Real estate bubble leaving leftovers or Christmas presents for homebuyers?

Sf_marrank_112404v05_v2_2This chart, the first of five documenting price reductions in the Boston Globe’s feature story, ranks the increase in markdowns by price range for 2005 versus 2004 (click on image for larger view).

Red and green, the traditional colors of Christmas, indicate price
ranges in the middle of the market where holiday homebuyers will find
the most price reductions or "Christmas presents" this year.
Approximately 3,000 more price reductions have occurred on single family
homes between $400,000 and $600,000 (shown in RED), and more than 2,100
price reductions have occurred on homes priced between $300,000 and
$400,000 (shown in GREEN). Note, these are increases over last year not that total number of markdowns in each price range.  All figures are through November 24, or roughly Thanksgiving, both years and are based on data from MLS Property Information Network, the multiple listings service covering nearly all of Massachusetts.

Larger price reductions — some well over $100,000 — have occurred
in
more expensive price ranges but there are fewer
properties in those price ranges, and in some cases fewer price
reductions
compared to last year.  (That finding and others will be documented in
the next four graphs.  Click on our RSS feed to receive them and other
blog entries as soon as they are posted.)

Some homebuyers see prices reductions and expired listings as stale leftovers, others see them as money-saving opportunities.  What’s your take?  You can post your comment here, or call our podcast line — 617-876-2117 — to record your own sound bite.

Posted in Price trends, Real Estate Bubble, Savings & Rebates, Timing the market

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