Massachusetts’ real estate could be at bottom: experts
Dec 2010 29

The latest S&P / Case-Shiller real estate index was released, yesterday. It showed continued “weakness” in single-family home prices, both nationwide and locally.

While the Case-Shiller index has some huge qualifiers for its index (repeat sales of the same properties, no new construction), it’s become the de facto decider of all things real estate.

Since 2000, single-family home values in the Boston area have increased approximately 54% but are off from their September 2005 high, when values were up 82% since the turn of this century. Prices increased earlier this year (presumably due to the tax credit programs) but are now back where they were, last October.

The irony is clear. In order to induce sales, the government gave buyers thousands of dollars in tax credits. The result was increased home prices. Now that there’s no incentives, prices have fallen.

Isn’t that a better thing?

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