Lower Rates Boost RE Sales in County

Norfolk
County Register of Deeds William P. O’Donnell reported that Norfolk
County recordings for the month of September 2024 indicate an
increase in overall real estate activity, with increases in the total
number of deeds and mortgages recorded as compared to September 2023.

The
Registry of Deeds recorded 8,605 documents in September 2024. This
was 6% more than in September 2023, and an 8% decrease compared to
August 2024.

“The
rise in real estate activity in September 2024 compared to September
2023 can be attributed to a significant increase in the number of
mortgages recorded this month," noted Norfolk County Register of
Deeds William P. O’Donnell. "Likely due to the availability of
mortgages at interest rates, according to the Federal Home Loan
Mortgage Corporation, not seen since September 2022.”

In
September, lending activity increased compared to the same month a
year ago. A total of 1,331 mortgages were recorded in September 2024,
up 13% from September 2023 and down 8% from the previous month.

“The
positive trend in the number of mortgages recorded compared to last
year is a sign that the recent drop in mortgage interest rates has
made borrowing more attractive for potential homebuyers and
borrowers, especially considering that this time last year we were
seeing 31% fewer deeds year over year." O'Donnell added. "The
Federal Reserve's decision to lower the federal funds rate has an
indirect impact on mortgage interest rates, so if hints of a
continued decrease in the federal funds rate are seen, we may see
lending activity continue to rise." 

The
total number of deeds recorded for September 2024, which reflects
both commercial
and residential real estate sales and transfers, was 1,301, up 4%
from September 2023 and down 13% from August 2024. 

"Lower
mortgage interest rates can potentially open the market to additional
buyers who previously may not have been able to afford a home.
However, those who took out a mortgage at lower interest rates in
2020 and 2021 may still feel locked into their current mortgages,
limiting the potential impact that the recent reductions in interest
rates may have on home sales. It will be interesting to see how the
housing market evolves in the coming months as these factors continue
to play out."

The
average sale price of commercial and residential properties for
September 2024 rose to $960,254, an 11% increase compared to
September 2023 but a decrease of 24% from August 2024. The total
dollar volume of commercial and residential sales is also up,
increasing by 9% from last year but down 41% from last month.

“While
lower mortgage interest rates do help ease the burden of higher real
estate costs, I think many would agree that it is a difficult market
for buyers, especially first-time home buyers, due to the limited
inventory of available property and an increase in property prices
compared to previous years,” stated Register O’Donnell.

The
Norfolk County Registry of Deeds has been closely monitoring the
foreclosure market. In September 2024, there were 7 foreclosure deeds
recorded as a result of mortgage foreclosures taking place in Norfolk
County, more than the 5 recorded in September 2023. In September
2024, there were 28 notices to foreclose, the first step in the
foreclosure process, less than the 33 recorded in September 2023.

“We
cannot begin to know all the causes that have contributed to these
foreclosures and notices to foreclose, but what we do know is that a
number of our neighbors have lost their homes, and even more are
dangerously close to losing their homes,” said Register O'Donnell.
“We all experience unforeseen events in our lives, and sometimes
events beyond our control can have devastating emotional and
financial effects, so I would urge anyone struggling to pay their
mortgage or who knows someone who is struggling to contact one of the
non-profit organizations listed on our
website, www.norfolkdeeds.org.”

For
the past several years, the Norfolk County Registry of Deeds has
partnered with Quincy Community Action Programs (617-479-8181 x376)
and NeighborWorks Housing Solutions (508-587-0950) to help anyone
facing challenges paying their mortgage. Another option for
homeowners is to contact the Massachusetts Attorney General’s
Consumer Advocacy and Response Division (CARD) at 617-727-8400.

O’Donnell
concluded, “There is no doubt that it is good to see that mortgage
interest rates have come down significantly over the past month, and
good to know that some progress has been made in making the dream of
owning a home a more attainable goal. However, it remains to be seen
if these lower rates will be enough to stimulate significant growth
in the housing market, especially for those who are already locked
into lower rates."