NORWELL, MA…Veteran real estate businessman/
According to data compiled by Hall, the number of Unsold Listings over the past three months in the Greater Boston market area – including Bristol, Essex, Middlesex, Norfolk, Plymouth and Suffolk counties – has dropped 20% from an average 9.6 month supply to a 7.7 month supply, indicating a trend in the positive direction.
“Most real estate professionals agree that a six month supply of unsold homes indicates a Balanced Market with sellers and buyers about equal and home values holding steady,” said Hall, noting that while the general trend in the Greater Boston area is toward improvement, the South Shore region remains a Buyers’ Market to a larger degree.
The listings supply in Bristol and Plymouth counties were at 10.4 and 9.6 months level respectively in December 2008; while these numbers reflect a decrease from three months previous, the other four counties in the Greater Boston area have experienced a larger decline in their monthly supply of unsold listings.
Hall’s data also indicates that the Average Sale Price of homes in the Greater Boston area decreased 12.4% year-to-year, with the largest reduction in Bristol, Essex and Plymouth counties, with decreases of 16.3 %, 17.4% and 18.9% respectively. A drop in Average Sale Price indicates that buyers are purchasing homes at prices that, on average, are less than they were previously. A number of causes can create this scenario – the amount that a buyer can afford based on the sale of a previous home likely account for a significant number of homes selling at reductions, as does the market’s current appeal to first time buyers.
Said Hall, “Historically, mortgage affordability has rarely been better, and it appears that it will continue to improve, primarily because the median price of homes has declined.” Despite the decline, however, Hall noted that home prices in the region are still strong compared to other parts of the country.
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