I would vote yes. According to The Warren Group, "Massachusetts home sales fell by double-digit percentages in October, and the median sale price of single-family homes dropped 6.9 percent compared to October 2005..." And there's more: "condominium sales dropped 19.5 percent in October, down to 2,226 units sold from 2,765 during the same month in the previous year. The median condominium sale price dropped 4.8 percent to $261,750 from $275,000."

This does not bode well for homeowners who have been hoping for continued growth in home values, which would in turn, allow them to tap into equity and refinance their way out of adjustable mortgages. It doesn't sound like that can happen any time soon.

In a press release, Timothy Warren, Jr. , the CEO of the Warren Group had this to say:

“While we expect the market to stabilize sometime in 2007, it appears as though the housing sector is undergoing a significant correction.”

I have no idea what why he expects the housing market will stabilize sometime in 2007. If anyone has a clue, I encourage you to comment.