Price adjustment
People who have been unable to afford to buy a home or condo in Massachusetts may be interested in the September reports.
The median sale price for single-family properties was $287,500 in September, which is down 15.6 percent when compared with September 2007, when the median was $340,750, according to the Warren Group. That’s the first time the median price has dropped below $300,000 since 2003.
Condo prices were down as well, but it was a smaller decline. The median, or midpoint, condo sale price was $265,000, which was a nearly 5 percent decline, according to Warren Group, which publishes real estate data and tracks sales of all property.
For folks who have unable to afford property here, this may provide some hope they may yet be able to afford to buy in Massachusetts.
The number of single-family homes sold increased 8.5 percent last month in Massachusetts when compared with September 2007, while condo sales declined 9.6 percent, Warren Group reported.
The Massachusetts Association of Realtors, which tracks sales of properties within the Multiple Listing Services, also noted significant changes in sales prices. As for the number of properties sold, single-family sales were up 5 percent compared with September 2007 and condo sales were down 6.2 percent, the association reported.
What are your reactions to the price declines? And does anyone have any theories about why condo sales are so much slower at this point?
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Homes may have become more affordable, but access to credit is contracting and that is deflationary. I suspect that we may be finally at the tipping point where we start to see significant price declines moving forward. Recession, increasing unemployment, increased credit standards, and (ultimately) higher interest rates will weigh heavily on the real estate market.
We're definitely at the bottom. Massachusetts is immune. Things are different here. We have a strong economy. Blah, blah, blah.
Sorry but there is much more pain to come in the real estate industry. Looking forward to the future headline of "Median Home Price in Massachusetts Dips Below $200,000 for First Time in XX Years".
Music to my ears! House prices have been inflated beyond belief. In the near future (a year or two or three) many people who have been boxed out of the market will be able to buy.
I suspect we are probably in the beginning of the fear/capitulation stages of the bubble cycle. This will probably last for a couple of years and then we should see all out despair two or three years from now. That will be the time to buy.
About condo sales --- could it be that because condo prices have dropped less respective to housing prices, that there have been concurrently fewer sales?
Also, I would think condo buyers are primarily first-time homebuyers, who may find it more difficult to qualify for a mortgage, or who may simply have less money these days to buy.
This blogger might want to review your comment before posting it.
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