Friday, January 26, 2007

Collapse-achusetts

Talk about going out with a bang!

Today, the Massachusetts Association of Realtors (MAR) released their “home sales report” for December showing a firm completion to the largest yearly decline to single family home sales ever recorded in Massachusetts.

For December, single family home sales declined 16.6% compared to December of 2005 bringing the total yearly sales to 41,519 or a decline of 15.2% as compared to the full years result of 2005.

Additionally, in nominal terms (not adjusted for inflation) the median single family home price dropped 5.4% as compared to December of 2005 to $335,000 leaving the median price 11% below the peak set in the summer of 2005.

The new MAR president Doug Azarian had the following to say:

“Coming off record prices, brisk sales and seller’s markets of the past decade, it’s good to see the market coming back to some balance… At this point, the balance definitely tips toward the buyer, although the monthly inventory of available homes is beginning to diminish a bit. Sellers who heed their Realtor’s advice about right-pricing are doing well.”

Review the following chart:


As you can see, Massachusetts completed almost 12 consecutive months of declining sales (March showed a small gain) resulting in the sharpest yearly drop off in sales ever recorded by MAR.

The following chart demonstrates what this drop off looks like in the context of single family home sales since 1990. Click on it for a larger, more readable version.


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 December 2006:

  • Single Family sales down 16.6% as compared to December 2005
  • Single Family median price down 5.4% as compared to December 2005
  • Condo sales down 8.2% as compared to December 2005
  • Condo median price up 1.9% as compared to December 2005
  • Single Family average “Days on Market” now stands at 138 days in December as compared to 104 days for December 2005
  • Condo average “Days on Market” now stands at 134 days in December as compared to 98 days for December 2005
  • Inventory of single family homes have risen for 22 consecutive months and now stands at 30,651 units listed on the market through MLS. This represents 10.3 months of supply.
  • Inventory of condos now stands at 16,581 units listed on the market through MLS. This represents 11.1 months of supply.

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