Yesterday The Warren Group issued their November Home sales report and it wasn’t pretty. The number of sales recorded dropped 18.4% compared to November 2007. Prices on average dropped 16.7%, the steepest decline in 20 years. Here are the Newton numbers:
28 sold $772,000 Median Price
19 sold $757,500 Median Price
Volume down 32%
Prices down 1.9%
Volume is down 32%, Newton has relatively little inventory, December numbers are not in yet, but they appear to be down also. Prices will have to decline somewhat to bring buyers back. Only when buyers feel financially secure, as is in job secure, will they start buying again. The number one thing that drives housing prices is income.