Real Estate is Local; Know Your Market

The Case Shiller index was released and although Boston performed quite well compared with other parts of the country, Newton performed even better. Here are the numbers; the median single family home price dropped 20.2% during January in all of Massachusetts when compared to sales during the same period a year earlier. Boston prices were down 1.3% from the year earlier, the best performing city of the 20 tracked. Newton was up about 16%! The median price of a home during the month of January 2008 was $667,500, January of ’09 was $800,000. The number of sales dropped from 44 in ’08 to 25 in ’09.
Do I really think the market is up 16%? No I don’t, but the numbers don’t lie. I feel the biggest impediment to an absolute recovery is the high end market. The high end market is languishing for sure, there is too much uncertainty with the stock market, job security, and bonuses to propel those buyers to take the plunge. On a positive side we are seeing a definite increase in relocation business. Some of the Universities and hospitals are hiring.
My final word is know your market.
Here is the link for the Globe article.
http://www.boston.com/business/markets/articles/2009/02/25/house_sales_battered_again_in_january?mode=PF

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