Merrimack Valley MIDDLESEX NORTH REGISTRY OF DEEDS. Deeds, Mortgages, Foreclosures and Orders of Notice Recorded

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1 Merrimack Valley University of Massachusetts Lowell housingreport An e-publication of UMass Lowell and the Middlesex North Registry of Deeds MIDDLESEX NORTH REGISTRY OF DEEDS NORTHERN ESSEX REGISTRY OF DEEDS Volume 10, Issue 1 January 2017 Numbers in the Four Cities: 2015 v Real Estate Review Numbers in the Four Cities: 2015 v By Syeda Nizami In 2016, the number of orders of notice (foreclosure petitions) filed increased in three of the cities when compared to 2015, but this trend has leveled off during the last few months. Methuen saw a significant 58% increase in orders of notice from 65 to 102. Haverhill and Lawrence had much smaller increases of 7% (from 134 to 147) and 6% (121 to 128). Conversely, Lowell experienced a notable decrease in the number of orders of notice (11%), from 210 to 188. Furthermore, foreclosures also showed signs of levelling off in the four cities after seeing large increases. Both Haverhill and Lowell saw sizable increases in foreclosure deeds, respectively 67% (from 63 to 105) and 47% (from 83 to 122). In contrast, Methuen and Lawrence witnessed significant decreases in foreclosures. Methuen experienced the largest decrease (18%), from 66 to 54, while Lawrence had a 14% decline. These trends in foreclosures and orders of notice could signal a slowdown in delinquent loans held by lenders. In terms of deeds, Lowell saw the largest jump of 21%, from 1768 to Haverhill and Lawrence both increased by 8%, Haverhill rose from 1557 to 1575, while Lawrence went up from 1105 to On the other hand, Methuen actually had a modest decline in deeds (0.2%), from 1245 to All four cities saw increases in mortgages, with Haverhill seeing the largest jump of 14%, from 2242 to Methuen and Lawrence had slightly smaller increases of 12%. Methuen increased from 1747 to 1948 while Lawrence increased 1451 to Lowell experienced the smallest increase of 10%, from 2517 to (continued on page 2) Deeds, Mortgages, Foreclosures and Orders of Notice Recorded December 2015 and December 2016 compared Haverhill Lawrence Lowell Methuen Dec-15 Dec-16 Dec-15 Dec-16 Dec-15 Dec-16 Dec-15 Dec-16 Deeds Mortgages Foreclosure Deeds Orders of Notice

2 Merrimack Valley Housing Report 2 Numbers in the Four Cities: 2015 v continued. Although during the last two years we have seen a trend of increased orders of notice and foreclosures, more recently we have seen a leveling off of foreclosure activity. As we begin 2017, we will need to see if recent trends signal the beginning of decreases in foreclosure petitions and filing or a temporary hull. Methuen Deeds % Mortgages % Orders of Notice % Foreclosures % Lowell Deeds % Mortgages % Orders of Notice % Foreclosures % Haverhill Deeds % Mortgages % Orders of Notice % Foreclosures % Lawrence Deeds % Mortgages % Orders of Notice % Foreclosures %

3 Merrimack Valley Housing Report Real Estate Review By Richard P. Howe Jr. Real estate news in the Middlesex North Registry of Deeds District was mostly positive in The total number of documents recorded was up eight percent, rising from 60,516 in 2015 to 65,521 in Deeds were up 12 percent, rising from 6,913 to 7,776, and mortgages were up similarly, from 11,148 to 12,639. The amount of revenue collected by the registry of deeds was also up considerably, rising from $13.0 million in calendar 2015 to $16.5 million in calendar 2016, an increase of 27 percent. Part of the rise in revenue was attributable to the increased number of documents more documents mean more recording fees but the amount of deeds excise tax collected was also up 26 percent, increasing from $7.8 million to $9.8 million. Because the deeds excise tax is based on the sales price listed on a deed, increased tax collections are an indicator that property values are rising. Calculating the median sales price of recorded deeds corroborates this rise in real estate values. The median price for all deeds recorded for the registry district in 2016 was $307,500, an increase of five percent from the 2015 median of $292,500. Nine of the ten communities in the district saw median price increases in 2016 (Dunstable had no change), and median values in four of those communities have now surpassed the peak median value from the real estate bubble of last decade. Those towns are Billerica (2016 median of $370,000 is 103 percent of the 2005 bubble median of $359,900); Chelmsford (2016 median of $330,000 is 102 percent of the 2005 bubble median of $325,000); Tewksbury (2016 median of $354,950 is 103 percent of the 2005 bubble median of $345,000); and Wilmington (2016 median of $403,500 is 105 percent of 2006 bubble median of $384,450). Values in the six other district towns continue to claw back towards the peak values of the real estate bubble. Lowell s 2016 median of $229,700 is 90 percent of the 2005 bubble median of $254,900; Carlisle s 2016 median of $569,900 is 95 percent of the 2007 bubble median of $597,500; Dracut s 2016 median of $270,500 is 98 percent of the 2008 bubble median of $275,450; Dunstable s 2016 median of $430,000 is 93 percent of the 2005 bubble median of $460,000; Tyngsborough s 2016 median of $315,000 is 90 percent of the 2006 bubble median of $350,000; and Westford s 2016 median of $403,000 is 96 percent of the 2005 bubble median of $420,000. While rising property values are a good thing in general, they are particularly important in curbing the still-high rate of foreclosures. In 2016, there were 232 foreclosure deeds filed in the Middlesex North District (116 for Lowell, 36 for Dracut, 26 for Billerica, 17 for Chelmsford, 15 for Tewksbury, eight for Wilmington, seven for Tyngsborough, four for Westford, two for Carlisle, and one for Dunstable). Of the 232 mortgages foreclosed, 188 of them 81 percent originated during the real estate bubble (2003 through 2007). Of the rest, 38 mortgages (16 percent) originated post-bubble; and six (3 percent) originated pre-bubble). Almost everyone who obtained a mortgage during the real estate bubble has been underwater since the bubble collapsed, meaning that the amount they owe on the mortgage exceeds the value of the home. In such a situation, any disruption of income into the household (such as loss of employment, divorce, illness, or death) can leave a borrower unable to make the monthly mortgage payments. If the value of the home exceeds the debt, the homeowner can sell the home, pay off the debt, and get on with life. But when the amount of debt exceeds the value of the property, the only alternative is foreclosure. Hence, most of the 2016 foreclosures were of mortgages obtained when real estate values were at their highest. The benefit or rising real estate values is not limited to reducing foreclosure rates. For every home lost to foreclosure, there are many more underwater home owners who continue to make their monthly payments and remain in their homes. But as long as they are underwater, they are unable to sell and are locked into their homes, unable to upgrade or relocate for employment or other reasons. With today s rising values, more and more of these homes will be offered for sale, increasing inventory and strengthening the real estate market in 2017.

4 Merrimack Valley Housing Report 4 ATTENTION HOMEOWNERS, LANDLORDS AND TENANTS The Lowell Lead Paint Abatement Program Welcomes New Clients! Lead-Safe Lowell offers Lowell homeowners 0% interest, FORGIVABLE loans for lead paint removal in residential properties. No payments are required and the loan is fully discharged after 3 years! Occupants of dwellings must be low-to-moderate income to qualify. Up to $15,000 available for single family homes Up to $12,000 available, per unit, for multi-family homes FREE Lead Inspection and Project Management FREE Soil Testing Contact: Toni Snow, Program Manager TODAY! tsnow@lowellma.gov

5 Merrimack Valley Housing Report 5 The Merrimack Valley Housing Report is published by UMass Lowell and the Middlesex North Registry of Deeds Richard P. Howe Jr., Editor Richard.Howe@sec.state.ma.us David Turcotte, Editor David_Turcotte@uml.edu Paul Iannuccillo, Contributor Paul.Iannuccillio@sec.state.ma.us Emily Chaves, Research Assistant/Writer Emily_Chaves@uml.edu Kelechi Adejumo, Research Assistant/Writer Kelechi_Adejumo@uml.edu Syeda Nizami, Research Assistant/Writer Syeda_Nizami2@student.uml.edu Institute of Housing Sustainability c/o Center for Community Research and Engagement University of Massachusetts Lowell Mahoney Hall, 870 Broadway Street, Lowell, MA Tel. (978) This project is funded in part by the Office of the Chancellor and the Office of Outreach. UMASS LOWELL Subscribe to the Merrimack Valley Housing Report To begin receiving this monthly e-publications, please David Turcotte at David_Turcotte@uml.edu