Once again, Boston area real estate is feeling the heat of a slowing, some say crashing, housing market. With numerous articles being published daily citing the record levels of foreclosures, doubling of inventory and average days on the market, and slumping sales, one can only wonder how long it will take for the bottom to really come off this market.
Worse yet, now that the Spring selling season is officially over, Summer may bring with it an even slower selling market, pushing inventories even higher and possibly accelerating the median price decline as sellers are forced to compete more actively.
Not convinced that Boston area housing market is in significant decline?
The exemplary inflation adjusted charts published by BostonBubble.com couldn’t be more persuasive. The median sale price is down 9.73% since its peak in June 2005, and year over year sales are showing a strong downward trend since it peaked in November of 2004.
Key Statistics for May 2006
- Single Family Sales Down 5.1% as compared to May 2005
- Single Family Median Price Down 4% as compared to May 2005
- Condo Sales Down 7.75% as compared to May 2005
- Foreclosures Up 105% as compared to May 2005
- Foreclosures Up 165% as compared to May 2004
- Single Family average “Days On Market” Up to 121 days
- Condo average “Days On Market” Up to 120 days as compared to 89 for May 2005
Additional Facts
- Highest level of foreclosures since the 80s housing downturn
- MA has had NO growth in population.
- Two Thirds of homes in MA are priced above what a person with the median income can afford.
- Inventory of housing for sale in MA as doubled since 2005.
- Business Costs are 40% higher in MA than the national average
