It’s been a tumultuous ride for the real estate market in Metrowest for 2008. The average price per square currently stands at $60 a foot which represents a 65.8% decline over the past 12 months and the average sales price stands at $80,000 which is 71.8% lower than it was a year ago. I don’t know about you, but I feel like I got kicked in the stomach.
Looking at these two stats, it’s not lookin good over here in Metrowest but there are some good things to take away. First, I believe most of this mess is from the numerous apartment conversions which became popular back during the boom times. It’s a holy mess for those types of properties and if I were your agent, I’d tell you not to touch that one with a 10 foot pole. So, really the apartment conversions are skewing the numbers a bit.
Even with these conversions, the inventory is down to only 16.4 months with is way lower than the 2 year mark it’s been hovering around. Let me also point out that pending home sales are up 390% over the past year. On the surface, it sounds like a good thing, but any one hear of thing called a short sale. It’s precisely the reason there’s so many pendings. The banks are not set up to deal with this and thus take forever and a day to give an answer on an offer. So that means the inventory number is a bit off as well, but I’m looking for good new here… give me a break.
My guess is that these numbers would be a lot better if the apartment conversions were excluded. Forgive me if I offended you and you own a conversion. We don’t have to agree on everything. I told a friend of mine he’s retarded for wanting to buy some conversions during the boom, and I’m sticking to my opinion.
There’s some great communities in Metrowest…. it’s just that the apartment conversions are a mess.