Statewide:

Single family real estate prices have shown their largest decline in year over year prices (12.3%) since the tracking of this stat began in 2003.  Median prices dropped from $360,000 (July 2007) to $320,000 (July 2008).  Interestingly though, the number of sales fell only 6.4%, the lowest decline of that measure since August 2007.

Clearly the pricing data is not good, but I think we are starting to approach the bottom in terms of pricing.  Inventory is shrinking, now currently standing at 8.8 months of supply, as buyers seem to be sensing an opportunity and entering the market.  The federal housing stimulus package has corrected some (hopefully, enough) of the financing and credit woes and the $7500 1st time buyer credit will have some incentivizing effect to get 1st time buyers back in the market.

Foreclosures are, and will continue to be, a drag on the market and that will keep us at or near bottom for a longer period than otherwise may be expected, but I believe we are starting to see some light at the end of the tunnel in Massachusetts. 

Greater Boston Region: 

Overall the Great Boston region is stronger than the statewide market and Boston proper is stronger still.  In Greater Boston, single  

Source: Mass. Association of Realtors monlthly housing release