Homes Sales and prices dropping at staggering rates

This chart recently released from Banker and Tradesman clearly shows the decrease in the number of sales from last year to this year. On average in the state sale prices have dropped 9% since the same time last year, locally we have seen more of a 13% - 15% decrease.The price drop is the steepest monthly decline in 18 years, according to The Warren Group, parent company of Banker & Tradesman.

Some analysts predict that market conditions will continue to deteriorate, as foreclosure activity mounts and more homes are sold at discount prices.

It's a simple supply-and-demand situation. We have an oversupply of homes for sale and unfortunately we have dwindling demand, not because interest rates are so high - they're not - but because buyers are cautious, especially first-time buyers. They don't want to buy a house and find out a year later that the price is 10 percent to 15 percent lower than they paid.

We have a lot of people sitting on the fence because they are concerned with what's happening with the economy.

But what we do have is opportunities. Every market has a cycle and every cycle is an opportunity for someone and this is a cycle for first-time buyers, especially because of new conforming loan rates!

Homeowners who are selling properties that appeal to first-time buyers also can benefit. You'll get less for the home you're selling but you'll be paying less for the home you're buying.

Bobbie Files
www.BerkleyMass.com
bobbiefiles@kw.com