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So Called “Historic Drop” in Real Estate Sales for July 2010
September 2, 2010 by cherylflynn · Leave a Comment
One of the things students learn in college, when presenting data, is to be honest, accurate and clear about communicating a point effectively. Charts, graphs and information can easily be distorted in order to send a message. During the month of July, real estate sales appeared to have experienced a steep decline. However, the media failed to mention the reason for the decline which was the June 30, 2010 expiration of the tax credits, $8,000 and $6,500.
Once the tax credits had expired, there was suddenly nothing to energize buying and selling of real estate but the natural laws of supply and demand. So, of course real estate prices dropped precipitously, which made it seem like a “historical” drop in prices if taken out of context.
In fact, according to the Massachusetts Multiple Listing Service, if you look at sale from a year to year comparison of from the period of January to August, 2009 – 2010 for a few towns in Middlesex County, there was actually a rise in single family homes sold!
2010 2009 %Change
Acton 130 119 9%
Bolton 42 30 40%
Groton 105 86 22%
Harvard 64 49 31%
Lexington 248 205 21%
Littleton 58 41 41%
Sudbury 113 104 9%
Townsend 48 43 12%
Wayland 93 78 19%
Westford 105 108 16%
Clarity and ethics can certainly be compromised by considering facts taken out of the larger context. It is a good thing to keep in mind when you hear or see news these days.
