South Shore Real Estate Update Nov. 2007 #2

Here's what is happening on the South Shore.

The number of single-family homes for sale has decreased slightly since last year*. A key indicator of the health of the market, inventory is tends to build up when buyers sense that prices are too high or more sellers are coming to the market than the market can bear. This year-over-year decline tells me that the climate is improving from last year.

Falling sales volume and median prices, on the other hand, continue to be the flip side of any positive news. Where volume and prices go from here will depend on many factors, but with mortgage rates still at historic lows, this may well be a very good buying opportunity.

Sellers who saw the values of their home, or their parents home, skyrocket

from 1994 to 2004 are still having trouble coming to grips with the new scenario.












Chances are that the market will stabilize or bottom out by 2008,

but you should be ready for anything. Either way, do not expect prices to rise tomorrow just because they are falling today, and as always, think long term. Remember, the market you are selling into is the same market you are buying, and in the long run (5-10 years), this correction will probably look more like an opportunity. Things balance out.


* MLS Property Information Network, Inc.


Can you think of someone who needs a Realtor? Please feel free to pass this on to friends and family.