November 27, 2005

Mass. housing boom over, homeowners, agents say


Thanks to Boston reader Katy for this article today... I feel sorry for those poor buyers who bought at the top - they must be in such pain to read this stuff every Sunday...

Massachusetts' five-year housing boom, which lifted the average home price by 71 percent and bolstered the local economy, is over, according to homeowners and real estate agents.

Rising mortgage costs, an outgrowth of 12 consecutive interest-rate increases by the Federal Reserve since June 2004, have cooled demand, they said. Prices have dipped, and sellers are rushing into the market even as open houses attract few prospective buyers.

''It's definitely a buyer's market, and it's likely to stay that way at least through the first half of next year," said Alan Kosinski, 49, of Stoughton, an investor who has bought and sold about 800 properties over 20 years. ''People who have to move are going to be selling at a discount or a loss."

6 comments:

skytrekker said...

It is over in Mass. especially in the eastern part of the state from Newburyport south to metro Boston, south to Plymouth, Brockton, New Bedford, Fall River and on to Cape Cod- it may last a wee longer in metro Springfield, but beyond that IT IS over.

Katy said...

This article was buried on the last page of Saturday's Boston Globe Local section. The biggest housing boom in the area's history is over? The one that's been keeping the local economy afloat for 5 years? That one? I would have thought news of this magnitude would be featured on page one...

41cadillac said...

Interesting comment about humility and General Motors. Perhaps real estate agents and speculators will learn the humility lesson also.

By Richard J. Newman:

General Motors, most experts believe, will eventually emerge as a smaller, more competitive company. It may even return to robust health one day. If GM is ever going to be a true world-beater again, however, it is first going to have to learn the lessons of humility. That may be the new American Experience.

keith said...

katy - think of all the advertising dollars the real estate industrial complex contribues to the globe - and all other local papers

the editoral side must hear it from the business side whenever they run a bubble story - thus it really is up to the independent press *the blogs* to get the story out in its entirety

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Housing Boom Gone Bust said...

I'm not sure that 'housing panic' is the appropriate characterization but we're getting there!