A Realtor representing central Massachusetts towns like Westboro, Shrewsbury, and Northboro reports that despite rising prices, sales are dropping like fall leaves.

"Economic indicators showed we entered a buyer's market at the start of 2003, although no one dared call it that at the time," says Realtor Peter Bohush. "Since then, the market simultaneously got worse and better. Worse in that fewer homes sold and interest rates fluctuated. Better in that sale prices generally rose (although not in all towns.)

He explains, "In July, August and September of 2002 (the third quarter or Q3), 63 homes sold in Westboro at an average price of $439,747. This year during the same quarter, only 52 homes sold, a 17 percent decline. The average sale price this year was $492,476, a 12 percent increase of nearly $53,000. But the number of unsold homes also more than doubled, from 6 in Q3 last year to 14 in Q3 of 2003. Overall in Westboro, the market declined by about $2.1 million in just the third quarter.

"Shrewsbury showed a similar trend," he adds. "During the third quarter of this year, 127 single family homes sold in Shrewsbury, at an average sale price of $403,160. This was down 26 percent from the 172 sales during the same period last year. But the average price was up about 7.5 percent from last year's $374,584. Eighteen listed homes expired last year, while this year it nearly doubled to 33 homes unsold. The market in Shrewsbury declined by more than $13 million in the third quarter.

"In Northboro, both the number and average price of homes sold declined," says Bohush. "In Q3 of 2002, 55 homes sold at an average price of $481,740. Same time this year only 41 homes sold at an average of $401,330, a decline of more than $80,000. Home sales closed in the third quarter represent those that went under contract about 60 days prior, from May through July. Interest rates were at their historic lows during this period, bottoming out in July. There was never a better time in history to get a home loan. Yet home sales were down.

Bohush advises, "The market has spoken, folks. The numbers show that many sellers priced their properties beyond what buyers could afford or were willing to pay. Of course, this is a great area and many people want to move here. Well-priced homes continue to sell, and their prices will continue to rise. But the low-end of our local market is pushing up into the middle and high ends. First-time buyers find it difficult to purchase older homes, often fixer-uppers, priced in the mid-$300's."

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Published: October 30, 2003

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