"Home prices and sales on rise in Boston area," Boston Globe 8-26-09

"Home prices in Greater Boston have increased for three straight months and the number of houses selling is up sharply, suggesting that the long housing slump is over," according to an article in the Boston Globe on 8-26-09.

If buyers feel increased confidence that the market has bottomed or is bottoming out, this may suggest a busy fall market with buyers also trying to close before November 30th to take advantage of the $8,000 tax credit. Average time from accepted offer to closing is ~60 days although, depending on the bank, it's possible to close in 45 days. So, if a buyer puts a home under agreement by end of September to middle of October it should be possible to close by Nov. 30th.

Ironically, there is still a shortage of inventory in the $300s and low $400s price ranges, which is where most first time buyers are looking. This may lead to some competing bid situations. Perhaps sellers will get the message and start selling so they can trade up. This could even fuel the market in stagnant higher price ranges as these sellers trade up.

Today's lower prices are a boon to buyers, who can buy for 10%++ less than a few years ago. And for sellers trading up, there is a silver lining. Guess what? It's possible that what you're trading into has come down more in value than what you're selling. So, don't lament the 'loss' you're taking on the selling end when you're gaining on the buying end. You may very well come out ahead, with more house and equity for the money than if you had traded up when prices were higher.

Read the full Boston Globe article at http://www.boston.com/business/articles/2009/08/26/reports_suggest_mass_home_buyers_overcoming_qualms/