Home prices continued to fall in the North Quabbin Region of Massachusetts during the first half of 2010.
The average price of a single-family home sold in the nine-town North Quabbin Region* between January 1, 2010 and June 30, 2010 was $129,893. That's 8% lower than the average price in 2009 and a whopping 36% lower than the average price in 2005.
As the chart above shows, 2010 will mark the fifth consecutive year of declining home prices in Orange, Athol and the surrounding towns if prices stay at current levels.
Last year the average price of a single-family home sold in the North Quabbin Region was $141,405. As recently as 2007, the average price was $188,049. The regional average reached its high of $203,151 in 2005.
There is some good news for sellers. The average single-family home sold in the North Quabbin Region during the first half of 2010 was on the market for 143 days before it went under contract. That's the lowest number of days on the market since the boom years of 2005 and 2006.
With homes selling faster, why are home prices still going down?
One answer is that the mix of buyers in the first half of 2010 skewed the average downward. The $8,000 first-time homebuyer tax credit brought out buyers looking for starter homes. The abundance of foreclosed properties enticed bargain hunters while higher-priced homes generated less interest.
* Note: The North Quabbin Region of Massachusetts includes the towns of Athol, Erving, New Salem, Orange, Petersham, Phillipston, Royalston, Warwick and Wendell. Statistics analyzed in this post are derived from information supplied to and compiled by the MLS Property Information Network, Inc.
