Housing Market: Mixed Signals about Falling Prices for February

Two reports have been issued, one by the Massachusetts Association of Realtors, and the other by the Warren Group, but they give opposite responses to the housing market sales.

According to an article in the Boston Globe, Mass. Home Prices Still Fall, available at, http://www.boston.com/business/ticker/2007/03/mass_home_price.html, the reports are clear that “the February median sales price for a single family home in Massachusetts fell just over 4 percent.”

Massachusetts Association of Realtors, reports that sales for detached single family homes in the state rose 1.2 percent, but the median selling price fell 4.1 percent. In addition, condo sales rose 4.5 percent on a volume basis, but the median condo price in February 2007 fell 1.8.

The Warren Group, to the contrary reports, sales of single family homes in Massachusetts fell 1.4 percent, and the median price for a single-family home fell 4.6 percent. Likewise, condo sales fell 3.2 percent, and the median condo sale price fell 4.8 percent.

I, on the other hand, am 100 percent sure that housing prices will eventually rise and that and that the volume will either rise or fall, but will not stay the same.

What do YOU think?

Comments

[Boston Condo Guy]

There has been a lot of press on the Warren Group report, unfortunately, its review of 2006 (non current) numbers puts a bitter taste in people's mouths for the 2007 (current) state of the market.

2007 is looking quite solid for downtown Boston based on statistics we have seen thus far when looking at first quarter 2006 vs. 2007. The number of condos sold in downtown Boston in 2007 is slightly higher than 2006, days on market has increased, inventory is lower, and average sales prices have increased 6%.

Unfortunately, the Warren Group reports a rather negative story about a market (downtown Boston) that is rather strong as it moves through 2007 (versus 2006).