Further, the single family median home value declined a whopping 18.5% on a year-over-year basis to $252,500 while condo median prices dropped 15.4% to $213,250.
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 strikes a more hopeful tone while embracing government handouts for his industry:
“We continue to be hopeful that sales will increase in the coming months as buyers take advantage of the combination of low prices, low interest rates and the $8,000 federal first-time homebuyer tax credit that expires on December 1, 2009,”
It’s important to keep the following points in mind when considering the impact of the homebuyer tax credit legislation:
- The credit is for “first time” home buyers only… if you have had ownership interest in any home (including condos) anytime in the last three years you are NOT eligible.
- The credit has income restrictions of $75,000 for individuals and $150,000 for married couples filing jointly.
- The credit can only be used for principle residence.
- The credit cannot be applied to the downpayment.
MAR reports that in February, single family home sales declined 11.42% as compared to February 2008 with a 16% decline in inventory translating to 15.4 months of supply and a median selling price decline of 18.5% while condo sales dropped 16.4% with an 24% decline in inventory translating to 16.0 months of supply and a median selling price decline of 15.4%.
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.
February’s key MAR statistics:
- Single family sales declined 11.42% as compared to February 2008
- Single family median selling price decreased 18.5% as compared to February 2008
- Condo sales declined 16.4% as compared to February 2008
- Condo median price declined 15.4% as compared to February 2008
- The number of months supply of single family homes stands at 15.4 months.
- The number of months supply of condos stands at 16.0 months.
- The average “days on market” for single family homes stands at 153 days.
- The average “days on market” for condos stands at 187 days.