Are Red Hot markets cooling?

Posted by: Dean Foust on June 30, 2005

On surface, the latest report on national home sales was good: While sales of existing homes sales slowed in May (7.13 million vs. 7.18 million in April), they were still at the second-highest level on record with home prices hitting an all-time high.

But look at some of the hottest markets and there are signs that things may be cooling. Consider Boston and Massachusetts at large. The Massachusetts Association of Realtors said sales of single-family homes were down 11.1% in May, following a 10% decline in April. That’s the lowest number of sales in May since 2001. And inventoriesof unsold single-family homes rose to the highest levels since 1997. Frankly, the only thing that’s propping up the Boston market are sales of condos, which are on fire — but are probably the result of rampant speculative buying by investors, not families looking for shelter.

Reader Comments

martin

August 12, 2005 2:22 PM

It all about marketing and what you have to market. The days of just selling square footage and nothing else may be over. But unique properties will continue to hold high prices especially in areas like New York. For buyers don't buy fades but quality. Check out SOFI in Manhattan. A small area from 32nd to 38th street on Fifth Avenue. There are four residential buildings there that I know of (445,425,372 and 325 Fifth Avenue). Does not take a genius to figure out a Fifth Avenue address will always be a solid investment.

Tim / Tampa

August 17, 2006 10:36 PM

With real estate markets cooling and over one million realtors in the USA and more worldwide, and a residential property market that has seen four years of growth, competition for home buyers and sellers has become fierce.

Tim/Tampa

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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