Housing Demand Eases, as Home Prices Strengthen Across Greater Boston

Housing Demand Eases, as Home Prices Strengthen
Across Greater Boston



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Sales of detached single-family homes and condominiums in metropolitan Boston declined for a fourth consecutive month in October compared to the same month one year ago, as weak job growth, tight credit and a slowdown in household formation have dampened buyer demand over the past 12 months.  Single-family home sales fell 23 percent to their lowest October level in 15 years, and condominium sales decreased 32 percent from the preceding October to their lowest October level since 2001.  Pending sales were also down sharply last month, declining 19 percent in the detached single-family home market and 30 percent in the condo market, an indication that sales activity could remain slow until the start of the spring selling season. 
Despite the softening in buyer demand, median selling prices rose over the past 12 months by 10.7 percent in the single-family home market and by 5.4 percent in the condo market.  It’s the eighth consecutive month the monthly median price for single-family homes has risen on an annual basis and fifth straight month the monthly median price for condominiums has improved from the comparable period one year earlier.  This strengthening in home prices offers evidence that home values have finally stabilized after a five year market correction.  In addition, today’s low-market rates are enabling home buyers to purchase more home for their money, and trade-up buyers make up a larger share of the market today than one year ago and they have greater purchasing power than entry-level buyers.

SOURCE: Greater Boston Association of Realtors http://www.gbar.com/

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