially when you own it!

Around The Real Estate Block

In March, the following property transactions were recorded at the Norfolk County Registry of Deeds.

Property sales: Canton, 40; Holbrook, 24; Randolph, 45; Stoughton 61.

Homesteads: Canton, 29, Holbrook, 14; Randolph, 26; Stoughton 39.

Foreclosure Deeds: Canton, 0; Holbrook, 1; Randolph, 1; Stoughton, 0.

Average sales price, including residential and commercial: Canton $1,048,729; Holbrook, $369,850; Randolph, $380,250; Stoughton $356,786.

Deeds William P. O’Donnell is Norfolk County registrar of deeds.