Further, the single family median home value declined a whopping 14.9% on a year-over-year basis to $275,000 while condo median prices dropped a significant 14.8% to $230,000.
Clearly, the impact of the recent stock market crash and ongoing economic crisis is bearing down on both consumer sentiment and, more fundamentally, credit availability resulting in a significant pullback in spending on homes and other costly purchases.
It’s perfectly clear now that home sellers that choose to wait out the “down market” did so in vain as the 2008 selling season draws to a close likely the last opportunity to sell any residential property at anywhere near the prices set in the peak boom years.
With confidence depressed and eroding and sales volumes this low Boston area home prices have nowhere left to go but down.
Of course, the new Massachusetts Association of Realtor president Gary Rogers puts a more optimistic spin on things while simultaneously looking to the Feds for an industry handout:
“Prices have adjusted to the point that buyers are seeing real value and taking the opportunity to get back into the market and that is a necessary first step to eventually turning things around, … Last year was hard and we are hopeful that any new stimulus package introduced by President Obama and Congress gets credit flowing to worthy borrowers so they can take advantage of the extremely low interest rates and more affordable prices.”
MAR reports that in December, single family home sales increased slightly at 3.2% as compared to December 2007 with a 16.0% decline in inventory translating to 9.6 months of supply and a median selling price decline of 14.9% while condo sales dropped 14.8% with an 24% decline in inventory translating to 11.3 months of supply and a median selling price decline of 14.8%.
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 home price movement.
December’s key MAR statistics:
- Single family sales increased 3.2% as compared to December 2007
- Single family median selling price decreased 14.9% as compared to December 2007
- Condo sales declined 14.8% as compared to December 2007
- Condo median price declined 14.8% as compared to December 2007
- The number of months supply of single family homes stands at 9.6 months.
- The number of months supply of condos stands at 11.3 months.
- The average “days on market” for single family homes stands at 140 days.
- The average “days on market” for condos stands at 142 days.