I am happy to announce that the Massachusetts Home Buyer Guide (MassHomeBuyerGuide.com) was chosen by the editors of FHAMortgageCenter.com as the best blog in its recent real estate blog contest.

More than 100 blogs across the United States were entered into the real estate blog contest.

"For editor's choice, the prize goes to Rich Rosa of the Massachusetts Home Buyer Guide. We really like Rich's mix of analytical market related posts and local interest pieces," FHAMortgageCenter.com wrote on its blog June 4, 2008.

The New Jersey Real Report, which blogs about real estate, economics and politics in New Jersey, won the popular vote.

As I mentioned on my blog, I'll be donating the prize money ($500) to Rebuilding Together Greater Haverhill, Inc., which "helps revitalize homes and neighborhoods for low-income homeowners and communities in need, especially the elderly, the disabled and families, helping them to live in warmth, safety and independence."

Visit Rebuilding Together Greater Haverhill, Inc. online.

Read The Blog Post At FHAMortgageCenter.com

"February sales came in at a seasonally-adjusted annual rate of 590,000, the Census Bureau report showed, down 1.8% from a revised 601,000 in January and down 29.8% from a year earlier."

Though home sales slipped, the figures were better than economists predicted.

The report found that it took builders 7.2 months to sell a completed home in the current market.

"The report showed 188,000 completed new homes available at the end of the month, bringing total inventory - including new homes under construction and not yet started - to 471,000. That equals a 9.8-month supply, which ties January for the highest supply since 1981."

Total inventory fell by about 10,000 homes in January.

Read The CNN Money Article

U.S. mortgage applications surged recently, but whether the rise in applications results in increased home sales is uncertain.

I found this comment by Dan Pierce, a portfolio manager at State Street Global Advisors in Boston, in a Reuters article about existing home sales.

"We saw a nice surge in mortgage applications in January, so we are seeing the echo of that in today's [increased] home [sales] figures. As far as home prices go, it reveals how consumers have to lower expectations if they want to sell their house. The regulators aggressive liquidity actions are definitely having an impact."

If his theory is correct, shouldn't sales rise in April? Only time will tell.

We all know that maintaining good credit is critical, especially in this lending environment, but even if you do your part a creditor might not be doing its job correctly.

A short article in the December Money magazine discusses consumer rights under the Fair Credit Reporting Act and provides tips to make sure errors in your credit report are corrected.

"A recent study by the U.S. Public Interest Research Group found that 25 percent of credit reports have mistakes serious enough to cause a denial of credit. With today’s tighter loan standards, it’s critical to make sure your report is up to snuff."

Read The Money Magazine Article

It is such a hectic time of year that we all sometimes forget that many people could really use some holiday cheer now and throughout the year.

If you've been thinking about contributing to a worthy cause this holiday season, here are some tax-deductible charities to consider.

Operation USO Care Package: Operation USO Care Package enables the public to express their support of our brave and dedicated men and women in uniform (read testimonials). Sponsoring a care package and including a personal message provides individuals with a way to touch the lives of our deployed troops around the world. Donate online.

Rebuilding Together: Rebuilding Together is the nation’s leading organization bringing volunteers and communities together to improve the homes and lives of low-income homeowners by providing free repair services for those with the greatest need. Low-income homeowners, particularly those who are elderly, displaced or disabled, and families with children are most at risk. Donate online.

Floating Hospital For Children: Floating Hospital for Children in Boston is the full-service children's hospital of Tufts-New England Medical Center and the principal teaching hospital of Tufts University School of Medicine. Floating Hospital offers a comprehensive range of services from prevention and primary care to the most sophisticated treatment of rare and unusual conditions. Its focus and mission every day is to improve the lives of children and their families. Donate online.

Catholic Charities - Boston: For more than 100 years, Catholic Charities has continued its mission of building a just and compassionate society rooted in the dignity of all people. As one of the largest providers of social services in Massachusetts, Catholic Charities offers approximately 140 programs and services in 40 locations from Lawrence to Brockton and Natick to Boston. Nearly 200,000 people are helped each year regardless of faith. Donate online.

New England Shelter for Homeless Veterans: The Mission of the New England Shelter for Homeless (NESHV) Veterans is to extend a helping hand to homeless men and women veterans who are addressing the challenges of addiction, trauma, severe and persistent mental illness, and/or unemployment and who will commit themselves to sobriety, non-violence, and working for personal change. NESHV is recognized as one of the most effective private veteran's transition programs in the country.
Donate online.

I received the following from a mortgage professional at Wells Fargo on Wednesday.

Tracking the Track Record

What the ‘Experts’ Say about Housing Prices

“The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline.”
- Time Magazine 1947

“Houses cost too much for the mass market. Today’s average price is out of reach for two-thirds of all buyers.”
- Science Digest 1948 (average price at the time: $8,000)

“The goal of owning a home seems to be getting beyond the reach of more and more Americans.”
- Business Week 1969 (average price at the time: $28,000)

“The era of easy profits in real estate may be drawing to a close.”
- Money Magazine 1981

“If you are looking to buy, be careful. Rising home values are not a sure thing anymore.”
- Miami Herald 1985

“Most economists agree …a home will become little more than a roof and a tax deduction, certainly not the lucrative investment it was …”
- Money Magazine 1986

“We’re starting to go back to the time when you bought a home not for its potential money-making abilities, but rather as a nesting spot.”
- Los Angeles Times 1993 (Note that 1993 was the absolute low-point for real estate values in Los Angeles. Prices have sky-rocketed since, but are weak recently.)

“Financial planners agree that houses will continue to be a poor investment.”
- Kiplinger’s Personal Financial Magazine 1993

“A home is where the bad investment is.”
- San Francisco Examiner 1996

I came across this article in Newsweek a few days ago. John Talbott, apparently a housing expert of some sort because he predicted a few years ago that housing prices would decline, believes that prices will decline to 1997 levels. Talbott figures home prices will return to 1997 levels, since that was the year in which many of the aggressive lending practices, such as interest-only home loans, really began to take off. Please, quickly, someone throw a net over this guy.

Barring a horrific (God forbid) terrorist attack and a deep, long recession, we can add Mr. Talbott's prediction to the list above.

What do you think? Please comment.

The Boston Herald reported September 14, 2007 that building permits for new homes in Massachusetts have declined more than 35 percent since 2005.

"A review of U.S. Census statistics by the Herald shows that building permits issued to state contractors for new single-family homes fell by a whopping 36 percent through the first seven months of 2007, compared with the same period in 2005, the peak year for home construction this decade."

The number of building permits issued for all housing units, including condominium, multi-family and other types, dropped to 9,224 during the first seven months in 2007 compared to 13,404 units two years ago, a 31 percent decline.

"Despite recent weakness in the housing market, state economic development officials have said the scarcity of affordable homes in Massachusetts has been a major obstacle to attracting businesses and talented workers to the Bay State. The drop in new building permits does not bode well for easing that shortage."

Read The Boston Herald Article

RealtyTrac, Inc., a California-based company that tracks the foreclosure market, released data that showed U.S. foreclosure filings in August jumped 115 percent compared to August 2006 and rose 36 percent compared to July 2007, the Boston Herald reported September 18, 2007.

"The filings include default notices, auction sale notices and bank repossessions. Some properties might have received more than one notice if the owners have multiple mortgages."

Multiple mortgages is not uncommon in recent years. One reason many home buyers have two mortgages is that they took out two loans in order to avoid paying private mortgage insurance, commonly referred to as PMI.

Read The Boston Herald Article

U.S. mortgage applications rose 4.6% compared to the previous week, Fox News reported September 19, 2007.

The increase marked the third straight week the Mortgage Bankers Association survey revealed a rise in mortgage applications.

Some analysts have begun to question the value of the survey as an indicator of future home sales.

"Multiple applications by borrowers who are ultimately rejected are counted in the survey, leading to overstated numbers, according to research from Lehman Bros."

Read The Fox News Article

Your high school quarterback son need some help reading defenses or spotting the open receiver?

Well, then move in next door to Patriots QB Tom Brady.

The Boston Herald reported (actually using the Boston Globe as a source) September 13, 2007 that Brady is selling two condo units he owns in a Beacon Hill brownstone. The new dad reportedly will keep the top two floors, which have "panoramic views of the Charles River."

As for the units for sale, "The Boston Globe reported Thursday that Brady is selling one unit, with three bedrooms and three-and-a-half baths, for $4.59 million. The other has three bedrooms, two-and-a-half baths and a $3.99 million asking price."

It might seem expensive, but just think of the signing bonus Junior will get after being drafted in the first round.

Read The Boston Herald Article