Monday, April 30, 2007

Newest Release by Federal Reserve has Promissing Signs for Greater Boston's Real Estate Market

In the April 25th release of the Beige Book , the Federal Reserve report shows promise for the greater Boston's real estate market. Noted in the Summary that: " In contrast, the Boston District reported that the volume of residential sales across New England shows signs of increasing, though prices remained below 2006 levels."

More specifically, the Boston section of the report says:

"Residential Real Estate

Across New England, the volume of residential sales shows signs of increasing. In Massachusetts, sales volume increased year-on-year in both January and February. Single-family home sales reported from Massachusetts multiple listing services increased 1.2 percent in February from a year earlier after a double-digit year-on-year increase in January. Contacts in New Hampshire and Maine also cite signs of improved sales activity. Increased sales volume and lower overall inventory has led to improved supply conditions in regional markets. In Massachusetts, the total number of listings decreased 17 percent from February 2006 to February 2007. At the current pace of sales, there is around 12.3 months of supply in the Massachusetts market, down from over 15 months in February 2006. Market conditions, however, continue to favor buyers across the region, as supply exceeds what contacts feel is balanced in most locations.

Though sales volume is increasing, prices remain below their previous year levels. In Massachusetts, single family home prices were down in February from the previous year's levels by around 4 percent while condominium prices were down 1.8 percent. Contacts in Connecticut, Maine, and New Hampshire also report year-on-year price declines.

Overall, contacts are encouraged by recent changes, suggesting that New England residential markets are returning to what they term more normal conditions. "

You can read the full APRIL 25th REPORT HERE.

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