Homeowners were slashing prices in August faster than Lizzie Borden on late summer bender!
Or as Timothy Warren Jr., CEO of The Warren Group more aptly puts it:
"The August numbers show that the market slowdown is taking hold and shows no sign that it is going to turn around anytime soon,"
"We are clearly going through a market correction that is long overdue, considering the 10 years of unbridled sales and price increases Massachusetts has experienced.”
As with past months, there are two sets of numbers to look at for Massachusetts.
First, you have the Massachusetts Association of Realtors (MAR) numbers that track ONLY homes listed on the MLS system. Consequently, the MAR numbers result in a slightly inaccurate picture since they don’t account for all the “For Sale by Owner” and other non-MLS home sale transactions.
For a more comprehensive view there are the numbers produced by The Warren Group (WG) which are based on actual deed transactions which present a more complete view the market.
Again, like last month, we have to keep in mind that we are coming off of an historic run-up in home prices fueled by a frantic speculative madness that had captivated our area for almost ten years.
As in months past, 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 August 2006
- Single Family Sales Down 21.6% (MAR), 19.8% (WG) as compared to August 2005
- Single Family Median Price Down 6.1% to $352,000 (MAR), 8% to $331,000 (WG) as compared to August 2005
- Condo Sales Down 18.5% (MAR), 19.3% (WG) as compared to August 2005, the largest drop since 1995.
- Condo Median Price Down 3.3% to $278,000 (MAR), 5% to $276,000 (WG) as compared to August 2005
- Single Family average “Days on Market” stands at 109 days in August as compared to 77 days for August 2005
- Condo average “Days on Market” stands at 108 days in August as compared to 77 days for August 2005
- August marks the fifth (MAR), seventh (WG) consecutive month of of year over year declining single family home sales for a total of 18 declines in the last 19 months.
- Inventories have now risen for 18 consecutive months.
- Boston leads the nation in price reductions with 46.4% of homes listed on the MLS having been reduced.
- Residential housing (homes and condos) inventory has increased 20% over the past 12 months.