Wednesday, July 26, 2006

Boston’s New Curse?

To say that June was a “rough” month for the Massachusetts real estate market would be an understatement. The numbers are now very obviously bad and surely getting worse.

Having completed spring and now well into summer, June caps three consecutive months of declining sales that have completely enveloped a typically “hot” selling season.

Of course, the market is coming off the historically high “Bubble” run-up in sales and prices that peaked in June 2005, but still, the current trend seems a far cry from the market “stabilization” that the National Association of Realtors would have you believe is occurring.

Locally, it appears that the idea of price correction is gaining some currency even from David Wluka, the President of the Massachusetts Association of Realtors.

“You can’t keep going up forever - at some point you hit the wall” Wluka said. “[sellers] are going to have to face reality and adjust their pricing accordingly,” said Wluka adding “They have to take the longer view of what the house is worth instead of looking back one or two years." Wluka’s prediction for the future, “[prices] will continue to decline until the inventory gets eaten up.”

So far, the only June statistics available are the Massachusetts Association of Realtors numbers. As in past months, the Warren Group will soon release their numbers providing an even more complete view of the market.

Additionaly, be on the lookout for the inflation adjusted charts produced by BostonBubble.com for an even more accurate "real" view of the current market trend.

Key Statistics for June 2006

  1. Single Family Sales Down 16.6% as compared to June 2005
  2. Single Family Median Price Down 1% as compared to June 2005
  3. Condo Sales Down 14.3% as compared to June 2005
  4. Condo Median Price Down 1.1% as compared to June 2005
  5. Foreclosures “Skyrocketing” Up 66% in just the second quarter of 2006
  6. Single Family average “Days On Market” stands at 111 days in June as compared to 84 days for June 2005
  7. Condo average “Days On Market” stands at 98 days in June as compared to 66 days for June 2005

Key Facts

  1. June marks the third consecutive month of declining sales.
  2. Inventories have now risen for 16 consecutive months.
  3. For June, there was one foreclosure for every 5.2 homes sold.

4 comments:

  1. Terry7:25 AM

    I'm giddy with excitement! I can't wait until a few years from now when i'll be able to afford something not resembling a small box.

    ReplyDelete
  2. terry,

    Yea, hopefully things cool down sooner than later.

    I think its important to keep in mind that although it looks like there may be a nantional housing bubble, theres most deffinetly one here locall in MA.

    Also, MA's economy is really not looking very good so you never know, things may cool down much sooner here than we expect.

    ReplyDelete
  3. Anonymous8:37 PM

    People who were around in the late eighties and early nineties know that housing here can lose 50% of its value, but it can take up to five years to happen. We need to all stick together, not buy high, so that everyone has a chance to buy there own home. I couldn't believe it when Romney said he didn't want to up the minimum wage so the poor people wouldn't lose their jobs. Like he cares about the poor. How can you afford housing, much less food and utilities on minimum wage? I won't buy until the prices are fair again. This is a basic need we're talking about

    ReplyDelete
  4. The Nike Elite football boots are supplying new quantities of performance, as well as the Nike Elite Tiempo Legend Nike mercurial soccer cleats really are a testament to this. We'll be looking for to create once the Mercurial Vapor Superfly 3 likes of Gerard Pique, Raul Meireles, Andrea Pirlo and Joe Cole pastime these new celebration Red/Metallic Silver Nike Football Boots Sale Elite Tiempo Legend football boots.

    A new Nike Mercurial Superfly age of 'smart football' has arrived for adidas. The adizero miCoach engineering delivers intelligence for that place of play. By permitting which you totally grasp your all round Mercurial Vapor Superfly standard performance data, you can educate using the would like even although comparing your information for that World's most beneficial athletes and breaking your Mercurial Vapors particular assortment and amount records.

    ReplyDelete