The Massachusetts housing market will slump over the next two years, with prices falling slightly, then flattening before resuming modest appreciation, according to an economic forecast released yesterday.
If the forecast proves correct, it would mark the first home price declines since early 1995, when the state was still shaking off the effects of the 1980s real estate bust, and the average price slid 1.4 percent from the previous year.
The new forecast, by the New England Economic Partnership, a nonprofit research group, projects the average price of a single-family home in Massachusetts will decline less than 3 percent in the second half of 2006, before beginning to recover in early 2007. Even then, the prices will rise only slowly, with year-over-year appreciation holding below 3 percent through 2009.
''That would be a very modest downturn," said Alan Clayton-Matthews, the University of Massachusetts at Boston professor who prepared the forecast. ''I think homeowners would be lucky if that is the extent of the downturn."
November 11, 2005
Housing forecast: downturn until '07
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3 comments:
A very modest prediction.
"The Massachusetts housing market will slump over the next two years, with prices falling slightly".
Well!!! my comment is:
There were other number crunchers such as Alan Clayton-Matthews in the Stock Market Bubble. These number crunchers were selling among other stocks Lucent Tech. and Nortel Networks.
For example:
Dec. 2000 Lucent was $99.00 per share.
April 2002 Lucent was under $2.00 per share.
January 2000 Nortel was $100.00 per share.
August 2000 Nortel was less than $1.00 per share.
Today, Friday the 11th, Lucent is $2.78 Per share. Nortel is $3.18 per share.
My point is that there is a phenomenon in the nature of events around us.
All the facts and educated men at one time said that the sun goes around the earth. After all the sun comes up in the east and goes down in the west so the sun goes around the earth. An incidentally the world is also flat.
The number crunchers at General Motors now are re-crunching numbers. " General Motors to Restate 2001 Earnings
AP via Yahoo! News Thu, 10 Nov 2005 3:10 AM PST
General Motors Corp. said Wednesday it plans to restate its earnings from 2001 because an accounting error led the company to overstate its earnings by up to 35 percent."
With complete respect to Alan Clayton-Matthews, the University of Massachusetts at Boston professor:
I disagree with the, "very modest downturn", in Massachusetts.
I am going with the General Motors percent. 35% drop in house values in Massachusetts within 2 years. So. Be. It.
nice to be able to save articles, quotes and posts - to send back to those who will have pie in their face.
however, with many of these talking heads and writers (see cnbc all day today with the real estate pros saying there was no bubble?), you have to look at the source - what are they trying to protect, what can they gain
For me, I sold my house, I have no stake in this bubble, except trying to help my readers. And I state the obvious - we're in a bubble, it's popping as we speak and it's going to be horrific
what kind of folks are out looking for houses this weekend? Ones without access to newspapers, tv, internet or thought?
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