There was a slight dip in both sales and prices in the Bay State real estate market in 2011, a trend that is likely to continue in 2012, according to a recent report from RE/MAX of New England.
Sales of single-family homes dropped 1.8 percent in 2011 compared to 2010 and prices declined .4 percent, according RE/MAX of New England 2012 Housing Market Outlook & Forecast.
“You hear a lot of people say it’s the new norm in real estate. We are getting used to the market in a little different production light,” says Jay Hummer, executive vice president and regional director of RE/MAX of New England. “There’s not as many units sold as the glory years of the early 2000s.”
Massachusetts remains a solid market despite the slight decline in 2011 because of the relatively low unemployment rate, the number of universities and the blossoming biotech industry, says Hummer. In addition, the luxury market has remained robust in the cities and many affluent suburbs are booming.
Even though prices may not skyrocket in the near future, Bay State real estate is a good long-term investment, especially considering the low interest rates and the decrease in prices, says Hummer.
“It’s an unbelievable time to purchase real estate as an investment or a second home,” he says. “It’s one of those real estate markets where people are going to say ‘I wish I had bought more real estate back then.’”
The 2011 market around New England
Single-family home sales dropped 8.4 percent from 2010.
Single-family home sales dropped 4.21 percent from 2010.
Single-family home sales increased .7 percent from 2010.
Single-family home sales dropped 1.4 percent from 2010.
Single-family home sales dropped 1.5 percent from 2010.