Further, the single family median home value declined a whopping 17.9% on a year-over-year basis to $263,500 while condo median prices simply fell off a cliff… plunging a stunning 26.1% to $204,000.
Clearly, the impact of the recent stock market crash (that keeps on crashing) 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 marked 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 sale 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 slightly more optimistic spin on things with an absurd baseball analogy of the housing market hitting a triple:
“With historically-low mortgage interest rates, average home prices at their lowest level in years, and the new Federal $8,000 tax credit, the housing market just hit a ‘triple’ for first-time homebuyers in the Commonwealth, … Meanwhile, the December 1 deadline for that tax credit and shrinking supply of homes for sale really makes this a good time to get into the market to buy a home. Starter home sales really get the market moving for everyone else who already owns a home.”
I don’t even know what to say to that one… corny… possibly just plain old pathetic… I’m not sure, but I’m starting to think that the MAR is just plain losing it… the pressure must just be too much for them.
MAR reports that in January, single family home sales declined slightly at 12.5% as compared to January 2008 with a 19% decline in inventory translating to 14.3 months of supply and a median selling price decline of 17.9% while condo sales dropped 26% with an 24% decline in inventory translating to 16.9 months of supply and a median selling price decline of 26.1%.
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.
January’s key MAR statistics:
- Single family sales declined 12.5% as compared to January 2008
- Single family median selling price decreased 17.9% as compared to January 2008
- Condo sales declined 26% as compared to January 2008
- Condo median price declined a stunning 26.1% as compared to January 2008
- The number of months supply of single family homes stands at 14.3 months.
- The number of months supply of condos stands at 16.9 months.
- The average “days on market” for single family homes stands at 146 days.
- The average “days on market” for condos stands at 179 days.