Three-Family foreclosures in Dorchester, MA are currently a hot commodity. Since the start of the foreclosure boom, there have been a ton of foreclosures of these popular multi-family homes in Boston's largest neighborhood. Recent activity indicates that the combination of low inventory, low prices, low interest rates and high rents is making this a hot type of property right now.
I've been closely tracking the market for three-families and three-family foreclosures in Dorchester, MA since 2003 and have seen some huge changes. In those earlier years, closer to the height of the market, there were always between 110-140 three-families for sale. Now, there are only between 30-40. Most sellers who are not under water are holding out for the higher prices we saw in 2005, where the average selling prices was over $500,000. Right now, that figure is a lot lower, but it has come up in the last year or two.
There was a point in time about 18 months ago when there were several three-families listed for and selling for under $200,000. Cash and non-cash investors swooped in and have been scooping them up since then and continue to do so even now as the cheapest ones are selling in the mid to high 200's.
There are not even many deals at auctions anymore with more and more investors crowding the sidewalks. I've personally seen about a dozen sold at auction during the last month or two and the cheapest one was $205,000. The auction veterans speak fondly of times a couple years ago when you could pick up three-family foreclosures in Dorchester, MA for only $100,000 to $150,000.
At the price range they are at now, it's a perfect time for first-time homebuyers to get into one of these three-family homes because they only have to put 3.5% down with an FHA loan and the other two units will totally pay the mortgage and you can live rent-free!
Please let me know if you would like any more information about three-family foreclosures in Dorchester, MA.