How is Massachusetts performing? This happens to be the question of many since the state is the most populous of the six New England states. Besides it ranks third among U.S. states in overall population density and fourth in GDP per capita. On the other hand, as stated by the United States Bureau of Economic Analysis’s estimation, Massachusetts’s gross state product in 2007 was US $351 billion and the Per capita personal income in 2006 was US$47,702, making it the 4th highest in the nation. Well, the condition of the state is no more like the past and it has shown rapid decline owing to the downturn and its perilous effects.
According to the appraisal of both Warren Group and Massachusetts Association of Realtors, the real estate sector has shown a great deterioration in the recent months and it will, perhaps, be not wrong to state that the situation is out of the frying pan into the fire. As stated by Warren Group, median selling price for a single family home in Massachusetts fell 18.3 percent last month on a year-to-year basis and it, as a result, proved to be the worst February for condo sales in a period of 13 years.
In this regard Timothy M. Warren Jr., Chief Executive of the Warren Group, issued a statement where it was clearly stated, “Distressed property sales have become a bigger share of the market and will continue to be a factor going forward as lending institutions try to reduce their portfolio of real estate-owned property.”
As per the Massachusetts Association of Realtors, the February median selling price for a Massachusetts single-family home was $252,500 and this indicated a clearly defined decrease of 18.5 percent when compared with $310,000 in February 2008.
However, Gary Rogers, President of the Massachusetts Association of Realtors, is still confident of a reversal and stated in a statement, “We continue to be hopeful that sales will increase in the coming months as buyers take advantage of the combination of low prices, low interest rates, and the $8,000 federal first-time homebuyer tax credit that expires on Dec. 1, 2009.” “Members have been seeing an increase in open house attendance over the past weeks, and this is something that should continue through the spring, especially if the economy starts to improve.”
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