The Norfolk Registry of Deeds recently published comments about recent activity at the Registry. While there are many indications that the economy continues to improve, there are also some reminders that not everyone is enjoying the benefits quite yet.
The total number of deeds recorded is about flat, from the same time last year. However, the total dollar volume is up over 20%. The average sale price is nearly $800,000 (residential and commercial). Despite the fact that supply is not keeping up with demand, the level of inflation is eyebrow raising, to say the least, especially considering the information which follows.
On the other hand, mortgage recordings are up 46%. When considered along with the stagnant deed recordings, we can only assume that people are borrowing more on their existing homes, or taking advantage of the recent, and brief, rate reduction which is now in our past.
Of great concern is that foreclosure deed recordings were up almost 25%.
In summation, purchases appear stagnant, but there is a significant increase in borrowing. Foreclosures have significantly increased. (I suspect this increase may be at least in part attributed to the relaxation of foreclosure regulations). Perhaps now is not quite the time to buy “all in” to the market, but it sure does seem like a great time for builders to start looking a little harder for housing projects!
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-Rob Pellegrini, Esq.