Borderline prediction comes true: Housing prices decline

A few weeks ago I criticized the Daily News Tribune's Janet Spiegel for helping realtors hype the market despite evidence that prices are falling (" News-Tribune sucks up to the realtors ... again"). I also wrote about a potential housing bubble in Newton back in June:
... There has to be a cutoff point, at which people say, it does not make sense for me practically or as an investment to buy that house at that price, considering the amount of money my family has now, and will make in the future. When one considers that the monthly mortgage obligation for a young family buying a single family home in Waltham or a condo in Newton will likely be over $3000, and rental prices are half that, the choice of whether to rent or buy becomes much clearer.

I think prices have reached that threshhold. I have noticed in Newton particularly that there are lots of properties on the market that have "for sale" signs for months, and I know some people in Newton who had to lower the asking price on their house by $50,000 and still it hasn't sold. ...

It looks like I was on the right track. The Globe today has an article about housing prices falling across the region. This is tough for people that are selling now, or bought recently and want to move in the next few years, but it had to happen sometime.


Blogger John Keith - radically.DiFFerenT said...

Yeah? How'd this work out?

Pretty much, Newton prices continued to rise, and are probably just off their peak, today, in 2008.

7:25 PM  

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