Today, the Massachusetts Association of Realtors (MAR) released their Existing Home Sales Report for May showing that single family homes plunged 15.3% on a year-over-year basis while condo sales simply collapsed dropping 24.6% over the same period firmly indicating that the Massachusetts residential real estate market is continuing to seriously erode.Further, the single family median home value declined a whopping 11.8% on a year-over-year basis to $284,000 while condo median prices dropped 6.2% to $265,000.
Clearly, the impact of the 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 Massachusetts Association of Realtor president Gary Rogers continues the realtor spin:
“While sales and median prices are still down from last year, the current trend of month-to-month improvements is noteworthy, especially when you combine it with the fact that consumer confidence and other economic indicators are showing some signs of improvement as well.”
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.Today’s Key Statistics:
Single Family results compared to May 2008
- Sales: declined 15.3%
- Median Selling Price: declined 11.8%
- Inventory: declined 17%
- Current Months Supply: 11.9
- Current Days on Market: 148
- Sales: declined 24.6%
- Median Selling Price: declined 6.2%
- Inventory: declined 19%
- Current Months supply: 13.7
- Current Days on Market: 149