Based on a quick analysis of the numbers, the condo market in downtown Boston cooled a bit, last month, if you compare 2006 data to 2005 data.
MLS shows a 16% drop in sales volume, while LINK shows a 20% drop in sales volume (approximately).
Average sales price, meanwhile, dropped from $500,000 to $475,000, while median sales price dropped from $395,000 to $387,000. Average price per square foot dropped from $531 to $501.
Due to a large increase in inventory, average days on market zoomed from 54 days to 139 days.
What does this tell us?
Although the number of sales fell, by a sixth or a fifth, the average sales price dropped just 5%, year-to-year. Median sales price dropped even less, 2.1%, year-to-year.
It appears as though sellers stubbornly refused to lower their prices. They were able to find buyers, but not as many as last year (two years ago, there were a lot more sales than this year or last, by the way).
The increase in inventory sounds scary, and maybe it is, but it is also an accumulation – again, if you have an additional 100 unsold units, per month, over a year you are going to have 3,000 units on the market, instead of 2,000 units.
I don’t know how many of those sellers are “desperate” or unable to sell. I’ve yet to hear horror stories, even in the press, of sellers freaking out because they can’t sell.
Are some sellers simply putting their homes up for sale, at unrealistic prices, and waiting out the market?
If so, would they please stop!!???
(My calculations are open to interpretation, or outright manipulation, so don’t put too much into them. Plus, they aren’t necessarily accurate, as they aren’t taking into account FSBOs and direct sales.)