It may be tough here, but it's nothing like California
Welcome to the Bay State, the bright light of our country’s battered real estate market.
The national real estate picture still looks pretty rocky.
Just take a look at the first quarter numbers, with another record breaking price drop. The median price plunged 14 percent to $169,000, the National Association of Realtors reports.
But while the naysayers will jump all over this one, the local market is looking brighter by comparison.
The difference, mainly, appears to be in the flood of foreclosures that has swamped markets in once-booming areas like Arizona, Florida, Nevada and California.
Sure, we’ve had our share of foreclosures, but they still account for only a minority of sales. Often, too often, they are clustered in the poorer neighborhoods and hard-hit old industrial cities like Lawrence, Brockton and Fall River.
We also missed out on the rampant housing speculation that left a new and now half empty condo tower on every block in Miami and vast stretches of now desolate subdivisions in once booming Las Vegas.
Of course, when the market heats up again, prices will likely throttle out of control again thanks to the lack of inventory, but that is a story for another day.
The anecdotal signs are clearly encouraging here. Stories of lively open houses and signs that the spring market might produce some badly needed sales.
The Boston Business Journal even reports that bidding wars have broken out among some buyers, albeit bargain hunters seeking to snap deals before prices rise again.
Norwell-based HouseSavvy offers an interesting take. Home sales in the Greater Boston area are up 44 percent in April compared to January, with 2,863 homes sold last month.
Obviously there is a seasonal factor involved here, but that is still sizable.
Are we out of the woods yet? Not quite. But it is looking good here compared to California and the rest of the country.
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