Will “Last Hurrah” cause homebuyers to be “Haunted by the Housing Market?”


In 2002, there were early indications of a housing bubble so the Real Estate Cafe prepared the slide show above —Haunted by the Housing Market — to document why we believed housing had reached a tipping point.  Seems some heavy hitters are seeing signs again of a “significant change in direction in August” causing the chief economist for the National Association of Realtors, to say:
“…fear of rising rates hurried people into making a decision (in June),”
Today, readers of Boston.com’s real estate blog are exchanging arguments about whether recent homebuyers will regret the prices they paid during the past two quarters.   Out of frustration, one asked, “Is there ever been a good time to buy?”  Here are some flashbacks from the past decade to help individual homebuyers answer that question.  To exchange perspectives with other potential buyers, we’re hosting our next “Bubble Hour,” Tuesday, October 8, 2013 and invite you to participate online or in person.  Contact us directly for more details on that event, or to help update our slideshow before Halloween 2013!

FLASHBACK:  Excerpts from selected Real Estate Cafe blog posts

August 19th, 2006

Reading some assessments of the current Massachusetts housing market, one wonders if industry spokespersons are taking their cues from Rod Serling classic, “The Twilight Zone.”  Arguing “that prices are not declining sharply in response to falling sales,” one recently told the Boston Globe that “I’m seeing some concessions from sellers, but not a whole lot.”  Last August when the same spokesperson was asked by WBZ-AM radio talk show host Paul Sullivan if buyers were in danger of buying at the height of the market, he said no.

February 14th, 2007

Savings of $100,000 or more on individual home purchases were relatively common across the top 25 most expensive housing markets in Greater Boston in 2006, and according to one MIT professor, savings are likely to continue in 2007.  Professor William C. Wheaton predicts housing prices could decline another 20 percent in Greater Boston and other markets over the next two to three years.  Does that mean that homebuyers in the most expensive communities will see even more price reductions in each of these categories in 2007?

October 28th, 2008

Between September 26 and October 26, 2008, 372 single family homes across Massachusetts were listed in the MLS at or above $2.85 million. One in four of those homes, or 94 listings, have reduced their original asking price by $1,000 or more per day; and one in seven, or 52 listings, have reduced their original asking price by $2,000 or more per day.

What does that mean to you? If you have been patiently waiting for prices to fall, there has been a real financial benefit. In fact, 47 home buyers have effectively saved $100 per hour by waiting!

Posted in Bubble Hour, Buyer agent, Defensive Homebuying, Housing bubble, Housing forecasts, Luxury buyer agent, Million Dollar Markdowns, Price trends, Savings & Rebates, Seasonality

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