Wednesday, January 25, 2006

Sixth Busiest December Ever!!!

MAR has the December market numbers (pdf) out for the Bay State.

December 2005 sales volume ranks as the sixth busiest December on record for single-family home sales in Massachusetts, an indication that the market is merely returning to a more normal sales pace after experiencing an accelerated pace for much of past three years.

Prices are up marginally year over year, and condo sales continue to run stronger than SFH sales, at least relative to historical trends. The real news is a return to ballooning inventory (the telling data are plotted last).

Interestingly, the MAR seems perturbed about the bubble chatter:

False assertions of a price bubble in the local market also have prompted some buyers to delay their home buying decisions .

Their reassurance for those in doubt:

Despite concerns about an inventory glut, there’s a healthy balance between supply and demand at the present time.

Truth or fiction? They state that equilibrium in MA occurs at 7.5-8.5 months of housing inventory. OK, but in one year inventory has surged from 5.8 to 8.3 months for SFHs, and from 6.4 to 9 months for condos. Think inventory is going to magically stabilize now that we've reached a 'balanced' state?

Here are the numbers:

In my opinion, here's the real news - check out the shocking surges in December inventories.

3 comments:

AsgardRagnarok said...

DT,

Awesome site! I will be back often.

AsgardRagnarok said...

Check out this listing.

Price reduced $100,000

http://www.isoldmyhouse.com/ismh/properties?action=ls&adnum=94894

DT said...

asgardragnarok: Thanks for the positive feedback. Have you checked out the new feature on Zip Realty that allows you to search for homes with reduced prices? It's an eye opener - for most zip codes I looked at around Boston 25-33% of listings have been reduced at least once.