There’s good news for home buyers throughout much of Massachusetts. Standard and Poors released the monthly Case-Schiller home price indexes yesterday, and home prices for the Boston area have dropped 15% since the market peaked in September 2005.
Now, that doesn’t mean that the entire Boston metropolitan area has even results. In fact, areas such as Cambridge and Winchester have actually seen prices increase. Not surprisingly, the number of homes sold in those areas has decreased. Prices are continuing to slide in foreclosure affected areas such as Lynn and Lowell. The foreclosures really pressure the prices in those markets.
Prices in some Cape Cod communities continue to rise, but the house on the Cape is becoming more possible in some areas. The median price of a house in Hyannis is now $205,000 – an entry point into the housing market many buyers thought impossible just a few years ago.
What does this have to do with condo buyers in Boston?
It says that prices are now at a level where buyers are finding that housing is not unaffordable. We’re seeing prices that have not been seen since 2003, in many places. And we have low interest rates for qualified buyers. But, even with this sharp housing correction, Boston is a desirable place to live. You come here to school, to work. You have family here. And so do lots of other people – which means that there’s a consistent demand for housing. If you buy now, you have the opportunity of a low price, even on new construction, even on luxury developments. And your investment holds value.