From the Boston Herald:
New figures show 2006 was the worst year for Massachusetts real estate since the 1990s housing bust.
Market tracker The Warren Group yesterday reported that total 2006 sales volume fell back to 1995 levels, while prices dived more than in any year since 1990.
“Sales are still falling . . . and prices are still under pressure as buyers and sellers are sorting out the market,” Warren Group CEO Tim Warren said.
Warren reported that median house-sale prices fell to $325,000, down 5.8 percent – the biggest one-year drop in 16 years.
It’s also the first time prices have fallen for a year as a whole since 1993.
Additionally, Warren said the number of houses changing hands declined 14.4 percent to just 54,203 properties – the lowest volume since 1995.
Warren added that, despite 2006’s weakness, “we still see this as more of a soft landing than a crash (for houses and condos). We’ll be watching closely in the next few months for signs of stabilization.”
The expert predicts the market will bottom out around mid-2007. “Housing isn’t a bubble that’s bursting,” Warren said. “It’s a market that’s correcting itself.”