Anectdotal Evidence and Local Statistics Indicate We Haven't Reached the Bottom Yet In and Around Boston, MA

Law and business clients often ask, "Have we reached the bottom, yet?" The number of bankruptcy inquiries, loan workout requests, short-sale questions, employment termination calls, and divorce consultations our law firm is receiving makes me believe we have not reached the bottom yet.

Local economic statistics referenced in three recent Boston Business Journal's (BBJ) articles make me further believe that my anecdotal evidence isn't merely anecdotal. The BBJ's, May's home sales near 20-year low, adds,

This report shows that home sales are still slow in Massachusetts. In the late 1990s and into the early part of this century, the state was averaging over 5,000 single-family home sales during the month of May. Last month, we saw fewer than 3,300 home sales, making it the lowest sales pace for the month of May in almost two decades,” said Timothy M. Warren Jr., chief executive officer of The Warren Group, in a statement.

Further, a BBJ article from last week, Mass. foreclosures slipped 59% in May indicates that while foreclosure deeds dropped compared to last year,

...the number of foreclosure petitions filed in May was six times the 390 petitions filed the same month a year ago. Foreclosure petitions mark the start of the foreclosure process in Massachusetts. In addition, the number of foreclosure petitions climbed 15.7 percent from 2,013 in April.

And finally, another BBJ article from last week, Mass. unemployment rate hits 8.2 percent, adds:

Massachusetts’ unemployment rate inched up to 8.2 percent in May, as local employers reported 111,100 fewer workers on their payrolls when compared to the year-earlier period.

No, I'm afraid it appears we have not reached the bottom yet and perhaps we may not for some time...