Bank and tax lien foreclosures and difficulties in acquiring loans are just some of the factors blamed for the decline in the values of homes in Boston, Massachusetts. Recent data released through the S&P/Case-Shiller Home Price Indices showed that values of houses in the metro area have declined in February 2011, the seventh month in a row that housing prices have dipped in the region.

Part of the reason, local housing analysts have claimed, is the elevated level of residential properties under Boston foreclosure listings. Meanwhile, the S&P report cited various other reasons, including difficulties encountered by buyers in securing financing to purchase homes and doubts among potential buyers over the security of buying a home at this time. The cold weather in February might have also affected values of houses, authors of the report further opined.

Despite the recent drop in housing values and its problems with foreclosures in MA, analysts consider the Boston residential market as way better than most metro areas in the U.S. In February, values of houses in the Boston area dipped by 1.5% compared with January, a bigger margin of decline compared with the 1.1% decrease recorded among the top 20 metropolitan markets tracked by S&P. However, February values were still 2.8% higher than the lowest value for residences recorded for the area back in March 2009.

Although the number of bank foreclosures and tax lien foreclosures is not expected to decline within the year, analysts believe that values will improve when May comes along. Meanwhile, statewide prices of homes also posted a decline, with the median price of single family housing units pegged at $255,000 in Massachusetts in February. The figure is lower than the $270,000 median rate recorded in February of last year, based on housing data released by the Warren Group.

Nationwide, foreclosure houses for sale and the ongoing weakness in the economy continue to hold back housing values. Prices of homes all over the U.S. remained lower than last year, according to the S&P report, although they remain above 2009 levels which were some of the lowest values recorded during the housing cycle. Among the 20 metros tracked by the Indices, only Detroit recorded a month-over-month increase in housing prices in February.

Housing experts claimed that the number of bank and tax lien foreclosures, housing starts and residential sales data and the status of the job market all point towards a continuous weakness in the residential market, although a slow recovery is definitely in the works.

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