BostonBubble.com has done an extraordinary analysis of single
family home sales in Massachusetts that ought to be mandatory reading
for any homebuyer making an offer this Spring. Thanks for their
permission to reprint the graph above and pull quotes below from their full post, "Boston Bubble Report: What’s Really Going on in MA- Feb 2006":
"It turns out that Massachusetts real estate has seen year over year
price declines every single month between September 2005 and February
2006 inclusive. While the Massachusetts Association of Realtors
officially states that February 2006 was the first time in several
years that there have been year over year declines, that is only true
in nominal terms. Seasonally adjusted values have been declining for
half a year now in real terms."
The MIT graduate behind BostonBubble.com is one of the bloggers who
participates in our monthly Bubble Hour to review housing statistics as
soon as they are released by the Massachusetts Association of
Realtors. Please let us know if you would like to participate in those
Bubble Hours, online or in-person by emailing RECafe@mac.com.
In the meantime, your comments are welcome below or on the BostonBubble
where you’ll find another remarkable graph and more insights into why
"real prices are down 11.44% from their peak. This is in contrast with
the 9.48% that the MAR is reporting."
BostonBubble’s analysis seems to confirm this pull quote from an article which appeared yesterday in the Lowell Sun:
Prices also drop; experts say buyer’s market looms
Faucher, director of macroeconomics at Moody’s Economy.com, said he has been
predicting for some time that the local market would come back to Earth.
In the second quarter of 2005, Economy.com determined that the Middlesex
County housing market was overpriced by 19 percent.