MAR and the Warren Group reported similar August sales stats yesterday. Here are the MAR numbers plotted vs recent historical trends for SFHs and condos in Massachusetts.
Quotes of the month in reaction to these numbers:
1. From the MAR report (PDF here): "Today’s lower prices reflect the moderation in housing demand and rise in the inventory of unsold homes, which has led sellers to make modest price adjustments. With the economy still healthy though, double-digit price declines seem unlikely." (emphasis added) Remember, it was a little over a year ago (8/15/05, see previous post here) that MAR stated "we don’t anticipate any decline in prices in the foreseeable future, unless the economy slips into a recession.”
2. From the Boston Globe (here, and thank you for finally interviewing someone other than a realtor for comment): ``Things are not over in terms of the price declines," said David Iaia, a senior principal for Global Insight, a Lexington economics consulting firm. Iaia said the state's price declines would continue in 2007 and possibly into 2008, though it is difficult to predict. (emphasis added)
3. From the Boston Herald (here): Warren Group CEO Tim Warren said prices are dropping because “buyers are tasting blood, and they’re starting to get more aggressive (about) pricing.” (emphasis added)