Massachusetts median home prices rise in December

Massachusetts median condo prices increased 5.9%, from $236,000 to $249,990, in December 2009 compared to December 2010, according to the Warren Group. Single family median prices increased 10.4%, from $267,500 to $295,000 in the same period.

While good news for the economy, these increases may have been caused in part by historically low interest rates and the home buyer tax credit, which ends this spring. Cambridge prices have been remarkably resilient and remained relatively flat in 2009.

New EPA deleading regs to raise renovation costs

New Environmental Protection Agency regs go into effect April 22, 2010 saying all contractors removing lead paint must be certified. The EPA estimates this will add about one hour and $100 to most renovation jobs.

Click here to read the full January 24, 2010 Boston Globe Article by J.W. Elphinstone

Will mortgage interest rates 'spike' in spring???

"Lending rates will also spike as the government withdraws its trillion-dollar support of the mortgage market in the spring," says an article in the New York Times on 1/1/10.

This might argue for home buyers to act before this happens so they can lock in historically low interest rates. Sellers may also want to consider selling sooner rather than later as rising rates could adversely affect home values.

"As banks enjoy a recovery, lending may slow further as the Federal Reserve shifts its focus from spurring growth to heading off inflation, reversing the current period of ultralow interest rates that has been a boon to banks. Right now, low rates are fattening banks’ profit margins, since many lenders are not passing on their own low costs to borrowers. Lending rates will also spike as the government withdraws its trillion-dollar support of the mortgage market in the spring."

Here's the link to the full article:

http://www.nytimes.com/2010/01/01/business/economy/01wall.html?bl