If you have been paying attention to the financial news lately, you know that the volume of houses sold has dramatically slowed. Though numbers of sales have slowed, prices haven't cascaded downward, they have mostly just held stagnate depending on location and housing type. Check out the stats below from the multiple listings service that are a good case study of the Boston bubble. This is on Sold Beverly Condos only.
BEVERLY
(6/2004 - 6/2005)
Condominium Listings: 172 Average List Price: $279,454
Average Sale Price: $273,780 Average Market Time: 71.39
(6/2005 - 6/2006)
Condominium Listings: 122 Average List Price: $296,323
Average Sale Price: $289,718 Average Market Time: 124.22
I love numbers because they tell so much with so simply. Since this is about the bubble, I will try to stay focused but still take a close look at the numbers above.
On average, condos sell for about $7,000 less than their list price.
The bubble deflation is evident in the average market time.
It increased dramatically from 71 days to 124.
The number of sold condos drastically dropped by about 30%. But in the midst of all this bubble bursting talk, Beverly Condo values actually increased over last year by 5.82%. Therefore, in the midst of Real Estate "devaluation," property values increased. GET EXCITED home owners, things are not as bad as the papers say, especially on the north shore of MA.
To home buyers, I also say GET EXCITED. There is a large amount of inventory on the market. Even though prices haven't fallen, making a home cheaper for you, it is a buyers market. You have power to negotiate, to shop, to get the terms, closing date, and other desires you want. Remember, everything is negotiable.
Interest rates seem to have stablized as well. There are many, many financing programs from many different brokers available.
The internet gives buyers more information and power than ever before in history. All of these factors and more, add together to give buyers a large amount of influence. Buyers should be excited too.
The bubble is deflating, not crashing or over inflating further. This is great for the economy, for MA, for the north shore, and for you, whoever you are. (unless you are an anarchist, sorry.)
Be excited that real estate is not bursting, just letting out some air.
SALEM
(6/2004 - 6/2005)
Condominium Listings: 482 Average List Price: $278,311
Average Sale Price: $273,216 Average Market Time: 57.18
(6/2005 - 6/2006)
Condominium Listings: 442 Average List Price: $309,722
Average Sale Price: $302,782 Average Market Time: 110.90
DANVERS
(6/2004 - 6/2005)
Condominium Listings: 134 Average List Price: $285,007
Average Sale Price: $279,329 Average Market Time: 61.22
(6/2005 - 6/2006)
Condominium Listings: 109 Average List Price: $281,550
Average Sale Price: $273,540 Average Market Time: 98.50
