Boston bubble bursting...

Dean Foust

So much attention has been paid on the softness in California housing, and here at BusinessWeek, two of my colleagues have an article in the current issue talking about the weakness in the Washington, D.C. suburbs. But if you want to talk about a market in freefall, look at Boston. This article in the Boston Globe (registration required, but it's free) quotes a Realtor who dropped the price of one luxury home by $550,000, or 22%. And it quotes a couple who originally listed their home at $899,000, reduced it four times to $800,000 -- and sold it for a price that they won't disclose (think, much lower). The sellers all complain about "vultures" who are making what they consider ridiculous low ball offers. But they weren't complaining at the top, when buyers were having to pay above asking just to get a hearing. That's the free market isn't it?

To continue reading this article you must be a Bloomberg Professional Service Subscriber.