March Market Update: Massachusetts North Shore Housing Trends

In January of 2007, I wrote a blog entitled "Knowing Exactly When the Market will Change" that received many comments, replies and supportive feedback. In that blog, I stated that it is my belief that as soon as we have 3 consecutive months when more inventory is going off (under contract) than is coming on (new listings) we can once again expect to experience an appreciating market.

Hot off the "Actual Statistics" press, it is now time for my March update (February 2008 statistics) of how the real estate market is faring in my area of the country - the Massachusetts North Shore, north of Boston. The area of observation consists of 22 towns on the North Shore and considers only SINGLE FAMILY homes for comparison purposes.

So how did we do in February and thus far this year? This February, 357 single family homes came on the market on the North Shore and 169 homes went under contract. Once again more listings came on than went off the market: +188 during the month of February. In January, that difference was +150 for a total of +338 so far in 2008.

So, what does this mean in general for our market area?

It means that we remain in a DEPRECIATING market and will remain there until this trend reverses. The message: Real estate values will continue to decline until this trend reverses.

Part of the solution? Sellers need to recognize that it is no longer 2005 or 2006 or even 2007 and price their homes ahead of the declining price curve. As you can see, many homes are still selling, but they are the ones that are priced properly and AHEAD of the declining value curve. I will provide another update again in the beginning of April (for the month of March) and we'll take a look and see if the market is changing or if we can expect more of the same for a while.

Regards,
Jay Burnham, VP
Coldwell Banker Residential Brokerage
North Shore, Massachusetts

What's Your Priority?

Do you remember the sayings, "Don't put the cart before the horse," or "Which came first – the chicken or the egg?" They have to do with priorities, don't they, like deciding which task to accomplish first?

Those same sayings can apply to buying and selling homes. If you presently own a home, and plan to buy another, which do you do first – sell your existing home or buy the new home?

If you sell before you buy, you might worry that you could be left "out in the cold" with no place to live. But if you buy before you sell, you may end up owning two homes at once. It has all the makings of a dilemma, doesn't it?

Try this solution. First, measure you personal commitment to purchasing another home. If you are firmly determined to change your residence, then ask yourself this question: Am I financially able to purchase a second home while still owning the first one? If your answer is "No!", consider selling your present home first.

Selling your existing home first will reveal the solution to the dilemma. First, you will have no double financial pressure. Second, once your home is sold, you will know exactly how much money you have to spend on another home, and when you will need to move. In the current market there is generally a good supply of homes available in any city or town, so you can choose your new home with ease.

To get started, call your professional Realtor® for a free market analysis of your home's value. You'll soon be on your way to that new home of your dreams.