Last Updated on Thursday, 31 July 2008 05:13

Is our market still in decline? or are we close to the bottom? I think I see some daylight. Little bright points that are illuminating a market change. You have to look hard to

Is our market still in decline? or are we close to the bottom? I think I see some daylight. Little bright points that are illuminating a market change. You have to look hard to read anything positive about the real estate market, but there are signs here and there that indicate that maybe, just maybe, we are close to or.....possibly- at the bottom.

I was reading the Boston Globe and saw this article about home prices in Boston increasing. In April and May Boston home prices increased .1% in April and 1% in May. These were the first increases seen in a year. Granted, these are modest gains and they come in the Spring, when the market typically is stronger than other times of the year.  But it supports what I have seen in our local home sale data over the last few months. We have hit a low in home prices and have even seen some modest increases over the last few months. Read the local report  There is definitely a change in the market that is clearly seen in the data.

David Blitzer, chairman of Standard & Poor's index committee, said Boston would recover from the housing slump sooner because home prices peaked and then began declining here much earlier than in other parts of the country. The view that Boston will be one of the first housing markets to recover seems to be a view widely held by economists.

What is difficult to tell is weather this is just short break in our market decline or if it is the bottom. What I do know is that prices have firmed up in our area. Sellers have lowered prices about as low as they are willing to go and they would rather stay in their home than lower their asking price.

Buyers are still waiting to see if prices decline further. So sales activity has been slow lately as everyone just sits and waits. This is what one would expect at the bottom. Lots of uncertainty and inaction. If the prices stop falling then buyers may become more confident that prices will not drop and may start buying again.  Prices are certainly affordable now and I have many buyers who can purchase a home now whereas only a year ago there was nothing they could afford. This is a very interesting time in the market cycle.

I don't think we will get any clear market direction until after thepresidential elections. So it will be a long 4 months.