The Norfolk Count Registry of Deeds quarterly report ending Dec. 2008 indicates the total dollar volume of sales was off 42.6% compared to the same quarter last year (note last December could have been inflated by large commerial transfers.)
Compared to the same quarter last year, the number of recorded deeds was down (11.8%) while the average sales price was down (34.8%.) The glimmer of good news was the decrease in average price was only off 4.2% from the last quarter (July-September, 2008). Are we reaching an end of declines or will this continue?
Here I've made a graph of the average sale price data for residential and commercial transactions where the price was greater than $1,000. While large transactions (especially commercial ones) can skew the average, it shows the general trend. Next quarter's numbers should be interesting to compare as the coming quarter showed the greatest decrease last year (from the previous quarter: $756,026 vs $587,931). Given the more recent trends, however, the next numbers may help signal if the bottom of sales price decreases in Norfolk County has been reached or if average prices will continue to decrease--like they have over the last few quarters.
Below are excerpts from the last
five quarterly reports from the Norfolk County Registry of Deeds site offered by William P. O'Donnell, Register of Deeds and Assistant Recorder of the Land Court.
Quarter Ending December, 2008
Total dollar volume of real estate sales in Norfolk County for the quarter period from October to December, 2008, settled at $894.5 million. A year to year comparison to the quarter October to December, 2007, shows this total value off 42.6%. The total number of 3115 deeds recorded during the October to December, 2008, quarter was down 11.8% compared to 2007, indicating that the market activity did not decline as sharply as values. The average sale price of deeds over $1,000 (both residential and commercial properties) fell to $494,469, a decline of 34.8% from the same quarter in 2007. Although the Norfolk County real estate market continues to reflect the severe problems that confront the region and the nation, the average price during the just completed quarter was off only 4.2% from the previous quarter – July to September, 2008.
Quarter ending September 30, 2008.
Total dollar volume of real estate sales in Norfolk County for the quarter period from July to September, 2008, settled at $1.34 billion, only slightly below the total from the immediately previous April to June quarter. A year to year comparison to the July to September, 2007, quarter, however, shows this total value off 36%. The total number of 3,887 deeds recorded during the July to September, 2008, quarter was down 10%, which actually reflected an improvement over the sharp 46% decline in the April to June quarter’s year to year look back. This leveling in the number of deeds recorded indicates some resilience in the overall activity of the Norfolk real estate market, although the average sale price of deeds over $1,000 (both residential and commercial properties) fell to $516,189, a 28% decrease from the same quarter in 2007. At least some of this decline is most likely attributable to the strength of the previous year’s quarter’s more numerous higher end commercial transactions. This average price was off only 8% from the April to June, 2008, quarter.
Quarter ending June 2008.
Total dollar volume of real estate sales in Norfolk County for the quarter period from April, 2008 through June, 2008 stood at $1.38 billion. This represents a 16% decline from the comparable period last year. The total number of 3868 deeds recorded during the period was down 46% from the previous year’s April to June quarter. This sharp decline in the number of deeds recorded when viewed in light of the much more modest decline in total value of real estate conveyed indicates the continuing relative strength of the higher end real estate market. The average sale price of deeds over $1,000 (both residential and commercial properties) fell to $560,251, a 33% decrease from the same quarter in 2007. This decline is most likely the result of fewer higher end commercial transactions. However, this average price was only 4.5% less than the average price from the previous quarter, January to March 2008, and only 2% less than the average for the April to June quarter of 2006, which could be an indication that price declines have leveled off.
Quarter Ending March 2008.
Total dollar volume of real estate sales in Norfolk County for the third quarter period January, 2008 through March, 2008 was just short of $875 million. This represents a 38.5% decline from the comparable period last year in dollar volume. The total number of 2956 deeds recorded during the period shows a decline of 18% from the previous year’s quarter. This decline is only slightly higher than the decline in the second quarter report (Oct. to Dec., 2007 declined 17% year to year) and may indicate that we are at, or near, the slowest point of the real estate market transaction slump. The average sales price of deeds over $1,000 (both residential and commercial properties) fell to $587,931, a 12% decrease from the third quarter of fiscal year 2007. This decline is most likely the result of the higher number of low end sales driven in part by the rising rate of foreclosures.
Quarter Ending December 2007
Total dollar volume of real estate sales in Norfolk County for the second quarter period October, 2007, through December, 2007, was just short of $1.6 billion. This represents a 9% increase from the comparable period last year in dollar volume, although the total number of 3533 deeds recorded during the period shows a decline of 17% from the previous year’s quarter. The average sales price of deeds over $1,000 (both residential and commercial properties) rose to $756,026, a 30% increase over the second quarter of fiscal year 2007 when the average price was $580,660. This strong increase is most likely the result of the sale of some larger commercial properties in Norfolk County as well as the continuing trend of medium to higher priced properties selling at a better pace than those at the lower end of the market.
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