2010 First Quarter Report

REAL ESTATE ACTIVITY AND PROPERTY VALUES ARE IMPROVING WHILE FORECLOSURES AND JUDGMENT LIENS ARE STILL INCREASING IN HAMPDEN COUNTY.

Hampden County Register of Deeds, Donald E. Ashe, reported today that the first quarter of 2010 compared to the same period in 2009, shows some improvement in real estate activity with a troubling increase in foreclosures and judgment liens. A judgment lien is a lien on the property of a debtor ordered by the court. Increases in judgment liens for consumer debt and delinquent federal and state taxes are considered indicators of a weak economy.

Register Ashe stated, “From the year 2006 to 2009, the number of federal tax liens recorded in Hampden County increased by 182% from 323 to 910. During the same period, the Massachusetts tax liens increased by 16% from 781 to 904. In the first quarter of 2010, liens for consumer credit debt (executions) rose by 63% over the same period in 2009”.

According to the Federal Reserve, as of December 31, 2009, the average APR on a credit card with a balance is 14.31% and it is estimated that the average credit card debt per household is $16,007.00. Fitch Ratings, a global rating agency, has reported that as of March 2010, the credit card default rate in the United States is 11.37%.

Comparing the first three months of 2010 with the same period in 2009, it was found that foreclosures increased by 26% from 233 to 294. Attachments, however, decreased by 37% from 41 in the first quarter of 2009, to a total of 26 in the first quarter of 2010.

The number of deeds recorded in the first quarter of 2010 was 2,273, which was a 2% increase over the same period in 2009 in which 2,221 deeds were recorded. Generally, an increase in the number of deeds recorded indicates a rise in home sales. The increase in the average and median sale price of homes is also a positive sign. In 2009, the first quarter average sale price was $148,907.69, which rose by 8% in 2010 to $160,419.59. In 2009, the first quarter median sale price was $120,525.00, which also rose in 2010 by 12% to $135,039.06.

Register Ashe stated, “Though the worst of the recession appears to be behind us, families and businesses are still having difficulty in paying their taxes, mortgages, and credit card debt. This growing problem of debt retirement is another indicator of an economy still in recovery”.

For any additional information, please contact Register Ashe at 413-784-0479, or by email at Hampden@sec.state.ma.us.

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