Posted on Jan. 15th, 2015
Just about a year ago, many experts seemed that the housing market recovery in Massachusetts could not be stopped. The bidding wars were breaking out for various properties, the sales has increased and so as the prices. Along with these things, foreclosures were declining and the new construction of homes has rebounded. All of these made the Massachusetts Real Estate slowly coming together after 5 years from the financial crisis.
Fast forward to the current market’s situation, sales for homes are down and the foreclosures have significantly increased. Many buyers are walking past the pending home deals. Unlike the recovery situation before, constructions of new housing is falling again. To make the situation worst, the Boston real estate price offers for single-family homes fell in September as compared with the situation last year.
For many experts they find the market baffling or somewhat weird as everything seems to be slowing down than how it was the previous year. These experts are wondering whether the change in the Boston real estate is just temporary or would be giving long-term changes.
Though there are these specific changes, there are experts saying that the regional housing market is not seen to be heading a catastrophic nosedive. Overall, it is doing well while considering the current case of the housing recession and bust. As compared to other parts of the country, there are certain areas showing signs of recovery from the recession and also with the home sales.
However, the recovery changes were not seen to last as it was sailing hardly and it can either be predictable and rational. There were many factors that have affected the slow growth rate of sales for homes. Such factors are the following:
Sales of Single-Family Homes Declined
It was seen that the sales for single-family designed homes have declined while the sales for condo has gone higher than how it used to. There were quarters where the sales have declined significantly with the homes though there were many who have predicted better sales in 2014; yet the opposite of this prediction happened.
Low Inventory of Homes Being Sold Within Massachusetts
This refers to a simple math equation: if there is less number of homes that are listed for sales, obviously there is also less number of homes that will be sold. When homes for sale are listed and are included in the inventory, there is a great chance that sales would go up no matter what the Boston real estate price is.
Slow Constructions of New Houses
It was mentioned by experts in Massachusetts Real Estate that the inventories were due to the slow construction of new houses and because of the restrictive laws for local zoning. This was seen as a serious factor affecting the low sales of homes within the Massachusetts area.
With making sure that the Boston real estate price is realistic and the development of homes and inventories are met, it is projected that Massachusetts can recover again from this situation and even get the chance to maintain the stable run of the field.