Prices Hold Steady while People Still Buy

So I think I touched a nerve last time I mentioned that things in Massachusetts weren’t going as poorly as some people might want them to be. I tried to explain that I shared many of their options: I’ve continued to rent, and I think irresponsible lenders and homebuyers—not taxpayers—should be held accountable for the subprime mess. But that fact remains that in this part of the country, despite national market chaos, people are still buying houses.

I know the prices might seem ridiculous, but people are still paying them. Even before the collapse of Bear Sterns, people were prophesying some deflation, but it really hasn’t come together. Demand still appears to be supporting prices, and while fly-by-night lending looks to hurt math-skilled renters (like myself!) with a taxpayer bailout, houses are still being sold. And it’s not just a local phenomenon.

If prices were more than people were willing to pay—and believe me, no one’s getting anything without massive vetting and at least a 10% downpayment anymore—they’d be dropping. And they’re not, at least not in the places I watch. Consider these price reductions form Beacon Hill; other than the palatial but pretty obviously overvalued townhouse, there are only nominal cuts.

100 Pinckney St
Beacon Hill, MA 02114
5 beds, 3.5 baths.
4,516 sq. ft.
New Price: $3,795,000
Old Price: $3,995,000

68 Phillips St #9
Beacon Hill, MA 02114
1 bed, 1 bath
535 sq. ft.
New Price: $469,000
Old Price: $475,000

21 Beacon St #10B
Beacon Hill, MA 02108
1 bed, 1 bath
438 sq. ft.
New Price: $289,000
Old Price: $295,000