Boston Area Real Estate Market on the Decline?

The Boston, Massachusetts area real estate market has been notoriously brisk without any sign of letting up. Recent data show that we may be seeing the early signs of change. Buyers and sellers should alert themselves to take advantage and prepare for these changing times.

(PRWEB) July 10, 2004 -- The Boston area has seen one of the strongest real estate markets in the entire country in the past few years, even at times surpassing the California market. Appreciation rates had outdone the stock market in record numbers and especially the Cape Cod single family home values had more than doubled in a one-two year span.

Could it be that changing times are upon us? There are several signs to suggest this very phenomenon. The average time that it takes for a home to go under contract is increasingly extending into a longer market time according the data from the Multiple Listing Service. In 2003 to early 2004, a seller could expect no more than 30 days until closing on their home; the numbers now reflect closer to a 69 day timeframe. Home prices have risen very quickly and the Boston West area in particular has seen a greater number of price reductions in the last month (June-July 2004)than for the same period of time last year. The average home in Norfolk County (towns south-west of Boston) is a whopping $555,025 and sellers had been getting within 2% of their asking price. First and even second-time buyers have often endured recent job losses and can barely manage to afford these home prices. Fewer buyers seem to be househunting overall which certainly has created the beginnings of a buyers rather than a sellers' market.

It will prove interesting to see how real estate fares as we continue into the upcoming election year. A crash in the market is unlikely according to the experts but a leveling out certainly seems to be taking place.