Greater Boston real estate market remains strong in 2010

Published on Tuesday, March 16, 2010

Sales activity up 14.6% year-to-year compared to only 7% nationally. Average sale price up 12.4% year-to-year compared to only 2.6% nationally.

Data released March 16 by HouseSavvy, an online full service real estate organization, documents that the Greater Boston Real Estate Market continues to be one of the healthiest markets in the country.

One of the strongest positive market indicators is the increase in sales activity which rose 14.6% in February year-to-year: from 1,859 sales in February, 2009 to 2,130 this February. The other strong indicator is the 12.4% year-to-year increase in the average sale price of homes sold – from $370,117 in February, 2009 to $416,099 this February. (The “Greater Boston Market” consists of the 167 towns and cities within the six counties surrounding Boston: Bristol, Essex, Middlesex, Norfolk, Plymouth and Suffolk ).

Other positive indications include unsold home inventory – down 15% year-to-year with a present 5.8 month supply of unsold homes compared to a 6.9 month supply a year ago. According to Walter Hall, founder and Chairman of HouseSavvy, unsold home inventory is the single, best indicator of the overall health of a given real estate market. This figure is derived by dividing the number of unsold listings at the end of the month by the number of sales taking place in that month. Real estate experts have long contended that a 5-6 month supply of unsold homes equates to a “Balanced Market” with sellers and buyers about equal and home values holding steady. Additionally, the foreclosure rate is down slightly (4%) in March year-to-year. This relative stability in rate tends to reinforce the positive market factors previously mentioned .

When asked what he felt most accounted for this strong showing, Mr. Hall said, “the Greater Boston Market is stronger than most other metropolitan markets throughout the country for two primary reasons: first, in real estate, what goes up fast always comes down fast and hard; fortunately, our market did not experience the large, rapid run-up of prices many other ‘hot’ markets experienced prior to the bursting of the real estate bubble. The second major reason is the diversified economic nature of Greater Boston, with its base of the health industry, academia, financial services, and high tech.”

Mr. Hall cautioned homeowners not to be misled by the overall market data. In this regard he said, “the Greater Boston Market should be viewed as a macro-market consisting of thousands of micro-markets made up of broad suburban areas, specific communities and neighborhoods, as well as distinct price ranges. Home values and trends in these micro-markets can vary significantly from the macro-market in which they reside.”


About HouseSavvy
HouseSavvy is a full-service online real estate organization dedicated to all things real estate. Home sellers are provided MLS/Internet Listing Services for a nominal fixed fee; home buyers can register for a “Dream Home Alert” and receive mortgage closing cost rebates; and everyone interested in real estate and home ownership has access to a wealth of real estate knowledge and market activity. Interested parties can learn more about HouseSavvy by visiting www.housesavyy.com. Corporate offices are at 683 Main Street, Norwell, MA 02061