Beantown Market Still Simmers
e index indicates that home prices in greater Boston peaked in September 2005 and have decreased 11.9 percent since. This peak was earlier than many other metros. For example, Las Vegas peaked in August 2006 and has declined 31.4 percent since its peak. The PMI Group predicts an 11.8 percent risk that the Boston single-family…
e index indicates that home prices in greater Boston peaked in September 2005 and have decreased 11.9 percent since. This peak was earlier than many other metros. For example, Las Vegas peaked in August 2006 and has declined 31.4 percent since its peak. The PMI Group predicts an 11.8 percent risk that the Boston single-family housing market will suffer a 20 percent decline from current prices. This compares favorably to Las Vegas and Naples, Fla. at 88.1 percent and 97.6 percent, respectively. After a dip in June related to a 90-day moratorium, foreclosures are up more than 22 percent over the previous 12-month period statewide with Nantucket, Dukes, Suffolk, Essex, Middlesex and Worcester counties hardest hit.The National Association of Realtors states that existing homes sales are off 22.2 percent from first-quarter 2008 versus first-quarter 2007.Greater Boston continues to provide strong multifamily opportunities to long-term investors, as evidenced by recent institutional activity. The Boston area’s real estate cycle often precedes other markets, earlier to decline, earlier to rebound. Short-term weaknesses in rental growth and vacancies reflect national trends. Patrick J. Leblanc is an advisor for Sperry Van Ness Comvest Realty, based in Northborough, Mass., specializing in multifamily.
