We need to go a little beyond the headlines here: Though single family prices for Waltham declined somewhat since mid 2005, home values have actually increased 45% from 2000 to 2007: $275K to $400K. In terms of actual sales, 2007 was higher than 2006 and it represents the 5th highest on record as 280 homes sold.

Prices increased rapidly from 2000 to 2005; a hike such as this could not be sustained forever. Thus we have been in a period of adjustment. We should remember though that owning your own home is a long term event; it remains the best vehicle for most people to accumulate wealth.

Another interesting point is that in the year 2000 a combined 378 single families and condos sold; in 2007 it was a combined 584. Buyers are active.

We need to go beyond the data here! The median sale price for condominiums in Waltham shows an increase since 2000, especially to 2003. The number and price level of condo conversions that were done probably affected the increase. Condo prices in fact have also adjusted since 2005. This points out the need for careful analysis and specific knowledge of the local market when setting an asking price on a resale.

However, the market has been quite active as well for condos. And condos have provided and will continue to provide ownership opportunities at the first time buyer level as well as for lifestyle choices.

There are different expert opinions as to what residential real estate will do in 2008: go up, go down, or stay the same.

The “easy” loans of the past few years have caused some individual hardships and have resulted in a tightening of the rules for obtaining loans. However, loans are available for qualified buyers and, buyers have not disappeared. The job market continues to be healthy. Interest rates are still low. The important factor of inventory of homes for sale in our area has been trending downwards. These are all positive signs for the real estate market in 2008.

However, regardless of what we or others may think, what is more important is how the “public” feels about it. Call it public sentiment or confidence level.