Friday, March 24, 2006

Massachusetts Home Prices See Year Over Year Decline

From the Boston Herald:

House prices still in slide: Realtors report drop in median

Bay State house prices are falling on an annualized basis for the first time in a decade as Massachusetts housing continues to cool - bucking a national uptrend.

The Massachusetts Association of Realtors reported yesterday that median house-sale prices dropped to $339,450 last month, down 0.2 percent from February 2005.

The decline marks the first time since June 1996 that prices have fallen for any 12-month period as a whole.

“The days of bidding wars and double-digit price appreciation are over,” MAR President David Wluka said.

While median prices have fallen from one month to the next since peaking at $375,000 in August, experts view annualized declines as more statistically significant.

MAR also said the volume of Bay State houses sold last month fell 1.7 percent from February 2005 levels. That’s the fifth straight monthly decline - the market’s longest losing streak since 2003.

Significantly, Bay State activity cooled even as total U.S. house sales rose.

The Boston Herald left out the most interesting part of the MAR report.

MAR February Report

Predictions of steep price declines in home values made this past fall remain largely unfounded. While the current median price is 9.5 percent below the record high monthly median of $375,000 set in July and August 2005, today’s prices largely reflect healthier inventory levels, which has eased upward pressure on prices, rather than plunging property values."

Caveat Emptor!
Grim

11 Comments:

Anonymous Anonymous said...

We know one realtor who is actually part owner of his Monmouth County office, who gets a listing, then holds open houses. He steals stupid things like TV remote controls and smaller, less expensive items the owner would think they misplaced. This guy is loaded and as crooked as they come! Now imagine how he rips you off when it comes to the big money - house, commission, hidden closing costs!

3/24/2006 07:57:00 AM  
Blogger Richard said...

isn't that nice that experts find annual price drops more significant than month to month. how about the potential buyers spending real $? idiots.

3/24/2006 09:48:00 AM  
Anonymous Anonymous said...

$40,000 price drop:
MLS 2239439
16 Mount Ararat Rd, Short Hills
$699,000 => $659,000
Days on Market: 58


$60,000 price drop:
MLS 2237332
17 Mount Ararat Rd, Short Hills
$759,000 => $699,000
Days on Market: 62


Comparables:

Address / Close Date / Sale Price
----------------------------------------
19 Mount Ararat Rd / Aug 2004 / $375,000
15 Mount Ararat Rd / Dec 2003 / $415,000
10 Mount Ararat Rd / Nov 2003 / $445,000
17 Mount Ararat Rd / Aug 2002 / $455,000

3/24/2006 10:05:00 AM  
Blogger skep-tic said...

I'd say a 10% drop in 6 months is pretty rapid for RE.

Boston tends to lead the pack in downturns.

3/24/2006 10:05:00 AM  
Blogger Richard said...

pretty soon the masses will wake up from their stupor and realize how dumb it is that a depreciating asset requiring ongoing cash infusion could increase in value so much. yes people need to live somewhere, but not at the expense of the rest of their lives.

sit tight folks. new home sales data is out and i think i hear a few more lugs loosening on the wheels.

3/24/2006 10:09:00 AM  
Blogger grim said...

New home sales came in way under estimtes..

http://www.census.gov/const/newressales.pdf

jb

3/24/2006 10:09:00 AM  
Blogger Richard said...

what's wrong with an apartment? hopefully you're paying low rent and saving. you have to see the forest for the trees here. do you want to live in an apartment another 1-2 years or lock yourself into an unmovable, underwater mortgage the next 10? your call.

3/24/2006 10:47:00 AM  
Anonymous Anonymous said...

"what's wrong with an apartment? "

It's small, can't really start a family in it, for starters...

3/24/2006 11:09:00 AM  
Blogger grim said...

Rent a townhouse or a larger condo in an area that you'd like to purchase in.

While your monthly outlay will be more than for a small apartment, it's still cheaper than buying.

grim

3/24/2006 12:09:00 PM  
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