In what would be an unfortunate occurrence for buyers, some economists are saying that Boston home prices may have moderated.
So far, it looks as though we have seen about a 2% drop in sales prices, in the area, over the past year (not adjusting for inflation, but it never is).
[A] recent detailed study of 379 US metropolitan markets by a well-regarded Pennsylvania consulting firm, Moody’s Economy.com, says that while home prices are falling nationally, the worst may be over for Boston area homeowners. Prices may not rise any time soon, the study said, but they are probably not going to fall much further.
Boston “is very close to the bottom,” said Mark Zandi, chief economist for Moody’s Economy.com. “If the price declines aren’t over, they’re pretty close to over.”
Other areas of the country are expected to fare much worse, with prices dropping 9-15% in Las Vegas, Phoenix, and parts of Floria.
Much of that drop can be attributed to new construction and speculative purchases. Boston, on the other hand, did not have as much over-building, and lower speculation.
While prices may have moderated, we still have a glut of homes on the market. I feel as though a good number of these are listed by sellers looking for full-priced offers, and unwilling to negotiate. These sellers will either drop their prices, gradually, or take their homes off the market until conditions improve, perhaps next spring.
Source: Housing prices put at or near low – By Kimberly Blanton, The Boston Globe