- I estimate that the total commissions collected by real estate firms for sales in Boston has decreased 24% (from $177MM to $142MM) this past year compared to the year October 7, 2004 to 2005. However, the decline in commissions has not been steady, with the sharpest decline this past year. I expect this to translate to market consolidation of brokerages.
- Looking at all property types, average sale prices and listing prices have not fallen significantly over the past year, and in fact have risen 5% to 7% over October 2004-2005 in Boston. Rather than affecting price, the market slowdown has most affected volume and the number of days it takes for a property to sell. This may not be true for all market segments, but it is at least superficially promising that value has not decreased.
I'd be interested to hear your comments on what you think this means.