April 5, 2007

Housing in Greater Boston No Longer Significantly Overvalued
After several quarters, the New England housing market no longer appears to be significantly overvalued, according to a report released by Waltham-based Global Insight, a leading company for economic and financial analysis and forecasting.  As a result, the likelihood of home prices continuing to decline sharply is minimal.  The top 317 U.S. real estate markets are examined in the study using data from the Office of Federal Housing Enterprise Oversight.  Approximately 15 percent of the nation’s single-family housing stock experienced price declines in the fourth quarter.  At the same time however, as housing prices become more affordable, worries of overvaluation in the local housing market have also declined.

The table below depicts the 2006 median housing prices and overvaluation estimates for markets throughout Massachusetts by ranking of most overvalued to least overvalued by region.

Rentals and Timeshares Could Soon be Subject to Hotel Tax
A five percent hotel tax may be coming to a timeshare near you.  A bill proposed by State Rep. Cleon Turner, D-Dennis, would allow towns to expand the Room Occupancy Tax Statute (commonly referred to as the hotel/motel tax) to include private rentals and timeshares.

The tax currently only applies to rooms in bed and breakfasts, hotels/motels and lodging houses.  The expansion would allow communities, if they choose, to apply the tax to homes, apartments, condos, and timeshares when rented for 90 consecutive days or less.  Town meeting approval would be needed to expand the tax; however with many towns looking for revenue sources other than property taxes, it’s quite possible many communities would implement the measure if approved by state lawmakers.

The bill has been sent to the Massachusetts Legislature’s Committee on Revenue but a hearing has not yet been scheduled.

Massachusetts’ Elected Officials Call for Stricter Subprime Regulations
Several elected officials called for tougher regulations on subprime lenders last week following recent news that the number of foreclosures in Massachusetts hit an all-time high in 2006 – due in part to an explosion of high interest home loans issued by subprime mortgage companies.

State Attorney General Martha Coakley urged a key State House committee to consider making subprime mortgage fraud a criminal offense.  Currently, mortgage fraud involving lenders other than banks is considered a civil offense.

Additionally, Coakley’s proposal seeks to require the licensure of all loan officers, and the creation of a new fund in which any money won in future settlements would be placed in to provide loans and counseling for predatory lending victims.

Separately, Massachusetts Secretary of State William Galvin also called for stricter state regulations, stating that the courts should handle foreclosure cases in order to safeguard victims of predatory lending.  Galvin suggests that mortgage companies get permission from the courts before seizing a home from delinquent borrowers.  Massachusetts is one of 20 states that do not require court approval when homeowners default on mortgage payments.  Mortgage lenders only face a federal, not state law in Massachusetts; the U.S. government forbids foreclosure against active-duty military personnel.

Mortgage companies, however, oppose Galvin’s plan claiming that it would cause an “unacceptable delay for lenders.”

Meanwhile, State Senator Jarrett Barrios (D-Cambridge) currently has a bill under consideration that would mandate the licensing of loan officers, pre-closing reviews of mortgage terms by third parties and a 30-day period for delinquent  borrowers to make up any past-due amounts without penalty.

GBREB Breakfast to Address Healthcare Reform
REALTORS® remember, beginning July 1, 2007 all Massachusetts residents over the age of 18 must obtain health insurance that meets minimum coverage requirements. Individuals who cannot show proof of health insurance coverage by Dec. 31, 2007, will lose their personal income tax exemption when filing their 2007 income taxes.

To help explain this new law, requirements and options, the Greater Boston Real Estate Board is hosting a “Legislative Breakfast” on Thursday, May 3 at 60 State Street, 26^th Floor, in Boston featuring Senator Richard T. Moore, chairman of the Committee on Health Care Financing, and Paul Wingle, director for outreach for CommChoice, Commonwealth Health Insurance Connector.  Cost of the program is $10 for GBAR members and $20 for non-members.  Seating is limited, so please register early.  Registration begins at 8:00 a.m. with the program beginning at 8:30 a.m.  Click here to download a registration form.

Nominations Open for ROTY and GBAR Distinguished Service Awards
The Greater Boston Association of REALTORS® is now accepting nominations for Greater Boston’s REALTOR® of the Year and the Andrew F. Hickey REALTOR® Distinguished Service Awards.  This year GBAR is enhancing the program, so keep an eye out for your invitation! Click here for nomination form

GBAR Sponsors At Home with Diversity Class
In observance of April being Fair Housing Month, the Greater Boston Association of REALTORS® is holding a one-day NAR certificate course entitled “At Home with Diversity” on April 24 from 8:30 a.m. to 5:00 p.m. at the Greater Boston Real Estate Board in Boston.  Course attendees have the opportunity to earn two CE fair housing credits; the cost for the class is $100 for GBAR members.

Created by NAR and approved by the U.S. Department of Housing and Urban Development, “At Home with Diversity” offers training on fair housing and diversity issues for real estate professionals interested in developing effective business strategies to deal with changing demographic patterns.

For more information and registration Click here

Mayor Hosts Housing Boston 2012
Mayor Thomas M. Menino will host a housing conference entitled “Housing Boston 2012: Strategies for High-Cost Cities", with experts from across the nation, on Thursday, April 26 from 1:00-4:00 p.m. and Friday, April 27 from 7:30 a.m. to 4:00 p.m. at the Boston Convention and Exhibition Center in South Boston.

Participants will assess future housing challenges, explore innovative solutions, and begin mapping out a new plan of action. A panel will include national housing experts such as former Secretary of the U.S. Department of Housing and Urban Development Henry Cisneros; U.S. Congressman Barney Frank, chairman of the U.S. House Financial Services Committee; and Freddie Mac President and CEO Richard Syron. In addition, the conference will draw leading housing experts from other major cities, the region, and the city.

Housing Boston 2012 will include neighborhood housing tours during the afternoon of April 26, followed by an all-day forum on April 27.

For more information, or to register, visit www.cityofboston.gov/housingboston2012.

9 Ways to Reduce Legal Risk
Keeping paper trails and using board-approved forms are two of nine risk-reduction strategies that can help REALTORS® in the real estate business.  Click here for more strategies along with how to obtain vital errors and omissions insurance.

Didn't get to NERC, Be a Cyber Attendee

For those who did not attend the 2007 New England REALTORS® Conference last month in Stowe, VT, much of the conference program is online!  The free “cyber conference” will take place from April 2 – July, 2, 2007.  Attendees can hear recordings made during the live conference from featured speakers including Max Pigman of REALTOR.com and Mark Lesswing, NAR’s vice president of technology.  For more information, or to register, visit nerc.cyberconventions.com.

Criminal Alert
A 49-year-old white male, who  uses the alias Mathew Doolin, is wanted all over the country, according to police after he pulled a gun on a Missouri agent in a home she was showing him and demanded all of her money. He took her money, credit cards, wedding ring, cell phone, etc. Then he handcuffed her to a pole in the basement and fled in a blue 4-door car, with a Missouri license plate number 1AW95M.  His real name is Mathew E. Wilson who police consider to be armed and dangerous. He is 5'11", 187 lbs with a light mustache and blonde hair.

He had found the agent from her picture in a Harmon Homes magazine. He told her he was in town from Las Vegas for a funeral and he had inherited a large sum of money and wanted to buy a house.

To protect yourself , be sure to practice important REALTOR® Safety procedures. For REALTOR Safety tips, click here: http://www.marealtor.com/content/safety.htm.

Enter to Win a 20% off Coupon for GBAR Classes
Take five minutes to fill out GBAR’s online survey regarding On the Home Front and your name will be entered to win a 20% off coupon for upcoming Continuing Education courses now through July.  Click here to take the survey!

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