Real Estate Market in Massachusetts Remains Strong, 1st Time Home Buyers Tax Credit

PRLog (Press Release) - Oct 14, 2009 -
Veteran real estate analyst Walter Hall, Chairman of HouseSavvy (housesavvy.com), has released his latest findings on real estate market trends throughout the Greater Boston area (the six counties surrounding Boston and their 167 towns and cities). Although data indicates the Greater Boston real estate market continuing as “one of the strongest in the country” with a 14.22% increase in sales since March, he has noted an anomaly that he attributes to the First Time Homebuyer’s Tax Credit.

HouseSavvy research observed a 10.5% drop in average sale price in the Greater Boston Market over the last several months – from $428,524 in June to $383,402 in September – a trend he attributes to the First Time Home Buyers Tax Credit.

“This reduction in average sale price comes within the same pocket of time that the tax credit has been in place,” said Hall, noting that most buyers taking advantage of the stimulus program purchased lower-priced homes, thereby bringing down the average sale price. However September year- to- year has seen the average sale price only decline 3.7% - from $398,450 in 2008 to $383,402 this September.

Parenthetically, several senators are presently urging an extension of the First Time Home Buyers Tax Credit, a measure that if approved will likely have additional ramifications on future average sale prices throughout the country.

“Despite this drop in average sales price, the trend continues to be positive for the region and the market,” says Hall, who said that the Greater Boston market ‘bottomed out’ at the beginning of 2009 after nine straight months of sales declines and six months of declining average sale price. Hall noted that, “Since March of this year sales have increased by 14.22% and even factoring in historic seasonal activity this is a respectable increase.”

Greater Boston sales activity up 7.1% year to year

Sales activity in the Greater Boston area was up 7.1% in September year-to-year compared to the national increase of 1.2%. The year-to-year average sale price in The Greater Boston Market is down 3.7%, while the national average is 8.8%.  

5.29 month supply of listings indicates balanced market for sixth straight month

Hall is also pointing to a 5.29 month supply of listings for the Greater Boston Market – good news for home sellers.  This data indicates a “Balanced Market” for the sixth straight month.  Year-to-year the supply of unsold listings is down 23%, with the supply of unsold listings lowest in Suffolk and Middlesex counties at 4.18 and 4.49 months respectively.

The HouseSavvy Research department compiles and analyzes local, regional and national real estate and mortgage data on a daily basis and reports it monthly.  HouseSavvy documents sales activity, average sales prices and the supply of unsold listings in 12-month and three-month overviews. Hall said that the low level of unsold homes in Greater Boston (5.29 months supply) is about half that of the national supply, noting “The supply of unsold homes is a more accurate barometer of the health of a market even than sales activity or average sale price.” He said, “When comparing local and national data it should be noted that national data availability lags local data by approximately 30 days, but it provides a reasonable indication of current trends that don’t normally change much from month to month.”

HouseSavvy publishes its proprietary “Market Snapshots” review, which each month spotlights two towns/cities within each county in the Greater Boston area, including Bristol, Essex, Middlesex, Norfolk, Plymouth and Suffolk counties.