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.

Reminder

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Register Ashe's 27th Annual St. Patrick's Party

Click here to read the article written in The Republican covering Register Ashe's St. Patrick's Party.....

REGISTER'S CALENDAR YEAR 2009 FORECAST

Click here to view the complete Forecast detailing Calendar Year 2009

Click here to view the charts accompanying the Calendar Year 2009 Forecast

Click here to view The Republican's article on Register Ashe's Calendar Year 2009 Forecast

Massachusetts and Hampden County Foreclosure Rates Compared

Given the current economic crisis inflicted upon our country and more immediately our county, it appears impossible to go even a few hours without being reminded of our uncertain economic future. With all of the staggering foreclosure and unemployment rates being announced in our newspapers and news programs, it has become quite difficult to gauge our current situation, let alone hypothesize the future. Upon gathering and comparing Massachusetts and Hampden County foreclosure rates for October 2008 and October 2009, there appears to be some signs of hope. While the positive results are too premature to warrant a sigh of relief, any bit of good news is just that….good news! Though Massachusetts saw a 30% increase in foreclosures from September 2009 to October 2009, the state’s foreclosures decreased from 588 in October 2008 to 503 in October 2009. In Hampden County, the number of completed foreclosures decreased 9.1% from 88 in October 2008 to 80 in October 2009.

Though a statistical decrease of this nature is definitely a positive sign, it is important to note that this trend may not continue due to the combination of increased unemployment rates that are expected to remain considerably high until late 2010, as well as a large number of adjustable rate mortgages, which upon fluctuation, may leave some homeowners unable to afford the newly adjusted mortgage. While the unemployment rate in Massachusetts has seen its first decrease since June 2007 from 9.3% in September 2009 to 8.9% in October 2009, there still was a 53.5% increase in unemployment from 5.8% in October 2008 to 8.9% in October 2009. In other words, we have a long way to go. Hampden County also experienced an increase in unemployment from 6.6% in October 2008 to 9.9% in October 2009. The large percentage increases in the Massachusetts and Hampden County unemployment rates are quite unnerving due to the common correlation between unemployment and foreclosures. Aware of the disastrous effect that foreclosures can have on the economy, many federal and state agencies are intervening to reduce the foreclosure rate. For example, lawmakers in Philadelphia are requiring mediation between lenders and mortgage holders in hopes that they can come to an agreement which would prevent foreclosure. The effectiveness of this model has been met with mixed reviews.

98th birthday of Hampden County Registry of Deeds employee, Mary Gurski!

Open World Ukrainian National Delegation Visit