The full 2011 prices of residential properties in Boston, Massachusetts, including pre-foreclosures, are projected to record a double-digit decline. According to housing market analysts, although various reports from housing data gatherers mostly showed only around 1% of decline every month, the latter part of the year will see prices dropping by more than 10%.
According to local economists, foreclosed and distressed properties in Boston are likely to continue rising this year, which will result in the further depression of housing unit prices. For the metro area, housing analysts are predicting a 13% decrease in residential prices by the latter part of 2011. They stated that city home prices have been declining by an average of 1% for the past four months, which puts it on course for a double-digit decline before 2011 ends.
Distressed properties in Massachusetts have eased somewhat in the past few months, but like other regions in the U.S. that have shown signs of recovery, majority are facing a full year decline of at least 10%. According to analysts, areas like San Francisco, which has improved its foreclosure data, is likely to record a 15% price decline by the end of the current year.
Economists have stated that the biggest pull in prices will come from the lower-end of the market or from segments where pre-foreclosures and other residences are being sold cheaply. For lower end residential properties in Boston, analysts are expecting a price decline of over 20% before the current period reaches its end. Other metro areas expected to record considerable declines in lower-end home prices are Chicago at 28% and New York at 16%.
The good news is that a further drop in prices will likely convince a lot of reluctant buyers to buy distressed homes for sale, which will help ease the unsold property backlog of the metro area. However, analysts also stated that the economy should also improve for homebuyers to take advantage of the cheap prices of residential properties.
Majority of economists attributed the projected price declines to the remaining huge supplies of pre-foreclosures and foreclosed homes and to the tax credit that artificially inflated sales figures during 2010.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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