by Calculated Risk on 10/26/2005 05:23:00 AM

The Boston Herald reports: Housing prices weaken

...median house and condo sale prices also fell – something not directly affected by seasonal issues.

Additionally, the number of unsold houses and condos on the market rose to 56,016 last month – apparently the highest inventory ever recorded.

John Bitner, chief economist at Eastern Bank, said the latest data "very well may confirm that (the market has) passed the peak."

He said that as housing booms die, prices rise year over year for a time, but fall month over month – exactly what yesterday's report showed.

In Boston, CPI less Shelter has increased 8.7% over the last 12 months. Therefore, in real terms and using the 4% YoY nominal increase reported in the story, house prices have fallen in Massachusetts by almost 5%.

I believe Bitner is correct, the market has passed the peak.