Dive Brief:
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Massachusetts’ booming housing recovery has taken a nosedive, according to a report by real estate research firm the Warren Group.
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A year ago, house hunters were engaging in bidding wars for homes in some Bay State cities, sending prices, sales and housing starts soaring. Today, sales are dismal, foreclosures are on the rise and home construction has tapered off, the report said. Compared with the third quarter of last year, this summer’s sales of single-family homes were down 4% and sales of condos dropped almost 10%, the report said.
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In an article about the study’s findings, The Boston Globe quoted Realtors as saying they are “confused,” “baffled” and “surprised.”
Dive Insight:
Although economists have said they can’t predict whether the state’s reversal of fortune is temporary or long term, most have confidence in the region’s housing health, saying that today’s home prices there are within 15% of their pre-recession peak—compared with 30% nationally.
Indeed, it could be that the buying frenzy of 2013—and not the housing market’s current condition—was the blip. As one Harvard University economist told The Globe, “It’s a perfectly respectable recovery compared to the rest of the nation.”