Economic Highlights

Today we’re giving you a look at the kind of information we email our clients every month.  The economic news below – plus information on our newest listings and local events and other home related topics – was sent yesterday to clients in our April newsletter.  Subscribe to the newsletter on our website at www.mendosabalboni.com. We hope you find it useful!

• Average US  interest rates for fixed mortgages rose slightly this week to 4.41% for a 30 year fixed.  While inching up, rates remain near historic lows.
• Bay State February home sales dropped for the 3rd time in four months. Not surprising since sales have dropped in February in 8 of the last 10 years.  “The modest drop in sales was cause by the same lack of inventory that has plagued the market for months,” said Timothy Warren, CEO of The Warren Group.
• The median sales price of a single family home in Massachusetts rose 2% in February to $285,500. Meanwhile condo sales prices hit a median price of $281,000, up 12% over a year ago, “making the cost of a condo just $4,500 less than that of a single-family home.”
• Property taxes continue to increase and have hit a 20 year high. About $488 billion in property taxes were collected in 2013, a 3% increase from 2012.  This revenue remains the largest source of funds for state and local governments, according to the Census Bureau.
• US economic growth in the 4th quarter of 2013 was a bit faster than previously anticipated. GDP expanded at a 2.6% annual rate, according to the Commerce Department, up from 2.4% reported last month.
• New applications for unemployment benefits fell last week to their lowest level in nearly 4 months.Claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 311,000, the lowest level since November.
• Massachusetts foreclosure petitions dropped by 48.7% for the month of February, compared to February 2012. This is the 16th consecutive month that foreclosure petitions have decreased on a year-over-year basis in the Bay State.
• Vacation home sales surged in 2013 by 29.7% to an estimated 717,000 sales – compared to 553,000 in 2012. “Growth in the equity markets has greatly benefited high-net-worth households, thereby providing the wherewithal and confidence to purchase recreational property,” said National Association of Realtors Chief Economist Lawrence Yun.